①Guangzhou Restaurant Group did not increase revenue in the first half of this year. ②Guangzhou Restaurant Group stated that in order to promote sales, the company increased expenses such as market channel costs; the opening of new dining outlets also affects profit indicators due to expenditures on decoration and opening fees.
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On August 29th, Caixin reported (Reporter Lu Tingting) that this evening, Guangzhou Restaurant Group (603043.SH) released its interim performance report. Despite the continued growth in the dual core businesses of "food + dining" in the first half of the year, the company's net income decreased by over 26% compared to the same period last year. Guangzhou Restaurant Group explained that in order to boost sales, the company increased expenses such as market channel costs; the expenditures on decoration and opening fees for newly opened dining outlets also impacted profit indicators.
The financial report shows that Guangzhou Restaurant Group achieved revenue of 1.912 billion yuan in the first half of the year, a year-on-year increase of 10.29%. Among them, the operating revenue of the food business and dining business were 1.142 billion yuan and 0.722 billion yuan respectively, with year-on-year growth of 8.23% and 14.62% respectively. The company achieved a net income attributable to shareholders of 58.4534 million yuan, a year-on-year decrease of 26.98%.
By splitting it into quarters, it can be observed that Guangzhou Restaurant Group's major financial indicators in the second quarter of this year declined compared to the first quarter, dragging down its overall performance in the first half of the year.
In the second quarter of this year, Guangzhou Restaurant Group achieved operating income, net income attributable to shareholders, and net income after deducting non-recurring gains and losses of 0.9 billion yuan, -12.3283 million yuan, and -16.1711 million yuan respectively, down by 11.14%, 117.42%, and 124.28% compared to the previous quarter. For the same period in 2023, the data for these three items were 0.814 billion yuan, 10.8035 million yuan, and 7.232 million yuan respectively.
From the perspective of the market environment in which the company operates, with "cost-effectiveness" becoming a key consideration for consumer purchases, the competition for customer traffic among enterprises is becoming increasingly intense. The China Cuisine Association analysis believes that price wars, homogenized competition, and increasing cost pressures are the main factors leading to the current phenomenon of "revenue growth without profit" in the dining industry.
From the distribution side, Guangzhou Restaurant Group is evidently advancing its cross-regional layout.
In the semi-annual report, the company mentioned that it is further expanding new channels such as membership-based supermarkets, community group buying, and interest-based e-commerce. The development of food business outside the province is progressing rapidly, and the new city distribution system is steadily being implemented. Overseas market business has also grown by nearly 30% year-on-year. In terms of dining business, in the first half of the year, three new "Guangzhou Restaurant" self-operated dining stores were added, including the Beijing Guangzhou Tower store; six new Tao Tao Ju dining stores were added, including five authorized dining stores acquired and the Guangzhou Tianhe Road Tianhe City store newly opened.
As of now, the company has a total of 49 self-operated dining stores, including 27 "Guangzhou Restaurant" self-operated stores, 1 "Xingyuecheng" self-operated store, and 21 "Tao Tao Ju" self-operated stores. The company has authorized third-party operators to operate 18 franchised stores of "Tao Tao Ju".
Financial data shows that Guangzhou Restaurant's H1 cost of goods sold increased by 15.30% year-on-year to 1.417 billion yuan, compared to 1.229 billion yuan in the same period last year; sales expenses increased by 6.78% year-on-year to 0.205 billion yuan; and management expenses increased by 9.06% year-on-year to 0.185 billion yuan.