Core Viewpoint - Jiumaojiu (09922) shows a stock price increase of over 3%, currently trading at 1.92 HKD with a transaction volume of 10.75 million HKD, reflecting positive market sentiment despite some declines in same-store sales for its brands [1] Group 1: Company Performance - In Q4 2025, the table turnover rates for Jiumaojiu's brands are reported as 3.0 for Taier, 2.3 for Song Hotpot, and 2.1 for Jiumaojiu [1] - Same-store average daily sales for Taier, Song Hotpot, and Jiumaojiu decreased by 3.0%, 19.0%, and 16.4% year-on-year, respectively [1] - Taier's same-store average daily sales in mainland China have turned positive, indicating successful operational adjustments and store model upgrades [1] Group 2: Business Model and Expansion - The "Fresh" model has been particularly successful, with 243 "Fresh" model stores established across 60 key cities in China by December 31, 2025 [1] - Six upgraded "New Taier • Fresh Ingredients Sichuan Cuisine" stores have optimized product structure and menu diversity, reinforcing the brand's positioning on fresh ingredients [1] - Positive market feedback on the "Fresh" model validates its replicability across different cities and consumer scenarios [1]

Core Viewpoint - The performance of the main brands of the company shows steady improvement, with specific operational adjustments and upgrades contributing positively to sales figures in the fourth quarter of 2025 [2] Group 1: Brand Performance - In the fourth quarter of 2025, the table turnover rates for the main brands were 3.0 for Tai Er, 2.3 for Song Hot Pot, and 2.1 for Jiu Mao Jiu, with same-store daily sales decreasing by 3.0%, 19.0%, and 16.4% respectively [1] - Tai Er has achieved positive year-on-year growth in same-store daily sales in mainland China, reflecting the effectiveness of previous operational adjustments and store model upgrades [2] - The "Fresh" model stores have shown particularly strong performance, providing robust support for Tai Er's overall recovery [2] Group 2: Store Expansion and Customer Experience - As of December 31, 2025, Tai Er has opened a total of 243 "Fresh" model stores across 60 core cities in China, including 6 upgraded "New Tai Er Fresh Ingredients Sichuan Cuisine" stores, enhancing product structure and menu diversity [2] - The market feedback for the "Fresh" model has been positive, confirming its replicability across different cities and consumer scenarios [2] - The average customer spending for the main brands has remained relatively stable over several quarters, with a slight increase observed as the proportion of "Fresh" model stores rises, indicating the effectiveness of the company's focus on product strength and customer experience optimization [2]

Core Viewpoint - The performance of major brands under the company is showing steady improvement, with specific operational adjustments and new store models contributing positively to sales recovery [2] Group 1: Brand Performance - In Q4 2025, the table turnover rates for major brands were 3.0 for Tai Er, 2.3 for Song Hot Pot, and 2.1 for Jiu Mao Jiu, with same-store average daily sales decreasing by 3.0%, 19.0%, and 16.4% year-on-year respectively [1] - Tai Er's same-store average daily sales in mainland China have turned positive year-on-year, indicating the effectiveness of previous operational adjustments and store model upgrades [2] - The "Fresh" model stores have shown particularly strong performance, providing robust support for Tai Er's overall business recovery [2] Group 2: Store Expansion and Customer Experience - As of December 31, 2025, Tai Er has opened a total of 243 "Fresh" model stores across 60 core cities in China, including 6 upgraded "New Tai Er • Fresh Ingredients Sichuan Cuisine" stores [2] - The introduction of the "Fresh" model has received positive market feedback, confirming its replicability in various cities and consumer scenarios [2] - The average customer spending for major brands has remained relatively stable over multiple quarters, with a slight increase observed as the proportion of "Fresh" model stores rises, reflecting the company's strategic focus on product strength and customer experience optimization [2]

