Summary of Jiumaojiu (9922.HK) 3Q25 Operating Update Company Overview - **Company**: Jiumaojiu (9922.HK) - **Brands**: Tai Er, Jiumaojiu, Song Hot Pot Factory Key Industry Insights - **Same Store Sales Growth (SSSG)**: - Tai Er: -9.3% in 3Q25, improved from -13.7% in 2Q25, with a recovery ratio of 62% vs. pre-Covid levels [1][13] - Jiumaojiu: -14.8% in 3Q25, improved from -18.5% in 2Q25, with a recovery ratio of 63% vs. pre-Covid levels [1][13] - Song: -19.1% in 3Q25, worsening from -14.3% in 2Q25, primarily affected by weather and high base effects [1][13] Financial Performance - **Store Count**: - Tai Er: Closed 36 stores, total of 530 stores [3][13] - Jiumaojiu: Closed 4 company stores, total of 64 stores [3][13] - Song: Closed 5 stores, total of 71 stores [3][13] - **Average Selling Price (ASP)**: - Tai Er: Rmb74, stable from Rmb74 in 2Q25 [1][13] - Jiumaojiu: Rmb58, improved from Rmb57 in 2Q25 [1][13] - Song: Rmb100, slightly increased from Rmb98 in 2Q25 [1][13] - **Average Table Turn**: - Tai Er: 3.3x in 2Q25 [1][13] - Jiumaojiu: 2.5x in 3Q25, improved from 2.3x in 2Q25 [1][13] - Song: 2.4x in 3Q25, stable from 2.4x in 2Q25 [1][13] Management Strategies - **Store Format Conversion**: - Management raised the store conversion target for Tai Er to over 200 by year-end, up from 150 [1][9] - New store formats are outperforming old formats, expected to enhance sales performance and brand perception [1][2] - **Future Expectations**: - Anticipated margin improvement in 2026E due to new store formats and optimized store networks [2][20] - Management targets positive SSSG in 4Q25, with a lower base expected [2][13] Risks and Considerations - **Key Risks**: - Weaker-than-expected demand and SSSG recovery [20] - Challenges in rolling out new store formats sustainably [20] - Competition and pricing pressures [20] - Margin risks and potential removal from Stock Connect [20] Valuation and Recommendations - **Price Target**: Updated 12-month target price of HK$3.5, based on 8x 2025E-26E EV/EBITDA [2][18] - **Investment Rating**: Remain Buy, with a significant upside potential of 71.6% from the current price of HK$2.04 [21][18] This summary encapsulates the critical insights from the Jiumaojiu 3Q25 operating update, highlighting the company's performance, strategic initiatives, and market outlook.

Jiumaojiu International Holdings Limited 九毛九国际控股有限公司 Stock Code 股份代号: 9922 2025年中期业绩发布会 2025 Interim Results Presentation August 2025 Disclaimer This Results Announcement Presentation is for the purpose of your reference only. It is not the intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the Company's financial or trading position or prospects. The information and opinions contained in this document are provided as at the date hereof and ar ...