Jiumaojiu International (9922) H2 2024 earnings summary

Executive summary

• Operates over 800 restaurants across 149 cities globally, with a net increase of 81 restaurants in 2024, including 779 self-operated and 28 franchised/cooperative restaurants.

• Multi-brand strategy with strong presence in Chinese cuisine sub-segments and over 17 million registered members.

• Focused on optimizing restaurant network, operational efficiency, and enhancing customer experience through innovation and digital transformation.

• Revenue grew 1.5% year-over-year to RMB 6,074 million, but profit for the year plunged 90.7% to RMB 44.8 million due to higher costs, impairments, and intensified competition.

• Final and special dividends of HKD0.02 per share each were proposed, representing a payout ratio of 92.5% of profit attributable to equity shareholders.

Financial highlights

• Revenue: RMB 6,074 million (up 1.5% year-over-year); profit for the year: RMB 44.8 million (down 90.7%).

• Net profit attributable to equity shareholders declined 60.1% year-over-year to RMB 252 million.

• Core operating profit dropped 60.1% to RMB 252 million, with core operating profit margin at 4.2%.

• Store level operating profit: RMB 748.3 million (down from RMB 1,077.0 million); margin: 12.6% (down from 18.0%).

• Cash and cash equivalents fell 54.3% to RMB 607.0 million; gearing ratio rose to 12.0%.

Outlook and guidance

• Plans to focus on core products, deepen regional presence in South China, and optimize single store models in 2025.

• No set target for new restaurant openings in 2025; expansion will be dynamically adjusted to market conditions.

• Digital and intelligent transformation identified as a key driver for future growth.

• Strengthening supply chain capabilities to build a competitive moat.

• Dividend payout ratio to be maintained at no less than 40% of profit attributable to equity shareholders going forward.