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DPC Dash Ltd Interim / Quarterly Report 2025
49903_rns_2025-08-28_ad83cb1c-ab4a-498e-8774-ff0d6fe59fc7.pdf
Interim / Quarterly Report
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
Domino's Pizza
达美乐比萨
DPC Dash Ltd
达势股份有限公司
(incorporated in the British Virgin Islands with limited liability)
(Stock code: 1405)
INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED JUNE 30, 2025
The board (the "Board") of directors (the "Directors", and each a "Director") of DPC Dash Ltd (the "Company", together with its subsidiaries, the "Group") is pleased to announce the unaudited interim condensed consolidated results of the Group for the six months ended June 30, 2025 (the "Reporting Period"). The interim condensed consolidated financial information is unaudited but has been reviewed by the Company's audit and risk committee and the Company's auditors, PricewaterhouseCoopers, in accordance with International Standard on Review Engagements 2410 "Review of interim financial information performed by the independent auditor of the entity" issued by the International Auditing and Assurance Standards Board.
KEY HIGHLIGHTS
| Six months ended June 30, | |||
|---|---|---|---|
| 2025 (RMB '000) (Unaudited) | 2024 (RMB '000) (Unaudited) | change (%)/ percentage points change | |
| Revenue | 2,593,390 | 2,041,461 | 27.0% |
| Store-level operating profit(1) | 379,188 | 296,155 | 28.0% |
| Store-level operating profit margin(2) | 14.6% | 14.5% | +0.1 |
| Profit before income tax | 110,097 | 40,894 | 169.2% |
| Profit for the period attributable to owners of the Company | 65,924 | 10,907 | 504.4% |
| Basic earnings per share (RMB) | 0.50 | 0.08 | 525.0% |
| Diluted earnings per share (RMB) | 0.49 | 0.08 | 512.5% |
| Non-IFRS Measures | |||
| Store-level EBITDA(3) | 502,818 | 393,902 | 27.7% |
| Store-level EBITDA margin (%)(4) | 19.4% | 19.3% | +0.1 |
| Adjusted EBITDA(5) | 322,877 | 233,387 | 38.3% |
| Adjusted EBITDA margin (%)(6) | 12.4% | 11.4% | +1.0 |
| Adjusted Net Profit(7) | 91,420 | 50,890 | 79.6% |
| Adjusted Net Profit margin (%)(8) | 3.5% | 2.5% | +1.0 |
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Notes:
(1) Store-level operating profit represents revenue less operational costs incurred at the store level, comprising salary-based expense, raw materials and consumables cost, depreciation of right-of-use assets, depreciation of plant and equipment, amortization of intangible assets, variable lease rental payment and short-term rental expenses, utilities expenses, advertising and promotion expenses, store operating and maintenance expenses and other expenses.
(2) Store-level operating profit margin is calculated by dividing store-level operating profit by revenue for the same period.
(3) “Store-level EBITDA” is defined as store-level operating profit for the period and adding back depreciation of plant and equipment and amortization of intangible assets in store-level.
(4) “Store-level EBITDA margin” is calculated by dividing Store-level EBITDA by revenue for the same period.
(5) “Adjusted EBITDA” is defined as Adjusted Net Profit for the period and adding back depreciation and amortization (excluding depreciation of right-of-use assets), income tax expense and interest income and expenses, net.
(6) “Adjusted EBITDA margin” is calculated by dividing Adjusted EBITDA by revenue for the same period.
(7) “Adjusted Net Profit “is defined as Profit for the period and adding back share-based compensation.
(8) “Adjusted Net Profit margin” is calculated by dividing Adjusted Net Profit by revenue for the same period.
Non-IFRS Measures
To supplement the Group’s consolidated financial statements that are presented in accordance with the International Financial Reporting Standards (“IFRS”), we also use Adjusted Net Profit (non-IFRS measure), Adjusted Net Profit margin (non-IFRS measure), Adjusted EBITDA (non-IFRS measure), Adjusted EBITDA margin (non-IFRS measure), Store-level EBITDA (non-IFRS measure) and Store-level EBITDA margin (non-IFRS measure) as additional financial measures, which are not required by, or presented in accordance with, IFRS. We believe that these non-IFRS measures facilitate comparisons of operating performance from period to period and company to company. We believe that these measures provide useful information to investors and others in understanding and evaluating our results of operations in the same manner as they help our management. However, our presentation of Adjusted Net Profit (non-IFRS measure), Adjusted Net Profit margin (non-IFRS measure), Adjusted EBITDA (non-IFRS measure), Adjusted EBITDA margin (non-IFRS measure), Store-level EBITDA (non-IFRS measure) and Store-level EBITDA margin (non-IFRS measure) may not be comparable to similarly titled measures presented by other companies. The use of such non-IFRS measures has limitations as an analytical tool, and you should not consider them in isolation from, or as substitute for analysis of, our results of operations or financial condition as reported under IFRS.
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BUSINESS HIGHLIGHTS
We are pleased to announce the key operating metrics, as set forth below, in relation to the Group's business for the six months ended June 30, 2025 (as compared with the six months ended June 30, 2024 and the year ended December 31, 2024):
Store counts
| As of June 30, 2025 | As of December 31, 2024 | As of June 30, 2024 | |
|---|---|---|---|
| Tier 1 City markets | 515 | 509 | 498 |
| Non-Tier 1 City markets | 683 | 499 | 416 |
| Total | 1,198 | 1,008 | 914 |
| Number of cities entered | |||
| As of June 30, 2025 | As of December 31, 2024 | As of June 30, 2024 | |
| Number of cities entered | 48 | 39 | 33 |
| Same-store Sales Growth (“SSSG”)^{(1)} | |||
| Six months ended June 30, 2025 | Year ended December 31, 2024 | Six months ended December 31, 2024 | |
| SSSG | -1.0%* | 2.5% | 1.6% |
| * Tier 1 City markets delivered positive SSSG during 1H2025 and pre-December 2022 markets in aggregate delivered positive SSSG for 1H2025. |
Loyalty membership numbers
| As of June 30, 2025 | As of December 31, 2024 | As of June 30, 2024 | |
|---|---|---|---|
| Loyalty membership numbers (million) | 30.1 | 24.5 | 19.4 |
Note:
(1) SSSG compares the sales generated by same stores during the relevant period year-on-year: the SSSG for the six months ended June 30, 2025 compares the same-store sales of the six months ended June 30, 2025 and that of the six months ended June 30, 2024; the SSSG for the year ended December 31, 2024 compares the same-store sales of the year ended December 31, 2024 and that of the year ended December 31, 2023; the SSSG for the six months ended December 31, 2024 compares the same-store sales of the six months ended December 31, 2024 and that of the six months ended June 30, 2023; and the SSSG for the six months ended June 30, 2024 compares the same-store sales of the six months ended June 30, 2024 and that of the six months ended June 30, 2023.
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MANAGEMENT DISCUSSION AND ANALYSIS
We are Domino's Pizza's exclusive master franchisee in the Chinese mainland, the Hong Kong Special Administrative Region of China and the Macau Special Administrative Region of China. As of June 30, 2025, we directly operated 1,198 stores across 48 cities in the Chinese mainland. Our global franchisor, Domino's Pizza, Inc., is one of the world's largest pizza companies, with more than 21,500 stores in over 90 markets around the world as at the end of the Reporting Period.
Business Review for the Six Months Ended June 30, 2025
During the first six months of 2025, we generated a total revenue of RMB2,593.4 million, representing a 27.0% year-over-year growth as compared with the revenue of RMB2,041.5 million during the same period of 2024, largely attributed to our continued national store network expansion, together with the strong sales generated at our new stores in new markets and the continued healthy sales trend in existing markets.
