Jiumaojiu International (9922) H2 2023 earnings summary

Executive summary

• Revenue reached RMB5,986 million in 2023, up 49.4% YoY; 726 self-operated restaurants operated across 142 mainland China cities and 6 overseas cities at year-end.

• The operating strategy emphasized brand differentiation, customer experience, tighter cost management, and developing franchise and cooperative models for 2024.

Financial highlights

• 2023 revenue was RMB5,986 million, up 49.4% YoY.

• Tai Er revenue increased 44.0% YoY to RMB4,477 million; store-level operating profit rose 94.6% to RMB866 million.

• Song Hot Pot revenue rose 210.4% YoY to RMB807 million; store-level operating profit reached RMB99 million, up 2,080.0% YoY.

• Jiu Mao Jiu revenue increased 4.0% YoY to RMB1,372 million; store-level operating profit rose 42.3% to RMB213 million.

Outlook and guidance

• 2024 priorities: reset strategic thinking, select sustainable business tracks and business models, and build a sustainable food-service business.

• Prepare franchise and cooperative models, balancing franchisee profitability with brand protection and using local operators’ market knowledge.

• Develop the Shanwaimian sour soup hot pot brand; the concept targets a distinctive taste, value for money, and a relatively untapped chained-catering segment.