Jiumaojiu International (9922) H2 2024 earnings summary

Executive summary

• Revenue grew 1.5% year-over-year to RMB6,073.6 million, but profit for the year plunged 90.7% to RMB44.8 million due to higher costs, impairments, and intensified competition.

• The Group expanded its restaurant network to 807 locations, including 779 self-operated and 28 franchised/cooperative restaurants, and introduced new brands and models.

• 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: RMB6,073.6 million (up 1.5% year-over-year); profit for the year: RMB44.8 million (down 90.7%).

• Store level operating profit: RMB748.3 million (down from RMB1,077.0 million); core operating profit: RMB252.3 million (down from RMB632.1 million).

• EPS: RMB0.04 (down from RMB0.31); final and special dividends total RMB51.6 million.

• Cash and cash equivalents fell 54.3% to RMB607.0 million; gearing ratio rose to 12.0%.

Outlook and guidance

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

• Focus on optimizing restaurant network, enhancing product quality, digital transformation, and prudent international expansion.

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