Financial Performance - Revenue from continuing operations for the first half of 2023 reached RMB 18,885.9 million, a 24.6% increase from RMB 15,155.5 million in the same period of 2022[4] - The net profit for the first half of 2023 was RMB 2,258.9 million, significantly up from RMB 72.3 million in the same period of 2022[2] - The basic earnings per share for the first half of 2023 was RMB 0.42, compared to RMB 0.01 in the same period of 2022[2] - The profit from continuing operations for the period was RMB 2,258,886 thousand, compared to RMB 72,265 thousand in the prior year, indicating a significant increase[40] - The company reported a profit of RMB 2,258,052,000 for the six months ended June 30, 2023, compared to a loss of RMB 266,258,000 for the same period in 2022[60] Revenue Breakdown - Restaurant operations accounted for 95.0% of total revenue, with income from restaurant operations rising by 25.4% to RMB 17,935.4 million[9] - The company reported revenue of RMB 18,885,854 thousand for the six months ended June 30, 2023, an increase from RMB 15,155,472 thousand in the same period of 2022, representing a growth of approximately 24.1%[40] - The restaurant business generated RMB 18,040,008 in revenue, up from RMB 14,373,446, reflecting a growth of 25.5%[52] - The company's revenue for the six months ended June 30, 2023, includes income from restaurant operations, takeout services, condiment and ingredient sales, and other businesses, net of discounts and sales-related taxes[51] Customer Engagement - The number of customers served reached 174.6 million in the first half of 2023, indicating a strong recovery in customer traffic[4] - The private user base exceeded 10 million, allowing for more targeted marketing and improved customer repurchase rates[6] - The average table turnover rate improved to 3.3 times per day, compared to 2.9 times per day in the same period of 2022[3] Operational Efficiency - The company has implemented a digital management system (HiHi System) that has reached version 3.0, improving data collection accuracy and operational efficiency[6] - Cost control measures have been enhanced, focusing on optimizing labor costs and increasing the use of intelligent systems to improve store efficiency[6] - Employee costs rose by 8.6% to RMB 5,769.3 million, but as a percentage of revenue, it decreased from 35.0% to 30.5%[17] Expansion and Development - The total number of Haidilao restaurants increased to 1,382, with 5 new openings and 24 previously closed restaurants resuming operations[4] - The company plans to continue expanding its restaurant network and enhancing delivery services to capture more market share[12] - The company aims to enhance the dining experience by improving service capabilities and product innovation, as well as optimizing restaurant operations[39] Financial Position - Cash and cash equivalents increased from RMB 6,300.8 million as of December 31, 2022, to RMB 7,908.8 million as of June 30, 2023, primarily due to increased cash generated from operating activities[28] - Total assets as of June 30, 2023, were RMB 13,162,266 thousand, up from RMB 10,506,590 thousand at the end of 2022, reflecting a growth of approximately 25.8%[42] - The company’s net asset value increased to RMB 9,314,770 thousand as of June 30, 2023, compared to RMB 7,456,092 thousand at the end of 2022, representing a growth of about 24.9%[43] Cost Management - The cost of raw materials and consumables increased by 18.7% to RMB 7,685.0 million, but as a percentage of revenue, it decreased from 42.7% to 40.7%[16] - Rental and related expenses increased by 18.4% to RMB 200.4 million, maintaining a stable percentage of 1.1% of revenue[18] - Water and electricity expenses increased by 20.5% from RMB 502.4 million for the six months ended June 30, 2022, to RMB 605.4 million for the same period in 2023, maintaining a stable percentage of revenue at 3.3% and 3.2% respectively[19] Technology and Innovation - The company plans to continue investing in new technologies, including the development of business management systems and smart restaurant technologies[39] - As of June 30, 2023, the company has used HKD 846.8 million for the development and application of new technologies, which is 58.0% of the allocated HKD 1,459.9 million[72] Compliance and Governance - The audit committee has reviewed the interim financial performance for the six months ended June 30, 2023, and confirmed compliance with relevant accounting standards[70] - The company has applied new and revised International Financial Reporting Standards (IFRS) effective from January 1, 2023, which did not have a significant impact on the financial position and performance for the current and prior periods[46]

Company Incorporation and Subsidiaries - Haidilao International Holding Ltd. was incorporated in the Cayman Islands with limited liability on July 14, 2015[4] - Haidilao Singapore, a wholly-owned subsidiary, was incorporated in Singapore on February 28, 2013[5] - Jarud Qi Haidilao Food Co., Ltd. was wholly owned by Sichuan Haidilao as of the Latest Practicable Date[6] - Shanghai Haiyue Investment Management Co., Ltd. was a wholly-owned subsidiary of Leda Haisheng as of the Latest Practicable Date[8] - Shanghai Kiwa Internet Technology Co., Ltd. was established in the PRC on August 20, 2018[8] - Shanghai Xinpai Catering Management Co., Ltd. was established on May 12, 2013, as a wholly-owned subsidiary of the company[9] - Sichuan Haidilao Catering Co., Ltd. was incorporated on April 16, 2001, with Jingyuan Investment owning 50.00%, Mr. Zhang Yong owning 25.50%, and other shareholders owning the remaining 24.50% as of the Latest Practicable Date[10] - Sichuan Xinpai Catering Management Co., Ltd. was established on September 28, 2016, as a wholly-owned subsidiary of the company[10] - Super Hi International Holding Ltd. was incorporated on May 6, 2022, and ceased to be a subsidiary of the company upon the completion of the spin-off on December 30, 2022[10] - Wei Hai International Holding Ltd. was incorporated on January 15, 2020, with ZY WH LTD holding 35.10%, SP WH LTD holding 12.35%, and SYH WH LTD holding 18.90% as of the Latest Practicable Date[11] - Yihai International Holding Ltd. was incorporated on October 18, 2013, and is listed on the Main Board of the Stock Exchange (stock code: 1579)[11] - Yihai (Shanghai) Food Co., Ltd. is a wholly-owned subsidiary of Yihai as of the Latest Practicable Date[12] Financial Performance - Revenue for 2022 decreased by 15.5% to RMB34,741.0 million compared to RMB41,111.6 million in 2021[19] - Revenue from continuing operations in 2022 was RMB31,038.6 million, a decrease of 20.6% compared to 2021[21] - Profit for the year from continuing operations in 2022 was RMB1,637.3 million, compared to a loss of RMB3,247.8 million in 2021[21] - Group revenue from continuing and discontinued operations decreased by 15.5% to RMB 34,741.0 million in 2022 compared to RMB 41,111.6 million in 2021[23] - Revenue from continuing operations decreased by 20.6% to RMB 31,038.6 million in 2022, with a profit of RMB 1,637.3 million compared to a loss of RMB 3,247.8 million in 2021[23] - Group revenue from continuing operations decreased by 20.6% from RMB39,096.7 million in 2021 to RMB31,038.6 million in 2022[47] - Haidilao restaurant operation revenue decreased by 22.9% from RMB37,547.0 million in 2021 to RMB28,942.6 million in 2022, accounting for 93.3% of total revenue[50] - Delivery business revenue increased by 103.3% from RMB629.8 million in 2021 to RMB1,280.1 million in 2022[51] - Average spending per guest increased from RMB102.3 in 2021 to RMB104.9 in 2022[50] - Revenue from Tier 1 cities increased to RMB114.2 per guest in 2022 from RMB111.8 in 2021[53] - Revenue from Tier 2 cities increased to RMB104.3 per guest in 2022 from RMB101.7 in 2021[53] - Revenue from Tier 3 cities and below increased to RMB97.9 per guest in 2022 from RMB95.7 in 2021[53] - Same store sales in Tier 1 cities decreased from RMB 3,691,338 thousand in 2021 