海伦司(09869) - 2025 - 中期业绩

Financial Summary Helen's International Holdings Limited reported unaudited consolidated results for the six months ended June 30, 2025, with revenue of RMB 291.1 million and profit attributable to owners of RMB 50.3 million Interim Results Overview Helen's International Holdings Limited reported unaudited consolidated results for the six months ended June 30, 2025, with revenue of RMB 291.1 million and profit attributable to owners of RMB 50.3 million Key Financial Indicators | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Revenue | 291,145 | 441,294 | | Profit before income tax | 51,899 | 69,459 | | Profit for the period attributable to owners of the Company | 50,331 | 69,677 | Business Operations Overview The group expanded its tavern network to 580 stores by June 30, 2025, with a focus on upgrading direct-operated stores and improving operational efficiency Tavern Network Distribution The group's tavern network expanded from 560 stores at the beginning of 2025 to 580 by June 30, 2025, with a plan to restart direct-operated stores in May 2025 - As of June 30, 2025, the total number of taverns increased from 560 at the beginning of 2025 to 580, further increasing to 583 by August 26, 2025[4] - The direct-operated tavern plan was relaunched in May 2025, aiming to upgrade store environments, enhance customer experience, and reduce costs by opening new stores in new markets and iterating existing ones[4] Tavern Network by Type and City Tier | Tavern Type | August 26, 2025 | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Mainland China | | | | | | Tier 1 City Taverns | 36 | 36 | 35 | 37 | | Tier 2 City Taverns | 140 | 140 | 146 | 172 | | Tier 3 and Below City Taverns | 402 | 399 | 375 | 323 | | Taverns outside Mainland China | 5 | 5 | 4 | 5 | | Total | 583 | 580 | 560 | 537 | | Direct-operated Taverns | 109 | 109 | 112 | 187 | | Franchised Taverns | 39 | 39 | 42 | 67 | | "Hi-Beer Partner" Taverns | 435 | 432 | 406 | 283 | | Total | 583 | 580 | 560 | 537 | Operating Metrics Average daily turnover per direct-operated and franchised tavern increased to RMB 8.3 thousand in H1 2025, while "Hi-Beer Partner" taverns saw a decrease Average Daily Turnover per Tavern (RMB thousands) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Average Daily Turnover per Direct-operated and Franchised Tavern | | | | Tier 1 Cities | 9.0 | 8.7 | | Tier 2 Cities | 8.8 | 7.4 | | Tier 3 and Below Cities | 7.7 | 7.2 | | Overall | 8.3 | 7.5 | | Average Daily Turnover per "Hi-Beer Partner" Tavern | | | | Premium Stores | 5.0 | 6.1 | | Quality Stores | 4.0 | 5.3 | | Boutique Stores | 3.6 | 4.7 | | Overall | 4.2 | 5.4 | Same-Store Performance Same-store average daily turnover decreased by 17.6% in H1 2025, but store-level operating profit margin improved in Q2 due to enhanced product gross margin and cost reductions - Same-store average daily turnover decreased by 17.6% in H1 2025, from RMB 10.9 thousand in 2024 to RMB 9.0 thousand[10] - The store-level operating profit margin for same-stores in Q2 2025 improved compared to the same period last year, driven by enhanced product gross margin, reduced rental costs, and improved labor efficiency[9] - The company is actively implementing measures to restore same-store performance, including deepening partner incentives, strengthening organizational structure, optimizing product matrix, and enhancing marketing systems[9] Same-Store Operating Metrics (RMB thousands) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Number of Same-Stores | 142 | - | | Same-Store Turnover | 229,239.53 | 279,116.30 | | Same-Store Turnover Growth Rate (%) | -17.9 | - | | Same-Store Average Daily Turnover | 1,274.40 | 1,546.22 | | Same-Store Average Daily Turnover Growth Rate (%) | -17.6 | - | | Same-Store Average Daily Turnover per Store | 9.0 | 10.9 | | Same-Store Average Daily Turnover per Store Growth Rate (%) | -17.6 | - | Contribution Gross Profit from Signature Products Contribution gross profit margins for both Helen's own-brand and third-party alcoholic beverages increased in H1 2025, driven by supply chain management and economies of scale - Contribution gross profit margin for own-brand alcoholic beverages increased from 78.3% in 2024 to 80.2% in 2025[12] - Contribution gross profit margin for third-party brand