(Yicai) Aug. 30 -- Chinese tea drink brand Nayuki Holdings turned a profit in the first half of the year because of new store openings and the lifting of Covid-19 restrictions.

Net profit was CNY64.8 million (USD8.9 million) in the six months ended June 30, versus a CNY257 million (USD35.2 million) loss a year ago, according to the Shenzhen-based company’s trading results published yesterday. Revenue rose 27 percent to CNY2.6 billion (USD355.2 million).

Nayuki had 1,194 self-operated stores in 93 Chinese cities as of June 30, an increase of 290 from the same period last year. Their operating profits surged 142 percent to CNY472.5 million, thanks to lower costs. The ratio of operating costs to revenue for raw material, rent, and labor costs fell 8.6 percent points.

Nayuki said it expects to keep product prices relatively low on the basis of maintaining a stable gross profit margin, and the firm will open its first partner stores in the second half of the year.

China’s market for new-style tea drinks still has room for growth. It is expected to expand at a double-digit compound pace each year to more than CNY250 billion (USD34.3 billion) by 2028, according to a report by the China Chain Store and Franchise Association.

Nayuki’s shares [HKG: 2150] closed flat at HKD4.88 (62 US cents) apiece in Hong Kong today.

Editor: Futura Costaglione