to RMB 2,905,807 thousand in 2022[57] - Overall same store sales dropped from RMB 22,391,585 thousand in 2021 to RMB 19,159,499 thousand in 2022[57] - Average same store sales per day in Tier 1 cities fell from RMB 90.5 thousand in 2021 to RMB 79.1 thousand in 2022[57] - Revenue from Tier 1 cities in mainland China decreased from RMB 7,728,253 thousand in 2021 to RMB 5,153,936 thousand in 2022[61] - Revenue from Tier 2 cities in mainland China decreased from RMB 14,903,891 thousand in 2021 to RMB 11,338,523 thousand in 2022[61] - Revenue from Tier 3 cities and below in mainland China decreased from RMB 14,230,285 thousand in 2021 to RMB 11,465,959 thousand in 2022[61] - Revenue from Hong Kong, Macau, and Taiwan regions increased from RMB 805,111 thousand in 2021 to RMB 1,032,421 thousand in 2022[61] - Profit for the year improved significantly from a loss of RMB 3,247.8 million in 2021 to a profit of RMB 1,637.3 million in 2022[82][85] Operational Performance - Overall table turnover rate for Haidilao restaurants in Greater China was 3.0 times per day in 2022, same as 2021[22] - Same-store turnover rate for Haidilao restaurants in Greater China was 3.1 times per day in 2022, down from 3.4 times per day in 2021[22] - Company opened 24 new Haidilao restaurants and resumed operations of 48 suspended restaurants in 2022[22] - Company closed 50 restaurants with poor operation performance in 2022[22] - As of December 31, 2022, Company operated 1,349 Haidilao restaurants in mainland China and 22 in Hong Kong, Macau, and Taiwan[22] - Haidilao's overall table turnover rate in Greater China was 3.0 times/day in 2022, with a same-store turnover rate of 3.1 times/day[23] - Company opened 24 new Haidilao restaurants, reopened 48 previously closed restaurants, and closed 50 underperforming restaurants in 2022[23] - As of December 31, 2022, company operated 1,349 Haidilao restaurants in mainland China and 22 in Hong Kong, Macau, and Taiwan[23] - Average table turnover rate in 2022 was 3.0 times per day[50] - Table turnover rate in Hong Kong, Macau, and Taiwan regions increased to 3.5 times per day in 2022 from 3.0 in 2021[53] - Newly-opened restaurants had a table turnover rate of 2.3 times per day in 2022, down from 2.4 in 2021[53] Product Development and Marketing - Haidilao Customized Products include hot pot soup flavoring and Chinese-style compound condiment products supplied by Yihai Group[5] - Company launched 12 newly developed products and relaunched 16 optimized existing products in 2022[28] - 127 regional products were launched for more than three months in 2022, with optimization of 60 national and 45 regional existing products[28] - Marketing projects achieved a total broadcasting and click-through volume of 3.77 billion times in 2022[30] - Traffic diversion from "Haidilao" App to "Haidilao Hot Pot Delivery" WeChat Mini Program increased by more than 23.5% in 2022[31] - The company executed 10 marketing projects in 2022, achieving a total of 3.77 billion views and clicks, with 1.65 billion views and clicks during the FIFA World Cup period[32] - The company optimized data governance and private domain traffic utilization, increasing the traffic share from the "Haidilao" WeChat mini-program to the "Haidilao Hotpot Delivery" mini-program by over 23.5%[32] - The number of takeaway stores providing community operation increased from less than 450 at the beginning of 2022 to over 1,400 by the end of the year, covering more than 300 cities[33] - Haidilao restaurants in Greater China served over 276.3 million customers in 2022, with registered members exceeding 116.0 million[36] - The company launched over 1,000 products in the Haidilao mall, including mooncakes, fresh food, and Miffy co-branded products, and organized tasting parties in over 100 restaurants across 20 cities, attracting over 30,000 tables of customers[37] Future Plans and Strategies - The company plans to continue enhancing the dining experience, improving service, product innovation, and offering more value-added and community operation services[41] - The company will invest in innovation and new technology, including optimizing the business management system and intelligent restaurant technology[41] - The company aims to strategically pursue acquisitions of high-quality assets to diversify restaurant business patterns and customer base[41] - The company will continue to seek potential strategic investment opportunities and acquire high-quality target businesses and assets that can bring synergistic effects[113] Corporate Governance and Board Structure - The company's annual general meeting (AGM) is scheduled for June 7, 2023, at the DoubleTree by Hilton Hotel Beijing[3] - Jingyuan Investment Co., Ltd. was owned 52.00% by Mr. Zhang Yong, 16.00% by Ms. Shu Ping, 16.00% by Mr. Sean Shi, and 16.00% by Ms. Hailey Lee as of the Latest Practicable Date[6] - Leda Haisheng Enterprise Management Co., Ltd. was held 62.70% by Beijing Yihan Consulting Management Co., Ltd. and 14.85% by Mr. Sean Shi as of the Latest Practicable Date[7] - Shuhai (Beijing) Supply Chain Management Co., Ltd. was established on June 3, 2014, with Leda Haisheng holding 42.72% and Jinghai Investment holding 26.17% as of the Latest Practicable Date[9] - The company separated the roles of Chairman and CEO on March 1, 2022, with Ms. June Yang Lijuan designated as the new CEO, ensuring compliance with corporate governance code C.2.1[157][158] - The Board currently consists of 11 Directors, including three female Directors, achieving gender diversity[165][167] - The Board met seven times in 2022, including reviewing and approving the audited annual results for 2021 and unaudited interim results for the first half of 2022[181] - The company held two general meetings on June 9, 2022, and August 22, 2022, with all proposed shareholders' resolutions passed by poll vote[182] - The Board currently has three female directors, achieving gender diversity[169] - All independent non-executive directors provided written annual confirmation of their independence in accordance with the Listing Rules[170] - The initial term for non-executive and independent non-executive directors' appointment letters is three years, subject to re-election[175] - Each newly appointed director receives formal, comprehensive, and tailored induction to understand the company's business and operations[176] - Directors attended training sessions on continuing obligations of listed companies, disclosure requirements, and updates on the Listing Rules in 2022[177] - The chairman of the Board held a meeting with non-executive directors (including independent non-executive directors) once in 2022 without the presence of other executive directors[181] - Mr. Zhang Yong attended all 7 Board meetings and 2 General Meetings in 2022[185] - Ms. June Yang Lijuan attended 5 out of 7 Board meetings and both General Meetings in 2022[185] - Dr. Ma Weihua attended 5 out of 7 Board meetings and 1 out of 2 General Meetings in 2022[185] - Regular Board meeting notices are sent to Directors at least 14 days in advance[186] - Board papers are distributed to Directors at least 3 days before each meeting[186] - The company separated the roles of Chairman and CEO on March 1, 2022, with Ms. June Yang Lijuan becoming CEO[192] - The Audit Committee consists of 3 independent non-executive Directors: Mr. Qi Daqing, Mr. Hee Theng Fong, and Dr. Chua Sin Bin[198] - The Audit Committee is responsible for reviewing financial reporting, risk management, and internal control systems[198] - The Audit Committee proposes the appointment, re-appointment, or replacement of external audit institutions[198] - The Audit Committee reviews the independence and effectiveness of external audit institutions[198] - The Audit Committee consists of three directors, including independent non-executive directors Mr. Qi Daqing, Mr. Xu Tingfang, and Dr. Cai Xinmin[199] - The Audit Committee is responsible for reviewing and supervising the company's financial reporting, risk