alcoholic beverages increased from 53.7% in 2024 to 57.8% in 2025[12] - The improvement in contribution gross profit margin is primarily attributed to enhanced scientific supply chain management capabilities and brand effects from economies of scale[11] Contribution Gross Profit and Margin (RMB thousands) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | All Helen's Own-Brand Alcoholic Beverages | | | | Contribution Gross Profit | 73,777 | 124,458 | | Contribution Gross Profit Margin (%) | 80.2% | 78.3% | | All Third-Party Brand Alcoholic Beverages | | | | Contribution Gross Profit | 28,014 | 42,773 | | Contribution Gross Profit Margin (%) | 57.8% | 53.7% | Financial Performance Analysis In H1 2025, the company's revenue decreased to RMB 291.1 million, but it achieved a net profit of RMB 50.3 million, with future plans to expand direct-operated stores and explore new business models Performance Review and Outlook H1 2025 revenue decreased to RMB 291.1 million due to fewer existing stores and lower same-store daily sales, yet the company achieved RMB 50.3 million in net profit and plans future network expansion and new model exploration - H1 2025 revenue was RMB 291.1 million, a decrease from RMB 441.3 million in H1 2024, primarily due to a reduction in the number of existing stores and lower same-store daily sales[13] - Profit for the period attributable to owners of the Company was RMB 50.3 million, demonstrating strong profitability despite a weak market[13] - Looking ahead, the company plans to solidify and expand its direct-operated tavern network, develop its franchise model through optimizing the "Hi-Beer Partner" model, and explore new concepts such as "third space" taverns[14] Revenue Analysis H1 2025 revenue decreased by 34.0% to RMB 291.1 million, primarily due to fewer existing stores and lower same-store daily sales, with a shift in revenue mix - Revenue decreased by 34.0% year-on-year to RMB 291.1 million, mainly due to a reduction in the number of existing stores and lower same-store daily sales[15] - Revenue from franchised operations decreased, but revenue from selling products to "Hi-Beer Partner" taverns increased, partially offsetting the decline in franchised service revenue[15] Revenue by Source (RMB thousands) | Revenue Source | 2025 Revenue (RMB'000) | 2025 % of Total Revenue | 2024 Revenue (RMB'000) | 2024 % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Helen's Own-Brand Products | 128,264 | 44.1 | 222,568 | 50.4 | | Third-Party Brand Alcoholic Beverages | 48,462 | 16.6 | 79,692 | 18.1 | | Other Products and Revenue | 6,400 | 2.2 | 8,674 | 2.0 | | Subtotal Direct-operated Business Revenue | 183,126 | 62.9 | 310,934 | 70.5 | | Revenue from Franchised Operations | 108,019 | 37.1 | 130,360 | 29.5 | | Total | 291,145 | 100 | 441,294 | 100 | - Other income increased by 250.0% to RMB 0.7 million, primarily due to rental income generated from leasing out certain office building assets[18] Cost and Expense Analysis In H1 2025, the company's various costs and expenses significantly decreased, including raw materials, employee benefits, depreciation, short-term leases, energy consumption, travel, listing expenses, advertising, and other expenses, primarily due to reduced revenue, fewer employees, optimized tavern network adjustments, and refined management - Cost of raw materials and consumables used decreased by 27.1% to RMB 116.1 million, mainly due to reduced revenue and quantity of raw materials required[19] - Employee benefits and human resources service expenses decreased by 36.2% to RMB 61.6 million, primarily due to a reduction in the number of employees[20] - Depreciation of right-of-use assets decreased by 47.3% to RMB 16.7 million, and depreciation of property, plant, and equipment decreased by 50.6% to RMB 15.9 million, mainly due to lease terminations and a reduction in the number of taverns[21][22] - Short-term lease and other related expenses decreased by 47.6% to RMB 9.7 million, energy consumption expenses decreased by 50.5% to RMB 4.8 million, and advertising and promotion expenses decreased by 72.8% to RMB 2.2 million, all primarily attributable to tavern network optimization, fewer employees, and refined management[25][26][29] - There were no secondary listing expenses in H1 2025, compared to RMB 12.2 million in