In Beijing and Shanghai, our total revenue grew 6.0% year-over-year from RMB796.0 million in the six months ended June 30, 2024 to RMB843.9 million in the six months ended June 30, 2025, mainly attributed to the positive SSSG our existing stores delivered, mildly helped by eight incremental stores in operation as of the end of the Reporting Period as compared to the same period last year. Similar growth was also observed in Shenzhen and Guangzhou, the other two Tier 1 cities, which delivered positive SSSG and have an incremental nine stores in operation for the Reporting Period. As of the end of the Reporting Period, we operate a total of 515 stores in Tier 1 cities, which accounts for 43% of total store counts, and generated a total of RMB1,084.7 million sales, accounting for 41.8% of total revenue and representing a 7.2% year-over-year growth. We believe the continued positive SSSG achieved in Tier 1 cities is a true reflection of resilient performance and strong brand recognition in these highly competitive markets.
The revenue generated from our new growth market excluding Shenzhen and Guangzhou, ie. our non-Tier 1 cities, grew 46.6% year-over-year from RMB1,029.4 million in the six months ended June 30, 2024 to RMB1,508.7 million in the six months ended June 30, 2025, mainly as a result of (a) a total of 184 net new stores added making more stores in operation during the Reporting Period; and (b) the strong performance achieved at the new stores in newly entered markets. The revenue contribution from non-Tier 1 new growth markets continued to increase over the period, from 50.4% in the six months ended June 30, 2024 to 58.2% in the six months ended June 30, 2025.
We continued our success in expanding in China by adding new stores in existing cities and expanding into new markets. During the Reporting Period, we had a net store opening of 190 stores, ending the Reporting Period with 1,198 stores. As of June 30, 2025, we have expanded our operations to 48 cities in China, having entered 9 new cities during the Reporting Period. In addition, the number of stores we operate in central and western China region also reached 100 in May 2025 after the entry to the region in December 2022. Achieving this milestone in such a short timeframe of approximately 2.5 years reflects the successful penetration of our brand into new growth markets with excellent execution capability of our development and operation team. As of the end of the Reporting Period, we have 515 stores in Tier 1 cities, and 683 stores in non-Tier 1 cities. We will continue our store opening strategy of "Go deeper" in existing markets and "Go broader" into new markets prudently to build up our national footprint and enhance Domino's Pizza brand name.
In the first half of 2025, we continue to observe strong performance in the new stores in our new growth markets, and in particular in our newly entered markets since last December's holiday seasons. We opened six stores in six new cities last December. During the first half of 2025, we entered another nine new cities and added an aggregate of 58 stores in these 15 markets. The average daily sales of these 64 stores in these 15 markets were RMB47,102 during the Reporting Period, with an average of actual or expected cash payback period of 11 months. 24 of the 64 new stores already achieved full cash payback by 15 August 2025. On the Domino's global sales ranking chart, we continue to take more space. For example, our Company now holds 48 of the top 50 positions for first 30-day sales among Domino's network of more than 21,000 stores globally as of the second quarter of 2025. Furthermore, after setting the latest global high of First-30-Day-Sales record, our first store in Shenyang continued its global record setting journey. It broke the existing global annual sales record of RMB31 million which was previously set by the Xiamen SM Phase III store in China within just 198 days of operation since its opening. In addition, the average daily sales were approximately RMB17,438 during the Reporting Period for the stores in the markets we entered since the holiday season in December 2022 when we started a wave of global sales record setting. The average daily sales of these stores were still being maintained at a solid level, a demonstration of effective brand penetration and customer engagement.
The Company and the brand have experienced a few consecutive years of strong growth during which we delivered 31 consecutive quarters of positive SSSG, and set a high base of sales for cities we entered before December 2022. For the new markets we entered since December 2022, we've been opening new stores with very strong sales performance and continuously setting new global sales record within Domino's global sales system. As more of these high sales record stores gradually entering into the SSSG cycle, they are expected to bring negative SSSG impact to the Group SSSG initially. As a result, such negative impact brought our SSSG to -1% for the six months ended 30 June 2025. Carving out the impact of the stores in the post-December 2022 new markets, the Group's SSSG remained positive, and Tier 1 markets SSSG also remained positive, despite a relatively high base built over the past few years. We believe this is a strong and solid result in the context of very high sales base after 31 consecutive positive same store sales growth achieved, an intensive competition in the market and a generally soft consumer consumption environment. It is a true reflection of our team's capability in effective customer engaging and marketing campaign, strong execution of development and operation, relentless effort on value-for-money, tasty and innovative product offering.
Our loyalty program reached 30.1 million members as of June 30, 2025, compared to 19.4 million as of June 30, 2024. Over the past 12 months, 13.2 million new customers placed their first orders, demonstrating the Company's effective approach to recruiting new customers. The rapid store network expansion coupled with rapid growth in digital adoption have enabled us to significantly broaden our customer base while simultaneously deepening its understanding of consumer preferences. Through this data-driven approach, we continue to refine our service offerings and strengthen connections with its growing membership base. Our revenue contributed by our loyalty members as a percentage of total revenue also increased from 63.6% in the six months ended June 30, 2024 to 66.0% in the six months ended June 30, 2025. As we continue to expand, we see great opportunities in attracting new customers and recruiting more members to our loyalty program and provide tailor-made member benefits to maintain and increase the stickiness of our customers.
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During the Reporting Period, we achieved mild improvement at store level profitability. Our Store-level EBITDA increased by 27.7% year-over-year from RMB393.9 million in the first half of 2024 to RMB502.8 million for the Reporting Period, and the Store-level EBITDA margin improved to 19.4% for the Reporting Period as compared with 19.3% for the same period of 2024. Our store-level operating profit increased by 28.0% year-over-year from RMB296.2 million in the first half of 2024 to RMB379.2 million for the Reporting Period. The store-level operating profit margin improved to 14.6% for the Reporting Period as compared with 14.5% for the same period of 2024. More margin expansion were achieved at corporate level as efficiency benefit further unfolds. The Group's Adjusted EBITDA increased by 38.3% year-over-year from RMB233.4 million in the first half of 2024 to RMB322.9 million for the Reporting Period, with respective margin improving from 11.4% to 12.4%. Accordingly, our Adjusted Net Profit increased by 79.6% year-over-year from RMB50.9 million in the first half of 2024 to RMB91.4 million for the Reporting Period, with respective margin improving from 2.5% to 3.5%.
Business Outlook
Going forward, store network expansion and growth are still our priority strategy, coupled with a balance of a healthy and sustainable profitability level.
We plan to open 300 stores in 2025. During the first half of 2025, we have a net opening of 190 new stores. As of 15 August, 2025, we have additional net opening of 43 stores, 27 stores under construction and 35 stores signed, well on track to deliver the 2025 full year opening target of 300 stores.
Looking forward, with further strengthened brand name and rising brand momentum, we will continue to execute our "Go-Deeper" and "Go-Broader" network expansion strategy, entering more new cities while further penetrating our existing markets. We would also look to further improve the cost efficiency as we continue to scale up and our stores continue to ramp up.
Events after the Reporting Period
There has been no material event that is required to be disclosed by the Company after the Reporting Period and up to the date of this announcement.