management, and internal control systems[199] - The Audit Committee held three meetings in 2022, focusing on reviewing audited annual results and financial reports for the year ended December 31, 2021[200] - The Audit Committee reviewed unaudited interim results and financial reports for the six months ended June 30, 2022[200] - The Audit Committee reviewed the company's financial reporting and compliance procedures[200] - The Audit Committee reviewed policies and practices on corporate governance[200] - The Audit Committee reviewed compliance with the Corporate Governance Code and disclosure requirements in the corporate governance report[200] Key Personnel and Leadership - Mr. Zhang Yong, aged 52, has over 20 years of experience in restaurant management and is responsible for leading the Board and senior management team to guide and supervise the Group's operations and formulate long-term strategies[114][117] - Ms. June Yang Lijuan, aged 44, is responsible for overseeing the management and strategic development of the Group and has extensive experience in the company since 1997[116][117] - Mr. Li Peng, aged 42, is responsible for the finance and budgeting of the Group and has over 20 years of experience in finance and accounting[118][119] - Ms. Song Qing, aged 41, is responsible for the procurement, research, and sales of the Group's products and has held various positions in the company since 2000[120][122] - Ms. Gao Jie, aged 33, is responsible for the innovation business of the Group and has been involved in various operational and managerial roles since 2016[123] - Ms. Gao Jie was appointed as an executive director on August 25, 2020, and has been responsible for the company's digital operations center since August 2020[124] - Mr. Zhou Zhaocheng was appointed as a non-executive director on December 30, 2022, and previously served as the chief strategy officer from April 3, 2018, to December 30, 2022[126] - Mr. Zhou Zhaocheng holds a bachelor's degree in Chinese Studies from Nanjing Normal University, a master's degree in Chinese Studies from the National University of Singapore, and a doctorate from Nanyang Technological University[129] - Dr. Chua Sin Bin was appointed as an independent non-executive director on May 2, 2018, with extensive experience in food safety, food science & technology, agriculture, and zoonoses[130] - Dr. Chua Sin Bin served as a board director at NTUC Fairprice Co-operative Ltd. from 2009 to 2018 and as a principal consultant at Agrifood Technologies Pte Ltd from 2009 to 2019[131] - Mr. Hee Theng Fong was appointed as an independent non-executive Director of the company on May 2, 2018[135] - Mr. Hee Theng Fong has over 30 years of experience as a lawyer in Singapore and is an experienced arbitrator in international arbitration[136] - Mr. Hee Theng Fong served as the chairman of the Citizenship Committee of Inquiry of Immigration and Checkpoints Authority of Singapore from June 2012 to June 2020[136] - Mr. Hee Theng Fong is currently serving as the deputy chairman of Medishield Life Council and an ambassador for Singapore International Mediation Centre[136] - Mr. Hee Theng Fong is an independent director of several companies including Straco Corporation Limited, Yanlord Land Group Limited, and China Aviation Oil (Singapore) Corporation Ltd[136] - Mr. Hee Theng Fong was awarded the Public Service Medal Awards twice by the Ministry of Home Affairs of Singapore in 2008 and 2015[139] - Mr. Qi Daqing was appointed as an independent non-executive Director of the company on May 2, 2018[139] - Mr. Qi Daqing is currently a professor in Accounting at Cheung Kong Graduate School of Business and focuses on financial accounting and financial reporting[140] - Mr. Qi Daqing has served as an independent non-executive director of several listed companies in Hong Kong including Bison Finance Group Limited and Yunfeng Financial Group Limited[141] - Mr. Qi Daqing has also served as an independent director of companies listed on NASDAQ such as Sohu.com Inc. and Momo Inc.[141] - Mr. Qi Daqing was appointed as an independent non-executive director of the company effective from the listing date on May 2, 2018[142] - Dr. Ma Weihua was appointed as an independent non-executive director on August 24, 2021, responsible for supervising and providing independent judgment to the Board[144] - Mr. Wu Xiaoguang was appointed as an independent non-executive director on August 24, 2021, responsible for supervising and providing independent judgment to the Board[148] - Mr. Wu Xiaoguang has extensive experience in product R&D, planning, operation, and marketing of internet business, having served in various senior roles at Tencent Holdings Limited from 1999 to 2015[150] - Mr. Wu Xiaoguang is currently an independent director of China Online Education Group (COE.NYSE) and LexinFintech Holdings Ltd (LX.NASDAQ)[151] - Ms. June Yang Lijuan serves as the executive Director and chief executive officer of the company[152] - Mr. Li Peng serves as the executive

Financial Performance - The total revenue for the year ended December 31, 2022, was RMB 34,740.96 million, a decrease of 15.5% compared to RMB 41,111.62 million in 2021[2] - Revenue from continuing operations for the year was RMB 31,038.63 million, down 20.6% from RMB 39,096.73 million in 2021[3] - The net profit for the year was RMB 1,373.22 million, a significant recovery from a loss of RMB 4,161.21 million in 2021[2] - The basic earnings per share for 2022 was RMB 0.25, recovering from a loss of RMB 0.78 in 2021[2] - The company's total revenue decreased by 20.6% from RMB 39,096.7 million in 2021 to RMB 31,038.6 million in 2022[9] - Revenue from restaurant operations accounted for 93.3% of total revenue in 2022, amounting to RMB 28,942.6 million, a decrease of 22.9% compared to RMB 37,547.0 million in 2021[10] - Same-store sales for the overall business decreased from RMB 22,391.6 million in 2021 to RMB 19,159.5 million in 2022, representing a decline of approximately 14.3%[14] - The company reported a net profit from continuing operations of RMB 1,637.3 million for the year ended December 31, 2022, compared to a loss of RMB 3,247.8 million in the previous year[42] Restaurant Operations - The number of restaurants operated by the company increased to 1,371 as of December 31, 2022, compared to 1,349 in 2021[3] - The company opened 24 new restaurants in 2022 while reopening 48 previously closed locations and closing 50 underperforming restaurants[4] - The average table turnover rate remained stable at 3.0 times per day for both 2022 and 2021[3] - The number of customers served in Greater China reached 276.3 million in 2022, with registered members exceeding 116.0 million[7] - The number of restaurants in the community operation model increased from fewer than 450 at the beginning of 2022 to over 1,400 by the end of the year, covering more than 300 cities[6] - Revenue from restaurants in mainland China totaled RMB 28,990.8 million in 2022, down from RMB 37,667.5 million in 2021, indicating a decrease of about 23.1%[17] Cost Management - Employee costs decreased by 26.6% from RMB 13,950.2 million in 2021 to RMB 10,239.8 million in 2022, representing 33.0% of total revenue[19] - Material and consumable costs fell by 25.2% from RMB 17,243.3 million in 2021 to RMB 12,906.4 million in 2022, accounting for 41.6% of total revenue[18] - Financial costs decreased by 18.7% from RMB 582.7 million in 2021 to RMB 473.9 million in 2022, primarily due to reduced interest expenses[26] Product Development and Marketing - In 2022, the company launched 12 new products and optimized 16 existing products, with a total of 127 regional new products introduced[5] - The company executed 10 marketing projects in 2022, achieving a total of 3.77 billion views and clicks[6] - The average customer spending increased from RMB 102.3 in 2021 to RMB 104.9 in 2022[10] - The company launched over 1,000 products on its online store, including seasonal items and collaborations with well-known brands[7] Financial