Guangzhou August 28th | Dashen Corporation (1405.HK) announced the performance announcement for the six months ending on June 30, 2024, during which the company achieved comprehensive profitability, record high revenue, and rapid expansion into new markets. The financial report shows that the group recorded a revenue of 2.041 billion yuan, a year-on-year increase of 48.3%. With further penetration in existing cities and expansion into new cities, all markets achieved revenue growth, with particularly outstanding performance in new markets. The group's adjusted net income and net income attributable to shareholders both turned positive, with the adjusted net income of the group reaching 50.89 million yuan, compared to a net loss of 17.445 million yuan in the same period last year; the net income attributable to shareholders was 10.907 million yuan, representing a 24.6% increase over the 8.751 million yuan in the same period last year (the net income in the first half of 2023 was mainly benefited from a one-time, non-operating gain of approximately 0.12 billion yuan from the fair value change of convertible preferred ordinary shares). By improving operational efficiency, the group further increased its profit margin. The store operating profit margin increased from 13.5% in the same period last year to 14.5%, the store EBITDA profit margin increased from 18.7% to 19.3%, and the group's adjusted EBITDA profit margin increased from 9.2% to 11.4%. In addition, since the current management team took over in the third quarter of 2017, the group has achieved 28 consecutive quarters of same-store sales growth on a long-term basis. The group continues to focus on pizza product innovation, refreshing the "Elite Member" system, and expanding its consumer base. As of August 20, 2024, Dashen Corporation has a membership of over 20 million, attracting over 10 million new users to place their first order in the past year. As of July 31, 2024, in the global first 30-day sales ranking for Domino's, Dashen Corporation's stores quickly climbed the ranks and occupied 28 out of the top 30 positions, highlighting its strong momentum. As of June 30, 2024, the group has opened 914 stores in 33 cities in China, with the number of new market stores accounting for over 60% of the group's total stores. As of August 20, 2024, the group has locked in 94.6% of its target to open 240 new stores for the full year of 2024.