Jiumaojiu International (9922) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB2,391.3 million, down 13.2% year-over-year, mainly due to restaurant network optimization and a decrease in the number of self-operated restaurants.

• Profit for the period increased by 33.2% to RMB78.2 million, driven by improved operational efficiency, cost control, and gains from associates.

• The Group continued to focus on a multi-brand strategy, optimizing its restaurant portfolio, and enhancing customer experience through product, space, and service upgrades.

• Expansion into global markets advanced, notably with a strategic investment in Big Way Group Inc., strengthening the Group’s North American presence.

• 42 restaurants were closed and four new ones opened, with a shift toward franchising and international expansion.

Financial highlights

• Revenue: RMB2,391.3 million (down 13.2% YoY); profit for the period: RMB78.2 million (up 33.2% YoY).

• Store level operating profit: RMB298.6 million (margin 13.2%); core operating profit: RMB79.1 million (margin 3.3%).

• Earnings per share: RMB0.06 basic and diluted (up from RMB0.04 YoY).

• Cash and cash equivalents: RMB587.9 million (down 42.2% from Dec 2025); gearing ratio increased to 20.5%.

• Raw materials, staff, and depreciation costs all declined in line with reduced restaurant count.

Outlook and guidance

• The Group will continue to optimize its restaurant network, focus on high-potential brands, and accelerate digital transformation and supply chain efficiency.

• International expansion remains a priority, with prudent evaluation of new locations and ongoing support for overseas brands, notably through a strategic partnership with Big Way Hot Pot in North America.

• Large-scale proactive store closures have ended, setting the stage for future high-quality growth.

• No interim dividend was recommended or declared for H1 2026.