Financial Performance - For the six months ended June 30, 2025, the company's revenue was RMB 875.3 million, representing a 5.9% increase compared to RMB 826.8 million in the same period of 2024[10] - Gross profit for the same period was RMB 673.9 million, also up by 5.9% from RMB 636.3 million year-over-year[10] - The company reported a profit attributable to shareholders of RMB 24.2 million, a significant recovery from a loss of RMB 7.2 million in the previous year[10] - Restaurant business revenue recorded approximately RMB 849,095,000, representing a 7.2% increase from RMB 792,194,000 in the previous year, accounting for about 97.0% of total revenue[16] - Operating profit for the same period was RMB 31,131 thousand, significantly up from RMB 11,121 thousand in 2024, representing an increase of 179.5%[51] - Net profit for the period was RMB 25,546 thousand, compared to a loss of RMB 4,261 thousand in 2024, marking a turnaround in profitability[53] - Profit before tax for the six months ended June 30, 2025, was approximately RMB 36,845,000, compared to a loss of RMB 15,566,000 for the same period in 2024[32] - The company reported a net profit of RMB 24,232,000 for the six months ended June 30, 2025, compared to a loss of RMB 7,157,000 in the same period of 2024, indicating a significant turnaround[57] Operational Highlights - The number of restaurants operated by the company reached 608 across 123 cities in China, with a strong presence in Shanghai (109 restaurants) and Guangdong (88 restaurants)[5] - The group expanded its restaurant network by 33 locations, reaching a total of 608 restaurants as of June 30, 2025[17] - The company is focusing on digital transformation and improving online and offline operational integration to create a competitive advantage[13] - The company aims to enhance product and service quality while strengthening internal management and cost control to navigate the challenges in the restaurant industry[13] Economic Environment - The overall economic environment in China showed a GDP growth of 5.3% in the first half of 2025, indicating a stable economic backdrop for the company's operations[11] - The overall restaurant industry in China saw a revenue increase of 4.3% year-over-year, but the growth rate has slowed down compared to the previous year[11] - The consumer market is expected to see renewed growth in the second half of 2025 due to seasonal demand during summer and major holidays[13] Cost and Expenses - Employee costs increased by approximately 6.7% to RMB 239,662,000, with the employee cost ratio slightly rising to 27.4% from 27.2% in the previous year[22] - Other operating expenses decreased by approximately 3.0% to RMB 236,493,000, despite an increase in the number of stores[25] - Depreciation expenses increased by approximately 6.2% to RMB 166,610,000, driven by the opening of new restaurants[24] - Inventory costs rose by approximately 5.7% to RMB 201,440,000, maintaining a ratio of 23.0% of revenue, indicating effective cost control measures[20] Cash Flow and Liquidity - As of June 30, 2025, the group maintained a strong liquidity position with cash and bank balances of approximately RMB 1,690,084,000, compared to RMB 1,655,833,000 as of December 31, 2024[34] - Net cash inflow from operating activities for the six months ended June 30, 2025, was approximately RMB 194,116,000, while profit before tax was RMB 36,845,000[40] - The company incurred a net cash outflow from investing activities of RMB 66,043,000, a decrease in outflow compared to RMB 353,993,000 in the previous year[59] - Cash and cash equivalents totaled RMB 846,606,000 as of June 30, 2025, compared to RMB 840,960,000 as of December 31, 2024[96] Shareholder Information - The group declared a final dividend of RMB 0.06 per share for 2024, down from RMB 0.08 per share for 2023, resulting in total dividends of RMB 65,492,000 for 2024[80] - The company’s equity attributable to shareholders was RMB 2,863,873 thousand, down from RMB 2,911,271 thousand as of December 31, 2024[56] - The total number of issued and fully paid shares as of June 30, 2025, is 1,091,538,820, with a total share capital of RMB 108,404,000[106] Employee and Management - The total employee compensation for the six months ending June 30, 2025, was approximately RMB 239,662,000, compared to RMB 224,511,000 for the same period in 2024, reflecting an increase of about 6.1%[154] - As of June 30, 2025, the group had 8,055 employees, an increase from 7,790 employees on June 30, 2024, indicating a growth of approximately 3.4% in workforce size[153] - Short-term employee benefits for directors and key management personnel totaled RMB 3,265,000 for the six months ended June 30, 2025, compared to RMB 3,098,000 for the same period in 2024, representing a growth of 5.4%[121] Corporate Governance - The company has complied with all applicable provisions of the Corporate Governance Code, except for a deviation from rule C.2.1, where the roles of Chairman and CEO are not separated[124] - The Audit Committee, consisting of three independent non-executive directors, has reviewed the company's accounting standards and discussed audit, risk management, and internal control matters[127] - The company has established written guidelines for employees regarding insider trading, which are at least as stringent as the standard code[126]
味千(中国)(00538) - 2025 - 中期财报