Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 4,005.7 million, a decrease of 4.2% from RMB 4,179.7 million in 2021[2] - The annual profit for 2022 was RMB 55.6 million, down 85.1% from RMB 372.2 million in 2021[2] - The operating profit at the store level for 2022 was RMB 516.6 million, down from RMB 809.3 million in 2021[2] - Total revenue for 2022 was RMB 4,059,000, compared to RMB 4,200,000 in 2021, representing a decrease of approximately 3.4%[10] - The company’s total operating profit for the year ended December 31, 2022, was RMB 516.6 million, with an operating profit margin of 12.9%, down from RMB 809.3 million and 19.4% in 2021[40] - Adjusted net profit for 2022 was RMB 69.3 million, with an adjusted net profit margin of 1.7%, compared to RMB 380.4 million and 9.1% in 2021[42] - The total comprehensive income for the year was RMB 142,461, down from RMB 425,154 in 2021, reflecting a decline of 66.5%[76] - The company reported a net loss from equity investments of RMB 126,444 for the year, compared to a gain of RMB 132,771 in 2021[76] - The company reported a pre-tax profit of RMB 94,331 thousand in 2022, a significant decrease from RMB 505,920 thousand in 2021[92] Revenue Breakdown - Same-store sales for the Jiumaojiu brand decreased by 11.0%, while the Taier brand saw a decline of 22.3%[5] - Revenue from the brand "九毛九" was RMB 604,752, down from RMB 758,756 in 2021, a decline of about 20.3%[10] - The brand "太二" generated revenue of RMB 3,098,041, a decrease of 5.7% from RMB 3,285,180 in 2021[10] - The self-operated "2顆雞蛋煎餅" brand reported revenue of RMB 3,826, down from RMB 12,608 in 2021, a decline of 69.7%[10] - The franchise "2顆雞蛋煎餅" brand generated RMB 4,963, down from RMB 16,399 in 2021, a decrease of 69.7%[10] - Revenue from the brand Jiu Mao Jiu fell by 20.4% from RMB 760.5 million in 2021 to RMB 605.5 million in 2022, accounting for 15.1% of total revenue[18] - Revenue from the brand Tai Er decreased by 5.6% from RMB 3,292.2 million in 2021 to RMB 3,108.3 million in 2022, representing 77.6% of total revenue[19] - Revenue from other brands increased by 129.7% from RMB 127.1 million in 2021 to RMB 291.9 million in 2022, accounting for 7.3% of total revenue[19] Operational Changes - The number of restaurants increased to 556 in 2022 from 470 in 2021, with 120 new restaurants opened during the year[5] - The company plans to focus resources on the Shong Hotpot and Lai Mei Li Grilled Fish brands after selling the 2 Eggs Pancake brand in June 2022[6] - The company aims to adapt to post-pandemic consumer behavior changes and expects an increase in dining out activities in 2023[7] - The company plans to expand its restaurant network and enhance brand image, particularly for Tai Er, which has a higher operating profit level[15] - The company is exploring potential overseas markets for expansion, prioritizing regions with significant Chinese populations such as North America and Southeast Asia[15] - The company has initiated the construction of new supply chain centers in South and North China to enhance supply chain capabilities[15] - The company sold the brand "Two Eggs Pancake" in the first half of 2022 to focus on brands with greater growth potential[15] Cost and Expenses - Employee costs rose by 7.3% from RMB 1,056.9 million in the year ended December 31, 2021, to RMB 1,133.9 million in the same period of 2022, attributed to an increase in staff due to restaurant network expansion[25] - Depreciation of right-of-use assets increased by 17.7% from RMB 342.5 million in the year ended December 31, 2021, to RMB 403.0 million in the same period of 2022, mainly due to an increase in the number of restaurants[26] - Other expenses rose by 21.7% from RMB 259.8 million in the year ended December 31, 2021, to RMB 316.1 million in the same period of 2022, driven by increased delivery service fees and transportation costs due to restaurant network expansion[32] - Total expenses increased to RMB 316,124,000 in 2022 from RMB 259,814,000 in 2021, representing a rise of approximately 21.6%[94] Liquidity and Financial Position - The company maintained a strong liquidity position with sufficient cash and bank financing to meet operational needs[7] - The company's cash and cash equivalents decreased by 18.1% from RMB 1,342.1 million in 2021 to RMB 1,098.9 million in 2022, mainly due to reduced operating cash flow from pandemic impacts[49] - The company's total liabilities increased from RMB 1,997.5 million in 2021 to RMB 2,207.9 million in 2022, with a debt-to-asset ratio rising from 38.9% to 40.8%[48] - The actual tax rate increased from 26.4% in the year ended December 31, 2021, to 41.0% in the same period of 2022, primarily due to pre-tax losses calculated at a zero tax rate[36] Shareholder Returns - The board proposed a final dividend of HKD 0.01 per share for the year ended December 31, 2022, down from HKD 0.06 per share for the previous year[58] - The proposed final dividend for 2022 is RMB 12,795,000, down from RMB 70,968,000 for 2021[119] Corporate Governance - The company has complied with all provisions of the Corporate Governance Code during the year ended December 31, 2022, except for a deviation regarding the roles of the Chairman and CEO[127] - The Audit Committee, consisting of three independent non-executive directors, has reviewed the audited consolidated financial statements for the year ended December 31, 2022, ensuring their integrity and accuracy[129] - The auditor, KPMG, confirmed that the financial data disclosed in the preliminary announcement is consistent with the audited consolidated financial statements[130]
九毛九(09922) - 2022 - 年度业绩