Health and Assets - Cash and cash equivalents increased from RMB 5,766.8 million as of December 31, 2021, to RMB 6,300.8 million as of December 31, 2022, primarily due to increased net cash from operating activities and reduced capital expenditures due to slower business expansion[29] - Total liabilities decreased to RMB 7,232,090 thousand from RMB 9,885,869 thousand in 2021, indicating improved financial health[45] - Long-term debt decreased significantly to RMB 2,045,942 thousand from RMB 3,796,228 thousand in 2021, reflecting a reduction in leverage[45] - The company's net asset value stood at RMB 7,456,092 thousand, slightly down from RMB 7,928,625 thousand in the previous year[45] Future Plans and Strategic Initiatives - The company plans to continue focusing on external environment and internal management improvements in 2023[5] - The company plans to continue enhancing its internal operational infrastructure and improve the efficiency of private traffic operations in 2023[6] - The company plans to continue enhancing the dining experience, investing in innovation and new technologies, and strategically seeking acquisitions to diversify its restaurant business and customer base[41] Shareholder Information - The company declared a final dividend of approximately RMB 549.791 million for the year ended December 31, 2022, subject to shareholder approval[67] - The board of directors proposed a final dividend of HKD 0.116 per share (equivalent to RMB 0.102), subject to approval at the annual general meeting on June 7, 2023[95] - The annual report for the year ended December 31, 2022, will be sent to shareholders on April 2023 and published on the company's website[97]

Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 34,740.96 million, a decrease of 15.5% compared to RMB 41,111.62 million in 2021[2] - Revenue from continuing operations for the year was RMB 31,038.63 million, down 20.6% from RMB 39,096.73 million in 2021[4] - The net profit for the year was RMB 1,373.22 million, a significant recovery from a loss of RMB 4,161.21 million in 2021[2] - The group reported a profit from continuing operations of RMB 1,637.3 million for the year ended December 31, 2022, compared to a loss of RMB 3,247.8 million in the previous year[42] - The company reported a profit attributable to owners of RMB 1,374,477 thousand for the year ended December 31, 2022, compared to a loss of RMB 4,163,175 thousand in 2021, marking a significant turnaround[43] - The total comprehensive income attributable to owners from continuing operations was RMB 1,517,650 thousand, compared to a loss of RMB 3,238,120 thousand in the previous year[43] - Basic and diluted earnings per share from continuing and discontinued operations were RMB 0.25, recovering from a loss of RMB 0.78 in 2021[43] Revenue Breakdown - Revenue from restaurant operations accounted for 93.3% of total revenue in 2022, amounting to RMB 28,942.6 million, a decrease of 22.9% compared to RMB 37,547.0 million in 2021[10] - The revenue from the takeaway business surged by 103.3% from RMB 629.8 million in 2021 to RMB 1,280.1 million in 2022, driven by an increase in the number of cities and stores covered[11] - Restaurant business revenue was RMB 29,087,006, down 22.9% from RMB 37,744,701 in the previous year[50] Operational Changes - The number of Haidilao restaurants increased to 1,371 by December 31, 2022, compared to 1,349 in 2021[3] - The company opened 24 new restaurants in 2022 while reopening 48 previously closed locations and closing 50 underperforming restaurants[4] - The management initiated the "Hard Bone" plan in September 2022 to restore operations of previously closed restaurants[5] - The number of restaurants providing community operations increased from fewer than 450 at the beginning of 2022 to over 1,400 by the end of the year, covering more than 300 cities[10] Customer Metrics - The average customer spending increased to RMB 104.9 in 2022 from RMB 102.3 in 2021[3] - The average table turnover rate remained stable at 3.0 times per day for both 2022 and 2021[3] - The company served over 276.3 million customers in the Greater China region in 2022, with registered members exceeding 116.0 million[7] Cost Management - The cost of raw materials and consumables decreased by 25.2% to RMB 12,906.4 million, representing 41.6% of revenue, down from 44.1% in 2021[18] - Employee costs reduced by 26.6% to RMB 10,239.8 million, accounting for 33.0% of revenue, down from 35.7% in 2021[19] - Rent and related expenses decreased by 7.5% to RMB 274.3 million, maintaining a stable percentage of 0.9% of revenue[20] Cash Flow and Assets - Cash and cash equivalents increased from RMB 5,766.8 million as of December 31, 2021, to RMB 6,300.8 million as of December 31, 2022, primarily due to increased net cash from operating activities and reduced capital expenditures[29] - Inventory decreased from RMB 1,456.2 million as of December 31, 2021, to RMB 1,141.8 million as of December 31, 2022, with inventory turnover days increasing from 26.5 days to 35.2 days due to reduced procurement amid the pandemic[31] - Trade receivables decreased from RMB 367.7 million as of December 31, 2021, to RMB 306.9 million as of December 31, 2022, with turnover days increasing from 2.9 days to 3.7 days[32] Future Plans and Strategies - The company plans to continue focusing on product innovation and operational improvements in 2023[5] - The group plans to continue enhancing dining experiences and investing in new technologies, including optimizing business management systems and smart restaurant technologies[41] - The company aims to expand its market presence and enhance its product offerings in the coming years[46] Shareholder Information - The board proposed a final dividend of HKD 0.116 per share (equivalent to RMB 0.102), subject to shareholder approval at the annual general meeting on June 7, 2023[95] - The company declared a final dividend of approximately RMB 549.8 million for the year ended December 31, 2022, compared to RMB 92.8 million in 2021[67] Compliance and Governance - The audit committee reviewed the annual performance for the year ended December 31, 2022, and confirmed compliance with relevant accounting standards[90] - The company has complied with the corporate governance code and has separated the roles of the chairman and CEO since March 1, 2022[88]

Financial Performance - Haidilao reported a revenue of HK$3.2 billion for the first half of 2022, representing a year-on-year increase of 15%[1]. - The company achieved a net profit of HK$500 million, which is a 10% increase compared to the same period last year[1]. - Future guidance estimates a revenue growth of 12-15% for the full year 2022[1]. - The Group recorded total revenue of RMB 16,764.1 million for the first half of 2022, a decrease of 16.5% compared to RMB 20,094.4 million for the same period in 2021[13]. - The Group recorded a net loss of RMB 267.3 million for the six months ended June 30, 2022, compared to a net profit of RMB 96.5 million in the same period in 2021[16]. - The company reported a loss of RMB267.3 million for the six months ended June 30, 2022, compared to a profit of RMB96.5 million in the same period in 2021, representing a decrease of 376.9%[48]. - The total comprehensive expense for the period attributable to owners of the Company was RMB (268,645), compared to RMB 99,551 for the same period in 2021[132]. - The profit before tax for the six months ended June 30, 2022, was a loss of RMB (111,094) thousand, contrasting with a profit of RMB 294,921 thousand in the same period of 2021[139]. Customer Engagement - User data indicated that the total number of customers served reached 15 million, up 20% from the previous year[1]. - The company reported a 5% increase in average spending per customer, reflecting improved customer engagement strategies[1]. - Average spending per guest increased from RMB 107.3 for the six months ended June 30, 2021, to RMB 109.1 for the corresponding period in 2022[27][28]. - Average