What happened
Jiumaojiu released its interim results for the six months ended June 30, 2026, showing revenue of 2.391 billion yuan, a 13.2% decline year-over-year.
During the period, the company's profit reached 78.243 million yuan, up 33.2%, with profit attributable to equity shareholders at 75.804 million yuan, up from 60.691 million yuan a year earlier.
The group opened four restaurants in H1 2026, including two Tai Er and two Jiumaojiu locations, while one self-operated Tai Er converted to a franchise. It closed 42 restaurants, including six franchised ones, mainly due to lease terminations and underperformance, leaving a total of 606 restaurants as of June 30, 2026.
Why it matters
The contrasting trends — falling revenue but rising profit — suggest the company may be focusing on operational efficiency rather than top-line expansion.
The high number of store closures, driven by lease expirations and weak performance, indicates a deliberate restructuring of its restaurant portfolio, which could shape its cost structure and margins going forward.
The conversion of a self-operated Tai Er restaurant to a franchise model may signal a shift toward a lighter-asset expansion strategy, a trend worth monitoring in the competitive dining sector.
Key facts
Jiumaojiu's H1 2026 revenue was 2.391 billion yuan, down 13.2% year-over-year.
Period profit was 78.243 million yuan, up 33.2%.
Profit attributable to equity shareholders was 75.804 million yuan, versus 60.691 million yuan in the same period of 2025.
The group opened 4 restaurants and closed 42 (including 6 franchised) in H1 2026.
Total restaurant count as of June 30, 2026, was 606.
What to watch next
Whether continued store closures and franchise conversions will further improve profitability in the coming quarters.
How lease renewal negotiations and performance improvement plans affect the remaining 606 restaurants.
If the company's revenue decline stabilizes as it streamlines its brand portfolio.