JIUMAOJIU released its 2026 interim report for the six months ended 30 June 2026, highlighting stronger profitability against a tougher operating backdrop.
Revenue and Profitability • Revenue fell 13.2% year-on-year to RMB 2.39 billion, mainly reflecting a contraction in the restaurant network and softer consumer traffic. • Profit for the period rose 33.2% to RMB 78.24 million; profit attributable to shareholders reached RMB 75.80 million (2025 interim: RMB 60.69 million). • Store-level operating profit slipped 3.8% to RMB 298.55 million, while core operating profit declined 19.4% to RMB 79.11 million. • Net interest expense eased 19.8% to RMB 44.18 million; impairment losses on property, plant and equipment narrowed to RMB 22.34 million (-36.8% YoY).
Revenue Mix • Tai Er contributed 75.2% of group revenue, generating RMB 1.80 billion (-7.8% YoY). • Song Hot Pot delivered RMB 264.78 million (-36.4% YoY), now 11.1% of total revenue. • Jiu Mao Jiu brand sales fell 22.0% to RMB 176.35 million, while “Others” (Fresh Wood, Shanwaimian, Chaonabian and other businesses) posted RMB 152.65 million. • By service line, restaurant dining produced 72.9% of revenue, takeaway 21.9% and retail goods 5.0%.
Network Reshaping • Total restaurants reduced to 606 (573 self-operated, 33 franchised) from 729 a year ago. • During H1 2026, the Group opened four outlets, converted one self-operated Tai Er unit to franchise and closed 42 locations (including six franchises).
Financial Position • Cash and cash equivalents dropped 42.2% to RMB 587.90 million, reflecting investments, bank deposits over three months and money-market placements. • Bank loans rose to RMB 629.33 million (31 Dec 2025: RMB 421.11 million); gearing moved to 20.5%. • Net assets declined to RMB 3.07 billion from RMB 3.22 billion at year-end 2025.
Capital Allocation • Capital expenditure reached RMB 153.19 million (H1 2025: RMB 148.29 million). • The Company spent HKD 108.0 million (RMB 95.67 million) buying back 57.76 million shares; 54.20 million were cancelled by 30 June. • No interim dividend declared; a final dividend of HKD 0.02 per share (RMB 24.48 million) for FY 2025 was paid during the period.
Strategic Investment • On 27 February 2026, the Company invested USD 43.00 million (about RMB 275.81 million) in North American spicy hot-pot chain Big Way Group Inc., lifting its stake to 49% and reclassifying the holding as an associate (carrying value RMB 358.13 million).
Operational Metrics • Tai Er seat turnover improved to 2.5 times (H1 2025: 2.2); Song Hot Pot and Jiu Mao Jiu slipped to 1.4x and 1.4x respectively. • Average spending per Tai Er customer edged up to RMB 74, while Song Hot Pot rose to RMB 106.
Outlook Highlights Management will prioritise quality growth by upgrading store formats, optimising the brand mix, expanding delivery sales, strengthening supply-chain efficiency and advancing digital initiatives. Expansion into overseas markets will proceed selectively, supported by the Big Way partnership.