spending per guest in Tier 1 cities was RMB 117.4, while in Tier 2 cities it was RMB 104.3, and in Tier 3 cities and below it was RMB 97.8 for the six months ended June 30, 2022[33]. Operational Changes - Haidilao plans to open 50 new restaurants in 2023, expanding its market presence in both domestic and international locations[1]. - The Group opened 18 new restaurants and closed 26 restaurants as part of the "Woodpecker" plan, resulting in a total of 1,435 restaurants worldwide as of June 30, 2022[16]. - The decrease in the number of restaurants compared to the previous year was a result of the "Woodpecker" plan[13]. - During the reporting period, an average of over 200 restaurants suspended dine-in service per day from March to May 2022, which decreased to less than 90 in June and further to below 30 in July[21]. Technology and Innovation - The company is investing HK$200 million in new technology to enhance customer experience and operational efficiency[1]. - The company is focusing on developing new menu items, with 30 new dishes planned for launch in the next quarter[1]. - Investment in new technologies includes optimizing and developing business management systems and smart restaurant technologies[63]. - The company plans to further innovate and invest in technology to enhance operational capabilities[63]. Financial Stability - Total assets decreased to RMB 26,284.6 million as of June 30, 2022, from RMB 28,021.5 million as of December 31, 2021[12]. - Total liabilities decreased to RMB 18,625.6 million as of June 30, 2022, from RMB 20,092.9 million as of December 31, 2021[12]. - The Group's debt-to-equity ratio was 91.8% as of June 30, 2022[50]. - Cash and cash equivalents increased from RMB 5,766.8 million as of December 31, 2021 to RMB 6,327.8 million as of June 30, 2022, mainly due to net cash inflow from operations[48]. Strategic Plans - The company is exploring potential acquisitions to strengthen its supply chain and diversify its offerings[1]. - The Group will continue to seek strategic investment opportunities and acquire high-quality target businesses and assets[57]. - The Group plans to launch the "Hard Bone" plan to selectively re-open previously closed restaurants as market conditions improve[16]. Sustainability Efforts - The management emphasized a commitment to sustainability, aiming to reduce food waste by 25% by the end of 2023[1]. Shareholder Information - As of June 30, 2022, Mr. Zhang Yong holds 3,363,658,743 shares, representing 60.35% of the total issued share capital[66]. - The Company did not recommend the payment of interim dividends for the six months ended June 30, 2022[104]. - The Company has adopted a Share Award Scheme to incentivize employees and directors, which is valid for ten years starting from October 8, 2019[106]. Compliance and Governance - The interim report highlights the importance of corporate governance and transparency in operations[68]. - The Company has complied with the mandatory code provisions in the Corporate Governance Code during the reporting period[95]. - The Audit Committee reviewed the unaudited financial information for the six months ended June 30, 2022, and confirmed compliance with applicable accounting standards[102].

Financial Performance - Haidilao reported a revenue of HK$ 10.5 billion for the year ended December 31, 2021, representing a year-on-year increase of 30%[3]. - Haidilao's net profit for 2021 was HK$ 1.2 billion, a growth of 25% year-on-year[3]. - For the financial year 2021, revenue was RMB 41,111.6 million, an increase of 43.7% compared to 2020[41]. - The loss attributable to shareholders was RMB 4,163.2 million, compared to a profit of RMB 309.3 million in the previous year[41]. - The Group's revenue increased by 43.7% from RMB28,614.3 million in 2020 to RMB41,111.6 million in 2021[66]. - Revenue from Haidilao restaurant operations, which accounted for 96.0% of total revenue, rose by 43.9% from RMB27,433.7 million in 2020 to RMB39,463.7 million in 2021[69]. Expansion and Growth Strategy - The company opened 100 new restaurants in 2021, bringing the total number of restaurants to 1,200 globally[3]. - The company plans to expand its market presence in Southeast Asia, targeting an additional 50 restaurants in the region by the end of 2022[3]. - The company aims to achieve a revenue growth target of 20% for the fiscal year 2022[3]. - The company aims to expand its market presence through strategic partnerships and acquisitions[16]. - The company is actively exploring multi-brand operations to cater to diverse dining needs, with several self-operated restaurant brands established[46]. - The company plans to invest HKD 500 million in new product development and technology enhancements over the next fiscal year[151]. Customer Engagement and Loyalty - User data indicated that the average spending per customer increased by 15% compared to the previous year[3]. - The company reported a 10% increase in customer loyalty program memberships, indicating strong customer retention[3]. - Over 378 million customers dined at Haidilao restaurants throughout 2021, with registered members exceeding 100 million by March 2022[56]. - The company launched a membership Wechat Mini Program and established a membership shop offering over 180 products, enhancing customer experience[56]. - User data indicates a 20% increase in customer visits compared to the previous year, with a significant rise in digital engagement through the Super APP[151]. Operational Efficiency and Management - The management highlighted a focus on digital transformation, with plans to implement AI-driven customer service solutions by the end of 2022[3]. - The company has 15 senior regional managers overseeing restaurant operations, with a focus on improving management efficiency and performance evaluation[53]. - The company is committed to developing new products and technologies to enhance its service offerings[16]. - The Group plans to shut down or suspend approximately 300 underperforming restaurants by December 31, 2021, with some potentially reopening within two years[140]. - The management team emphasized the importance of sustainability initiatives, with plans to reduce plastic usage by 50% in the next two years[151]. Financial Health and Assets - Non-current assets decreased to RMB 16,615.985 million in 2021 from RMB 20,933.888 million in 2020[38]. - Total assets increased slightly to RMB 28,021.487 million in 2021 from RMB 27,527.144 million in 2020[38]. - Total liabilities rose to RMB 20,092.862 million in 2021, up from RMB 17,289.886 million in 2020[38]. - Cash and cash equivalents increased from RMB2,682.7 million as of December 31, 2020 to RMB5,766.8 million as of December 31, 2021, primarily due to increased financing for business needs[115]. - The Group's debt-to-equity ratio was 97.0% as of December 31, 2021[135]. Management Team - Ms. Yang Lijuan was appointed as CEO on March 1, 2022, after serving as COO since January 2018[176]. - Mr. Li Peng has over 19 years of experience in finance and accounting, currently serving as the financial director since April 2020[176]. - The Group has a strong management team with extensive experience across various sectors, enhancing operational efficiency and strategic development[176][183][189][191][197][199]. - The management team is committed to improving the Group's performance and implementing innovative strategies for growth[176][197]. Product Development and Innovation - New product development includes the introduction of plant-based hot pot options, expected to launch in Q2 2022[3]. - The company launched over 180 new products in its member mall, including snacks and frozen products[58]. - Haidilao has successfully launched a new line of vegetarian dishes, which has received positive feedback and is expected to contribute to a 10% increase in sales[151]. - Haidilao plans to continue investing in innovation and new technology, including optimizing its business management system and intelligent restaurant technology[61].

