Nayuki (2150) H2 2024 earnings summary

Executive summary

• Store network expanded to 1,798 locations by end-2024, including 1,453 self-operated and 345 franchise stores, with ongoing international expansion in Southeast Asia and the US.

• Revenue declined 4.7% year-over-year to RMB4,921.2 million due to weak consumer demand and intensified competition in the freshly-made tea industry.

• Adjusted net profit swung from a profit of RMB20.9 million in 2023 to a loss of RMB918.7 million in 2024.

• Net cash generated from operating activities dropped 75.7% to RMB201.6 million.

• Registered members surpassed 100 million, with stable repurchase rates and nearly 5 million monthly active members.

Financial highlights

• Gross revenue: RMB4,921.2 million (down from RMB5,164.1 million in 2023).

• Net margin dropped by 19.1 percentage points to -18.7%, resulting in an adjusted net loss of RMB918.7 million.

• Net cash generated from operating activities was RMB201.6 million, down from RMB828.5 million in 2023.

• Cost of materials rose to RMB1,809.0 million, 36.8% of revenue (2023: 32.9%).

• Staff costs increased to RMB1,434.6 million, 29.2% of revenue (2023: 27.2%).

Outlook and guidance

• Focus on green health and high-quality, cost-effective products to enhance customer awareness.

• Plans to diversify store types and optimize operations to adapt to changing consumption trends and improve profitability.

• Continued upgrades to operational management systems to reduce labor, rent, and raw material costs.

• Sufficient cash reserves (RMB2,694.2 million) to support business adjustments.