the same period of 2024[28] - Other net losses amounted to RMB 4.2 million, primarily including a gain of RMB 3.5 million from tavern optimization adjustments and foreign exchange losses of RMB 8.0 million[32] - Finance income decreased to RMB 19.2 million, mainly due to a reduction in bank deposit amounts; finance expenses decreased by 37.7% to RMB 3.8 million, primarily due to a decrease in lease liabilities[33][34] Profit and Taxation Profit before income tax for H1 2025 was RMB 51.9 million, with the profit margin increasing to 17.8%, while income tax expense was RMB 1.6 million due to expired deferred tax assets - Profit before income tax was RMB 51.9 million (H1 2024: RMB 69.5 million), with the profit before income tax margin increasing from 15.7% to 17.8%[35] - Income tax expense was RMB 1.6 million (H1 2024: income tax credit of RMB 0.2 million), primarily due to the expiration of unused tax losses previously recognized as deferred tax assets[36] Assets, Liabilities and Liquidity The company's assets saw a decrease in property, plant, and equipment but an increase in investment properties, while liabilities decreased due to fewer leased taverns, maintaining stable liquidity Asset Position Property, plant, and equipment decreased to RMB 180.0 million, while investment properties increased to RMB 56.9 million, reflecting asset reclassification and rental income generation - Property, plant, and equipment decreased to RMB 180.0 million, mainly due to depreciation and partial reclassification to investment properties[37] - Investment properties increased to RMB 56.9 million, primarily due to further leasing out office building assets[40] - Inventory balance remained largely stable at RMB 21.3 million, but inventory turnover days increased from 23.3 days to 32.1 days[45] - Prepayments, deposits, and other receivables decreased to RMB 92.4 million, mainly due to a reduction in rental deposits[46] - New financial assets at fair value through profit or loss of RMB 55.0 million were added, used to optimize capital allocation by purchasing low-risk bond products[48] Liability Position Lease liabilities decreased to RMB 125.8 million due to fewer taverns, and trade payables decreased but with extended turnover days, indicating improved supplier management - Lease liabilities decreased to RMB 125.8 million, primarily due to a reduction in the number of taverns[50] - Trade payables decreased to RMB 25.8 million, mainly due to reduced procurement volumes resulting from lower revenue[51] - Trade payables turnover days increased from 34.3 days to 42.3 days, indicating improved supplier management capabilities under refined operational strategies[51] - Other payables and accrued expenses decreased to RMB 9.2 million, primarily due to reduced product procurement[52] Liquidity and Capital Resources Cash and bank balances decreased to RMB 663.3 million due to dividend payments, but the company maintains stable liquidity and expects to fund future expansion through operating income and potential financing - Cash and bank balances decreased to RMB 663.3 million (December 31, 2024: RMB 806.4 million), primarily due to the payment of the 2024 final dividend[49] - The company maintains a stable liquidity position and has sufficient available bank facilities[53] - Future working capital is expected to be funded by tavern operating income, with potential additional funding through equity issuance or debt financing to support business expansion[54] Indebtedness and Capital Structure The company incurred RMB 30.0 million in new secured bank borrowings, with total capital expenditure decreasing to RMB 3.9 million, reflecting a shift towards an asset-light platform model - As of June 30, 2025, new secured bank borrowings of RMB 30.0 million were incurred[55] - Total capital expenditure decreased to RMB 3.9 million, primarily due to the group's active transformation towards an asset-light platform company model[59] - The capital-to-debt ratio was 3.0% (June 30, 2024: nil)[60] - As of June 30, 2025, there were no significant contingent liabilities or capital commitments[57][58] Corporate Governance and Other Important Matters The company manages foreign exchange risks, has no significant investments or litigation, maintains competitive employee policies, and generally complies