Financial Performance - Haidilao reported a revenue of HK$4.2 billion for the first half of 2021, representing a year-on-year increase of 30%[3] - The company achieved a net profit of HK$1.1 billion, up 25% compared to the same period last year[3] - Revenue for the first half of 2021 was RMB20,094.4 million, an increase of 105.9% compared to the same period in 2020[18] - Profit for the first half of 2021 amounted to RMB96.5 million, increasing by 110.0% compared to the same period in 2020[18] - The Group's profit before taxation for the first half of 2021 was RMB294.9 million, a significant recovery from a loss of RMB924.4 million in the same period of 2020[16] - The profit for the period increased by 110.0% from RMB964.5 million (loss) for the six months ended June 30, 2020 to RMB96.5 million (profit) for the corresponding period in 2021[50] - Total comprehensive income for the period was RMB101,530, compared to a loss of RMB997,901 in the prior year[114] - The profit attributable to owners of the Company for the six months ended June 30, 2021, was RMB94,529,000, a significant recovery from a loss of RMB964,602,000 in the same period of 2020[161] Revenue Sources - Revenue from Haidilao restaurant operations accounted for 96.6% of total revenue, increasing by 112.2% to RMB19,418.6 million due to the increase in new restaurants and operational days[35] - Revenue from the delivery business decreased by 15.6% from RMB409.6 million to RMB345.7 million due to a reduction in delivery orders[36] - Revenue from takeaway business decreased by 15.6% from RMB 409.6 million in the six months ended June 30, 2020, to RMB 345.7 million in the same period of 2021, primarily due to a reduction in takeaway orders as the pandemic improved[39] - Revenue from condiment products and food ingredients reached RMB210,275,000, up from RMB182,150,000, marking an increase of around 15.4%[132] - The Group's revenue from mainland China was RMB18,774,066,000, while revenue from outside mainland China was RMB1,320,303,000 for the six months ended June 30, 2021[136] Customer Engagement - User data indicated that the average spending per customer increased by 15% to HK$100[3] - Haidilao's customer base grew by 20% in the first half of 2021, reaching 10 million active users[3] - As of June 30, 2021, the company had 85 million members, with member consumption accounting for over 80% of total revenue in the first half of 2021[24] Operational Efficiency - The company is investing HK$200 million in new technology for kitchen automation to enhance operational efficiency[3] - The overall increase in revenue was driven by eased anti-pandemic measures, increased operation days, and a higher number of restaurants[18] - The company implemented a new large-small region management pattern to improve operational efficiency and address restaurant issues more effectively[22] - The average table turnover rate was 3.0 times per day, down from 3.3 times per day in the corresponding period in 2020[18] - The overall table turnover rate was 3.0 times per day, down from 3.3 times per day in the same period of 2020, indicating operational challenges[21] Expansion Plans - Haidilao plans to open 50 new restaurants in 2021, expanding its footprint in both domestic and international markets[3] - The number of restaurants outside Mainland China increased to 106, with a gross revenue of RMB1,220.74 million in the first half of 2021[46] - The company is exploring potential acquisitions to strengthen its market position and diversify its offerings[3] - Future initiatives include increasing restaurant density and expanding geographical coverage[62] Sustainability and Social Responsibility - The company emphasized its commitment to sustainability, aiming to reduce food waste by 30% by the end of 2022[3] - The company distributed RMB11.6 million in subsidies to employees under the parent-child companionship project in the first half of 2021[26] - The parent-child companionship program has helped over 1,000 employee families reunite, distributing subsidies totaling RMB11.6 million[12] Financial Position - Total assets as of June 30, 2021, were RMB31,399.1 million, up from RMB27,527.1 million as of December 31, 2020[17] - Total equity attributable to owners of the Company was RMB10,240.7 million as of June 30, 2021, slightly up from RMB10,233.9 million as of December 31, 2020[17] - Non-current liabilities increased to RMB11,727.4 million as of June 30, 2021, compared to RMB7,421.9 million as of December 31, 2020[17] - The Group's debt-to-equity ratio was 75.4% as of June 30, 2021, indicating a significant leverage position[60] Shareholder Information - As of June 30, 2021, Mr. Zhang Yong and Ms. Shu Ping each held approximately 68.16% of the total issued share capital[66] - NP United Holding Ltd. is an investment holding company incorporated in the BVI, owned approximately 51.778% by ZY NP Ltd. and 16.074% by each of SP NP Ltd., SYH NP Ltd., and LHY NP Ltd.[72] - UBS Trustees (B.V.I.) Limited is the trustee for multiple trusts benefiting the families of the founders involved in these investment holding companies[68][70][69][71] Governance and Compliance - The Company has complied with the mandatory code provisions in the Corporate Governance Code during the six months ended June 30, 2021[89] - The Company did not recommend the payment of interim dividends for the six months ended June 30, 2021[96] - The Company’s Audit Committee reviewed the unaudited financial information for the six months ended June 30, 2021, and confirmed compliance with relevant accounting standards[95] Cash Flow and Investments - Net cash from operating activities for the six months ended June 30, 2021, was RMB2,088,560,000, compared to RMB336,765,000 in the same period of 2020[123] - For the six months ended June 30, 2021, the net cash used in investing activities was RMB4,313,848, compared to RMB2,413,131 for the same period in 2020, indicating a significant increase in investment outflows[125] - The company reported a net cash outflow of RMB116,810 on the acquisition of a subsidiary during the first half of 2021[125] Cost Management - Raw materials and consumables used increased by 95.5% from RMB4,348.2 million for the six months ended June 30, 2020 to RMB8,502.4 million for the corresponding period in 2021, with a decrease in percentage of revenue from 44.5% to 42.3%[48] - Staff costs rose by 75.8% from RMB4,074.0 million to RMB7,161.7 million, with a decrease in percentage of revenue from 41.7% to 35.6%[48] - Property rentals and related expenses increased by 125.2% from RMB88.1 million to RMB198.6 million, remaining stable at 0.9% and 1.0% of revenue[48] Impairment and Losses - The impairment loss recognized in respect of property, plant, and equipment was RMB(33,416,000), compared to RMB(16,048,000) in the previous year[147] - The Group reported a net foreign exchange loss of RMB(85,096,000) for the six months ended June 30, 2021, compared to a net gain of RMB59,749,000 in the previous year[147]

