Jiumaojiu (09922) issued a profit warning, predicting that the net profit attributable to shareholders in 2024 will drop to no less than 50 million yuan.

JIUMAOJIU (09922) issued an announcement that the group is expected to generate revenue of approximately RMB 6.073 billion for the year ending December 31, 2024, compared to RMB 5.9859 billion for the year ending December 31, 2023. The group also expects the profit attributable to equity shareholders of the company for the fiscal year 2024 to be not less than RMB 50 million, compared to RMB 453.5 million for the fiscal year 2023. The Board of Directors believes that the expected decrease in profit attributable to equity shareholders is mainly due to: (i) intensified competition in the catering market due to changes in the external environment in the fiscal year 2024, resulting in a decline in same-store performance of the group's restaurants; (ii) one-time closure losses and impairment losses (non-cash items) totaling not more than RMB 135 million due to the closure of some restaurants and poor performance; (iii) a decrease in other income, including government subsidies, value-added tax deductions and exemptions, as well as an increase in net exchange losses due to exchange rate fluctuations in the fiscal year 2024. The group has been closely monitoring the market conditions and adjusting its business strategies and operations to mitigate negative impacts. The group has taken or will take the following measures to improve its operational performance: (i) continuously monitoring underperforming restaurants and evaluating new store opening plans more cautiously; (ii) implementing store operation improvement strategies, continuously optimizing product quality and structure, enhancing service quality, and iterating store models; (iii) further enhancing the operational efficiency of the supply chain system, improving quality and reducing costs through IT empowerment. Additionally, the Board of Directors hereby informs shareholders and potential investors that the overall operating conditions of the group remain stable at present, and various business operation optimization measures are steadily progressing according to plan. Despite uncertainties in the short-term macroeconomic environment, the group will continue to benefit from the strong support of the central government for consumption recovery and the positive impact of related policies. With the group's competitive advantages in brand influence and operational management efficiency, as well as the collective efforts of all employees, the Board of Directors firmly believes that the group can effectively respond to challenges, seize market opportunities, achieve long-term sustainable development, and is confident in the future development prospects of the group.