Group 1: Company Overview - The company, Tehai International, is the overseas listing platform for Haidilao Group, focusing on the international market with its first store opened in Singapore in 2012, leading the way for Chinese cuisine to expand globally [1] - In 2024, the company is projected to achieve revenue of $780 million, a year-on-year increase of 13.4%, and a net profit attributable to shareholders of $21.8 million [1] - By the end of 2024, the company plans to operate 122 stores, with a distribution of 73 in Southeast Asia, 19 in East Asia, 20 in North America, and 10 in other regions, maintaining a strong brand positioning and steady expansion [1] Group 2: Industry Insights - The overseas hot pot market is expected to reach a scale of $30 billion, supported by over 60 million overseas Chinese, while local consumers will also aid brand expansion [2] - The traditional Chinese dining industry abroad has low concentration, and hot pot, being a highly standardized Chinese cuisine, is likely to replicate the success of Westernized Chinese dining brands [2] - Tehai International is positioned as the largest Chinese dining brand, leveraging social media tools for further market penetration [2] Group 3: Growth Potential and Financial Projections - The company is expected to continue expanding its global store layout, with projections for the number of overseas stores to reach 129, 140, and 149 in 2025, 2026, and 2027 respectively [3] - Forecasted net profits for 2025-2027 are $49.45 million, $56.36 million, and $74.44 million, representing a compound annual growth rate of 50.6% [3] - The company is rated "Buy" based on its strong backing from Haidilao and the significant potential of the Chinese dining market abroad, with projected price-to-earnings ratios of 24, 21, and 16 for 2025-2027 [3]

Group 1 - The core viewpoint is that Tehai International, backed by Haidilao's strong capabilities, has significant potential in the overseas Chinese dining market, with an "overweight" rating given by Dongwu Securities [1] - The company is positioned as Haidilao's overseas listing platform, focusing on the international market with a steady expansion of its direct-operated stores, particularly in Southeast Asia [1][2] - Tehai International is expected to achieve a compound annual growth rate (CAGR) of 50.6% in net profit from 2025 to 2027, with projected net profits of $49.45 million, $56.36 million, and $74.44 million for those years [1] Group 2 - The overseas hot pot market is projected to reach $30 billion, supported by over 60 million overseas Chinese, which provides a strong foundation for the expansion of Chinese dining brands [2] - Haidilao is recognized as the leading hot pot brand, possessing a mature international operation and supply chain system, with an average store return period reduced to 5.1 years by 2024 [3] - The company employs a dual strategy of localization and traffic generation, leveraging brand ambassadors to enhance same-store sales [3]

Group 1 - The core viewpoint is that Tehai International, backed by Haidilao's strong capabilities, has significant potential in the overseas Chinese dining market, with an "overweight" rating given by Dongwu Securities [1] - The company is expected to achieve a net profit of $49.45 million, $56.36 million, and $74.44 million from 2025 to 2027, with a compound annual growth rate of 50.6% [1] - Tehai International is positioned as Haidilao's overseas listing platform, focusing on global store expansion, particularly in Southeast Asia, with a projected increase in overseas stores to 129, 140, and 149 by 2025 to 2027 [1] Group 2 - The overseas hot pot market is projected to reach $30 billion, supported by over 60 million overseas Chinese, which will aid the expansion of Chinese dining brands [2] - Tehai International is the largest Chinese dining brand, leveraging social media tools to penetrate overseas markets [2] - The traditional Chinese dining industry abroad has low concentration, and hot pot, being a highly standardized category, is expected to replicate the success of Westernized Chinese dining brands [2] Group 3 - Haidilao is recognized as the leading hot pot brand, possessing brand strength and a mature international operation and supply chain system [3] - The average return period for stores is continuously optimized, projected to shorten to 5.1 years by 2024 [3] - The company employs a comprehensive evaluation, promotion, and compensation system to ensure overall product and service quality [3]

Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [1]. Core Insights - The company, Tehai International, serves as the overseas listing platform for Haidilao, leading the expansion of Chinese cuisine internationally. It aims to enhance its global store layout and accelerate the internationalization of Chinese dining [6][11]. - The overseas hot pot market is projected to reach a scale of $30 billion, supported by over 60 million overseas Chinese, with local consumers also contributing to brand expansion [6][41]. - Tehai International is positioned as the largest Chinese dining brand in international markets, leveraging its strong brand presence and operational capabilities [6][47]. Summary by Sections Company Overview - Tehai International operates as the overseas platform for Haidilao, with 122 stores globally as of 2024, focusing on direct operations and local product offerings [11][12]. - The company has achieved significant revenue growth, with a projected revenue of $778.31 million in 2024, reflecting a year-on-year increase of 13.07% [1][6]. Industry Overview - The report highlights that the internationalization of Chinese cuisine is timely, with Tehai International being a key player in this trend. The company is expected to benefit from the growing acceptance of hot pot among local consumers [6][37]. - The international Chinese dining market is characterized by low concentration, providing opportunities for growth, especially for standardized offerings like hot pot [6][45]. Competitive Advantages - Tehai International is recognized as the leading hot pot brand, with a robust operational framework and supply chain management that supports its international expansion [6][56]. - The company has optimized its store model, reducing the average return period to 5.1 years, and is enhancing customer engagement through localized services and cultural events [6][31]. Financial Analysis - The financial projections indicate a compound annual growth rate (CAGR) of 50.6% for net profit from 2025 to 2027, with expected profits of $49.45 million in 2025 [1][6]. - The report anticipates a steady increase in the number of overseas stores, reaching 149 by 2027, further solidifying the company's market position [6][11].

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年9月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 特海国际控股有限公司 呈交日期: 2025年10月3日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 09658 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | 10,000,000,000 | USD | | 0.000005 | USD | | 50,000 | | 增加 / 減少 (-) | | | 0 | | | USD | | 0 | | 本月底結存 | | 10,000,000,000 | USD | | 0.000005 | USD | | 50,000 | 本月底法定/註冊股本總額： USD 50, ...

[Definitions](index=3&type=section&id=Definitions) This section provides definitions of key terms used throughout the report [Corporate Information](index=7&type=section&id=Corporate%20Information) This section outlines the company's board of directors, auditors, and stock listing details - Board Chairman and Non-executive Director: Ms. Shu Ping[9](index=9&type=chunk) - Executive Directors include Ms. Yang Lijuan, Mr. Li Yu, and Ms. Liu Li[9](index=9&type=chunk) - Independent Non-executive Directors include Mr. Chan Hong Wai, Mr. Teo Sze Leong, and Mr. Liew Chong Chee[9](index=9&type=chunk) - The company's auditor is Deloitte & Touche LLP[14](index=14&type=chunk) - Hong Kong Stock Exchange stock code is 9658, and Nasdaq stock ticker is HDL[15](index=15&type=chunk) [Key Financial Highlights](index=10&type=section&id=Key%20Financial%20Highlights) This section presents a summary of the company's key financial performance indicators for the first half of 2025 2025 H1 Key Financial Data (in $ thousands) | Indicator | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 396,733 | 370,930 | +7.0% | | Profit Before Tax | 34,673 | 628 | Significant growth | | Profit (Loss) for the Period | 28,271 | (4,649) | Turned loss into profit | | Earnings (Loss) Per Share (Basic and Diluted) | 0.05 | (0.01) | Turned loss into profit | | Operating