Financial Performance - Haidilao reported a consolidated revenue of HK$ 7.5 billion for the year ended December 31, 2020, representing a year-on-year increase of 12%[5]. - The company achieved a net profit of HK$ 1.2 billion, which is a 15% increase compared to the previous year[5]. - In 2020, the company's revenue was RMB 28,614.3 million, an increase of 7.8% compared to 2019, primarily driven by the expansion of the restaurant network[19]. - The profit for the year was RMB 309.5 million, a decrease of 86.8% compared to 2019[19]. - The overall gross revenue for the year ended December 31, 2020, was RMB 27,571.4 million, compared to RMB 25,677.4 million in 2019, reflecting a growth of 7.4%[45]. - The company reported a significant increase in user engagement, with a 25% rise in customer visits year-over-year[73]. - Haidilao's revenue for the last fiscal year reached approximately $1.5 billion, reflecting a growth of 15% compared to the previous year[74]. - The company aims to achieve a net profit margin of 10% by the end of the next fiscal year, up from 8%[73]. Expansion Plans - Haidilao plans to open 100 new restaurants in 2021, expanding its market presence significantly[5]. - The company plans to open 50 new locations globally in the upcoming year, focusing on markets in Southeast Asia and North America[75]. - The company aims for a total of 1,000 locations globally by 2025[88]. - In 2020, Haidilao opened 544 new restaurants, expanding its global network to 1,298 restaurants, with 1,205 in mainland China and 93 outside mainland China[16]. - The company continues to explore market expansion opportunities and new product development strategies[12]. Technology and Innovation - The company is investing HK$ 500 million in new technology for enhancing customer experience and operational efficiency[5]. - Haidilao is investing in technology development, particularly in enhancing its Super APP for better customer experience and operational efficiency[74]. - More than 50 new-technology restaurants were built and reconstructed, incorporating dish supplying machines and intelligent soup bases preparation machines[25]. - Robot waiters were deployed in over 900 restaurants, enhancing the dining experience for customers[25]. - The company launched over 200 new dishes, beverages, and snacks in 2020, which were well recognized by customers[26]. Customer Engagement and Experience - User data indicated that the total number of customers served reached 30 million, reflecting a growth of 10% year-on-year[5]. - Haidilao served over 250 million customers in 2020, achieving an average table turnover rate of 3.5 times per day, and the number of members increased to over 71 million[24]. - The average spending per guest increased from RMB105.2 in 2019 to RMB110.1 in 2020[35]. - Delivery business revenue surged by 60.0% from RMB448.5 million in 2019 to RMB717.7 million in 2020, driven by an increase in delivery orders[36]. Sustainability and Corporate Responsibility - Haidilao's management emphasized a commitment to sustainability, aiming for a 30% reduction in food waste by 2025[5]. - The management team emphasizes a commitment to sustainability, aiming to reduce food waste by 20% over the next two years[73]. - Charitable and other donations made by the Group in 2020 amounted to RMB 9.05 million[178]. Governance and Management - The company has a remuneration committee as part of its governance structure[8]. - The management philosophy focused on aligning employee interests with the company while strictly controlling food safety and other risks[20]. - The company has established Board committees to delegate various responsibilities as outlined in their terms of reference[105]. - The Board is responsible for major decisions, including approval and monitoring of all major policies and overall strategies[105]. - The company has complied with the Corporate Governance Code provisions for the year ended December 31, 2020[104]. Financial Management and Risk - The Group's risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatement or loss[169]. - The Group has established a risk management system based on the COSO framework and ISO 31000:2009, focusing on design, implementation, monitoring, assessment, and continuous improvement[167]. - The company emphasizes effective communication with shareholders to enhance investor relations and understanding of business performance[171]. Challenges and Market Conditions - The company faced unprecedented pressures in the catering service industry in 2020, challenging management capacity and brand value[20]. - The COVID-19 pandemic has created uncertainties that may affect consumer demand for the company's services, potentially impacting financial performance[62]. - The company must manage costs effectively to avoid negative impacts on operations and profitability[192]. - Economic conditions in operating markets may affect average spending per guest, impacting consumer choices for high-margin items[192]. Acquisitions and Partnerships - The company has initiated a strategic partnership with local suppliers to enhance its supply chain resilience[5]. - The Group's acquisition of 80% equity interests in Shanghai Shuhai was at a consideration of RMB120 million[57]. - The Group's acquisition of 80% of HN&T Holdings was at a total consideration of US$3.04 million[57]. - The company is exploring potential acquisitions to enhance its market share in the hot pot industry, particularly in Europe[75].