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7
Financial Review
1. Revenue
Our revenue increased by 27.0% from RMB2,041.5 million for the six months ended June 30, 2024 to RMB2,593.4 million for the six months ended June 30, 2025, mainly attributable to the increased number of stores in operation during the respective periods due to network expansion strategy, together with the strong sales generated at our new stores in new markets and the continued positive SSSG achieved in Tier 1 cities. In the first half of 2025, we sustained our successful expansion in China through the addition of new stores in established cities and entry into emerging markets. We added 146 net new stores during the first six months of 2024 and brought the total store counts to 914 as of June 30, 2024, while we added 190 net new stores during the first six months of 2025 leading to a total store count of 1,198 as of June 30, 2025. The following table sets forth the breakdown of the Group’s revenue by markets for the periods indicated.
| Six months ended June 30, | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| RMB'000 | % | RMB'000 | % | |
| Tier 1 City markets | 1,084,740 | 41.8 | 1,012,034 | 49.6 |
| Non-Tier 1 City markets | 1,508,650 | 58.2 | 1,029,427 | 50.4 |
| Total revenue | 2,593,390 | 100.0 | 2,041,461 | 100.0 |
In our Tier 1 City markets, including Beijing, Shanghai, Shenzhen and Guangzhou, our revenue grew at 7.2% year-over-year from RMB1,012.0 million in the first half of 2024 to RMB1,084.7 million for the Reporting Period as our existing stores continued to achieve positive SSSG, mildly helped by 17 incremental stores in operation as of the end of the Reporting Period as compared to the same period last year. The positive SSSG was mainly driven by an increase in the average daily sales per store in these markets. During the first half of 2025, we continue to penetrate in these highly competitive markets by effectively executing our 4D strategy. We launched many popular new products, for example, British Filet Mignon Beef Wellington Pizza, Durian and Lychee, our new products in the durian series, Tuscany Inspired Cheese Salmon Pizza, and Cocoa Volcano Crust. We kept executing our renowned 30 minutes delivery promise and our overall “Delivery-On-Time” coverage rate further improved to 94% of our delivery orders. Effective marketing, together with various value-for-money offerings and smart engagement of customers also helped our sales growth. Total sales from delivery in Tier 1 cities reached approximately 73.7% during the first half of 2025, up from 70.4% during the same period of 2024.
In the new growth markets excluding Shenzhen and Guangzhou, ie. our Non-Tier 1 City markets, our revenue grew at 46.6% year-over-year from RMB1,029.4 million in the first half of 2024 to RMB1,508.7 million for the Reporting Period, mainly due to a total of 184 net new stores added in the new growth markets and strong performance achieved at the stores in newly entered markets. The revenue contribution from Non-Tier 1 City markets continued to increase over the period, from 50.4% in the six months ended June 30, 2024 to 58.2% in the six months ended June 30, 2025.
Despite the strong sales performance mentioned above during the Reporting Period, the average daily sales per store declined by 4.4% year-over-year, mainly attributable to the decrease in average daily sales per store in those post-December 2022 high performing or sales record setting stores as they gradually stabilize sales over time. Having said that, the overall average daily sales per store in these post-December 2022 stores were still maintained at a solid level and higher than the Group's overall average. As a result, they continued to contribute positively to the group's profitability.
The following table sets forth average daily sales per store during the six months ended June 30, 2024 and 2025.
| Six months ended June 30, | ||
|---|---|---|
| 2025 | 2024 | |
| Average daily sales per store(1) (RMB) | 12,915 | 13,515 |
Note:
(1) Calculated by dividing the revenues generated from the relevant store for a particular period by the aggregate number of days of operation of such store during the same period.
2. Raw materials and consumables cost
For the six months ended June 30, 2025, the raw materials and consumables cost of the Group amounted to RMB706.8 million, representing an increase of RMB149.0 million or 26.7% as compared with RMB557.8 million for the corresponding period in 2024. The increase was primarily due to our revenue growth, which has increased our need for raw materials and consumables. As a percentage of revenue, our raw materials and consumables cost remained relatively stable for the six months ended June 30, 2024 and 2025.
3. Staff compensation expenses
For the six months ended June 30, 2025, the staff compensation expenses of the Group amounted to RMB877.4 million, representing an increase of RMB165.5 million or 23.2%, as compared with RMB711.9 million for the corresponding period in 2024. The following table sets forth a breakdown of our staff compensation expenses at the store level and the corporate level for the periods indicated.
| Six months ended June 30, | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| RMB'000 | % of total revenue | RMB'000 | % of total revenue | |
| Cash-based compensation expenses for store-level staff | 718,430 | 27.7 | 558,845 | 27.4 |
| Cash-based compensation expenses for corporate-level staff | 133,458 | 5.1 | 113,084 | 5.5 |
| Share-based compensation | 25,496 | 1.0 | 39,983 | 2.0 |
| Total staff compensation expenses | 877,384 | 33.8 | 711,912 | 34.9 |
The increase of cash-based compensation expenses for store-level staff was primarily due to the increase in the number of our store level employees arising from the expansion of our store network. As a percentage of revenue, our cash-based compensation expenses for store-level staff increased from 27.4% for the six months ended June 30, 2024 to 27.7% for the same period in 2025 primarily attributable to the increase in the average number of store-level employees per store. Since 2024, as we speed up our store openings in the recently entered new markets, we recruited more store-level staff for training in advance in order to better serve the customer and familiar with new markets. This leads to the increase in the average number of store-level staff per store.
The increase of cash-based compensation expenses for corporate-level staff was primarily due to (i) an increase in headcount to support our rapid expansion; and (ii) the merit-based increase in salary. As a percentage of revenue, our cash-based compensation expenses for corporate-level staff decreased from 5.5% for the six months ended June 30, 2024 to 5.1% for the same period in 2025 primarily as our corporate-level staff accumulate more experience and become well-equipped to support the operations of a larger number of stores. The declining proportion of cash-based compensation expenses for corporate-level staff also reflects the continued benefit of scale of economy on cost efficiency at Group headquarter.
The decrease of share-based compensation was mainly driven by the decrease in share options granted and lower percentage portion of the granted option fair value charged to our income statement during the Reporting Period as compared to previous corresponding six months in 2024.
4. Rental expenses
Our rental expenses include depreciation of right-of-use assets and variable lease rental payment, short-term rental and other related expenses. The Group's depreciation of right-of-use assets represents the depreciation of capitalized lease incurred by long-term leased properties in accordance with IFRS 16. For the six months ended June 30, 2025, our rental expenses amounted to RMB259.2 million, representing an increase of RMB57.5 million or 28.5% as compared with RMB201.7 million for the corresponding period in 2024. The increase was primarily due to the expansion of our store network from a total of 914 store as of June 30, 2024 to a total of 1,198 stores as of June 30, 2025. Our rental expenses as a percentage of revenue remained relatively stable during the Reporting Period as compared with the six months ended June 30, 2024.
5. Depreciation of plant and equipment
For the six months ended June 30, 2025, the depreciation of plant and equipment of the Group amounted to RMB123.9 million, representing an increase of RMB25.3 million or 25.6% as compared with RMB98.6 million for the corresponding period in 2024. The increase was primarily due to increased equipment needs in conjunction with the expansion of our store network, resulting in the corresponding increase in depreciation expenses. Our depreciation of plant and equipment as a percentage of total revenue remained relatively stable during the Reporting Period as compared with the six months ended June 30, 2024.
- Amortization of intangible assets
For the six months ended June 30, 2025, the amortization of intangible assets of the Group amounted to RMB28.7 million, representing an increase of RMB1.8 million or 6.7% as compared with RMB26.9 million for the corresponding period in 2024. The increase was primarily driven by the acquisition of software and the addition in store franchise fees in line with the expansion of our store network. Our amortization of intangible assets as a percentage of total revenue decreased from 1.3% for the six months ended June 30, 2024 to 1.1% for the same period in 2025, primarily due to the strong growth of our revenue.
- Utilities expenses
For the six months ended June 30, 2025, the utilities expenses of the Group amounted to RMB87.4 million, representing an increase of RMB15.5 million or 21.6% as compared with RMB71.9 million for the corresponding period in 2024. The increase was mainly attributable to the expansion of our store network and our revenue growth which demanded additional usage of utilities. Our utilities expenses as a percentage of total revenue decreased from 3.5% for the six months ended June 30, 2024 to 3.4% for the same period in 2025 mainly due to the strong growth of our revenue and the implementation of energy-saving devices across stores.