Profit Margin (%) | 3.0% | 5.6% | -2.6 percentage points | Haidilao Restaurant Business Summary (as of June 30) | Indicator | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Number of Restaurants | 126 | 122 | +4 restaurants | | Total Customer Visits (millions) | 15.5 | 14.5 | +1.0 million | | Average Table Turnover Rate (times/day) | 3.9 | 3.8 | +0.1 | | Average Customer Spending (US$) | 24.2 | 24.6 | -0.4 | | Average Daily Revenue per Restaurant (in $ thousands) | 17.7 | 17.2 | +0.5 | | Restaurant-level Operating Profit Margin (%) | 6.4 | 8.7 | -2.3 percentage points | [2025 Interim Performance Review](index=11&type=section&id=2025%20Interim%20Performance%20Review) This section reviews the company's overall performance, business strategies, financial results, and future outlook for the first half of 2025 [Overall Performance](index=11&type=section&id=Overall%20Performance) In H1 2025, total revenue grew 7.0% to $396.7 million, average table turnover rate increased to 3.9 times/day, and same-store sales grew 3.0%, but restaurant-level operating profit margin decreased 2.3 percentage points to 6.4% due to concessionary pricing policies - Total revenue reached **$396.7 million**, a **7.0% year-on-year increase**[22](index=22&type=chunk) - Haidilao restaurant average table turnover rate was **3.9 times/day**, a **0.1 times/day year-on-year increase**; same-store sales grew **3.0% year-on-year**[22](index=22&type=chunk) - Restaurant-level operating profit margin was **6.4%**, a **2.3 percentage point year-on-year decrease**, primarily due to competitive pricing policies[22](index=22&type=chunk) - In H1, **8 new Haidilao restaurants** opened, and **4 underperforming stores** closed, operating a total of **126 international Haidilao restaurants** as of June 30[23](index=23&type=chunk)[25](index=25&type=chunk) - Under the "Pomegranate Project," other sales revenue increased **25.0% to $11.5 million**, with hotpot, barbecue, and fast-food prototype stores launched, and Chinese, other Asian, and Western fast-food concepts in preparation[24](index=24&type=chunk)[26](index=26&type=chunk) [Business Review](index=12&type=section&id=Business%20Review) The company focused on enhancing value for money and creating unique Haidilao experiences through menu adjustments, environment upgrades, and fresh-cut meat offerings, while also developing diverse products and investing in employee welfare [Restaurant Operations](index=12&type=section&id=Restaurant%20Operations) The company adjusted pricing and portion sizes to enhance value for money, upgraded restaurant ambiance for a more immersive experience, and introduced fresh-cut meat products with live workshops to improve customer perception - Adjusted dish pricing and portion sizes to enhance **"value for money"** and offer concessions to customers, based on customer characteristics and operational metrics in various countries[28](index=28&type=chunk)[31](index=31&type=chunk) - Progressively implemented **"creating a different Haidilao"** by upgrading decor, lighting, and sound effects to provide a more immersive and interactive experience, especially during late-night hours[28](index=28&type=chunk)[31](index=31&type=chunk) - Introduced **fresh-cut meat products** in multiple countries, complemented by **"live fresh-cut workshops,"** allowing customers to directly observe product upgrades[28](index=28&type=chunk)[31](index=31&type=chunk) [Product Development](index=12&type=section&id=Product%20Development) In H1 2025, the company completed over 700 product optimizations and new launches globally, forming a differentiated product matrix that combines classic Haidilao dishes with local flavors to boost customer repurchase rates and satisfaction - Over **700 product optimizations and new launches** were completed globally in the first half of 2025[29](index=29&type=chunk)[31](index=31&type=chunk) - Each market gradually formed a differentiated product matrix, combining classic Haidilao dishes with local flavors, effectively increasing customer repurchase rates and satisfaction[29](index=29&type=chunk)[31](index=31&type=chunk) [Employee Development and Team Building](index=12&type=section&id=Employee%20Development%20and%20Team%20Building) The company implemented employee concession