Summary of Jiamaojiu Group Conference Call Company Overview - Jiamaojiu Group has closed 132 underperforming direct-operated stores, currently operating a total of 510 stores, including 22 franchise stores and 33 located in Hong Kong, Macau, and overseas, aiming to optimize store structure [2][3] Key Points and Arguments New Store Model Implementation - The company has launched the 5.0 Fresh Model for its Tai Er brand, focusing on family dining options and upgraded environments and services, with over 160 new model stores opened [2][3] - New model stores have seen a 10% year-on-year increase in revenue and over 15% growth in dine-in revenue [2][5] - The average customer spending has increased by 2-3 RMB due to menu adjustments and improved service, attracting more customers [2][6] Cost Management and Profitability - Despite an increase in workforce by 3-4 employees per new model store, the company has effectively controlled labor costs through training and supply chain optimization [7][9] - The company aims for a gross margin of 64%, with labor costs at 20%-21% and rent below 10%, targeting an operating profit margin of over 18% by 2027 [9][10] - The company is optimistic about future profit recovery, expecting to achieve a stable state for new model stores by 2027 [9][10] Sales Performance and Market Outlook - Same-store sales turned positive starting from the last week of November 2025, with expectations for December to show significant recovery [12] - The new model stores have outperformed traditional stores, particularly in first-tier cities like Beijing and Shanghai, with a 15% increase in dine-in sales compared to a 10% decline in traditional models [15] Future Expansion Plans - The company plans to complete the renovation of over 200 stores by mid-2026, with no specific annual opening targets but focusing on locations with a two-year payback period [13][25] - The company is exploring new brand opportunities, including a new barbecue brand "Zhao Zhao Na Bian," with plans to open its first store in Guangzhou [21] Financial Performance Expectations - The company anticipates a more favorable financial report for 2026, with all unprofitable stores closed by the end of 2025 and a significant reduction in impairment losses [23][24] - The dividend payout ratio is expected to remain at a minimum of 40%, with adjustments based on actual performance [27] Additional Important Insights - The company is focusing on using fresh ingredients sourced directly from suppliers to balance procurement costs and enhance product quality [10] - The transition to a fresh model has not negatively impacted store efficiency; instead, it has improved overall store performance [17] - The company has established central kitchens in Guangzhou, Shanghai, and Chongqing, with further expansions planned [19] This summary encapsulates the key insights from Jiamaojiu Group's conference call, highlighting their strategic adjustments, financial expectations, and market outlook.

Summary of Jiamaojiu Group Conference Call Company Overview - **Company**: Jiamaojiu Group - **Date**: November 10, 2025 Key Points Industry and Company Performance - In September 2025, Jiamaojiu Group experienced a decline in foot traffic due to public sentiment surrounding prepared dishes, leading to fluctuations in same-store sales. However, a rapid recovery began in late October, with expectations of positive growth by year-end [2][3] - The Taier brand has been actively promoting a fresh model, surpassing 120 stores, with same-store data outperforming the old model by approximately 15 percentage points. By the end of 2025, over 200 stores are expected, with a complete upgrade planned by mid-2026 [2][5] Store Management and Strategy - The company is closing underperforming stores, with Taier closing about 110 stores in the first half of 2025 and an estimated total of 130 closures for the year. This strategy aims to alleviate financial burdens [2][12] - Jiamaojiu and Song Hotpot are also exploring new models, with plans to open their first fresh model stores in Guangzhou [2][6] Sales and Customer Trends - Same-store sales for Jiamaojiu Group's brands showed signs of stabilization in Q3 2025, particularly for the Taier brand, which saw a narrowing decline to -9%. Key cities like Beijing and Shanghai reported positive same-store sales [3][7] - The average customer spending has remained stable with an upward trend since Q3 2024 [3] Delivery and Dining Experience - The proportion of delivery sales increased to 23%-25% in Q2 2025 but is expected to stabilize around 20% as the company focuses on enhancing dine-in experiences [2][9] - The company maintains a neutral stance on delivery services, recognizing both efficiency benefits and potential customer experience risks [9] Financial Outlook and Cost Management - The company anticipates achieving same-store sales growth by October 2025, supported by increased store openings and closures of underperforming locations. The low base in Q4 2025 also enhances the likelihood of positive year-over-year comparisons [7] - The fresh model has increased SKU counts and average transaction values, with initial gross margins slightly lower but expected to recover as operational efficiencies improve [4][15] Competitive Landscape - Taier's fresh model has shown significant performance differences across cities, with same-store sales in some areas outperforming the old model by 20-40 percentage points [15][17] - The company is adapting its offerings to attract family and business customers, responding to shifts in consumer demographics and preferences [19][21] Future Plans - The focus for 2026 will be on upgrading existing stores rather than new openings, as the fresh model's data is still being validated [13][22] - The company aims to optimize its operational layout and close unprofitable locations to prepare for future growth [14][12] Additional Insights - The company has faced challenges with its delivery-only stores, which have not performed as expected, leading to a shift back to focusing on dine-in operations [11][12] - Taier has been proactive in addressing public concerns regarding prepared dishes by showcasing its cooking processes and enhancing menu offerings [20][21] This summary encapsulates the key insights and strategic directions of Jiamaojiu Group as discussed in the conference call, highlighting both challenges and opportunities within the current market landscape.

