Country Style Cooking Restaurant Q2 Profit Down; CEO To Step Down In Feb. 2015

(RTTNews) - Country Style Cooking Restaurant Chain Co., Ltd. (CCSC) said that net income for the second quarter of 2014 was RMB3.3 million or $536,000, representing a decrease of 56.0% from RMB 7.5 million in the second quarter of 2013. Net income per ADS was RMB0.12 or $0.02, compared to RMB0.29 last year.

Adjusted net income was RMB7.7 million or $1.2 million, representing a decrease of 37.4% from RMB12.3 million in the prior year. Adjusted net income per ADS was RMB0.28 or $0.05, compared to RMB0.47 in the previous year.

Revenues in the second quarter of 2014 increased by 5.9% to RMB345.0 million or $55.6 million from RMB325.8 million in the same quarter of 2013. Revenue growth was primarily supported by the Company's expanding restaurant network, partially offset by declined customer traffic in the last month of the reporting quarter.

For the third quarter of 2014, the Company currently estimates that revenues will be between RMB 400 million - RMB 420 million or $64.5-$67.7 million, representing a year-over-year growth of between approximately 2.4% and 7.5%. The Company remains on track to open approximately 60 new restaurants in 2014.

In a separate press release, Country Style Cooking Restaurant Chain Co., announced that its Chairman and Chief Executive Officer Ms. Hong Li will step down as Chief Executive Officer effective on February 13, 2015, six months from August 13, 2014. However, Ms. Li will retain her title as Chairman of the Board of the Directors.

Meantime, the company said that Mr. Xingqiang Zhang, a co-founder of CCSC and Ms. Li's husband, has been appointed as the new Chief Executive Officer of the Company effective six months from August 13, 2014.

Xingqiang Zhang is one of CCSC's founders and has served as one of its directors since the Company's inception. From 1996 to August 2007, Zhang, together with Hong Li, established and operated nine restaurants which are now part of the Company's consolidated group. From 1992 to 1995, Zhang served as the manager of two international quick service restaurant chains in Chongqing.