strategies led by regional managers, optimizing compensation, benefits, training, and team-building activities to enhance employee unity and work environment - Implemented employee concession strategies, led by regional managers in each country, optimizing compensation, welfare policies, employee training, and team-building standards[30](index=30&type=chunk)[32](index=32&type=chunk) - Strengthened diverse team-building activities, including recreational events and outings, aimed at enhancing employee unity and the working environment[30](index=30&type=chunk)[32](index=32&type=chunk) [Financial Performance Summary](index=13&type=section&id=Financial%20Performance%20Summary) H1 2025 operating profit was $11.8 million with a 3.0% operating profit margin, pressured by concessions to customers and employees; the company achieved a profit before tax of $34.7 million and a net profit of $28.3 million, reversing H1 2024's net loss, primarily due to a $23.8 million non-cash exchange gain - H1 2025 operating profit was **$11.8 million**, with an operating profit margin of **3.0%**, significantly pressured compared to **$20.9 million** in H1 2024, mainly due to concessions to customers and employees[33](index=33&type=chunk)[35](index=35&type=chunk) - As of June 30, 2025, profit before tax was **$34.7 million**, and net profit was **$28.3 million**, reversing the net loss of **$4.6 million** in H1 2024[34](index=34&type=chunk)[36](index=36&type=chunk) - Profit improvement was primarily due to exchange rate fluctuations, recording a non-cash exchange gain of approximately **$23.8 million**, compared to an exchange loss of **$19.5 million** in H1 2024[34](index=34&type=chunk)[36](index=36&type=chunk) [Future Prospect](index=13&type=section&id=Future%20Prospect) The company will continue its localization strategy, focusing on customer satisfaction and employee effort, aiming to become a multi-brand restaurant group by enhancing the Haidilao experience, optimizing its restaurant network, strengthening internal management, embracing technology, and implementing the "Pomegranate Project" - Future strategy will adhere to localization, with **"customer satisfaction"** and **"employee effort"** as core missions, striving to develop into a multi-brand chain restaurant group[35](index=35&type=chunk)[37](index=37&type=chunk) - Continuously enhance the Haidilao dining experience, including refining service capabilities, refreshing products, and improving dining environment quality[37](index=37&type=chunk) - Expand and optimize the restaurant network, adhering to a **"bottom-up"** model to identify quality locations, strategically entering new markets, and continuously applying the **"Woodpecker Project"** to close underperforming stores[37](index=37&type=chunk) - Strengthen internal management by improving services and products, reasonably adjusting dish prices, conducting marketing activities, and optimizing cost structure through prudent cost control, increased personnel efficiency, and external collaborations[39](index=39&type=chunk) - Embrace technological advancements by more broadly and deeply applying AI in restaurant operations and functional management, enhancing data integration and analysis capabilities[39](index=39&type=chunk) - Implement the **"Pomegranate Project"** by incubating, exploring, and strategically acquiring second-tier businesses to enrich the business portfolio[39](index=39&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a detailed analysis of the company's financial performance, including revenue, expenses, and financial position, along with key operational metrics and future outlook [Revenue](index=15&type=section&id=Revenue) Total revenue in H1 2025 reached $396.7 million, a 7.0% year-on-year increase, primarily driven by Haidilao restaurant operations, with other sources including delivery business and sales of hotpot seasonings and sub-brand foods [Haidilao Restaurant Operation](index=15&type=section&id=Haidilao%20Restaurant%20Operation) This section details the performance of Haidilao's restaurant network, including restaurant count, revenue by region, key operational metrics, and same-store sales [Haidilao Restaurant Network](index=16&type=section&id=Haidilao%20Restaurant%20Network) As of June 