Ajisen China Records Modest 1H26 Revenue Growth but Profits Contract; Hong Kong Outlets Offset Mainland Weakness

Bulletin Express
Sep 29

Ajisen China reported turnover of RMB 890.31 million for the six months ended 30 June 2026, edging up 1.7% from the prior-year period. Gross profit rose 1.6% to RMB 684.95 million, yet profit before tax fell 45.0% to RMB 20.25 million and profit attributable to shareholders declined 30.0% to RMB 16.97 million, reflecting higher operating expenses and softer mainland sales.

Restaurant operations remained the core revenue driver, contributing 98.0% of total revenue. Segment sales expanded 2.8% year on year to RMB 872.63 million. Hong Kong restaurants delivered RMB 149.15 million, up 25.9%, supported by additional store openings and prime locations. Mainland China restaurant revenue slipped 1.0% to RMB 723.48 million amid intensified market competition and a consumer shift toward value dining and delivery.

Cost dynamics weighed on earnings. Service charges to delivery platforms surged 28.7% to RMB 45.80 million, while consumables and utensils costs rose 21.8% to RMB 29.00 million. Total staff expenses inched up 1.8% to RMB 243.99 million, maintaining a 27.4% share of turnover. Depreciation increased 6.2% to RMB 176.99 million, driven by new leases, particularly in Hong Kong. Gross margin softened marginally to 76.9% from 77.0%.

The group operated 610 restaurants at period-end, a net addition of two outlets versus June 2025. The network includes 106 stores in Shanghai, 170 across Southern China, and 42 in Hong Kong. Central kitchens in Shanghai, Chengdu, Tianjin, Wuhan, Dongguan and Hong Kong support the footprint.

Liquidity remained strong. Cash and bank balances stood at RMB 1.64 billion with a current ratio of 3.2. Bank borrowings totaled RMB 26.95 million, translating to a gearing ratio of 0.7%. Capital expenditure reached RMB 31.95 million, primarily for new stores and kitchen upgrades.

Management continued rolling out the “Freshness Strategy,” shifting broth preparation to individual stores and highlighting premium ingredients, while advancing omnichannel digital upgrades to integrate dine-in and delivery operations.

No interim dividend was declared for the half-year period.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10