- Advertising and promotion expenses
For the six months ended June 30, 2025, the advertising and promotion expenses of the Group amounted to RMB137.4 million, representing an increase of RMB28.1 million or 25.7% as compared with RMB109.3 million for the corresponding period in 2024. The increase was mainly driven by the spending in advertising and promotion to grow our revenue. Our advertising and promotion expenses as a percentage of total revenue decreased from 5.4% for the six months ended June 30, 2024 to 5.3% for the same period in 2025, mainly because our brand marketing activities was able to be more selected and cost-effective as our brand strengthens through the growth of our store network and remarkable performance in newly entered markets.
- Store operation and maintenance expenses
For the six months ended June 30, 2025, the store operation and maintenance expenses of the Group amounted to RMB159.4 million, representing an increase of RMB30.5 million or 23.7% as compared with RMB128.9 million for the corresponding period in 2024. The increase was primarily due to the expansion of our store network. Our store operation and maintenance expenses as a percentage of total revenue remained relatively stable during the Reporting Period as compared with the six months ended June 30, 2024.
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- Other expenses
Our other expenses consist of (a) telecommunication and information technology related expenses, (b) travelling and related expenses, (c) professional service expenses, (d) auditor’s remuneration and (e) others, including training fee, business meal, stamp duty tax and other office expenses.
For the six months ended June 30, 2025, the other expenses of the Group amounted to RMB74.6 million, representing an increase of RMB7.7 million or 11.4% as compared with RMB66.9 million for the corresponding period in 2024. The increase was primarily due to increase in telecommunication and information technology related expenses and professional service expenses along with our network expansion. Our other expenses as a percentage of total revenue decreased from 3.3% for the six months ended June 30, 2024 to 2.9% for the same period in 2025, primarily due to the strong growth of our revenue.
- Finance costs, net
For the six months ended June 30, 2025, the net finance costs of the Group amounted to RMB34.6 million, representing an increase of RMB6.7 million or 23.9% as compared with RMB27.9 million for the corresponding period in 2024. The increase was primarily due to a RMB5.3 million increase in interest expenses on lease liabilities recognized in accordance with IFRS 16 associated with our increasing number of leases as a result of the expansion of our store network.
- Taxation
Income tax expense of the Group increased from RMB30.0 million for the six months ended June 30, 2024 to RMB44.2 million for the six months ended June 30, 2025.
- Profit for the Reporting Period
As a result of the foregoing, the Group recorded a net profit of RMB65.9 million for the six months ended June 30, 2025, as compared to a net profit of RMB10.9 million for the six months ended June 30, 2024.
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- Non-IFRS Measures — Adjusted Net Profit and Adjusted Net Profit margin, Adjusted EBITDA and Adjusted EBITDA margin, Store-level EBITDA and Store-level EBITDA margin
To supplement the Group’s consolidated financial statements that are presented in accordance with the IFRS, we also use Adjusted Net Profit (non-IFRS measure), Adjusted Net Profit margin (non-IFRS measure), Adjusted EBITDA (non-IFRS measure), Adjusted EBITDA margin (non-IFRS measure), Store-level EBITDA (non-IFRS measure) and Store-level EBITDA margin (non-IFRS measure) as additional financial measures, which are not required by, or presented in accordance with, IFRS. We believe that these non-IFRS measures facilitate comparisons of operating performance from period to period and company to company. We believe that these measures provide useful information to investors and others in understanding and evaluating our results of operations in the same manner as they help our management. However, our presentation of Adjusted Net Profit (non-IFRS measure), Adjusted Net Profit margin (non-IFRS measure), Adjusted EBITDA (non-IFRS measure), Adjusted EBITDA margin (non-IFRS measure), Store-level EBITDA (non-IFRS measure) and Store-level EBITDA margin (non-IFRS measure) may not be comparable to similarly titled measures presented by other companies. The use of such non-IFRS measures has limitations as an analytical tool, and you should not consider them in isolation from, or as substitute for analysis of, our results of operations or financial condition as reported under IFRS.
“Store-level EBITDA” is defined as store-level operating profit for the period and adding back depreciation of plant and equipment and amortization of intangible assets in store-level.
“Store-level EBITDA margin” is calculated by dividing Store-level EBITDA by revenue for the same period.
“Adjusted Net Profit” is defined as profit for the period and adding back share-based compensation.
“Adjusted Net Profit margin” is calculated by dividing Adjusted Net Profit by revenue for the same period.
“Adjusted EBITDA” is defined as Adjusted Net Profit for the period and adding back depreciation and amortization (excluding depreciation of right-of-use assets), income tax expense and interest income and expenses, net.
“Adjusted EBITDA margin” is calculated by dividing Adjusted EBITDA by revenue for the same period.
The following table sets forth the reconciliation of our non-IFRS financial measures for the six months ended June 30, 2025 and 2024 to the nearest measure prepared in accordance with IFRS.
| For the six months ended June 30, | ||
|---|---|---|
| 2025 RMB '000 (Unaudited) | 2024 RMB '000 (Unaudited) | |
| Reconciliation of net Profit and Adjusted Net Profit and Adjusted EBITDA | ||
| Profit for the period | 65,924 | 10,907 |
| Add: | ||
| Share-based compensation | 25,496 | 39,983 |
| Adjusted Net Profit | 91,420 | 50,890 |
| Adjusted net profit margin | 3.5% | 2.5% |
| Add: | ||
| Depreciation and amortization | 152,606 | 125,532 |
| Income tax expenses | 44,173 | 29,987 |
| Interest income and expenses, net | 34,678 | 26,978 |
| Adjusted EBITDA | 322,877 | 233,387 |
| Adjusted EBITDA margin | 12.4% | 11.4% |
For the six months ended June 30, 2025 RMB '000 (Unaudited) 2024 RMB '000 (Unaudited)
Reconciliation of store-level operating profit and Store-level EBITDA
| Store-level operating profit | 379,188 | 296,155 |
|---|---|---|
| Add: | ||
| Depreciation of plant and equipment – store level (1) | 121,788 | 96,559 |
| Amortization of intangible assets – store level (2) | 1,842 | 1,188 |
| Store-level EBITDA | 502,818 | 393,902 |
| Store-level EBITDA margin | 19.4% | 19.3% |
Notes:
(1) Depreciation of plant and equipment – store level is calculated based on depreciation of plant and equipment incurred at our stores and central kitchens.
(2) Amortization of intangible assets – store level is calculated based on amortization of store franchise fees.
15. Liquidity and Source of Funding and Borrowing
As at June 30, 2025, the Group’s cash and bank balances decreased by 4.9% from RMB1,069.3 million as at December 31, 2024 to RMB1,016.8 million, among which the Group had cash and cash equivalents of RMB1,016.6 million (December 31, 2024: RMB1,069.1 million) and restricted cash of RMB0.2 million (December 31, 2024: RMB0.2 million). The decrease was primarily due to capital expenditures in opening new stores, partially compensated by cash generated from operations minus rental payment.
As at June 30, 2025, the Group had total cash and bank balances of RMB1,016.8 million (December 31, 2024: RMB1,069.3 million), among which RMB39.9 million (December 31, 2024: RMB36.5 million) were denominated in Hong Kong dollar, RMB624.6 million (December 31, 2024: RMB766.9 million) were denominated in RMB and RMB352.3 million (December 31, 2024: RMB265.9 million) were denominated in US dollar.
Our net cash generated from operating activities was RMB361.1 million for the Reporting Period, as compared to the net cash inflow of RMB376.8 million for the six months ended June 30, 2024. The minor decline was primarily attributable to timing differences related to income tax settlement, rather than profitability of the Group’s Operations.