30, 2025, the company expanded its restaurant network to 126 restaurants across 14 countries in Asia, North America, Europe, and Oceania - As of June 30, 2025, the company expanded its restaurant network to **126 restaurants** located in **14 countries** across Asia, North America, Europe, and Oceania[46](index=46&type=chunk) Haidilao Restaurant Count and Revenue by Geographical Region (as of June 30) | Region | 2025 Restaurant Count | 2025 Revenue (in $ thousands) | 2025 Average Revenue per Restaurant (in $ thousands) | 2024 Restaurant Count | 2024 Revenue (in $ thousands) | 2024 Average Revenue per Restaurant (in $ thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Southeast Asia | 74 | 190,921 | 2,580 | 74 | 195,874 | 2,647 | | East Asia | 20 | 61,110 | 3,056 | 18 | 43,237 | 2,402 | | North America | 20 | 77,171 | 3,859 | 20 | 73,888 | 3,694 | | Others | 12 | 48,266 | 4,022 | 10 | 43,489 | 4,349 | | **Total** | **126** | **377,468** | **2,996** | **122** | **356,488** | **2,922** | [Haidilao Restaurant Performance](index=17&type=section&id=Haidilao%20Restaurant%20Performance) Total customer visits increased to 15.5 million, average table turnover rate improved to 3.9 times/day, while average customer spending slightly decreased to $24.2 in H1 2025 - Total customer visits increased from **14.5 million** in H1 2024 to **15.5 million** in H1 2025[50](index=50&type=chunk) - Average table turnover rate improved from **3.8 times/day** in H1 2024 to **3.9 times/day** in H1 2025[50](index=50&type=chunk) - Average customer spending slightly decreased from **$24.6** in H1 2024 to **$24.2** in H1 2025[50](index=50&type=chunk) Key Performance Indicators of Haidilao Restaurants by Geographical Region (as of June 30) | Indicator | Region | 2025 | 2024 | | :--- | :--- | :--- | :--- | | **Total Customer Visits (millions)** | Overall | 15.5 | 14.5 | | | Southeast Asia | 10.2 | 10.2 | | | East Asia | 2.1 | 1.6 | | | North America | 2.0 | 1.7 | | | Others | 1.2 | 1.0 | | **Average Table Turnover Rate (times/day)** | Overall | 3.9 | 3.8 | | | Southeast Asia | 3.7 | 3.7 | | | East Asia | 4.9 | 4.1 | | | North America | 4.0 | 4.1 | | | Others | 3.9 | 3.9 | | **Average Customer Spending (US$)** | Overall | 24.2 | 24.6 | | | Southeast Asia | 18.6 | 19.3 | | | East Asia | 28.8 | 27.8 | | | North America | 39.4 | 42.6 | | | Others | 39.0 | 42.3 | | **Average Daily Revenue per Restaurant (in $ thousands)** | Overall | 17.7 | 17.2 | | | Southeast Asia | 15.1 | 15.4 | | | East Asia | 19.6 | 15.7 | | | North America | 22.1 | 21.1 | | | Others | 24.0 | 24.5 | | **Restaurant-level Operating Profit Margin (%)** | Overall | 6.4 | 8.7 | [Same Store Sales](index=19&type=section&id=Same%20Store%20Sales) Overall same-store sales increased to $331.3 million, with average daily sales per same-store rising to $18.2 thousand, while the average table turnover rate remained stable at 3.9 times/day in H1 2025 - Overall same-store sales increased from **$321.7 million** in H1 2024 to **$331.3 million** in H1 2025[54](index=54&type=chunk) - Average daily sales per same-store increased from **$17.6 thousand** in H1 2024 to **$18.2 thousand** in H1 2025[54](index=54&type=chunk) - Average table turnover rate for same-stores remained stable at **3.9 times/day**, consistent with H1 2024[54](index=54&type=chunk) Same Store Sales Details by Geographical Region (as of June 30) | Indicator | Region | 2025 | 2024 | | :--- | :--- | :--- | :--- | | **Number of Same Stores** | Overall | 101 | N/A | | | Southeast Asia | 61 | N/A | | | East Asia | 14 | N/A | | | North America | 17 | N/A | | | Others | 9 | N/A | | **Same Store Sales (in $ thousands)** | Overall | 331,340 | 321,677 | | | Southeast Asia | 172,158 | 174,158 | | | East Asia | 48,706 | 39,840 | | | North America | 68,331 | 66,060 | | | Others | 42,145 | 41,619 | | **Average Daily Sales per Same Store (in $ thousands)** | Overall | 18.2 | 17.6 | | | Southeast Asia | 15.6 | 15.8 | | | East Asia | 19.3 | 15.8 | | | North America | 22.2 | 21.4 | | | Others | 25.9 | 25.6 | | **Average Customer Spending (US$)** | Overall | 24.3 | 24.3 | | | Southeast Asia | 18.7 | 18.8 | | | East Asia | 28.8 | 28.0 | | | North America | 40.5 | 42.8 | | | Others | 39.3 | 42.7 | | **Average Table Turnover Rate for Same Stores (times/day)** | Overall | 3.9 | 3.9 | | | Southeast Asia | 3.7 | 3.8 | | | East Asia | 4.8 | 4.2 | | | North America | 4.0 | 4.1 | | | Others | 4.2 | 4.0 | [Delivery Business](index=20&type=section&id=Delivery%20Business) Delivery business revenue increased 48.1% to $7.7 million, driven by continuous optimization of products and services, and strategic marketing collaborations with local delivery platforms - Delivery business revenue was **$7.7 million**, an increase of **48.1%** from **$5.2 million** in H1 2024[55](index=55&type=chunk)[58](index=58&type=chunk) - Growth was primarily due to continuous optimization of delivery products and services, and strategic marketing collaborations with local delivery platforms[55](index=55&type=chunk)[58](index=58&type=chunk) [Others](index=20&type=section&id=Others) Other revenue, primarily from hotpot seasonings and sub-brand food sales, increased 25.0% to $11.5 million, reflecting growing popularity and the incubation of second-tier brands under the "Pomegranate Project" - Other revenue (primarily including sales of hotpot seasonings and sub-brand foods) was **$11.5 million**, an increase of **25.0%** from **$9.2 million** in H1 2024[57](index=57&type=chunk)[59](index=59&type=chunk) - The increase reflects the growing popularity of hotpot seasonings among local customers and retailers, as well as the incubation of second-tier brand restaurants under the **"Pomegranate Project"**[57](index=57&type=chunk)[59](index=59&type=chunk) [Other Income](index=21&type=section&id=Other%20Income) Other income increased 45.5% to $4.8 million, mainly due to higher interest income from bank deposits, partially offset by a decrease in government grants - Other income was **$4.8 million**, an increase of **45.5%** from **$3.3 million** in H1 2024[62](index=62&type=chunk)[65](index=65&type=chunk) - The increase was primarily due to higher interest income from bank deposits, partially offset by a decrease in government grants received[62](index=62&type=chunk)[65](index=65&type=chunk) [Raw Materials and Consumables Used](index=21&type=section&id=Raw%20Materials%20and%20Consumables%20Used) Cost of raw materials and consumables increased 8.1% to $134.7 million, and as a percentage of revenue, it rose from 33.6% to 34.0%, mainly due to business expansion and increased revenue leading to higher food ingredient costs - Cost of raw materials and consumables was **$134.7 million**, an increase of **8.1%** from **$124.6 million** in H1 2024[64](index=64&type=chunk)[66](index=66&type=chunk) - As a percentage of revenue, it increased from **33.6%** in H1 2024 to **34.0%** in H1 2025[64](index=64&type=chunk)[66](index=66&type=chunk) - The increase was primarily due to higher food ingredient costs resulting from business expansion and increased revenue[64](index=64&type=chunk)[66](index=66&type=chunk) [Staff Costs](index=22&type=section&id=Staff%20Costs) Staff costs increased 11.0% to $140.2 million, and as a percentage of revenue, it rose from 34.1% to 35.3%, mainly due to restaurant network expansion, increased customer traffic, and higher investment in employee welfare and development - Staff costs were **$140.2 million**, an increase of **11.0%** from **$126.3 million** in H1 2024[69](index=69&type=chunk)[72](index=72&type=chunk) - As a percentage of revenue, it increased from **34.1%** in H1 2024 to **35.3%** in H1 2025[69](index=69&type=chunk)[72](index=72&type=chunk) - The increase was primarily due to a larger workforce resulting from restaurant network expansion and increased investment in employee welfare and development[69](index=69&type=chunk)[72](index=72&type=chunk) [Rentals and Related Expenses](index=22&type=section&id=Rentals%20and%20Related%20Expenses) Rentals and related expenses increased 27.5% to $11.6 million, mainly due to increased short-term lease expenses from warehouse expansion and higher property management fees from new restaurant openings - Property rentals and related expenses were **$11.6 million**, an increase of **27.5%** from **$9.1 million** in H1 2024[71](index=71&type=chunk)[73](index=73&type=chunk) - The increase was primarily due to higher short-term lease expenses from warehouse expansion and increased property management fees from new restaurant