Core Viewpoint - The article discusses the challenges and recovery strategies of Jiumaojiu International Holdings Limited, particularly focusing on its flagship brand, Taier Fish, which is attempting to revitalize its business through a "fresh" strategy after facing significant declines in sales and profitability [3][5][8]. Financial Performance - Jiumaojiu's market value has plummeted from a peak of approximately HKD 55 billion to around HKD 2.9 billion, a decline of over 90% [3]. - In 2024, the company's revenue increased by 1.47% to CNY 6.074 billion, but net profit fell by 87% to CNY 55.8 million, with operating profit from stores declining by over 30% [3][5]. - By the end of Q3, Taier's same-store daily sales decline narrowed to 9.3%, marking three consecutive quarters of improvement [2][6]. Business Strategy - The company is shifting its focus from a single product strategy to a "fresh" model, emphasizing live fish and fresh ingredients, which includes a complete redesign of restaurant operations and menu offerings [5][7]. - As of September, 106 Taier locations had completed upgrades, with a goal of over 200 by year-end [2][7]. Market Position and Competition - Despite the challenges, some competitors in the restaurant sector, such as Xiaocaiyuan and Green Tea Group, have reported revenue and profit growth, indicating that not all brands are equally affected by market changes [7]. - Jiumaojiu's current price-to-earnings ratio is approximately 69 times, significantly higher than competitors like Xiaocaiyuan at 17.9 times and Green Tea at 11.9 times, reflecting its low profitability base [7]. Consumer Perception and Future Outlook - The company faces a trust crisis due to the perception of its products as "high-priced prepared dishes," which has been exacerbated by the controversy surrounding pre-prepared meals [5][8]. - The effectiveness of the "fresh" strategy in restoring growth remains to be seen, as the fundamental aspects of being tasty, affordable, and trustworthy are crucial for future success [8].

Core Insights - The company is experiencing a decline in same-store sales, but initial signs of recovery are emerging, particularly for its Taier brand, which has shown positive growth in major cities like Beijing and Shanghai during Q3 2025 [1][2] - The company is adjusting its store network by closing underperforming locations, with a net reduction of 43 stores, primarily affecting Taier [1] - The company has upgraded its "5.0 Fresh Model," with 106 new model restaurants established by the end of September, aiming to expand to over 200 by the end of 2025 [1] Financial Performance - Same-store daily sales for Taier, Song Hotpot, and Jiumaojiu decreased by 9.3%, 19.1%, and 14.8% year-on-year, respectively, in Q3 2025 [1] - Revenue and profit forecasts for 2025-2027 have been slightly lowered, with projected revenues of 5.55-6.32 billion RMB and net profits of 140-300 million RMB [2] - The target price has been adjusted to 2.32 HKD from 2.79 HKD, maintaining a neutral rating based on a revised price-to-earnings ratio of 16 times the 2026 forecast [2] Operational Efficiency - The table turnover rates for Taier, Song, and Jiumaojiu were 3.3, 2.4, and 2.5, respectively, showing a slight recovery compared to Q2 2025 [2] - The average customer spending has remained stable, with a slight decrease of 1 RMB for Taier and increases of 2 RMB and 1 RMB for Song and Jiumaojiu, respectively [2] - The focus on upgrading stores and controlling costs is expected to be a key observation point for the company in Q4 2025 [2]