As at June 30, 2025, the current assets of the Group amounted to RMB1,333.5 million, including RMB1,016.8 million in cash and bank balances and RMB316.7 million in other current assets. The current liabilities of the Group amounted to RMB1,381.4 million, of which RMB719.4 million was accruals and other payables, RMB344.6 million was lease liabilities, RMB240.5 million was trade payables and RMB76.9 million was other current liabilities. As at June 30, 2025, the current ratio of the Group, which is equivalent to the current assets divided by the current liabilities, was 0.97 (December 31, 2024: 0.9). The increase in current ratio was mainly due to the renewal of RMB200.0 million borrowings, among which RMB 199.6 million was reclassified from current borrowings to non-current borrowings on the balance sheet according to the repayment schedule.
14
We fully repaid the borrowings balance of RMB200.0 million as of December 31, 2024 in the first half of 2025, and secured a lower cost bank borrowings of RMB200.0 million. We drew down RMB100.0 million on March 30, 2025, and RMB100.0 million on June 26, 2025, respectively, with each borrowing having a term of three years. Pursuant to the repayment schedule, RMB200,000 of principal is required to be repayable every six months, with the remaining principal to be repayable in full upon the maturity date of each respective borrowing. As at June 30, 2025, the Group's total borrowings were RMB200.0 million (December 31, 2024: RMB200.0 million). The borrowings were all denominated in RMB and fully guaranteed by a subsidiary of the Group. As at June 30, 2025, all the bank borrowings bear interests at a floating interest rate. The Group had unutilized available credit banking facilities of RMB300.0 million as of June 30, 2025, which we will be able to draw down to support our working capital requirements as needed.
Taking into account the financial resources available to the Group, including cash and cash equivalents, cash generated from operations and available credit banking facilities of the Group, the Directors are of the view that the Group has sufficient working capital required for the Group's operations at present.
- Treasury policy
The Group adopts a prudent financial management approach for its treasury policy to ensure that the Group's liquidity structure, comprising assets, liabilities and other commitments, is able to always meet its capital requirements.
- Gearing Ratio
As at June 30, 2025, the gearing ratio of the Group, which was calculated as total interest-bearing bank loans divided by total equity, was approximately 8.6%, representing a decrease of 0.3 percentage points as compared with 8.9% as at December 31, 2024. The decrease was primarily due to the improved profitability performance of the Group and therefore an enhanced level of total equity.
- Significant Investments
The Group did not make or hold any significant investments (including any investment in an investee company with a value of 5% or more of the Group's total assets as of June 30, 2025) during the six months ended June 30, 2025.
15
- Material Acquisitions and Disposals
The Group did not have any material acquisitions or disposals of subsidiaries, associates or joint ventures during the six months ended June 30, 2025.
- Pledge of Assets
As at June 30, 2025, the Group had no pledge of assets.
- Contingent Liabilities
The Group had no contingent liabilities as at June 30, 2025.
- Foreign Exchange Exposure
During the six months ended June 30, 2025, the Group mainly operated in China and the majority of the transactions were settled in Renminbi (“RMB”), the Company’s primary subsidiaries’ functional currency. As at June 30, 2025, except for the bank deposits denominated in foreign currencies, the Group did not have significant foreign currency exposure from its operations. During the Reporting Period, the Group has not entered into any derivative instruments to hedge its foreign exchange exposures, but will closely monitor the exposure and will take measures when necessary to make sure the foreign exchange risks are manageable.
16
17
23. Employee and Remuneration Policy
As at June 30, 2025, the Group had 9,235 full-time employees (December 31, 2024: 9,160). Substantially all of our employees are based in China, primarily in Beijing, Shanghai, Guangzhou, Shenzhen and other cities in which we have operations. The following table sets forth the numbers of our full-time employees categorized by function as at June 30, 2025:
| Function | Number of employees | % of total |
|---|---|---|
| Store development and operation(1) | 8,761 | 94.9% |
| Sales, marketing and product development | 48 | 0.5% |
| Supply chain, central kitchens and quality control | 247 | 2.7% |
| General administration and others | 179 | 1.9% |
| Total | 9,235 | 100.0% |
Note:
(1) Comprises (i) full-time store development and operation employees at the corporate level and (ii) full-time employees at our stores who also act as delivery riders when needed.
Besides our full-time employees, we also had a total of 23,715 part-time employees as at June 30, 2025 (December 31, 2024: 19,640). These part-time employees primarily work as riders and in-store assistants.
For the six months ended June 30, 2025, the Group has incurred a total staff costs (inclusive of Directors' remuneration, salaries, wages, allowance and benefits and share based compensations) of RMB877.4 million (June 30, 2024: RMB711.9 million).
During the Reporting Period, the Group did not experience any significant labour disputes or any difficulty in recruiting employees.
We believe in the importance of attraction, recruitment and retention of quality talents in achieving the Group's success. We seek to offer attractive remuneration to employees, who earn both a basic salary and discretionary bonuses. For store management teams, their discretionary bonus is tied to the performance of the store. For riders, we provide incentive bonuses that are payable for, among others, the number of orders delivered and working during peak hours or in poor weather. Our riders are covered by group commercial insurance, which insures our riders for personal injuries and additional medical care to help protect against the risk of personal injuries. On January 14, 2025, the Company was recognized as a 2024 Best Employer by Mercer, marking the third consecutive year that the Company has received this prestigious award.
Our training department oversees the training of our employees. We provide all of our restaurant employees, including store management teams, store assistants, with consistent, systematic training to ensure that through the training employees have the operational, management and business skills needed to meet our safety standards and deliver outstanding customer service.
In addition, we conduct standardized training with our riders, and distribute to our delivery riders a Delivery Safety Work Manual before they take the first trips. We also provide our riders with training to help them navigate urban traffic and make deliveries safely.
Compensation for key executives of the Group is determined by the Company’s remuneration committee which reviews and recommends to the Board the executives’ compensation based on the Group’s performance and the executives’ respective contributions to the Group. The Company has also adopted various equity-based incentive plans and cash-based incentive plans. Please refer to the section headed “Share Schemes” in the 2024 annual report of the Company published on April 23, 2025.
24. Future Plans for Material Investments and Capital Assets
As of June 30, 2025, save as disclosed in this announcement under the heading “Management Discussion and Analysis – Business Outlook”, the Group did not have other plans for material investments and capital assets.
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INTERIM DIVIDEND
The Board did not recommend the distribution of an interim dividend for the six months ended June 30, 2025.
CORPORATE GOVERNANCE AND OTHER INFORMATION
The Board is committed to achieving high corporate governance standards. The Board believes that high corporate governance standards are essential in providing a framework for the Group to safeguard the interests of shareholders and to enhance corporate value and accountability.
Compliance with the Code on Corporate Governance Practices
The Company has adopted the principles and code provisions of the Corporate Governance Code (the "CG Code") as set out in Part 2 of the Appendix C1 to the Rules Governing the Listing of Securities on the Stock Exchange (the "Listing Rules") as the basis of the Company's corporate governance practices.
During the Reporting Period, the Company has complied with all applicable code provisions set out in the CG Code.
The Company will continue to regularly review and monitor its corporate governance practices to ensure compliance with the CG Code and maintain a high standard of corporate governance practices of the Company.
Compliance with the Model Code for Securities Transactions by Directors
The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the "Model Code") as set out in Appendix C3 to the Listing Rules as its own securities dealing code to regulate all dealings by Directors and relevant employees of securities in the Company and other matters covered by the Model Code.
Specific enquiry has been made of all the Directors and the relevant employees and they have confirmed that they have complied with the Model Code during the Reporting Period. No incident of non-compliance of the Model Code was noted by the Company during the Reporting Period.