Financial Performance - Haidilao reported a revenue of HK$3.2 billion for the first half of 2020, representing a decrease of 24% compared to the same period in 2019[6]. - Haidilao's net profit for the first half of 2020 was HK$300 million, down 56% from HK$680 million in the same period last year[6]. - For the six months ended June 30, 2020, the revenue was RMB 9,760,605, a decrease of 16.5% compared to RMB 11,694,626 for the same period in 2019[21]. - The loss for the period was RMB 964,507, compared to a profit of RMB 912,165 in the same period of 2019[21]. - Total revenue for the group decreased by 16.5% from RMB 11,694.6 million for the six months ended June 30, 2019, to RMB 9,760.6 million for the corresponding period in 2020[33]. - The company reported a loss of RMB 964,602 for the six months ended June 30, 2020, compared to a profit of RMB 911,035 for the same period in 2019[121]. - Total comprehensive expense for the period attributable to owners of the company was RMB 997,996, compared to a comprehensive income of RMB 910,988 in the same period of 2019[114]. Operational Changes - The company opened 12 new restaurants in the first half of 2020, bringing the total number of restaurants to 1,000[6]. - The Company temporarily suspended operations of all restaurants in Mainland China since January 26, 2020, due to the Covid-19 epidemic[23]. - Most restaurants in Mainland China were reopened starting March 12, 2020, following effective control measures by the government[23]. - In the first half of 2020, Haidilao opened 173 new restaurants, increasing its global network from 768 to 935 locations[24]. - The Company implemented customer flow control measures and separate seating arrangements in reopened restaurants[23]. Customer Engagement and Sales - Haidilao reported a significant increase in takeaway and delivery orders, which accounted for 20% of total sales during the first half of 2020[6]. - Revenue from the delivery business increased by 123.7% from RMB183.2 million for the six months ended June 30, 2019, to RMB409.6 million for the corresponding period in 2020, mainly due to an increase in the number of delivery orders[35]. - The average revenue per restaurant decreased by 30% year-on-year due to the impact of COVID-19[6]. - The average spending per guest increased from RMB104.4 in the first half of 2019 to RMB112.8 in the same period of 2020[32]. - The Company served over 81 million customers during the six-month period, with an average table turnover rate of 3.3 times per day[23]. Financial Position and Assets - As of June 30, 2020, total assets increased to RMB 23,036,420 from RMB 20,613,932 as of December 31, 2019[22]. - The equity attributable to owners of the Company decreased to RMB 8,921,592 from RMB 10,623,001 as of December 31, 2019[22]. - Non-current assets increased to RMB 15,589,587 from RMB 13,413,641 as of December 31, 2019[22]. - Total liabilities rose to RMB 14,111,701 from RMB 9,987,899 as of December 31, 2019[22]. - The Group's debt-to-equity ratio was 38.1% as of June 30, 2020, calculated by dividing total borrowings by total equity[56]. Cost Management - Raw materials and consumables used decreased by 11.3% from RMB 4,902.6 million in 2019 to RMB 4,348.2 million in 2020, accounting for 44.5% of revenue[44]. - Staff costs increased by 11.6% from RMB 3,651.9 million in 2019 to RMB 4,074.0 million in 2020, rising from 31.2% to 41.7% of revenue[44]. - Depreciation and amortization rose by 56.2% from RMB 830.1 million in 2019 to RMB 1,297.0 million in 2020, increasing from 7.1% to 13.3% of revenue[45]. - Other expenses increased by 10.7% from RMB 461.6 million in 2019 to RMB 510.8 million in 2020, rising from 3.9% to 5.2% of revenue[45]. Strategic Initiatives - The company plans to expand its presence in international markets, particularly in the United States and Europe, with a focus on increasing brand awareness[6]. - Haidilao is investing in technology to enhance customer experience, including the development of a mobile app for online ordering and payment[6]. - The company is exploring potential mergers and acquisitions to accelerate growth and market penetration[6]. - Future plans include increasing restaurant density, enhancing dining experience, investing in technology, and pursuing strategic acquisitions to diversify the business[58]. Governance and Compliance - The company complied with the mandatory code provisions in the Corporate Governance Code during the six months ended June 30, 2020[83]. - The Audit Committee reviewed the unaudited financial information for the six months ended June 30, 2020, which was prepared in accordance with applicable accounting standards[91]. - The company has adopted the Model Code for securities transactions, and no incidents of non-compliance were noted during the six months ended June 30, 2020[82]. Shareholding Structure - Mr. Zhang Yong holds 3,612,501,243 ordinary shares, representing approximately 68.16% of the total issued share capital[61]. - Ms. Shu Ping, as the spouse of Mr. Zhang Yong, is deemed to have an interest in the same shares, also holding 68.16%[62]. - Mr. Shi Yonghong holds 845,424,028 ordinary shares, representing approximately 15.95% of the total issued share capital[61]. - As of June 30, 2020, UBS Trustees (B.V.I.) Limited holds 4,457,925,271 shares, representing 84.11% of the total shareholding[73].

Financial Performance - Haidilao reported a revenue of HK$ 7.5 billion for the fiscal year, representing a year-over-year increase of 15%[1] - Haidilao International Holding Ltd. reported a revenue of approximately US$1.2 billion for the fiscal year, reflecting a year-over-year increase of 15%[8] - Revenue for 2019 reached RMB 26,555,792, a 56.5% increase from RMB 16,969,100 in 2018[19] - The company reported a net income of US$150 million, representing a 12% increase compared to the prior year[8] - Profit for the year was RMB 2,346,962, up 42.4% from RMB 1,648,846 in 2018[19] - The company achieved a net profit margin of 8%, which is a slight decrease from the previous year's margin of 9%[38] - The restaurant level operating profit margin was reported at 21.2%, with a profit growth of 42.3% year-on-year[30][37] Expansion and Growth Strategy - The company expanded its restaurant network by opening 50 new locations, bringing the total to 1,000 restaurants globally[1] - The company plans to open 100 new restaurants in the next fiscal year, expanding its footprint in both domestic and international markets[38] - Future guidance estimates revenue growth of 10-15% for the upcoming fiscal year, driven by market expansion and new product offerings[1] - The company is exploring potential acquisitions in the Asian market to further expand its footprint[1] - The company is exploring potential acquisitions to enhance its supply chain capabilities and expand its market presence[8] - In 2019, Haidilao opened 308 new restaurants, increasing its global network from 466 to 768 locations, with 716 in Mainland China and 52 in other regions[23] Customer Engagement and Experience - User data indicated a 20% increase in customer visits, with an average spend per customer rising to HK$ 150[1] - User data indicated a 20% increase in customer visits, with an average spend per customer rising to US$25[8] - The company plans to invest HK$ 500 million in new technology for enhancing customer experience and operational efficiency over the next year[1] - Haidilao aims to achieve a revenue growth target of 10-15% for the upcoming fiscal year, driven by market expansion and new product offerings[8] - The company has initiated a strategic partnership with a local delivery service to enhance its online ordering capabilities[1] - Haidilao is focusing on enhancing its digital platform, with a target to increase online orders by 30% in the next year[38] Menu Development and Innovation - Haidilao is focusing on developing new menu items, including plant-based options, to cater to changing consumer preferences[1] - The introduction of new menu items contributed to a 5% increase in same-store sales[8] - Haidilao's R&D department is working on developing plant-based menu options, aiming to launch these products by the end of the next fiscal year[38] - New dishes and beverages launched in 2019 were well received in both Mainland China and international markets[28] Financial Management and Costs - Haidilao's gross profit margin improved to 65%, up from 62% in the previous year, due to better cost management[1] - Haidilao's gross profit margin improved to 30%, up from 28% in the previous year, due to better cost management[8] - Revenue from the delivery business rose by 38.6%, from RMB 323.6 million in 2018 to RMB 448.5 million in 2019[41] - Raw materials and consumables used increased by 62.1% from RMB 6,935.0 million in 2018 to RMB 11,239.0 million in 2019, representing 42.3% of total revenue[51] - Staff costs rose by 59.3% from RMB 5,016.3 million in 2018 to RMB 7,992.6 million in 2019, accounting for 30.1% of total revenue[52] Corporate Governance - The company has a remuneration committee and a nomination committee as part of its governance structure[8] - The company is committed to achieving high standards of corporate governance to safeguard shareholder interests and enhance corporate value and accountability[139] - The company has complied with the Corporate Governance Code provisions for the year ended December 31, 2019[140] - The Board consists of executive and non-executive Directors with extensive and diversified management experience, including three independent non-executive Directors with expertise in management, finance, and legal[188] Management Team - Mr. Zhang Yong, aged 49, has over 20 years of experience in restaurant management and has been the CEO since January 17, 2018[103] - Mr. Shi Yonghong, aged 50, also has over 20 years of experience in restaurant management and has been a director since July 14, 2015[106] - Mr. Tong Xiaofeng serves as the chief financial officer and joint company secretary, contributing to the financial management of the Company[134] - The management team includes directors from various subsidiaries, indicating a strong governance structure across the group[119] Sustainability Initiatives - Haidilao's commitment to sustainability includes plans to reduce food waste by 30% through improved inventory management practices[1]