Nayuki (2150) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 declined 14.4% year-over-year to RMB2,177.6 million, mainly due to the closure of underperforming stores.

• Adjusted net loss narrowed significantly by 73.1% to RMB117.9 million, reflecting improved operational efficiency.

• Net cash generated from operating activities increased 33.1% to RMB138.2 million.

• Store optimization and new product launches led to higher average daily sales and order volumes per teahouse.

• As of June 30, 2025, there were 1,638 teahouses (1,321 self-operated, 317 franchise), with franchise business contributing a small portion of revenue.

Financial highlights

• Adjusted net loss margin improved to -5.4% from -17.2% year-over-year.

• Cash and deposits totaled RMB2,793.2 million, up 3.7% from December 31, 2024.

• Cost of materials decreased to RMB743.6 million (34.1% of revenue), and staff costs to RMB648.8 million (29.8% of revenue).

• Delivery service fees rose to RMB200.7 million (9.2% of revenue) due to higher delivery order revenue.

• No interim dividend declared for H1 2025.

Outlook and guidance

• Continued focus on optimizing store portfolio, refining new store models, and developing high-quality, cost-effective products.

• Plans to leverage digital membership to boost customer engagement and repurchase rates.

• Sufficient cash reserves to support ongoing business adjustments and steady development.