Financial Performance - The company reported a revenue of RMB 6,073.6 million for the year ended December 31, 2024, representing a 1.5% increase from RMB 5,985.9 million in the previous year[6]. - The annual profit decreased by 90.7% to RMB 44.8 million from RMB 480.0 million in the previous year[6]. - The core operating profit for the year was RMB 252.3 million, down from RMB 632.1 million in the previous year[3]. - The total comprehensive income for the year was RMB 104,787,000, down from RMB 504,335,000 in 2023, reflecting a decrease of about 79.2%[78]. - The company reported a net profit of RMB 44,800,000 for 2024, a significant decrease from RMB 479,998,000 in 2023, reflecting a decline of about 90.6%[78]. - The basic and diluted earnings per share for 2024 were both RMB 0.04, down from RMB 0.31 in 2023[77]. - The non-GAAP operating profit for the total segments in 2024 was RMB 773,455 thousand, down from RMB 1,076,967 thousand in 2023, indicating a decrease of about 28.2%[92]. Revenue Breakdown - Revenue from the brand "Tai Er" decreased by 1.4% to RMB 4,412.8 million, accounting for 72.7% of total revenue, down from 74.8% in 2023[17]. - Revenue from "Song Hot Pot" increased by 11.0% to RMB 895.0 million, with the number of restaurants expanding from 62 to 80[18]. - Revenue from Jiu Mao Jiu decreased by 13.2% from RMB 629.6 million in 2023 to RMB 546.2 million in 2024, primarily due to a reduction in the number of self-operated restaurants from 77 to 70[19]. - Restaurant operating revenue decreased by 3.7% from RMB 5,066.5 million in 2023 to RMB 4,880.4 million in 2024, with same-store sales declining due to external environment changes and market competition[20]. - Takeaway business revenue increased by 15.8% from RMB 901.2 million in 2023 to RMB 1,043.4 million in 2024, attributed to the expansion of the restaurant network and the introduction of satellite takeaway stores[22]. Operational Changes - The company opened 150 new restaurants in 2024, including 95 Taier restaurants and 28 Song Hotpot restaurants[7]. - The total number of restaurants increased to 807 in 2024 from 726 in 2023[8]. - The company closed 69 restaurants in 2024 due to lease expirations and underperformance[7]. - The company plans to optimize restaurant layouts and focus on quality rather than expansion, with no specific store opening targets for 2025[15]. - The supply chain center in Nansha, Guangzhou, is expected to be operational by 2025, aimed at stabilizing supply and reducing food safety risks[15]. Customer Metrics - Same-store sales for Taier decreased by 18.8%, Song Hotpot by 31.6%, and Jiumaojiu by 13.0%[4]. - The average customer spending per visit decreased for Taier to RMB 71 from RMB 75, for Song Hotpot to RMB 103 from RMB 113, and for Jiumaojiu to RMB 55 from RMB 58[4]. - The overall table turnover rate for "Tai Er" dropped to 3.5 from 4.1 in 2023[12]. - The number of same-store locations for "Tai Er" increased to 448 in 2024 from 313 in 2023[14]. Cost and Expenses - Employee costs rose by 13.1% from RMB 1,544.1 million in 2023 to RMB 1,747.0 million in 2024, primarily due to a comprehensive salary increase implemented in the second half of 2023[25]. - Depreciation of right-of-use assets increased by 18.8% from RMB 485.3 million in 2023 to RMB 576.5 million in 2024, mainly due to an increase in the number of restaurants[26]. - Financing costs increased by 19.5% from RMB 92.9 million in 2023 to RMB 111.0 million in 2024, primarily due to increased lease liabilities from network expansion[35]. - Other income decreased by 45.1% from RMB 126.7 million in 2023 to RMB 69.6 million in 2024, mainly due to the expiration of VAT rebates and reduced government subsidies[23]. - Total other expenses rose to RMB 470,751,000 in 2024, compared to RMB 438,588,000 in 2023, reflecting a 7.3% increase[99]. Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.02 per share, totaling approximately HKD 28.0 million, and a special dividend of the same amount to celebrate its 30th anniversary[6]. - The proposed final dividend is HKD 0.02 per share and a special dividend of HKD 0.02 per share for the year ended December 31, 2024[62]. - The company reported a total of RMB 14,038,000 thousand in expected revenue from existing contracts as of December 31, 2024, related to customer loyalty programs[85]. Financial Position - Total assets decreased from RMB 6,520.9 million as of December 31, 2023, to RMB 6,488.6 million as of December 31, 2024[50]. - Total liabilities increased from RMB 3,163.9 million as of December 31, 2023, to RMB 3,337.5 million as of December 31, 2024[50]. - The debt-to-asset ratio rose from 48.5% as of December 31, 2023, to 51.4% as of December 31, 2024[50]. - Cash and cash equivalents decreased by 54.3% from RMB 1,326.9 million as of December 31, 2023, to RMB 607.0 million as of December 31, 2024[51]. - The total equity decreased to RMB 3,151,152 thousand in 2024 from RMB 3,357,016 thousand in 2023, a decline of approximately 6.1%[80]. Governance and Management - The company appointed a new CEO effective March 1, 2024, while the previous CEO remains as chairman and executive director[144]. - The audit committee, composed of three independent non-executive directors, has reviewed the audited consolidated financial statements for the year ending December 31, 2024[146]. - The audit committee confirmed that the financial statements fairly reflect the company's financial position and performance according to applicable accounting standards[147]. - The company emphasizes maintaining high standards of ethics, transparency, and accountability in its operations[142].
九毛九(09922) - 2024 - 年度业绩