Financial Performance - Xiabuxiabu reported a significant increase in revenue, achieving HK$1.2 billion for the first half of 2024, representing a 15% year-over-year growth[16]. - The Group's revenue decreased by 15.9% from RMB2,846.1 million in the first half of 2023 to RMB2,394.5 million for the Reporting Period[22]. - Sales from Xiabuxiabu decreased by 4.6% from RMB1,377.0 million in the first half of 2023 to RMB1,313.1 million for the Reporting Period[22]. - Sales generated from Coucou decreased by 28.3% from RMB1,401.5 million in the first half of 2023 to RMB1,004.5 million for the Reporting Period[22]. - The Group recorded a pre-tax loss of RMB267.0 million for the Reporting Period, compared to a pre-tax profit of RMB7.0 million for the same period in 2023[22]. - The Group's loss for the period was RMB273.7 million, a significant decrease from a profit of RMB2.1 million in the same period last year[62]. - The total comprehensive loss attributable to owners of the Company was RMB272.8 million, compared to a profit of RMB2.4 million in the previous year[63]. - Revenue for the six months ended June 30, 2024, was RMB 2,394,528, a decrease of 15.8% compared to RMB 2,846,121 for the same period in 2023[162]. - Loss before tax for the period was RMB 267,000, compared to a profit of RMB 7,038 in the same period last year[162]. - Loss for the period attributable to owners of the Company was RMB 272,820, a significant decline from a profit of RMB 2,406 in 2023[162]. Customer Metrics - The company expanded its user base, reaching 5 million active customers, which is a 20% increase compared to the previous year[16]. - Average spending per customer increased to RMB 59.6 in the first half of 2024, compared to RMB 58.4 in the same period of 2023[34]. - The customer turnover rate decreased from 2.4x in the first half of 2023 to 2.3x in the first half of 2024, indicating reduced customer traffic[36]. - Average spending per customer in Tier 1 cities fell to RMB 124.3 in H1 2024 from RMB 139.3 in H1 2023, a decline of 10.0%[42]. - Premium members contributed RMB 540 million in consumption during this period, with an average spending of RMB 432 and a consumption frequency of 4.9 times, which is 2.7x higher than the 1.8 times for ordinary members[52]. Expansion Plans - Xiabuxiabu plans to open 30 new locations across China by the end of 2024, aiming to increase market penetration[16]. - In the first half of 2024, the Group opened 41 new Xiabuxiabu restaurants and 11 new Coucou restaurants[25]. - The Group operated a total of 1,072 restaurants worldwide by the end of June 2024, including 1,051 in Mainland China[20]. - New restaurant openings will prioritize lightweight design and focus on tier 1 markets, with a more stable approach to expansion[48][49]. Product Development - A new product line featuring healthier menu options is set to launch in Q3 2024, responding to consumer demand for healthier dining choices[16]. - The delivery business is rapidly expanding, with new products like Teriyaki Beef Rice and Tomato Fried Pork and Beef Hotpot introduced to capture the snack and cooked food market[48][49]. - Coucou has launched new soup base flavors and tea beverages, enhancing menu variety and targeting young customers through exclusive activities[50][51]. - A new weekday lunch set meal was introduced in May 2024 to cater to the office worker demographic, focusing on value for money and quick service[50][51]. Financial Management - The cost of raw materials and consumables as a percentage of revenue decreased from 37.4% in the first half of 2023 to 34.6% in the Reporting Period, benefiting from increased strategic suppliers and centralized procurement[67]. - Staff costs increased during the Reporting Period, reflecting higher rates of various expenses compared to the first half of 2023[68]. - The Group's total staff cost was RMB814.1 million, representing approximately 34.0% of total revenue, down from RMB929.9 million in June 2023[103]. - The Group's gearing ratio was 39.1% as of June 30, 2024, calculated by dividing bank and other borrowings by total equity[100]. Market Challenges - The Group's overall performance was impacted by weaker consumer spending in the first half of 2024 compared to the post-pandemic rebound in 2023[36]. - The catering industry is facing challenges such as rising operational costs and increasing competition, with consumers becoming more cautious about dining expenditures[59]. - The Group's revenue decreased by 15.9% from RMB2,846.1 million in the first half of 2023 to RMB2,394.5 million in the Reporting Period due to intense competition and consumption downgrade in the catering industry[64]. Corporate Governance - The company complied with the Corporate Governance Code, except for a deviation regarding the separation of roles between the chairman and chief executive officer[144]. - The board comprises one executive director, two non-executive directors, and three independent non-executive directors, ensuring a strong independence element[145]. - The company will continue to review its corporate governance practices to maintain high standards[144]. Membership and Loyalty Programs - The company is actively promoting its privilege membership business to drive performance growth[47]. - The membership system will be leveraged to create customized discounts for members, enhancing customer loyalty and driving growth[50][51]. - The Group achieved over RMB 140 million in premium membership card sales in the first half of 2024, with average daily card sales per restaurant increasing from 2.9 cards in 2023 to 5.2 cards, a growth of 1.8x[52]. Cash Flow and Assets - Cash and cash equivalents at the end of the period were RMB 310,032,000, up from RMB 175,705,000 in the previous year[176]. - The Group has unused banking facilities amounting to RMB 353 million, ensuring adequate resources for operational continuity over the next 12 months[181]. - Total assets less current liabilities as of June 30, 2024, were RMB 1,819,296, down from RMB 2,231,466 as of December 31, 2023[166].
呷哺呷哺(00520) - 2024 - 中期财报