Financial Performance - Domino's Pizza achieved revenue of RMB 3.05 billion and adjusted net profit of RMB 88 million for the year ended December 31, 2023[5] - Revenue for 2023 reached RMB 3,050.715 million, a 51.0% increase compared to RMB 2,020.789 million in 2022[10] - Store-level operating profit surged by 105.1% to RMB 419.732 million in 2023, with the profit margin improving to 13.8% from 10.1% in 2022[10] - Adjusted EBITDA increased by 117.7% to RMB 301.736 million in 2023, with the margin rising to 9.9% from 6.9% in 2022[10] - Store-level EBITDA increased by 80.1% to RMB 576.622 million in 2023, with the margin improving to 18.9% from 15.8% in 2022[10] - The company achieved a net loss attributable to equity holders of RMB 26.603 million in 2023, significantly narrowing from RMB 222.632 million in 2022[10] - Total revenue for 2023 reached RMB 3,050.7 million, a 51.0% increase compared to RMB 2,020.8 million in 2022[19] - Revenue from new growth markets surged 102.9% to RMB 1,505.6 million in 2023, contributing 49.4% of total revenue[19] - Adjusted EBITDA grew by 117.7% to RMB 301.7 million in 2023, compared to RMB 138.6 million in 2022[21] - Total revenue increased to RMB 3,050.7 million in 2023, up 50.9% from RMB 2,020.8 million in 2022[24] - Revenue from Beijing and Shanghai grew by 20.8% to RMB 1,545.1 million in 2023, driven by the addition of 39 new stores[25] - Revenue from new growth markets surged by 102.9% to RMB 1,505.6 million in 2023, with 141 new stores added[26] - Adjusted EBITDA increased to RMB 301.7 million in FY2023 from RMB 138.6 million in FY2022, with adjusted EBITDA margin improving to 9.9% from 6.9%[44] - Store-level operating profit increased to RMB 419,732 thousand in 2023, up from RMB 204,689 thousand in 2022[45] - Store-level EBITDA rose to RMB 576,622 thousand in 2023, compared to RMB 320,194 thousand in 2022, with a margin increase from 15.8% to 18.9%[45] - The company recorded a net loss of RMB 26.6 million in FY2023, significantly reduced from RMB 222.6 million in FY2022[41] Store Expansion and Operations - The company added 180 new stores in 2023, bringing the total number of stores to 768 across 29 cities[6] - The company operated 835 stores across 30 cities as of March 31, 2024, with plans to open approximately 240 new stores in 2024, aiming to reach 1,000 stores by the end of Q4 2024[9] - The company plans to open 300-350 new stores annually in 2025 and 2026, supported by the expansion of central kitchens, including a new one for Central and Western China[9] - The company opened 180 new stores in 2023, bringing the total number of stores to 768 across 29 cities[19] - Average daily sales per store in the six newly entered cities (Jinan, Wuhan, Chengdu, Qingdao, Wenzhou, and Changzhou) reached RMB 32,354, with an average payback period of approximately 9 months[19] - Four new stores in Xi'an, Changsha, Xiamen, and Hefei achieved over RMB 5 million in sales within the first 30 days, ranking among the top four globally for Domino's[20] - The company plans to open approximately 240 new stores in 2024, with an estimated capital expenditure of RMB 370 million[22] - A new central kitchen in Wuhan is planned for Q4 2024, with an estimated capital expenditure of RMB 20-25 million[22] - The company aims to further penetrate existing markets and expand into new cities while improving cost efficiency and profitability[22] - The company operates 768 directly-owned stores in 29 cities across Mainland China as of December 31, 2023[58] Membership and Customer Engagement - Membership program grew by 69.8% year-over-year, reaching 14.6 million members by the end of 2023[7] - Member customers contributed 59.2% of the company's total revenue in 2023[7] - Membership numbers grew to 14.6 million by the end of 2023, up from 8.6 million at the end of 2022[16] Awards and Recognition - The company received the "Kincentric Best Employer in China 2023" award for the second consecutive year[7] - Domino's Pizza, Inc. awarded the company the prestigious Domino's Pizza Gold Franny award for five consecutive years from 2018 to 2022[7] - The company also received the Cornerstone Award in 2021 and 2022 for outstanding new store growth[7] - One of the company's trainers was recognized as the 2022 International Franchise Trainer of the Year[7] Costs and Expenses - Raw material and consumables costs rose by 52.2% to RMB 836.8 million in 2023, accounting for 27.4% of total revenue[28] - Employee compensation expenses increased by 50.1% to RMB 1,178.7 million in 2023, with store-level compensation rising to RMB 819.6 million[29][30] - Rental expenses grew by 42.1% to RMB 307.7 million in 2023, driven by the expansion of the store network to 768 stores[32] - Depreciation of plant and equipment increased by 31.9% to RMB 159.2 million in 2023, reflecting higher equipment and renovation needs[33] - Intangible assets amortization increased by RMB 3.6 million or 7.7% to RMB 51.1 million in FY2023, primarily due to software purchases supporting store network expansion[34] - Water and electricity expenses rose by RMB 31.8 million or 38.4% to RMB 114.8 million in FY2023, driven by increased usage from store network expansion[35] - Advertising and promotion expenses increased by RMB 42.4 million or 36.3% to RMB 159.2 million in FY2023, mainly for revenue enhancement activities[36] - Store operation and maintenance expenses grew by RMB 59.1 million or 45.6% to RMB 188.9 million in FY2023, primarily