Core Viewpoint - The company reported strong mid-year performance for 2025, with significant increases in revenue and net profit, driven by improved store operations and robust sales to enterprise clients [1][2]. Group 1: Financial Performance - Revenue for the first half of 2025 reached 3.24 billion RMB, a year-on-year increase of 21.6% [1] - Net profit was 190 million RMB, up 122.5% year-on-year [1] - Core operating profit also stood at 190 million RMB, reflecting a 52.3% increase [1] - The net profit attributable to shareholders was 183 million RMB, marking a 113.2% rise [1] Group 2: Operational Improvements - The company added 250 new stores in the first half of 2025, including 270 new stores in rural areas [1] - Franchise store revenue per store increased by 7.9% year-on-year, supported by the launch of 175 new hot pot and barbecue product SKUs [1] - Over 2,000 community stores underwent 24-hour unmanned retail transformations, enhancing store efficiency [1] Group 3: Membership and Supply Chain - The number of registered members exceeded 50 million, a 62.8% increase year-on-year, with prepaid card amounts reaching approximately 590 million RMB, up 37.2% [2] - The company achieved 3.2 billion platform exposures through a multi-tiered Douyin account matrix [2] - New production facilities and a digital central warehouse were established, with plans for further investment in Hainan and overseas markets [2] Group 4: Profitability and Future Outlook - The gross profit margin for the first half of 2025 was 22.1%, a decrease of 0.7 percentage points, attributed to the higher sales proportion of cost-effective package products [2] - The net profit margin and core operating profit margin were 5.9%, with the core operating profit margin increasing by 1.2 percentage points year-on-year [2] - The company plans to distribute an interim dividend of 0.0716 RMB per share, totaling approximately 190 million RMB, with a payout ratio close to 100% [2] Group 5: Earnings Forecast - The company is expected to accelerate store openings in the second half of the year, with same-store sales projected to achieve low single-digit growth [3] - Forecasted net profits attributable to shareholders for 2025-2027 are 450 million, 561 million, and 680 million RMB, corresponding to current price-to-earnings ratios of 20, 16, and 13 times, respectively [3]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Insights - The company reported a revenue of 3.24 billion RMB for the first half of 2025, representing a year-on-year increase of 21.6%. The net profit reached 190 million RMB, up 122.5%, while the core operating profit also stood at 190 million RMB, increasing by 52.3%. The net profit attributable to shareholders was 183 million RMB, reflecting a growth of 113.2% [2][5]. Summary by Sections Company Performance - The company has seen continuous improvement in store operations, with a net increase of 250 stores in the first half of the year, including 270 new stores in rural areas. The average revenue per franchise store increased by 7.9% year-on-year, driven by the launch of 175 new hot pot and barbecue products. Over 2,000 community stores have undergone 24-hour unmanned retail transformations, contributing to enhanced store efficiency [7]. Membership and Supply Chain - As of the first half of 2025, the company registered over 50 million members, a 62.8% increase year-on-year. The prepaid card amount reached approximately 590 million RMB, up 37.2%. The company achieved 3.2 billion exposures through a multi-tiered Douyin account matrix. Additionally, a new food factory was established in Sichuan, and a digital central warehouse was added, bringing the total to 19 [7]. Profitability and Forecast - The gross margin for the first half of 2025 was 22.1%, a decrease of 0.7 percentage points, primarily due to the higher sales proportion of cost-effective meal packages. The net profit margin and core operating profit margin were 5.9% and increased by 1.2 percentage points, respectively. The company plans to distribute an interim dividend of 0.0716 RMB per share, totaling approximately 190 million RMB, with a payout ratio close to 100% [7]. Earnings Projections - The company is expected to accelerate store openings in the second half of the year, with same-store sales projected to achieve significant single-digit growth. The forecasted net profits attributable to shareholders for 2025-2027 are 450 million, 561 million, and 680 million RMB, corresponding to price-to-earnings ratios of 20, 16, and 13 times, respectively [7].