Guming (1364) H2 2024 earnings summary

Executive summary

• Revenue grew 14.5% year-over-year to RMB8,791.4 million, with net profit up 36.2% to RMB1,493.2 million.

• Store network expanded to 9,914 stores across 200+ cities, up 10.1% from prior year, though store closures increased due to market slowdown and competition.

• Franchise model remains core, with 4,868 franchisees at year-end and 103 new beverages launched.

• IPO completed in February 2025, raising HK$1,930 million in net proceeds.

Financial highlights

• Gross profit rose 11.8% to RMB2,687.5 million; gross margin slightly decreased to 30.6% from 31.3%.

• Adjusted profit (non-IFRS) increased 5.7% to RMB1,542.4 million; adjusted EBITDA up 2.0% to RMB1,932.1 million.

• Cost of sales increased 15.8% to RMB6,103.9 million, in line with revenue growth.

• Selling and distribution expenses rose 42.4% due to higher marketing and logistics costs.

• Cash and bank balances at year-end were RMB1,935.3 million, down from RMB2,428.0 million, mainly due to investment in wealth management products.

Outlook and guidance

• Plans to further densify store network in existing provinces and expand into new regions and potentially overseas.

• Continued investment in technology, supply chain, and product R&D to drive efficiency and innovation.

• Focus on enhancing branding, consumer engagement, and membership programs.

• Special dividend of no less than RMB2 billion planned for 2025.