with corporate governance codes, with a proposed interim dividend Foreign Exchange Risk and Asset Pledges The company faces foreign exchange risk from HKD and USD denominated assets without hedging, and certain buildings are pledged for bank borrowings - The company is primarily exposed to foreign exchange risk from assets denominated in HKD and USD, with no hedging activities undertaken during the reporting period[61] - As of June 30, 2025, certain buildings were pledged for bank borrowings[62] Significant Investments, Acquisitions and Disposals The group made no significant investments, acquisitions, or disposals during the reporting period and has no specific plans for major investments, while continuously seeking new business opportunities - During the reporting period, the group did not undertake any significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures[63] - Apart from the expansion plans disclosed in the prospectus, there are no specific plans for major investments or acquisitions, but the company will continue to seek new business development opportunities[63] Employees and Remuneration Policy As of June 30, 2025, the company had 576 employees and 814 outsourced personnel, offering competitive remuneration, performance bonuses, career development, and training - As of June 30, 2025, the company had 576 employees and 814 outsourced personnel[64] - The company offers competitive remuneration and benefits, discretionary performance bonuses, career development paths, and talent training systems[64] - Total employee benefits and human resources service expenses amounted to RMB 61.6 million[64] Compliance with Corporate Governance Code The company complied with all applicable Corporate Governance Code provisions during the period, except for the combined roles of Chairman and CEO, which the board believes enhances leadership and efficiency - The company complied with all applicable provisions of the Corporate Governance Code during the reporting period, except for the combined roles of Chairman and Chief Executive Officer held by Mr. Xu Bingzhong, which deviates from Code Provision C.2.1[113][114] - The Board believes that the combined roles facilitate strong and effective leadership and efficient strategy execution, with sufficient checks and balances provided by three independent non-executive directors[114] Model Code for Securities Transactions by Directors The company adopted the Model Code for securities transactions by directors and employees with inside information, with all directors confirming compliance during the reporting period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules as its code of conduct for securities transactions by directors and employees with inside information[116] - All directors confirmed their compliance with the Model Code throughout the reporting period, and no instances of non-compliance by employees were identified[116][117] Dealings in Listed Securities Neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities during the reporting period, and no treasury shares were held as of June 30, 2025 - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[118] - As of June 30, 2025, the company did not hold any treasury shares[118] Major Litigation The company was not involved in any major litigation or arbitration during the reporting period, and directors are unaware of any pending or threatened significant claims - During the reporting period, the company was not involved in any major litigation or arbitration[119] - The directors are also unaware of any pending or threatened major litigation or claims against the group[119] Audit Committee The Audit Committee, comprising three independent non-executive directors, reviewed and confirmed the interim financial results for H1 2025 comply with accounting standards and disclosure requirements - The Audit Committee is composed of three independent non-executive directors, in compliance with the terms of reference under the Listing Rules[120] - The Audit Committee has reviewed and confirmed that the interim financial results comply with accounting standards, rules, and regulations, and that appropriate disclosures have been made[120] Interim Dividend The Board recommended an interim dividend of RMB 0.1051 per ordinary share for H1 2025, payable around