Core Insights - The company reported a revenue of RMB 2.753 billion for the first half of 2025, a decrease of 10.1% compared to the same period in 2024 [1] - Profit decreased by 13.7% to RMB 58.7 million [1] Group 1: Financial Performance - Revenue for the first half of 2025 was RMB 2.753 billion, down 10.1% year-on-year [1] - Net profit for the same period was RMB 58.7 million, reflecting a 13.7% decline [1] Group 2: Operational Changes - The company opened 10 new restaurants in the first half of 2025, including three Taier restaurants, five Song Hotpot restaurants, and two Shanwaimian cooperative model restaurants [1] - 10 self-operated Taier restaurants were converted to franchise restaurants [1] - A total of 88 restaurants were closed, primarily due to the expiration of lease agreements and underperformance [1] Group 3: Market Strategy - The company continues to follow a multi-brand and multi-concept strategy while exploring new business opportunities to expand market share [2] - In response to a challenging external environment, the company actively adjusted its business strategy and optimized its restaurant network [2] - The focus remains on enhancing the brand portfolio and prioritizing brands with significant growth potential [2] - The company is accelerating the upgrade of new store formats, improving product, space, and service quality to enhance customer experience and ensure sustainable growth [2]

Investment Rating - The investment rating for the company is "Outperform the Market" [6][26]. Core Views - The company is expected to face operational pressure in 2024, with a projected revenue of 6.07 billion yuan, a slight increase of 1.5% year-on-year, but a significant decline in core operating profit by 60.1% to 250 million yuan, and a net profit drop of 87.7% to 55.81 million yuan due to cost leverage effects [1][9]. - The core brand's same-store sales are under pressure, leading to a strategic focus on core brand development by selling off non-core brands [2][12]. - The company is actively adapting to market changes by introducing new store formats and maintaining a commitment to a dividend payout ratio of no less than 40% [3][24]. Financial Performance Summary - In 2024, the company achieved a revenue of 6.07 billion yuan, with a year-on-year growth of 1.5%. The net profit for 2024 is projected to be 558.1 million yuan, down 87.7% from the previous year [5][9]. - The core brand, Tai Er, generated revenue of 4.413 billion yuan, a decrease of 1.4%, while the hot pot brand, Song, saw an increase of 11% in revenue to 895 million yuan [2][12]. - The company plans to optimize its store portfolio by closing underperforming locations, with a net closure of 39 stores in 2024 [2][12]. Cost Structure and Profitability - The cost structure shows rigidity, with raw material costs accounting for 35.6% of revenue, employee costs at 28.8%, and usage rights depreciation and rent at 11.7%, leading to a decline in profit margins [3][21]. - The net profit margin for 2024 is expected to be 0.9%, down 6.7 percentage points year-on-year, primarily due to rising costs and impairment losses from store closures [3][21]. Future Outlook - The company has adjusted its profit forecasts for 2025 and 2026, lowering the expected net profit to 216 million yuan and 295 million yuan, respectively, while introducing a new forecast for 2027 at 355 million yuan [4][24]. - The company is focusing on a low-risk, light-asset model for new brand incubation, which is expected to contribute to future growth [4][26].

Group 1 - The core viewpoint of the news is that Jiumaojiu International Holdings Limited reported a slight increase in revenue for the fiscal year 2024, but a significant decline in net profit, indicating challenges in profitability despite revenue growth [1][2] Group 2 - For the fiscal year 2024, Jiumaojiu's revenue was approximately 6.074 billion yuan, representing a year-on-year increase of 1.5% [1] - The net profit attributable to the parent company was 55.807 million yuan, a decrease of 87.69% compared to the previous year [1] - The annual profit dropped from 480 million yuan in 2023 to 44.8 million yuan in 2024, a decline of 90.7% [1] Group 3 - In 2024, Jiumaojiu opened 150 new restaurants, including 95 Taier restaurants, 28 Song Hotpot restaurants, 20 Shanwaimen restaurants, and 7 Jiumaojiu restaurants [1] - The company closed 69 restaurants in 2024 due to lease terminations, underperformance, and sales to third parties [1] - As of December 31, 2024, Jiumaojiu operated 779 self-operated restaurants and 28 franchised or cooperative restaurants across various countries [1] Group 4 - Jiumaojiu continues to follow a multi-brand and multi-concept strategy to explore new business opportunities and expand market share [2] - The company is adjusting its business strategy and expanding its restaurant network while optimizing its brand portfolio [2] - A general dividend of 0.02 HKD per share is scheduled for distribution on July 4, 2025 [2]

Core Insights - Jiumaojiu reported a revenue of approximately 6.074 billion RMB for the year ending December 31, 2024, representing a year-on-year increase of 1.5% [1] - The net profit attributable to the parent company was 55.807 million RMB, a significant decline of 87.69% compared to the previous year [1] - The annual profit decreased by 90.7% from 480 million RMB in 2023 to 44.8 million RMB in 2024 [1] Store Expansion and Closure - In 2024, Jiumaojiu opened 150 new restaurants, including 95 Taier restaurants (11 of which are franchised), 28 Song Hotpot restaurants, 20 Shanwaimen restaurants (16 of which are in a cooperative model), and 7 Jiumaojiu restaurants (1 of which is franchised) [1] - The company closed 69 restaurants in 2024 due to the expiration of lease agreements, underperformance of certain locations, and the sale of restaurants such as "Na Wei Da Shu Shi Da Chu" and "Lai Mei Li" [1] - As of December 31, 2024, Jiumaojiu operates 779 self-operated restaurants and 28 franchised/cooperative restaurants across 141 cities in China, as well as locations in Singapore, Canada, Malaysia, Thailand, the United States, and Indonesia [1] Business Strategy - In 2024, Jiumaojiu continued to follow a multi-brand and multi-concept strategy while exploring new business opportunities to further expand market share [2] - The company actively adjusted its business strategy and expanded its restaurant network, focusing on brands with significant growth potential while cautiously expanding the Taier and Song Hotpot brands [2] - Jiumaojiu launched a new brand, "Shan de Shan Wai Suan Tang Hotpot," in February 2024 and sold several restaurants in the first half of 2024 [2]