Jiumaojiu International (9922) investor relations material

Executive summary

• Revenue declined 13.8% year-over-year to RMB5,233.0 million, mainly due to a reduction in self-operated restaurants and lower same store sales.

• Profit for the year increased 14.3% to RMB51.2 million, driven by cost optimization and lower impairment losses.

• The Group continued its multi-brand strategy, introduced a new brand (Chaonabian), and expanded internationally.

• A final dividend of HKD0.02 per share is proposed, with a payout ratio of 42.1%.

Financial highlights

• Store level operating profit fell 18.0% to RMB613.3 million; core operating profit dropped 45.4% to RMB137.7 million.

• Gross margin remained stable; staff costs and raw materials as a percentage of revenue increased slightly.

• Earnings per share remained at RMB0.04.

• Cash and cash equivalents rose 67.7% to RMB1,018.0 million.

• Liabilities-to-assets ratio improved to 44.8% from 51.4%.

Outlook and guidance

• The Group aims to maintain a dividend payout ratio of no less than 40% of profit attributable to equity shareholders.

• Focus remains on optimizing restaurant network, prudent expansion, and digital transformation.

• International expansion will continue, including a strategic partnership with Big Way Hot Pot in North America.