September 30, 2025, with a record date of September 19, 2025 - The Board recommended an interim dividend of RMB 0.1051 per ordinary share for the six months ended June 30, 2025, to be paid from the share premium account[121] - The record date for determining eligibility for the interim dividend is September 19, 2025[121] - The interim dividend will be paid on or about September 30, 2025, with Hong Kong shareholders receiving HKD and Singapore shareholders receiving SGD[122][123][124] Events After Reporting Period The company is not aware of any significant events after the reporting period from June 30, 2025, to the date of this announcement - The company is not aware of any significant events after the reporting period from June 30, 2025, to the date of this announcement[125] Publication of Announcement This announcement has been published on the HKEX, SGX, and the company's website, with the full interim report to follow - This announcement has been published on the websites of the Stock Exchange of Hong Kong Limited (HKEX), Singapore Exchange Securities Trading Limited (SGX), and the company[126] - The interim report, containing all information required by the Listing Rules, will be published on the HKEX, SGX, and the company's website in due course[126] Notes to Financial Statements This section provides detailed notes to the interim condensed consolidated financial statements, covering accounting policies, segment information, and specific financial line items Interim Condensed Consolidated Statement of Comprehensive Income This section presents the interim condensed consolidated statement of comprehensive income for the six months ended June 30, 2025 and 2024, detailing revenue, expenses, profit, and total comprehensive income Interim Condensed Consolidated Statement of Comprehensive Income (RMB thousands) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Revenue | 291,145 | 441,294 | | Other income | 681 | 237 | | Raw materials and consumables used | (116,074) | (159,342) | | Employee benefits and human resources service expenses | (61,603) | (96,532) | | Depreciation of right-of-use assets | (16,713) | (31,672) | | Depreciation of property, plant and equipment | (15,905) | (32,231) | | Depreciation of investment properties | (1,698) | — | | Amortisation of intangible assets | (9) | (9) | | Short-term lease and other related expenses | (9,718) | (18,511) | | Energy consumption expenses | (4,813) | (9,682) | | Travel and related expenses | (2,387) | (4,830) | | Listing expenses | — | (12,152) | | Advertising and promotion expenses | (2,204) | (8,130) | | Other expenses | (20,090) | (30,042) | | Net reversal of impairment loss on trade receivables / (provision) | 19 | (414) | | Other net (losses) / gains | (4,161) | 7,789 | | Finance income | 19,189 | 29,797 | | Finance expenses | (3,760) | (6,111) | | Profit before income tax | 51,899 | 69,459 | | Income tax (expense) / credit | (1,568) | 218 | | Profit for the period attributable to owners of the Company | 50,331 | 69,677 | | Exchange differences | (10,423) | 5,249 | | Total comprehensive income for the period | 39,908 | 74,926 | | Earnings per share attributable to owners of the Company (Basic) | 0.040 | 0.055 | | Earnings per share attributable to owners of the Company (Diluted) | 0.040 | 0.055 | Interim Condensed Consolidated Statement of Financial Position This section presents the interim condensed consolidated statement of financial position as of June 30, 2025 and December 31, 2024, detailing assets, liabilities, and equity Interim Condensed Consolidated Statement of Financial Position (RMB thousands) | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Assets | | | | Total Non-current Assets | 430,684 | 459,772 | | Total Current Assets | 827,293 | 916,203 | | Total Assets | 1,257,977 | 1,375,975 | | Equity | | | | Total Equity | 997,805 | 1,118,791 | | Liabilities | | | | Total Non-current Liabilities | 110,907 | 133,113 | | Total Current Liabilities | 149,265 | 124,071 | | Total Liabilities | 260,172 | 257,184 | | Total Equity and Liabilities | 1,257,977 | 1,375,975 | General Information The company was incorporated in the Cayman Islands on January 16, 2018, operating taverns and franchising in China and Hong Kong, with Mr. Xu Bingzhong as the ultimate controlling shareholder - The company