openings[71](index=71&type=chunk)[73](index=73&type=chunk) [Utilities Expenses](index=23&type=section&id=Utilities%20Expenses) Utilities expenses remained relatively stable at $14.1 million, with its percentage of revenue slightly decreasing from 3.7% to 3.6% - Utilities expenses remained relatively stable, at **$14.1 million** in H1 2025 and **$13.7 million** in H1 2024[74](index=74&type=chunk)[77](index=77&type=chunk) - As a percentage of revenue, it remained relatively stable, at **3.6%** in H1 2025 and **3.7%** in H1 2024[74](index=74&type=chunk)[77](index=77&type=chunk) [Depreciation and Amortization](index=23&type=section&id=Depreciation%20and%20Amortization) Depreciation and amortization expenses slightly increased 1.8% to $39.7 million, while its percentage of revenue remained stable, decreasing from 10.5% to 10.0% - Depreciation and amortization was **$39.7 million**, a slight increase of **1.8%** from **$39.0 million** in H1 2024[76](index=76&type=chunk)[78](index=78&type=chunk) - As a percentage of revenue, it remained stable, at **10.0%** in H1 2025 and **10.5%** in H1 2024[76](index=76&type=chunk)[78](index=78&type=chunk) [Traveling and Communication Expenses](index=24&type=section&id=Traveling%20and%20Communication%20Expenses) Traveling and communication expenses increased 15.6% to $3.7 million, remaining at 0.9% of revenue, primarily due to increased business travel from business expansion - Traveling and communication expenses were **$3.7 million**, an increase of **15.6%** from **$3.2 million** in H1 2024[80](index=80&type=chunk)[83](index=83&type=chunk) - As a percentage of revenue, it remained relatively stable, at **0.9%** in both H1 2025 and H1 2024[80](index=80&type=chunk)[83](index=83&type=chunk) - The increase was primarily due to increased business travel as the business expanded[80](index=80&type=chunk)[83](index=83&type=chunk) [Other Expenses](index=24&type=section&id=Other%20Expenses) Other expenses increased 23.0% to $40.7 million, and as a percentage of revenue, it rose from 8.9% to 10.3%, mainly due to increased outsourcing service fees, consulting fees for second-tier brand research, and business development expenses from intensified marketing efforts - Other expenses were **$40.7 million**, an increase of **23.0%** from **$33.1 million** in H1 2024[82](index=82&type=chunk)[84](index=84&type=chunk) - As a percentage of revenue, it increased from **8.9%** in H1 2024 to **10.3%** in H1 2025[82](index=82&type=chunk)[84](index=84&type=chunk) - The increase was primarily attributable to a **$3.1 million** increase in outsourcing service fees, a **$1.5 million** increase in consulting service expenses (for second-tier brand research), and a **$1.2 million** increase in business development expenses (due to intensified marketing efforts)[82](index=82&type=chunk)[84](index=84&type=chunk) [Other Gains (Losses) – Net](index=25&type=section&id=Other%20Gains%20(Losses)%20%E2%80%93%20Net) The company recorded net other gains of $23.4 million, compared to net losses of $18.1 million in H1 2024, primarily due to a $23.8 million non-cash exchange gain from currency fluctuations - Net other gains of **$23.4 million** were recorded, compared to net losses of **$18.1 million** in H1 2024[86](index=86&type=chunk)[89](index=89&type=chunk) - The change was primarily attributable to the recognition of a **$23.8 million** non-cash exchange gain in H1 2025, compared to an exchange loss of **$19.5 million** in H1 2024[86](index=86&type=chunk)[89](index=89&type=chunk) [Finance Costs](index=25&type=section&id=Finance%20Costs) Finance costs increased 41.0% to $5.5 million, directly attributable to the corresponding increase in lease liabilities and restaurant reclamation provisions driven by restaurant network expansion - Finance costs were **$5.5 million**, an increase of **41.0%** from **$3.9 million** in H1 2024[88](index=88&type=chunk)[90](index=90&type=chunk) - The increase was directly attributable to restaurant network expansion, which drove a corresponding increase in lease liabilities and restaurant reclamation provisions[88](index=88&type=chunk)[90](index=90&type=chunk) [Income Tax Expense](index=26&type=section&id=Income%20Tax%20Expense) Income tax expense increased to $6.4 million from $5.3 million in H1 