Audit and Risk Committee
The Company has established an audit and risk committee with written terms of reference in accordance with the Listing Rules. The audit and risk committee comprises two non-executive Directors and three independent non-executive Directors, namely, Mr. Zohar Ziv, Mr. Matthew James Ridgwell, Mr. David Brian Barr, Ms. Lihong Wang and Ms. Bin Yu. Ms. Bin Yu is the chairperson of the audit and risk committee.
The audit and risk committee has reviewed the unaudited interim condensed consolidated financial information of the Group for the Reporting Period and has met with the independent auditors, PricewaterhouseCoopers, who have reviewed the interim condensed consolidated financial information in accordance with International Standard on Review Engagements 2410. The audit and risk committee has also discussed matters with respect to the accounting policies and practices adopted by the Company and internal control with senior management members of the Group.
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Other Board Committees
In addition to the audit and risk committee, the Company has also established a nomination committee and a remuneration committee.
Purchase, Sale or Redemption of the Company's Listed Securities
During the Reporting Period, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's securities (including any sale of treasury shares) listed on the Stock Exchange. As of June 30, 2025, the Company did not hold any treasury shares.
Material Litigation
The Company was not involved in any material litigation or arbitration during the six months ended June 30, 2025. The Directors are also not aware of any material litigation or claims that are pending or threatened against the Group during the Reporting Period.
Use of Proceeds
The Company's shares were listed on the Main Board of the Stock Exchange on March 28, 2023 and the net proceeds raised during the Global Offering were approximately HK$499.9 million (including the additional proceeds received upon the partial exercise of the Over-allotment Option (as defined in the Prospectus)) (equivalent to approximately RMB437.8 million).
As of June 30, 2025, HK$263.8 million of the net proceeds of the completion of the Global Offering had been utilized and HK$236.1 million remained unutilized. As disclosed in the 2024 annual results announcement of the Company dated March 27, 2025, the Board has resolved to extend the expected timeline for the use of the net proceeds from the end of 2025 to the end of 2026. Save as disclosed above, there has been no other change in the intended use of net proceeds as previously disclosed in the Prospectus and the Company expects to fully utilized the residual amount of the net proceeds in accordance with such intended purpose by December 31, 2026.
The following table sets forth a summary of the utilisation of the net proceeds as of June 30, 2025 and the updated expected timeline of the use of the net proceeds:
| % of use of net proceeds | Net proceeds (HK$ million) | Unutilized amount as of January 1, 2025 (HK$ million) | Utilization during the Reporting Period (HK$ million) | Unutilized amount as of June 30, 2025 (HK$ million) | Updated expected timeline of full utilization of the unutilized proceeds | |
|---|---|---|---|---|---|---|
| Expanding our store network | 90% | 450.0 | 337.6 | 107.6 | 230.0 | By December 31, 2026 |
| General corporate purposes | 10% | 49.9 | 6.1 | - | 6.1 | By December 31, 2026 |
| Total | 100% | 499.9 | 343.7 | 107.6 | 236.1 |
The unutilized net proceeds from the Global Offering were deposited with licensed banks or financial institutions in Hong Kong for short-term deposits.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| Notes | Six months ended June 30, | ||
|---|---|---|---|
| 2025 RMB’000 (Unaudited) | 2024 RMB’000 (Unaudited) | ||
| Revenue | 4 | 2,593,390 | 2,041,461 |
| Raw materials and consumables cost | (706,819) | (557,811) | |
| Staff compensation expenses | 6 | (877,384) | (711,912) |
| Depreciation of right-of-use assets | (188,301) | (145,686) | |
| Depreciation of plant and equipment | (123,886) | (98,612) | |
| Amortization of intangible assets | (28,720) | (26,920) | |
| Utilities expenses | (87,438) | (71,931) | |
| Advertising and promotion expenses | (137,401) | (109,318) | |
| Store operation and maintenance expenses | (159,368) | (128,881) | |
| Variable lease rental payment, short-term rental and other related expenses | (70,870) | (56,054) | |
| Other expenses | 5 | (74,561) | (66,935) |
| Other income | 7,327 | 9,036 | |
| Other losses, net | (1,298) | (7,646) | |
| Finance costs, net | 7 | (34,574) | (27,897) |
| Profit before income tax | 110,097 | 40,894 | |
| Income tax expense | 8 | (44,173) | (29,987) |
| Profit for the period attributable to equity holders of the Company | 65,924 | 10,907 | |
| Other comprehensive (loss)/income: | |||
| Item that may be subsequently reclassified to profit or loss | |||
| Currency translation differences | 1,172 | (1,993) | |
| Item that may not be subsequently reclassified to profit or loss | |||
| Currency translation differences | (3,112) | 5,909 | |
| Other comprehensive (loss)/income for the period, net of tax | (1,940) | 3,916 | |
| Total comprehensive income for the period attributable to equity holders of the Company | 63,984 | 14,823 | |
| Earnings per share for profit attributable to equity holders of the Company | |||
| - Basic earnings per share (RMB) | 9 | 0.50 | 0.08 |
| - Diluted earnings per share (RMB) | 9 | 0.49 | 0.08 |
INTERIM CONDENSED CONSOLIDATED BALANCE SHEET
| Notes | As at June 30, 2025 RMB’000 (Unaudited) | As at December 31, 2024 RMB’000 (Audited) | |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Plant and equipment | 929,667 | 807,812 | |
| Right-of-use assets | 1,548,435 | 1,305,383 | |
| Intangible assets | 1,208,707 | 1,211,213 | |
| Deposits | 90,098 | 74,822 | |
| Deferred income tax assets | 123,009 | 108,336 | |
| 3,899,916 | 3,507,566 | ||
| Current assets | |||
| Inventories | 96,329 | 114,551 | |
| Trade receivables | 11 | 16,382 | 12,962 |
| Prepayment, deposits and other receivables | 203,937 | 171,745 | |
| Cash and bank balances | 1,016,836 | 1,069,302 | |
| 1,333,484 | 1,368,560 | ||
| Total assets | 5,233,400 | 4,876,126 |
22
| Notes | As at June 30, 2025 RMB'000 (Unaudited) | As at December 31, 2024 RMB'000 (Audited) | |
|---|---|---|---|
| EQUITY | |||
| Equity attributable to equity holders of the Company | |||
| Share capital | 885,243 | 882,537 | |
| Share premium | 2,299,165 | 2,278,503 | |
| Other reserves | 153,064 | 150,240 | |
| Accumulated losses | (1,001,130) | (1,067,054) | |
| Shares held for restricted share units (“RSUs”) | (264) | (994) | |
| Total equity | 2,336,078 | 2,243,232 | |
| LIABILITIES | |||
| Non-current liabilities | |||
| Borrowings | 199,600 | - | |
| Lease liabilities | 1,267,199 | 1,078,957 | |
| Other payables | 13 | 49,167 | 36,939 |
| 1,515,966 | 1,115,896 | ||
| Current liabilities | |||
| Borrowings | 400 | 200,000 | |
| Lease liabilities | 344,634 | 289,221 | |
| Trade payables | 12 | 240,507 | 248,645 |
| Contract liabilities | 4(a) | 56,756 | 63,010 |
| Accruals and other payables | 13 | 719,374 | 676,051 |
| Current income tax liabilities | 19,685 | 40,071 | |
| 1,381,356 | 1,516,998 | ||
| Total liabilities | 2,897,322 | 2,632,894 | |
| Total equity and liabilities | 5,233,400 | 4,876,126 |
The above interim condensed consolidated balance sheet should be read in conjunction with the accompanying notes.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
| Note | Six months ended June 30, | ||
|---|---|---|---|
| 2025 RMB’000 (Unaudited) | 2024 RMB’000 (Unaudited) | ||
| Cash flows from operating activities | |||
| Cash generated from operations | 440,379 | 419,067 | |
| Income tax paid | (79,233) | (42,258) | |
| Net cash generated from operating activities | 361,146 | 376,809 | |
| Cash flows from investing activities | |||
| Purchase of plant and equipment | (174,059) | (126,574) | |
| Purchase of intangible assets | (25,114) | (20,865) | |
| Interest received | 9,370 | 14,045 | |
| Proceeds from disposal of plant and equipment | 19 | 20 | |
| Decrease in short-term time deposits with original maturities over three months | - | 432,444 | |
| Net cash (used in)/generated from investing activities | (189,784) | 299,070 | |
| Cash flows from financing activities | |||
| Rental deposit payment | (13,932) | (11,778) | |
| Proceeds from borrowings | 200,000 | - | |
| Repayment to borrowings | (200,000) | - | |
| Payment of principal element of lease liabilities | (168,959) | (128,762) | |
| Payment of interest element of lease liabilities | (38,659) | (33,315) | |
| Interests paid | (4,007) | (4,677) | |
| Proceeds from exercise of share options | 3,366 | 3,439 | |
| Net cash used in financing activities | (222,191) | (175,093) | |
| Net (decrease)/increase in cash and cash equivalents | (50,829) | 500,786 | |
| Cash and cash equivalents at beginning of the period | 1,069,102 | 587,038 | |
| Exchange difference on cash and cash equivalents | (1,637) | 1,242 | |
| Cash and cash equivalents at end of the period | 1,016,636 | 1,089,066 | |
| Cash at bank and in hand at end of the period | 1,016,836 | 1,089,266 | |
| Less: restricted cash at end of the period | (200) | (200) |
The above interim condensed consolidated statement of cash flows should be read in conjunction with the accompanying notes.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION
1 General information
DPC Dash Ltd (the “Company”) is a limited liability company incorporated in British Virgin Islands on April 30, 2008. The address of its registered office is Kingston Chambers, P.O.Box 173 Road Town, Tortola, British Virgin Islands.