was incorporated in the Cayman Islands on January 16, 2018, and primarily engages in tavern operations and franchising business in Mainland China and Hong Kong[70] - The ultimate controlling shareholder is Mr. Xu Bingzhong[70] Basis of Preparation and Principal Accounting Policies The interim financial information is prepared in accordance with HKAS 34 and consistent with 2024 annual report policies, with no significant impact expected from new or revised standards - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 and should be read in conjunction with the 2024 annual report[71] - Except for the adoption of revised Hong Kong Financial Reporting Standards effective January 1, 2025, the accounting policies applied are consistent with those used in the 2024 financial statements[71] - Management does not expect new or revised standards not yet effective to have any significant impact on the group's financial position and operating results[72] Revenue and Segment Information The group manages its tavern operations and franchising as a single reportable segment, with revenue disaggregated by service line, recognition timing, and geographical location, primarily from mainland China - The group is managed as a single reportable operating segment, primarily engaged in tavern operations and franchising business[74] Revenue by Service Line and Recognition Timing (RMB thousands) | Revenue Source | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Tavern Operations | 183,126 | 310,934 | | Franchising | 108,019 | 130,360 | | Total | 291,145 | 441,294 | | Disaggregated by Revenue Recognition Timing | | | | At a point in time | 275,989 | 397,173 | | Over time | 15,156 | 44,121 | | Total | 291,145 | 441,294 | Revenue by Geographical Location (RMB thousands) | Geographical Location | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Mainland China | 278,309 | 433,762 | | Outside Mainland China | 12,836 | 7,532 | | Total | 291,145 | 441,294 | Other Income and Net Losses Other income primarily includes government grants and rental income, while net losses are influenced by tavern optimization adjustments and foreign exchange losses Other Income (RMB thousands) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Government grants | 105 | 237 | | Rental income | 576 | — | | Total | 681 | 237 | Other Net Losses (RMB thousands) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Gain / (loss) on disposal of property, plant and equipment | 456 | (10,498) | | Loss on lease deposits | (655) | (4,725) | | Penalties and compensation for early termination | (446) | (2,661) | | Gain on lease termination | 4,192 | 9,435 | | Exchange (losses) / gains | (8,043) | 16,238 | | Fair value change of financial assets at fair value through profit or loss | 335 | — | | Total | (4,161) | 7,789 | Finance Income and Expenses Finance income primarily comes from bank deposit interest, decreasing due to lower deposits, while finance expenses, mainly from lease liabilities, decreased due to reduced lease obligations Finance Income and Expenses (RMB thousands) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Finance Income | | | | Interest income from bank deposits | 19,189 | 29,797 | | Finance Expenses | | | | Interest expense on lease liabilities | (3,548) | (6,111) | | Interest expense on borrowings | (212) | — | | Total | (3,760) | (6,111) | Income Tax Expense Income tax expense for H1 2025 was RMB 1.6 million, compared to a credit in H1 2024, mainly due to the expiration of previously recognized deferred tax assets Income Tax Expense / Credit (RMB thousands) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Current income tax | — | 632 | | Deferred income tax | (1,568) | (414) | | Income Tax (Expense) / Credit | (1,568) | 218 | Earnings Per Share Basic earnings per share for H1 2025 decreased to RMB 0.040, with diluted EPS being consistent as there were no dilutive potential ordinary shares Earnings Per Share Calculation | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (RMB'000) | 50,331 | 69,677 | | Weighted average number of ordinary shares outstanding (thousands) | 1,261,145 | 1,265,478 | | Basic Earnings Per Share (RMB) | 0.040 | 0.055 | - For the six months ended June 30, 2025 and 2024, there were no dilutive potential ordinary shares, thus diluted earnings per share were