due to store network expansion[37] - Other expenses increased by RMB 8.1 million or 6.6% to RMB 130.9 million in FY2023, mainly from higher travel and IT-related costs[38] - Net finance costs decreased by RMB 23.7 million or 30.2% to RMB 54.6 million in FY2023, due to lower loan costs and increased interest income[39] Cash Flow and Liquidity - Cash and bank balances surged by 87.2% to RMB 1,019.2 million in 2023, driven by net proceeds from the global offering and cash inflows from operating activities[46] - Net cash generated from operating activities reached RMB 536.1 million in 2023, up from RMB 298.2 million in 2022[46] - The company's current ratio improved to 1.19 in 2023, compared to 0.87 in 2022, indicating better liquidity[47] - Total borrowings remained stable at RMB 200.0 million in 2023, with repayment dates set for 2025[47] - The debt-to-equity ratio decreased significantly to 9.5% in 2023 from 26.6% in 2022, primarily due to increased equity from the global offering[48] Employee and Workforce - Full-time employees increased to 6,536 in 2023, up from 3,916 in 2022, with 94.6% working in store development and operations[52][53] - Total employee costs rose to RMB 1,178.7 million in 2023, compared to RMB 785.0 million in 2022[54] - The company had 15,635 part-time employees in 2023, up from 10,616 in 2022, primarily working as delivery riders and in-store staff[54] - The company had 6,536 full-time employees as of December 31, 2023, with a gender ratio of 52.7% female and 47.3% male[164] Corporate Governance and Board - The company's board of directors includes executive and non-executive members, with Arthur Patrick D'Elia appointed as a non-executive director on April 28, 2023[56] - The company was renamed "Dash Brands Ltd." to "Dash Brands Co., Ltd." on September 13, 2021, and listed on the Hong Kong Stock Exchange on March 28, 2023[57] - The Board of Directors consists of one executive director, five non-executive directors, and three independent non-executive directors[149] - The Chairman and CEO roles are held by Mr. Frank Paul Krasovec and Ms. Wang Yi, respectively, with clearly defined responsibilities[150] - The company held three Board meetings from the listing date to December 31, 2023, and two meetings from January 1, 2024, to the date of the annual report[151] - The company maintains at least three independent non-executive directors, ensuring compliance with Listing Rules and providing independent perspectives[153] - Directors are subject to retirement and re-election at annual general meetings, with specific directors required to stand for re-election at the next AGM[154][155] - The Board is responsible for overseeing the company's business, strategic decisions, and performance, with senior management handling daily operations[156] - The Board has established three committees (Audit and Risk, Remuneration, and Nomination) to oversee specific aspects of the company's affairs[157] - The Audit and Risk Committee held 3 meetings from the listing date to December 31, 2023, reviewing the group's annual performance and audit reports[158][159] - The Remuneration Committee granted 263,225 and 1,112,720 share options in April and October 2023 respectively, and approved 175,868 award shares in January 2024[160] - The Nomination Committee held 1 meeting from January 1, 2024 to the annual report date, reviewing board structure and director re-election recommendations[163] Shareholder and Dividend Policy - The company did not recommend the payment of a final dividend for the 2023 fiscal year (2022: none)[63] - The company has no distributable reserves as of December 31, 2023 (2022: none)[63] - The company's dividend policy allows for the declaration and distribution of dividends at the discretion of the Board of Directors, subject to legal distributable profits and reserves, and without impairing the company's ability to meet its debts[169] - The company may pay dividends in cash or shares, and unclaimed dividends will be forfeited and revert to the company according to its articles of association and applicable laws[169] - The company does not have a fixed dividend payout ratio but aims to recommend dividends in line with industry averages while maintaining sufficient reserves for operations, cash flow, expansion, and future growth[169] - The Board of Directors will periodically review the dividend policy, but there is no guarantee of any specific dividend amount or even the payment of dividends in any given period[169] Risk Management and Internal Controls - The company has implemented internal control policies and procedures, including maintaining internal procedures for obtaining necessary licenses and permits, and regularly reviewing compliance with relevant laws and regulations[180] - The company has established an Audit and Risk Committee to oversee internal control procedures and review financial statements, with the assistance of an internal audit department[180] - The company has adopted an anti-corruption policy to prevent corrupt practices and bribery, and the internal audit department monitors the implementation of risk management policies[181] - The company's risk management and internal control systems were reviewed annually and deemed effective and adequate by the Board of Directors[182] - The company's co-company secretaries, Ms. Wu Ting and Ms. Ho Wing-nga, each received at least 15 hours of relevant professional training during the reporting period, in