HONG KONG, Mar 22, 2024 – (ACN Newswire via SeaPRwire.com) – Jiumaojiu International Holdings Limited (“Jiumaojiu” or the “Company” and its subsidiaries (together, the “Group”); Stock Code: 9922HK) is pleased to announce the audited consolidated results of the Company for the year ended December 31, 2023.
Key Financial Highlights
- Revenue increased by 49.4% from RMB4,005.7 million for the year ended December 31, 2022 to RMB5,985.9 million for the year ended December 31, 2023;
- Net profit for the year increased significantly by 763.3% from RMB55.6 million for the year ended December 31, 2022 to RMB480.0 million for the year ended December 31, 2023;
- Profit for the year attributable to equity shareholders of the Company increased by 819.9% from RMB49.3 million for the year ended December 31, 2022 to RMB453.5 million for the year ended December 31, 2023;
- Adjusted net profit increased by 623.2% from RMB69.3 million for the year ended December 31, 2022 to RMB501.2 million for the year ended December 31, 2023.
- Final dividend proposed after the end of the year of HKD0.15 per ordinary share, representing a payout ratio of approximately 43.1%of profit for the year attributable to equity Shareholders.
In the year of 2023, the Group continued to adhere to its multi-brand and multi-concept strategy and explored new business opportunities, aiming to further expand its market share and maintain its market position as a leading Chinese cuisine restaurant brand manager and operator in the People’s Republic of China. In the year of 2023, total revenue of the Group increased by 49.4% from RMB4,005.7 million for the year ended December 31, 2022 to RMB5,985.9 million for the year ended December 31, 2023, and its net profit for the year increased significantly by 763.3% from RMB55.6 million for the year ended December 31, 2022 to RMB480.0 million for the year ended December 31, 2023. While the Group’s revenue is increasing, it further optimizes operational efficiency through effective management control, leading to a substantial growth in profits.
Steady Expansion of Stores And Advancing Overseas Deployment
Following the relaxation of anti-pandemic measures against the novel coronavirus COVID-19 (the “Pandemic”) and border reopening in early 2023, the Group adopted an active expansion strategy and opened 180 new restaurants in 2023, comprising 134 Tai Er restaurants, 35 Song Hot Pot restaurants, four Jiu Mao Jiu restaurants, six Lai Mei Li Grilled Fish restaurants and one Fresh Wood Beef Hot Pot(“Fresh Wood”) restaurant. As of December 31, 2023, the Group self-operated 726 restaurants, covering 142 cities in the PRC, Singapore, one city in Canada, one city in Malaysia, one city in Thailand and two cities in the United States.
As of December 31, 2023, the Group had a total of 578 Tai Er restaurants, 62 Song Hot Pot restaurants, 77 Jiumaojiu restaurants, 1 Uncle Chef restaurant, 7 Lai Mei Li Grilled Fish restaurants and 1 Fresh Wood restaurant. In 2023, the Group accelerates the restaurant network expansion of Tai Er brand and Song Hot Pot brand, while optimize the operation of Lai Mei Li Grilled Fish brand by restaurant renovation and menu upgrades. Meanwhile, in July 2023, the Group introduced its Fresh Wood brand, positioned as a high-end brand, to offer customers beef hot pot dishes using natural and premium food ingredients.
Multiple Brands under The Umbrella Flourishing And Operational Capabilities Continuously Strengthening
The Group generates revenue from four segments classified by brands, including Tai Er, Song Hot Pot, Jiu Mao Jiu and all other brands. Restaurant performance of most of the Group’s brands improved in 2023. Revenue contribution from Tai Er, Song Hot Pot and Lai Mei Li Grilled Fish increased by 44.3%, 210.4% and 272.3%, respectively. Moreover, the table turnover rates of Tai Er, Song Hot Pot, Jiu Mao Jiu and Lai Mei Li Grilled Fish also increased, which were mainly attributable to the increase in customer traffic following the relaxation of anti-pandemic measures against the Pandemic and border reopening in early 2023.
