JIUMAOJIU International Holdings Limited recently disclosed its 2025 annual report. The financial results present a complex picture: while annual profit grew by 14.3% to 51.25 million yuan, core operating profit nearly halved. The company improved its debt-to-asset ratio to 44.8% and increased its cash reserves by 67.7%, yet revenue saw a double-digit decline, and its store network contracted significantly. Amid ongoing pressure in the restaurant industry, JIUMAOJIU is undergoing a challenging transition from scale expansion to quality improvement.
In 2025, JIUMAOJIU reported revenue of 5.233 billion yuan, down 13.8% from 6.074 billion yuan in 2024. This decline was primarily due to a drop in restaurant operating revenue, which fell by 18.5% to 3.976 billion yuan, accounting for 76.0% of total revenue. Takeaway business revenue also decreased by 4.0% to 1.002 billion yuan, but its share of total revenue rose to 19.1%. Notably, merchandise sales revenue surged by 74.7% to 244 million yuan, mainly driven by increased sales to third parties.
Revenue from all three core brands declined. Tai Er revenue fell by 15.7% to 3.720 billion yuan, Song Hotpot revenue decreased by 12.6% to 782 million yuan, and the JIUMAOJIU brand revenue dropped by 21.9% to 427 million yuan. Only the "other" segment saw growth, rising by 38.5% to 304 million yuan, largely due to expansion in supply chain external sales.
Despite the revenue decline, annual profit increased by 14.3% to 51.25 million yuan, and profit attributable to equity shareholders rose by 4.3% to 58.19 million yuan. However, core operating profit, which excludes items such as VAT credits and government subsidies, plummeted by 45.4% to 138 million yuan, with the core operating profit margin narrowing from 4.15% to 2.63%, indicating significant pressure on profitability.
Store-level operating profit also declined by 18.1% to 613 million yuan, with the margin slightly decreasing to 12.3%. By brand, Tai Er’s store-level operating profit fell, though its margin improved, while both Song Hotpot and the JIUMAOJIU brand saw declines in both profit and margin.
On the cost side, raw materials and consumables accounted for 35.5% of revenue, remaining stable year-on-year. Employee costs increased to 29.5% of revenue, mainly due to lower efficiency from reduced same-store sales. Depreciation of right-of-use assets and other assets also rose.
In 2025, JIUMAOJIU significantly adjusted its restaurant network, reducing the total number of stores by 163 to 644. The company opened 26 new restaurants but closed 189, citing lease expirations and underperformance. All major brands saw a reduction in store count, while the company launched a new brand, Chao Na Bian.
Operational efficiency metrics weakened across the board. Turnover rates declined for all brands, and same-store sales dropped significantly. Average customer spending showed mixed results, with Tai Er and JIUMAOJIU seeing slight increases, while Song Hotpot experienced a decrease.
Financially, JIUMAOJIU optimized its structure, reducing its debt-to-asset ratio to 44.8% and increasing cash reserves by 67.7%. The company also repurchased shares and proposed a final dividend, maintaining a dividend payout ratio of at least 40% of annual profit.
Strategically, JIUMAOJIU shifted its focus to "freshness," emphasizing product quality and customer experience. The company is upgrading store models, expanding its supply chain, and pursuing digital transformation and global expansion.
Following the release of the annual report, several institutions downgraded their profit forecasts and target prices for JIUMAOJIU, citing store adjustments and slower growth. Bank of Communications International Securities, Huatai Securities, Soochow Securities, and CMBI (Hong Kong) all revised their estimates downward, though some maintained positive ratings based on long-term recovery potential.
From July 31, 2025, to April 21, 2026, JIUMAOJIU’s stock price fell by 34.56%, reflecting market concerns over its performance and outlook.
Comments