Core Viewpoint - The company, Yum China, has demonstrated strong growth and profitability amidst challenges in the restaurant industry, achieving record operating profit and profit margins in the second quarter [1] Group 1: Financial Performance - In Q2, Yum China's total revenue reached $2.8 billion, a year-on-year increase of 4% [1] - Operating profit margin improved by 100 basis points to 10.9% [1] - The company added 336 new stores in Q2, bringing the total to 16,978 [1] - Same-store sales and system sales both showed positive growth, with same-store sales achieving growth for ten consecutive quarters [1] Group 2: Innovation and Consumer Engagement - The company activated consumer demand through product and model innovation, leveraging emotional value and IP collaborations [2] - During Children's Day, KFC and Pizza Hut launched IP collaboration meals, selling over 4 million units [2] - KFC's mini-town model reduced investment thresholds to $500,000, allowing expansion into over 300 new towns [2] - The introduction of unique beverage products in KFC's coffee segment has significantly contributed to sales [2] Group 3: Operational Efficiency and Digital Transformation - Yum China is advancing its digital capabilities, entering the "AI + dining" era with human-machine collaboration [4] - The company has established end-to-end digital capabilities, ensuring visibility across the entire value chain [4] - The launch of the intelligent operational tool "Q Rui" aims to enhance store efficiency by covering over 20 key operational scenarios [4][5] Group 4: Strategic Partnerships and Shareholder Returns - The company prioritizes partnerships with large franchisees while maintaining high management standards to ensure brand stability [6] - Yum China plans to return $536 million to shareholders in the first half of 2025 and approximately $3 billion from 2025 to 2026, averaging 9% of market capitalization annually [6] - The company's ability to maintain steady growth, profitability, and high returns reflects its long-term value [6]