Financial news
Written by: Yue Yueting
2019-12-30 09:50
Last updated: 2019-12-30 09:50Hong Kong's economy has fallen into recession and social movements have continued for many months. However, Taiji Sauerkraut Fish and Jiumao Jiushan Western Noodle House parent company, Jiumao Jiu International Holdings (9922) still decided to list in Hong Kong at this time. The board chairman, chief executive officer and executive director Guan Yihong said that after careful consideration, the company decided to list in Hong Kong based on market conditions, capital development needs and maximizing shareholders' interests. In addition to being optimistic about the capital market, they are also full of confidence in the company's own value. As an international financial center, Hong Kong is also a mature capital market. It is believed that it can provide a better platform for the future development of the Group.
China ’s economic growth has slowed down. Jiu Mao Jiu International ’s main market is China. Guan Yihong said that the company ’s main focus is “good food but not expensive dishes.” In the future, it will set goals based on its own development direction and have confidence in achieving the standards. And will expand overseas markets as planned. Executive Director and Chief Financial Officer Li Zhuoguang added that the company will also diversify business risks through a multi-brand strategy while reducing competition between its own restaurant brands.
No plans to close new brand
Taiji pickled fish has the rules of “no more than four people entertained; not set up or added; pickled fish does not have take-out” rules, Guan Yihong said that there is no intention to change these rules of Taiji temporarily, if there is new consumption in the new generation in the future Habits may change business strategies. He also pointed out that although the company has no plans to close other new brands, opening new brands requires continuous investment in the early stage, hoping to polish them to the best state.
Taiji's operating margin in 2018 was 18%, a decrease of 4.3 percentage points from 22.3% in 2017. Li Zhuoguang explained that this is because the price of Taiji ’s main ingredients, the seabass, fluctuates, which increases the cost of raw materials; and during the period, the Group recruited additional staff for the newly opened Taiji restaurant as a management team and employees, which increased the cost of staff. In the first half of this year, Taiji's operating margin has rebounded to 23.3%.
In addition, the company expects to open about 370 new self-operated restaurants from 2019 to 2021, of which about 240 are Taiji restaurants, about 54 Jiu Mao Jiu restaurants and about 76 other brand restaurants, and there are about 460 2 Egg pancakes join the restaurant.
[Taiji Sauerkraut Fish Enterprise] Jiu Mao Jiu International IPO Admission Fee 6667 RMB
It is said that "Taiji" pickled fish mother enterprises will raise more than 2.3 billion yuan in shares next week
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