Revenue from Tai Er increased by 44.0% from RMB3,108.3 million for the year ended December 31, 2022 to RMB4,476.9 million for the year ended December 31, 2023 primarily due to the restaurant network expansion of Tai Er from 450 restaurants as of December 31, 2022 to 578 restaurants as of December 31, 2023. Meanwhile, its business operation has recovered from the Pandemic, leading to the increase in the number of operating days in 2023 compared to that in 2022 and the increase in table turnover rate of Tai Er restaurants from 3.5 in 2022 to 4.1 in 2023.
Revenue from Song Hot Pot increased significantly by 210.4% from RMB259.8 million for the year ended December 31, 2022 to RMB806.5 million for the year ended December 31, 2023 primarily due to the restaurant network expansion of Song Hot Pot from 27 restaurants as of December 31, 2022 to 62 restaurants as of December 31, 2023, and the increase in table turnover rate of Song Hot Pot restaurants from 3.6 in 2022 to 3.8 in 2023. In addition, revenue from Song Hot Pot as a percentage of total revenue increased from 6.5% in 2022 to 13.5% in 2023. In addition, Revenue from Jiu Mao Jiu remained relatively stable at RMB605.5 million and RMB629.6 million for the years ended December 31, 2022 and 2023, respectively.
Restaurant Operating And Delivery Services Concurrently to Jointly Boost Group Growth
Services provided by the Group or activities it engages in currently comprise restaurant operations, delivery business and others, mainly including sales of goods and sales of specialties. In 2023, the Group experienced accelerated growth in both its restaurant operations and delivery services revenue.
Revenue from restaurant operations increased by 58.2% from RMB3,203.2 million for the year ended December 31, 2022 to RMB5,066.5 million for the year ended December 31, 2023, primarily due to the Group’s restaurant network expansion from 556 restaurants as of December 31, 2022 to 726 restaurants as of December 31, 2023 and the growth in same store sales as the number of days of operation and table turnover rates of the Group’s restaurants increased in 2023 amid the recovery of its business operation from the Pandemic. As a result, revenue from restaurant operations as a percentage of total revenue increased from 80.0% for the year ended December 31, 2022 to 84.6% for the year ended December 31, 2023.
In addition, Revenue from delivery business increased by 14.5% from RMB787.1 million for the year ended December 31, 2022 to RMB901.2 million for the year ended December 31, 2023, primarily due to an increase in the number of restaurants that offered delivery services along with the Group’s restaurant network expansion.
In the future, the Group remains fully devoted to providing marvelous dining experience to customers through exquisite dishes, high-quality services and unique dining ambience. By replicating the Group’s success through further expansion; continually expanding into more market segments by pursuing a multi-brand and multi-concept strategy; continually strengthening the Group’s supply and support capabilities; expanding into the global markets to gain international presence; introducing franchise and cooperative model for regional and international expansion, the Group maintains the group’s strong market position and enhance its competitiveness, in order to maintain a strong market position and enhancing its competitiveness.
Propose Distributing Final Dividends to Showcase Confidence in Corporate Growth
The Board is committed to increasing returns for the shareholders of the Company (the “Shareholders”). For the year ended December 31, 2023, apart from utilizing approximately HKD150.0 million for share repurchases on market, the Board also proposes to distribute a final dividend of HKD0.15 per ordinary share (totalling approximately HKD215.4 million), which represents a payout ratio of approximately 43.1% of profit for the year attributable to equity Shareholders. Going forward, after a thorough reevaluation of the Group’s financial performance, financial position, and strategic development plans for the future, the Board intends to maintain a dividend payout ratio of no less than 40% of profit for the year attributable to equity shareholders.
About Jiumaojiu International Holdings Limited
Jiumaojiu International Holdings Limited is a leading chained Chinese cuisine restaurant brand manager and operator, focusing on serving cuisines with quick services, and creating a casual and upscale ambience with modern decoration of restaurants which are primarily located in shopping malls. As of December 31, 2023, the Group self-operated 726 restaurants, covering 142 cities in the PRC, Singapore, one city in Canada, one city in Malaysia, one city in Thailand and two cities in the United States.
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