consistent with basic earnings per share[85] Dividends and Events After Reporting Period In H1 2025, the company paid dividends of approximately RMB 145.7 million, and the Board approved a proposed interim dividend of RMB 0.1051 per ordinary share - During H1 2025, the company declared and paid dividends to shareholders of approximately RMB 145,672,000[86] - The Board approved a proposed interim dividend of RMB 0.1051 per ordinary share for the six months ended June 30, 2025, on August 29, 2025[86] Property, Plant and Equipment The net book value of property, plant, and equipment decreased to RMB 179.9 million as of June 30, 2025, primarily due to depreciation and reclassification to investment properties Property, Plant and Equipment (RMB thousands) | Item | December 31, 2024 (RMB'000) | June 30, 2025 (RMB'000) | | :--- | :--- | :--- | | Net book value at beginning of period | 217,911 | 217,911 | | Additions | — | 3,908 | | Transferred to investment properties | — | (25,628) | | Depreciation | — | (15,905) | | Disposals | — | (123) | | Exchange adjustments | — | (196) | | Net book value at end of period | 217,911 | 179,967 | Investment Properties The net book value of investment properties increased to RMB 56.9 million as of June 30, 2025, mainly due to reclassification from property, plant, and equipment and generating rental income Investment Properties (RMB thousands) | Item | December 31, 2024 (RMB'000) | June 30, 2025 (RMB'000) | | :--- | :--- | :--- | | Net book value at beginning of period | 33,001 | 33,001 | | Transferred from property, plant and equipment | — | 25,628 | | Depreciation | — | (1,698) | | Net book value at end of period | 33,001 | 56,931 | - Rental income from operating leases was RMB 576 thousand, and direct operating expenses from properties generating rental income were RMB 51 thousand[89] Prepayments, Deposits and Other Receivables The non-current portion decreased to RMB 28.4 million, while the current portion increased to RMB 64.0 million, with an overall reduction primarily due to decreased rental deposits Prepayments, Deposits and Other Receivables (RMB thousands) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Non-current Portion | | | | Rental and other deposits | 9,908 | 13,805 | | Prepayment to a related party | 5,888 | 7,455 | | Other prepayments | 12,641 | 16,728 | | Subtotal | 28,437 | 37,988 | | Current Portion | | | | Rental and other deposits | 7,437 | 4,112 | | Prepayments | 11,933 | 12,505 | | Other tax receivables | 25,725 | 28,782 | | Other prepayments | 6,890 | 6,248 | | Others | 11,996 | 9,603 | | Subtotal | 63,981 | 61,250 | Financial Assets at Fair Value Through Profit or Loss The company recognized new financial assets at fair value through profit or loss of RMB 55.0 million as of June 30, 2025, for optimizing capital allocation by purchasing low-risk bond products Financial Assets at Fair Value Through Profit or Loss (RMB thousands) | Item | June 30, 2025 (RMB'000) | | :--- | :--- | | At beginning of period | — | | Additions | 54,718 | | Fair value changes recognized in profit or loss | 335 | | Exchange differences | (4) | | At end of period | 55,049 | Inventories Total inventories amounted to RMB 21.3 million as of June 30, 2025, primarily comprising alcoholic beverages, food, and consumables, with RMB 116.1 million recognized as expense Inventories (RMB thousands) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Alcoholic beverages | 15,230 | 16,359 | | Food | 5,490 | 3,095 | | Consumables | 540 | 668 | | Total | 21,260 | 20,122 | - During the six months ended June 30, 2025, approximately RMB 116,074 thousand of inventory costs were recognized as expenses[92] Trade Receivables Net trade receivables were RMB 23.7 million as of June 30, 2025, mainly from sales of goods and franchising services, with a credit period of 360 days Trade Receivables (RMB thousands) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Trade receivables | 40,667 | 45,355 | | Less: Loss allowance | (16,929) | (16,948) | | Net | 23,738 | 28,407 | - Trade receivables primarily arise from the sale of goods and provision of franchising services to franchised partners, with a credit period of 360 days granted[93] Cash and Bank Balances Total cash and bank balances decreased to RMB 663.3 million as of June 30, 2025, from RMB 