compliance with the Listing Rules[182] Related Party Transactions - The total fees paid by the company to Domino's Pizza, Inc. under the Master Franchise Arrangement in the 2023 fiscal year amounted to approximately RMB 103.7 million, including franchise fees and royalty fees[120] - The annual cap for the Master Franchise Arrangement is set at RMB 140 million for 2023, RMB 200 million for 2024, RMB 290 million for 2025, RMB 410 million for 2026, and RMB 610 million for 2027[120] - The Master Franchise Agreement, effective from June 1, 2017, will expire on June 1, 2027, with the option to renew for two additional 10-year periods[116] - The royalty fee rate under the Master Franchise Agreement is 3% of the total sales from all stores operated in China[116] - The software license fee for each store in China is capped at USD 4,000, and the annual upgrade fee is capped at USD 1,000 per store[118] - The company has no sub-franchisees during the reporting period, resulting in no additional fees related to sub-franchisees[116] - The company received an exemption from the Hong Kong Stock Exchange for the Master Franchise Arrangement, allowing transactions up to the proposed annual caps without strict compliance with certain disclosure and approval requirements[121] - Independent non-executive directors confirmed that the transactions under the Master Franchise Arrangement were conducted under normal or better commercial terms and are fair and reasonable[122] - The company's auditor, PricewaterhouseCoopers, confirmed that the disclosed related party transactions did not exceed the set annual caps and were conducted in accordance with relevant agreements[123] Share Issuance and Incentive Plans - The company issued or may issue 1,473,829 new shares under the 2021 Plan, 2022 Pre-IPO Plan, and 2022 First Share Incentive Plan, representing approximately 1.21% of the weighted average number of issued shares[78] - The 2021 Plan allows for the issuance of up to 7,000,000 ordinary shares, with 1,035,236 new shares potentially issuable for unvested restricted share units as of the listing date[82] - During the reporting period, 563,720 new shares were issued upon the vesting of restricted share units under the 2021 Plan[82] - As of December 31, 2023, 471,516 new shares remain issuable under the 2021 Plan for unvested restricted share units, representing approximately 0.36% of the total issued shares[82] - The weighted average closing price of the company's shares was HKD 52.00 before the vesting date and HKD 58.27 after the vesting date[85] - A total of 250,012 shares were vested during the reporting period, with 34,563 shares vested in a specific category[85] - As of December 31, 2023, there were 471,516 shares that had not yet been exercised[85] - The 2022 Pre-IPO Plan allows for the issuance of up to 8,000,000 new ordinary shares, with 6,658,375 shares potentially issuable as of the listing date[90] - As of December 31, 2023, 6,347,292 new shares remained issuable under the 2022 Pre-IPO Plan, representing approximately 4.87% of the total issued shares[91] - The 2022 Pre-IPO Plan has a remaining term of approximately 8 years and 5 months as of the latest practicable date[87] - The 2022 Pre-IPO Plan aims to align the interests of directors, employees, and consultants with those of the company's shareholders[88] - The exercise price for options under the 2022 Pre-IPO Plan is determined by the committee and can be a fixed price related to the fair market value of the shares[93] - No new shares were issued during the reporting period due to the exercise of pre-listing options under the 2022 Pre-IPO Plan[91] - The vesting period for shares ranges from approximately 43 weeks to 1 year and 7 days, with some shares subject to a lock-up period until the first anniversary of the listing date[85] - The company's 2022 First Share Incentive Plan allows for the issuance of up to 12,000,000 shares, representing approximately 9.33% of the issued shares as of the listing date[100] - As of December 31, 2023, 1,375,945 awards in the form of share options were granted under the 2022 First Share Incentive Plan, with no other awards granted, exercised, canceled, or lapsed during the reporting period[100] - The remaining number of shares available for future grants under the 2022 First Share Incentive Plan as of December 31, 2023, is 10,624,055 shares, representing approximately 8.15% of the total issued shares as of the annual report date[100] - The 2022 First Share Incentive Plan has a remaining term of approximately 9 years as of the latest practicable date[96] - The 2022 First Share Incentive Plan aims to align the interests of eligible participants with those of the company and its shareholders by providing opportunities to acquire company shares[97] - Eligible participants include employees, directors, and senior personnel of the company and its affiliates, as well as employees, directors, and senior personnel of the company's holding company, subsidiaries, and associates[98] - Awards under the 2022 First Share Incentive Plan can take the form of share awards or share options, with the nature, amount, terms, and conditions determined by the board or plan administrator[99] - The maximum quota for any participant under the 2022 First Share Incentive Plan is 1% of the total issued shares over any 12-month period, with additional awards requiring shareholder approval[101] - The vesting period for
达势股份(01405) - 2023 - 年度财报