The Company, an investment holding company, and its subsidiaries (collectively, the “Group”) are principally engaged in the operation of fast-food restaurant chains in the People’s Republic of China (the “PRC”). The Group was Domino’s Pizza’s master franchisee in the Chinese mainland, the Hong Kong Special Administrative Region of China and the Macau Special Administrative Region of China.
The master franchise agreement with Domino’s Pizza International Franchising Inc. (“DPIF”) provides the Group with the exclusive right to develop and operate Domino’s Pizza stores and to use and license Domino’s system and the associated trademarks in the operation of the pizza stores in the Chinese mainland, the Hong Kong Special Administrative Region of China and the Macau Special Administrative Region of China. The term of the master franchise agreement continues until June 1, 2027 and is renewable for two additional 10-year terms, subject to the fulfilment of certain conditions.
The Company’s shares have been listed on the Main Board of the Stock Exchange of Hong Kong Limited (the “Listing”) since March 28, 2023.
The interim condensed consolidated financial information is presented in thousands of Renminbi (“RMB’000”), unless otherwise stated. This interim condensed consolidated financial information was approved for issue by the Board of Directors on August 26, 2025.
2 Basis of preparation
This interim condensed consolidated financial information for the six months ended June 30, 2025 has been prepared in accordance with International Accounting Standard (“IAS”) 34 Interim Financial Reporting. The interim condensed consolidated financial information should be read in conjunction with the consolidated financial statements for the year ended December 31, 2024, which have been prepared in accordance with International Financial Reporting Standards (“IFRSs”).
(a) Going concern
As at June 30, 2025, the Group recorded net current liabilities of approximately RMB47,872,000 and the Group had net profit of approximately RMB65,924,000 for the six months ended June 30, 2025. During the six months ended June 30, 2025, the Group has generated net cash inflow from operating activities of approximately RMB361,146,000.
Despite the Group’s net current liability position as of June 30, 2025, the Directors have assessed the Group’s ability to continue as a going concern. Taking into account the financial resources available to the Group, including cash and cash equivalents, cash generated from operations and available credit banking facilities of the Group, the Directors believe that the Group has sufficient funds to meet its liabilities and continue its operations for at least twelve months from June 30, 2025.
Accordingly, the interim condensed consolidated financial information for the six months ended June 30, 2025 have been prepared on the basis that the Group will continue as a going concern.
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3 New standards and interpretations
Except as described below, the accounting policies applied are consistent with those of the consolidated financial statements for the year ended December 31, 2024.
Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total earnings.
(a) New and amended standards adopted by the Group
A number of amended standards became applicable for the current reporting period. The Group did not have to change its accounting policies as a result of adopting these standards.
IAS 21 (Amendments) Lack of Exchangeability January 1, 2025
(b) New standards and amendments to standards and interpretations not yet adopted
The following new standards, new interpretations and amendments to standards and interpretations have been issued but are not effective for the financial year beginning January 1, 2025 and have not been early adopted by the Group in preparing this interim condensed consolidated financial information.
| Effective for annual periods beginning on or after | ||
|---|---|---|
| IFRS 9 and IFRS 7 (Amendments) | Amendment to the Classification and Measurement of Financial Instruments | January 1 2026 |
| IFRS 19 | Subsidiaries without Public Accountability: Disclosures | January 1 2027 |
| IFRS 18 | Presentation and Disclosure in Financial Statements | January 1 2027 |
The Group has already commenced an assessment of the impact of these new or amended standards. According to the preliminary assessment made by the directors of the Company (the "Directors"), no significant impact on the financial performance and position of the Group is expected when they become effective.
4 Revenue and segment information
The Group is the exclusive master franchisee of Domino's Pizza in the Chinese mainland, the Hong Kong Special Administrative Region of China and the Macau Special Administrative Region of China.
The chief operating decision-maker ("CODM") has been identified as the directors of the Company. The directors review the Group's internal reporting in order to assess performance and allocate resources. The directors have determined the operating segment based on these internal reports.
The directors consider the Group's operation from a business perspective and determine that the Group is managed as one single reportable operating segment.
During the six months ended June 30, 2025, all the Group's revenue are generated from the Chinese mainland.
| Six months ended June 30, | ||
|---|---|---|
| 2025 | 2024 | |
| RMB’000(Unaudited) | RMB’000(Unaudited) | |
| Revenue from sales of goods and services recognized - at a point in time | 2,593,390 | 2,041,461 |
(a) Contract liabilities
The Group has recognized the following revenue-related contract liabilities:
| As at June 30, 2025 RMB’000 (Unaudited) | As at December 31, 2024 RMB’000 (Audited) | |
|---|---|---|
| Contract liabilities | 56,756 | 63,010 |
(i) Revenue recognized in relation to contract liabilities
| Six months ended June 30, | ||
|---|---|---|
| 2025 | 2024 | |
| RMB’000(Unaudited) | RMB’000(Unaudited) | |
| Revenue recognized that was included in the balance of contract liabilities at the beginning of the period | 41,416 | 22,320 |
Each order with customers is considered as a contract. All contracts entered by the Group are for periods of one year or less. The Group has applied the practical expedient as permitted by IFRS 15 and the transaction price allocated to the remaining performance obligations is not disclosed.
(b) Non-current assets by geographical location
As at June 30, 2025, most of the Group's non-current assets were located in the Chinese mainland.
