Financial Performance - For the six months ended June 30, 2022, the revenue was RMB 677.5 million, a decrease of 33.1% compared to RMB 1,012.5 million in the same period of 2021[12]. - Gross profit for the same period was RMB 496.3 million, down 32.7% from RMB 738.0 million year-on-year[12]. - The company reported a loss before tax of RMB 136.1 million, compared to a profit of RMB 86.2 million in the previous year[12]. - The loss attributable to shareholders was RMB 106.5 million, compared to a profit of RMB 49.7 million in the prior year[12]. - For the six months ended June 30, 2022, the group's restaurant business revenue was approximately RMB 628,250,000, a decrease of about 33.9% compared to RMB 951,011,000 in the same period last year, accounting for 92.7% of total revenue[23]. - The group's total revenue for the six months ended June 30, 2022, was approximately RMB 677,469,000, down about 33.1% from RMB 1,012,542,000 in the same period last year due to COVID-19 restrictions[27]. - The group recorded a pre-tax loss of approximately RMB 136,066,000 for the six months ended June 30, 2022, compared to a profit of RMB 86,228,000 for the same period in 2021[44]. - The loss attributable to shareholders was approximately RMB 106,513,000 for the six months ended June 30, 2022, compared to a profit of approximately RMB 49,658,000 in the same period of 2021[45]. - The total loss for the period was RMB 120,361,000, significantly higher than the profit of RMB 51,072,000 reported in the previous year[101]. - The company experienced a significant decline in segment profit, with a loss of RMB 129,018,000 for the first half of 2022 compared to a profit of RMB 78,227,000 in the same period of 2021[101]. Operational Metrics - The number of restaurants operated by the company reached 669, covering over 153 cities and 26 provinces in China as of June 30, 2022[4]. - The group operated a total of 669 restaurants as of June 30, 2022, a decrease of 38 from 707 restaurants in the same period last year[22]. - Comparable store sales growth was -23.6% for the first half of 2022, compared to 13.7% in the same period of 2021[60]. - The company plans to enhance its membership system to improve repurchase rates and accelerate digital transformation[15]. - The company is focusing on a new retail model combining offline dining, online delivery, and new retail strategies[15]. Cost Management - The group's inventory cost for the six months ended June 30, 2022, was approximately RMB 181,140,000, a decrease of about 34.0% from RMB 274,547,000 in the same period last year, with inventory cost accounting for 26.7% of revenue[28]. - Employee costs for the six months ended June 30, 2022, were approximately RMB 211,016,000, a decrease of about 20.4% from RMB 265,160,000 in the same period last year, with employee costs accounting for 31.1% of revenue[33]. - The group will strategically reduce the number of underperforming restaurants to mitigate cash flow and profit burdens during the pandemic[19]. - The group will closely monitor market conditions and actively control operating costs to minimize the impact of negative factors[19]. Cash Flow and Liquidity - As of June 30, 2022, the group maintained a strong liquidity position with cash reserves of approximately RMB 1,528,194,000 and a current ratio of 2.8[46]. - The group generated a net cash inflow from operating activities of approximately RMB 99,978,000, despite recording a pre-tax loss of RMB 136,066,000[54]. - The net cash generated from operating activities for the six months ended June 30, 2022, was RMB 99,978 thousand, down 53.0% from RMB 212,225 thousand in the same period of 2021[85]. - The company reported a net cash outflow from investing activities of RMB 23,196 thousand for the six months ended June 30, 2022, compared to RMB 41,775 thousand in the prior year, indicating an improvement in cash flow management[85]. - The net cash used in financing activities was RMB 88,619 thousand for the first half of 2022, a decrease from RMB 174,940 thousand in the same period of 2021, showing a reduction in financing costs[85]. Market Conditions - The overall restaurant industry in China saw a revenue decline of 7.7% year-on-year, with total dining revenue at RMB 20,040 billion[14]. - The gross domestic product (GDP) of China grew by 2.5% during the same period, indicating economic recovery amidst challenges[14]. - In the first half of 2022, the company's restaurant operations in China were severely impacted by COVID-19, leading to a revenue decrease of 28.5% from RMB 1,012,542 thousand in 2021 to RMB 677,469 thousand in 2022[95]. Asset and Liability Management - Cash and cash equivalents as of June 30, 2022, were RMB 1,528,194 thousand, slightly increased from RMB 1,527,538 thousand as of December 31, 2021[75]. - Total liabilities as of June 30, 2022, were RMB 652,742 thousand, compared to RMB 575,138 thousand as of December 31, 2021[75]. - The company’s total liabilities decreased to RMB 548,909 thousand from RMB 611,930 thousand, indicating a reduction of approximately 10.3%[78]. - The company’s net assets decreased to RMB 2,927,090 thousand from RMB 3,114,149 thousand as of December 31, 2021, representing a decline of approximately 6.0%[78]. - The total equity attributable to shareholders decreased to RMB 2,885,848 thousand from RMB 3,060,105 thousand, reflecting a decrease of about 5.7% year-over-year[78]. Related Party Transactions - Related party transactions included sales of ramen and related products amounting to RMB 514 thousand for the six months ended June 30, 2022, up from RMB 396 thousand in the previous year, reflecting a growth of approximately 29.6%[196]. - The company incurred procurement costs for food, raw materials, and supplies from related parties totaling RMB (7,089) thousand for the six months ended June 30, 2022, a decrease from RMB (16,550) thousand in the prior year, showing a reduction of about 57.3%[196]. - The total compensation for directors and key management personnel was RMB 2,954 thousand for the six months ended June 30, 2022, compared to RMB 2,251 thousand in the previous year, representing an increase of approximately 31.1%[199].
味千(中国)(00538) - 2022 - 中期财报