806.4 million at December 31, 2024, primarily due to dividend payments Cash and Bank Balances (RMB thousands) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Cash and cash equivalents | 539,929 | 131,802 | | Time deposits with original maturity over three months | 120,703 | 671,832 | | Restricted cash | 2,633 | 2,790 | | Total | 663,265 | 806,424 | Share Capital As of June 30, 2025, the number of issued ordinary shares remained at 1,260,816,267, with a nominal value of USD 0.101 per share and share capital of RMB 1 thousand Share Capital | Item | Number of Ordinary Shares | Nominal Value of Ordinary Shares (USD) | Share Capital (RMB) | | :--- | :--- | :--- | :--- | | As of January 1, 2025 | 1,260,816,267 | 0.101 | 1 | | As of June 30, 2025 | 1,260,816,267 | 0.101 | 1 | Leases The group leases various properties with typical terms of 5 to 8 years, with right-of-use assets at RMB 91.7 million and total lease liabilities at RMB 125.8 million, both decreasing due to depreciation and lease terminations - The group leases various properties, typically for fixed periods of 5 to 8 years, and lease agreements do not contain variable lease payment terms linked to sales[97] Right-of-Use Assets and Lease Liabilities (RMB thousands) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Right-of-Use Asset Properties | | | | Net book value at beginning of period | 95,676 | 182,779 | | Additions | 12,361 | 55,263 | | Depreciation expense | (16,713) | (60,786) | | Impairment loss | — | (23,833) | | Exchange differences | 654 | 24 | | Derecognition due to lease termination | (248) | (57,771) | | Net book value at end of period | 91,730 | 95,676 | | Lease Liabilities | | | | Non-current portion | 72,798 | 93,847 | | Current portion | 52,971 | 51,585 | | Total | 125,769 | 145,432 | Lease-Related Cash Flows (RMB thousands) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Depreciation expense of right-of-use assets | 16,713 | 31,672 | | Finance expenses on lease liabilities | 3,548 | 6,111 | | Total Cash Outflow for Leases | | | | Short-term lease payments for staff dormitories | 2,845 | 6,349 | | Payments for principal portion of lease liabilities | 27,584 | 41,442 | | Payments for interest portion of lease liabilities | 3,548 | 6,111 | Trade Payables Trade payables decreased to RMB 25.8 million as of June 30, 2025, primarily due to reduced procurement volumes resulting from lower revenue Trade Payables (RMB thousands) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Trade payables | 25,847 | 28,744 | | Aging Analysis (0 to 90 days) | 25,847 | 28,744 | Other Payables and Accrued Expenses The non-current portion was RMB 21.7 million and the current portion was RMB 9.2 million, with an overall decrease mainly due to reduced product procurement Other Payables and Accrued Expenses (RMB thousands) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Non-current Portion | | | | Refundable deposits from franchised partners | 21,742 | 18,048 | | Subtotal | 21,742 | 18,048 | | Current Portion | | | | Salaries, employee benefits and human resources services payable | 7,148 | 8,897 | | Others | 2,007 | 3,751 | | Subtotal | 9,155 | 12,648 | Borrowings As of June 30, 2025, the group had RMB 30.0 million in secured bank borrowings, collateralized by certain buildings at an annual interest rate of 3.10% Borrowings (RMB thousands) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Secured and pledged | 30,000 | — | - The borrowings are secured by certain buildings and guaranteed by certain subsidiaries of the group, with an annual interest rate of 3.10%[108] Related Party Transactions The group engages in related party transactions with its controlling shareholder, Mr. Xu Bingzhong, and his indirectly owned companies, including purchases of property, plant, and equipment and receivables - Related parties include Mr. Xu Bingzhong, the controlling shareholder, and Shenzhen Jiangzhu Technology Co., Ltd. and ZCYF (HK) LIMITED, in which he indirectly holds a 25% equity interest[111] Related Party Transactions and Balances (RMB thousands) | Transaction Type | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Purchase of property, plant and equipment | 2,094 | 1,027 | | Related Party Balances | | | | Amount due from a related party (Shenzhen Jiangzhu Technology Co., Ltd.) | 5,888 | 7,455 |