Revenue Growth - Revenue for the six months ended June 30, 2023, was RMB 2,879.4 million, a 51.6% increase from RMB 1,899.0 million for the same period in 2022[2]. - Revenue increased by 51.6% from RMB 1,899.0 million for the six months ended June 30, 2022, to RMB 2,879.4 million for the same period in 2023[17]. - Total revenue for the six months ended June 30, 2023, was RMB 2,879,422 thousand, a 51.7% increase from RMB 1,899,021 thousand for the same period in 2022[85]. - Revenue from restaurant operations reached RMB 2,426,284 thousand, up 58.0% from RMB 1,534,557 thousand in the previous year[85]. - Revenue from takeaway business was RMB 445,818 thousand, representing a 25.1% increase compared to RMB 356,182 thousand in the prior year[85]. Profitability - Adjusted net profit for the six months ended June 30, 2023, was RMB 247.9 million, compared to RMB 69.1 million for the same period in 2022, representing a significant increase of 258.5%[2][3]. - The net profit attributable to equity shareholders for the six months ended June 30, 2023, was RMB 222.2 million, compared to RMB 57.7 million for the same period in 2022, an increase of 285.3%[2]. - The company's profit increased by 281.4% from RMB 62.5 million to RMB 238.4 million for the six months ended June 30, 2023[38]. - Basic earnings per share for the period was RMB 0.15, up from RMB 0.04 in the same period last year[74]. - Total comprehensive income for the period was RMB 320,934 thousand, compared to RMB 15,061 thousand in the previous year[75]. Restaurant Expansion - The number of restaurants increased to 621 as of June 30, 2023, up from 475 in the same period last year, reflecting a growth of 30.8%[5]. - The company opened 67 new restaurants in the first half of 2023, including 46 "Tai Er" restaurants and 16 "Song Huo Guo" restaurants[6]. - The company plans to continue expanding its restaurant network and investing in brands with higher growth potential, such as "Song Huo Guo" and "Lai Mei Li Grilled Fish"[6]. - The company plans to expand its restaurant network in response to post-pandemic consumer trends and preferences[14]. - The company aims to identify and adopt innovative business models to support its multi-brand development strategy[14]. Customer Metrics - Same-store sales for the "Tai Er" brand grew by 16.1%, "Song Huo Guo" by 25.4%, and "Jiu Mao Jiu" by 7.8% during the reporting period[5]. - The average customer spending for "Tai Er" was RMB 75, "Song Huo Guo" RMB 121, and "Jiu Mao Jiu" RMB 59 during the reporting period[5]. - The average customer spending for "Tai Er" decreased to RMB 75 from RMB 78, while "Song Hot Pot" decreased to RMB 121 from RMB 130[9]. - The table turnover rate for "Tai Er" improved to 4.3 from 3.8, and for "Song Hot Pot" to 3.9 from 3.4[9]. - The average table turnover rate for "Lai Mei Li Grilled Fish" increased to 4.7 from 3.0[9]. Financial Position - Total assets grew from RMB 5,407.1 million to RMB 6,084.6 million, while total liabilities increased from RMB 2,207.9 million to RMB 2,582.1 million, resulting in a debt-to-asset ratio rise from 40.8% to 42.4%[48]. - Cash and cash equivalents decreased by 15.6% from RMB 1,098.9 million to RMB 927.5 million, primarily due to increased cash deposits and pledging more deposits as collateral for bank loans[49]. - Inventory increased by 5.0% from RMB 118.1 million as of December 31, 2022, to RMB 124.0 million as of June 30, 2023, primarily due to restaurant network expansion[43]. - Trade receivables increased by 42.7% from RMB 20.6 million to RMB 29.4 million, driven by restaurant network expansion[46]. - Total cash and cash equivalents amounted to RMB 927,533,000 as of June 30, 2023, down from RMB 1,098,872,000 as of December 31, 2022, a decrease of 15.6%[98]. Cost Management - Material and consumables used increased by 57.1% from RMB 663.7 million to RMB 1,042.4 million, aligning with revenue growth[26]. - Employee costs rose by 31.9% from RMB 543.9 million to RMB 717.6 million, while the proportion of employee costs to revenue decreased from 28.6% to 24.9%[27]. - Depreciation of right-of-use assets increased by 18.5% from RMB 191.9 million to RMB 227.4 million, with its proportion to revenue decreasing from 10.1% to 7.9%[28]. - Other rental and related expenses increased by 56.8% from RMB 42.8 million in the six months ended June 30, 2022, to RMB 67.1 million in the same period of 2023, maintaining a stable ratio of 2.3% of revenue[29]. - Utilities expenses increased by 50.6% from RMB 66.8 million to RMB 100.6 million, maintaining a stable ratio of 3.5% of revenue[31]. Strategic Initiatives - The company plans to expand into international markets, focusing on regions with significant Chinese populations, such as North America and Southeast Asia[16]. - The company will continue to conduct comprehensive investigations into potential overseas target markets for prudent expansion[16]. - The company has sold the "Two Eggs Pancake" brand to focus on brands with greater growth potential[14]. - The company has implemented currency forward contracts to hedge foreign exchange risks associated with cash and deposits held in currencies other than RMB[57]. - The group has no significant changes in business since the publication of the annual report on April 27, 2023[62]. Governance and Compliance - The financial report was prepared in accordance with International Financial Reporting Standards, ensuring compliance and transparency[82]. - The company has adhered to all provisions of the Corporate Governance Code, except for a deviation regarding the roles of the Chairman and CEO being held by the same individual[112]. - The Audit Committee, consisting of three independent non-executive directors, has reviewed the financial statements for the six months ending June 30, 2023, ensuring their integrity and accuracy[114]. - The interim results announcement and report for the six months ending June 30, 2023, will be published on the Hong Kong Stock Exchange and the company's website[115]. - The company expresses gratitude to shareholders, suppliers, and customers for their continued support and trust[116].
九毛九(09922) - 2023 - 中期业绩