Core Viewpoint - The domestic restaurant market is becoming increasingly competitive, prompting Jiumaojiu to focus on overseas expansion by investing in the North American market through a stake acquisition in Big Way Group Inc. [1] Investment Details - Jiumaojiu plans to invest a total of $43 million (approximately 303 million yuan) to increase its stake in Big Way Group Inc., which operates a self-service hot pot brand in North America [1][2] - The investment will be executed in two parts: $15 million for purchasing shares from existing shareholders and $28 million for subscribing to new shares, with all payments made in cash sourced from internal resources and bank loans [2] - Jiumaojiu will hold approximately 49.0% of Class A shares in the target company, corresponding to 10.8% voting rights and 49.0% participation rights, while the target company will not be consolidated into Jiumaojiu's financial statements [2] Strategic Intent - The acquisition is part of a long-term strategy to achieve "resource integration and synergistic efficiency," targeting the North American market as a key area for the globalization of Chinese cuisine [5] - Jiumaojiu aims to leverage the local management team's understanding of market preferences to overcome challenges related to taste adaptation and consumer habits [5] Financial Performance - The target company has shown rapid growth in profitability, with projected pre-tax profits of $259,600 and $1.39 million for 2023 and 2024, respectively, representing over a fourfold increase [6] - In contrast, Jiumaojiu's profitability is declining, with a projected net profit of 55.81 million yuan for 2024, down approximately 88% year-on-year [6][8] Market Challenges - The domestic restaurant market is experiencing significant pressure, with Jiumaojiu's major brands facing declines in customer traffic and same-store sales, leading to an overall revenue drop of over 10% [8] - The company acknowledges the challenges of establishing a presence in the North American market, particularly in appealing to non-Chinese consumers, which presents a high barrier to entry [8]
花4300万美元收购北美火锅品牌，九毛九押注海外