5 Other expenses
| Six months ended June 30, | ||
|---|---|---|
| 2025 | 2024 | |
| RMB’000(Unaudited) | RMB’000(Unaudited) | |
| Professional service expenses | 13,656 | 11,382 |
| Auditor’s remuneration | 3,395 | 2,899 |
| Telecommunication and information technology related expenses | 22,548 | 21,490 |
| Travelling and related expenses | 14,540 | 18,760 |
| Others | 20,422 | 12,404 |
| 74,561 | 66,935 |
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6 Staff compensation expenses (including director service emolument)
| Six months ended June 30, | ||
|---|---|---|
| 2025 | ||
| RMB’000 | ||
| (Unaudited) | 2024 | |
| RMB’000 | ||
| (Unaudited) | ||
| Salaries, wages and bonuses | 725,065 | 571,831 |
| Contributions to pension plan | 59,364 | 46,373 |
| Housing fund, medical insurance and other social insurances | 57,902 | 46,252 |
| Other benefits | 9,557 | 7,473 |
| Total salary-based expenses | 851,888 | 671,929 |
| Share-based compensation | 25,496 | 39,983 |
| Total staff compensation expenses | 877,384 | 711,912 |
| 7 Finance costs, net | ||
| Six months ended June 30, | ||
| 2025 | ||
| RMB’000 | ||
| (Unaudited) | 2024 | |
| RMB’000 | ||
| (Unaudited) | ||
| Interest income on cash at bank | 8,940 | 11,768 |
| Interest expenses | (43,618) | (38,746) |
| – Bank borrowings | (3,842) | (4,651) |
| – Lease liabilities | (38,659) | (33,315) |
| – Long-term payables | (1,117) | (780) |
| Net foreign exchange gain/(losses) on financing activities | 104 | (919) |
| (34,574) | (27,897) | |
| 8 Income tax expense | ||
| Six months ended June 30, | ||
| 2025 | ||
| RMB’000 | ||
| (Unaudited) | 2024 | |
| RMB’000 | ||
| (Unaudited) | ||
| Current income tax | ||
| – The Chinese mainland corporate income tax | 58,846 | 54,827 |
| Deferred income tax | (14,673) | (24,840) |
| Income tax expense | 44,173 | 29,987 |
(i) British Virgin Islands profits tax
The Company is incorporated in the British Virgin Islands as an exempted company with limited liability under the Companies Law of the British Virgin Islands and, accordingly, is exempted from payment of British Virgin Islands income tax.
(ii) Hong Kong profits tax
The Hong Kong profits tax rate applicable to the Group is 16.5%. No Hong Kong profits tax has been provided, as the Group have no assessable profit earned or derived in Hong Kong for the six months ended June 30, 2025 (for the six months ended June 30, 2024: 16.5%).
(iii) Cayman Islands profits tax
The Company’s subsidiary is incorporated in the Cayman Islands as an exempted company with limited liability and, accordingly, is exempted from payment of the Cayman Islands income tax.
(iv) The Chinese mainland corporate income tax (“CIT”)
CIT is provided on the taxable income of entities within the Group incorporated in the Chinese mainland. Except as disclosed below, the corporate income tax rate applicable to the subsidiaries incorporated in the Chinese mainland is 25% for the six months ended June 30, 2025 (for the six months ended June 30, 2024: 25%). Certain subsidiaries of the Group are qualified as small and micro businesses and enjoy preferential income tax rate as approved by the local tax authorities with effect from the respective dates of their establishment. The tax rate is 5% on taxable income for the six months ended June 30, 2025 (for the six months ended June 30, 2024: 5%). In addition, a subsidiary of the Group is qualified for the preferential income tax rate as approved by the local tax authorities and the tax rate is 15% on taxable income for the six months ended June 30, 2025 (for the six months ended June 30, 2024: 25%).
9 Earnings per share
(a) Basic
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares excluding RSUs not yet vested in issue during the respective periods.
| Six months ended June 30, | ||
|---|---|---|
| 2025 | 2024 | |
| (Unaudited) | (Unaudited) | |
| Profit attributable to equity holders of the Company (RMB’000) | 65,924 | 10,907 |
| Weighted average number of ordinary shares in issue (thousands) | 130,778 | 130,153 |
| Basic earnings per share (RMB) | 0.50 | 0.08 |
(b) Diluted
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Company’s potentially dilutive ordinary shares comprised of share options and RSUs not yet vested.
| Six months ended June 30, | ||
|---|---|---|
| 2025 | ||
| (Unaudited) | 2024 | |
| (Unaudited) | ||
| Profit attributable to equity holders of the Company (RMB’000) | 65,924 | 10,907 |
| Weighted average number of ordinary shares in issue (thousands) | 130,778 | 130,153 |
| Adjustments for share options and RSUs (thousands) | 3,514 | 974 |
| Weighted average number of ordinary shares for diluted earnings per share (thousands) | 134,292 | 131,127 |
| Diluted earnings per share (RMB) | 0.49 | 0.08 |
10 Dividends
No dividend had been declared or paid by the Company during the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil).
11 Trade receivables
| | As at June 30, 2025
RMB’000
(Unaudited) | As at December 31, 2024
RMB’000
(Audited) |
| --- | --- | --- |
| Trade receivables due from third parties | 16,752 | 13,255 |
| Less: allowance for impairment of trade receivables | (370) | (293) |
| | 16,382 | 12,962 |
Aging of trade receivables, based on invoice date, are as follows:
| | As at June 30, 2025
RMB’000
(Unaudited) | As at December 31, 2024
RMB’000
(Audited) |
| --- | --- | --- |
| Within 30 days | 16,752 | 13,255 |
The carrying amounts of trade receivables approximated their fair values as at the balance sheet date due to their short-term maturities, and these balances were all denominated in RMB.
12 Trade payables
The aging analysis of trade payables, based on invoice date, was as follows:
| As at June 30, 2025 RMB’000 (Unaudited) | As at December 31, 2024 RMB’000 (Audited) | |
|---|---|---|
| - Within 3 months | 240,463 | 248,591 |
| - Between 4 months to 6 months | 7 | 20 |
| - Over 6 months | 37 | 34 |
| 240,507 | 248,645 |
The carrying amounts of trade payables approximated their fair values as at the balance sheet date due to their short-term maturities, and these balances were all denominated in RMB.
13 Accruals and other payables
| As at June 30, 2025 RMB’000 (Unaudited) | As at December 31, 2024 RMB’000 (Audited) | |
|---|---|---|
| Non-current | ||
| Provision for restoration costs | 49,167 | 36,939 |
| 49,167 | 36,939 | |
| Current | ||
| Salary and welfare payables | 204,068 | 241,025 |
| Payables for plant and equipment and intangible assets | 201,829 | 126,163 |
| Accrued expenses(i) | 273,192 | 264,066 |
| Others | 40,285 | 44,797 |
| 719,374 | 676,051 | |
| Total accruals and other payables | 768,541 | 712,990 |
(i) Accrued expenses primarily include accrued advertising and promotion expenses, accrued information technology expenses, accrued professional service expenses, accrued utilities expenses, accrued store operation expenses and accrued royalty expenses.
The carrying amounts of accruals and other payables approximated their fair values.
32
PUBLICATION OF THE INTERIM RESULTS ANNOUNCEMENT AND INTERIM REPORT
This interim results announcement is published on the website of the Stock Exchange at www.hkexnews.hk and the website of the Company at www.dpcdash.com. The interim report of the Group for the six months ended June 30, 2025 will be published on the aforesaid websites and will be dispatched to the Company's shareholders (if requested) in due course in accordance with the Listing Rules.
By order of the Board
DPC Dash Ltd
Frank Paul KRASOVEC
Chairman
Hong Kong, August 28, 2025
As of the date of this announcement, the Board comprises Ms. Yi WANG as executive Director, Mr. Frank Paul KRASOVEC, Mr. James Leslie MARSHALL, Mr. Zohar ZIV, Mr. Matthew James RIDGWELL and Mr. Weiking NG as non-executive Directors and Mr. David Brian BARR, Ms. Lihong WANG and Ms. Bin YU as independent non-executive Directors.