2024, calculated at tax rates ranging from 9% to 33% in relevant jurisdictions - Income tax expense was **$6.4 million**, compared to **$5.3 million** in H1 2024[92](index=92&type=chunk)[97](index=97&type=chunk) - Taxes are calculated at prevailing tax rates ranging from **9% to 33%** in the relevant jurisdictions[92](index=92&type=chunk)[97](index=97&type=chunk) [Profit (Loss) for the Period](index=26&type=section&id=Profit%20(Loss)%20for%20the%20Period) The company achieved a net profit of $28.3 million, reversing the net loss of $4.6 million in H1 2024, primarily due to a $23.8 million unrealized exchange gain from currency fluctuations - Net profit of **$28.3 million** was recorded, compared to a net loss of **$4.6 million** in H1 2024[93](index=93&type=chunk)[98](index=98&type=chunk) - Profit improvement was primarily due to the recognition of a net exchange gain of **$23.8 million**, mainly from unrealized exchange gains arising from the revaluation of non-USD denominated monetary items[93](index=93&type=chunk)[98](index=98&type=chunk) [Inventories](index=26&type=section&id=Inventories) Inventories increased 11.4% to $35.1 million, mainly to support new store openings and anticipated seasonal demand, with inventory turnover days rising from 42.8 to 44.5 days - Inventories were **$35.1 million**, an increase of **11.4%** from **$31.5 million** as of December 31, 2024[95](index=95&type=chunk)[99](index=99&type=chunk) - The increase was primarily attributable to maintaining higher inventory levels to support new store openings and anticipated seasonal demand during peak business periods[95](index=95&type=chunk)[99](index=99&type=chunk) - Inventory turnover days increased from **42.8 days** for the year ended December 31, 2024, to **44.5 days** for the six months ended June 30, 2025[96](index=96&type=chunk)[99](index=99&type=chunk) [Trade and Other Receivables and Prepayments](index=27&type=section&id=Trade%20and%20Other%20Receivables%20and%20Prepayments) The current portion of trade and other receivables and prepayments decreased 13.6% to $26.6 million, reflecting the company's enhanced control over prepayments to improve working capital efficiency, with trade receivables turnover days decreasing from 7.7 to 6.4 days - The current portion of trade and other receivables and prepayments was **$26.6 million**, a decrease of **13.6%** from **$30.8 million** as of December 31, 2024[101](index=101&type=chunk)[104](index=104&type=chunk) - The decrease primarily reflects the company's enhanced control over prepayments as part of its ongoing efforts to optimize working capital efficiency[101](index=101&type=chunk)[104](index=104&type=chunk) - Trade receivables turnover days decreased from **7.7 days** for the year ended December 31, 2024, to **6.4 days** for the six months ended June 30, 2025[103](index=103&type=chunk)[104](index=104&type=chunk) [Trade Payables](index=28&type=section&id=Trade%20Payables) Trade payables increased 5.2% to $32.3 million, consistent with inventory growth, reflecting raw material purchases to support restaurant operations, while trade payables turnover days decreased from 45.5 to 42.1 days due to enhanced payment cycle management - Trade payables were **$32.3 million**, an increase of **5.2%** from **$30.7 million** as of December 31, 2024[106](index=106&type=chunk)[109](index=109&type=chunk) - The increase reflects the company's procurement of raw materials to support enhanced restaurant operations, consistent with the inventory growth trend[106](index=106&type=chunk)[109](index=109&type=chunk) - Trade payables turnover days decreased from **45.5 days** for the year ended December 31, 2024, to **42.1 days** for the six months ended June 30, 2025, primarily due to enhanced control over payment cycle management[107](index=107&type=chunk)[109](index=109&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a robust liquidity position during the reporting period, primarily funding working capital through cash generated from operations, with no bank borrowings or committed credit facilities as of June 30, 2025 - The company primarily funds its working capital through cash generated from operations[108](index=108&type=chunk)[110](index=110&type=chunk) - As of June 30, 2025, the company had no bank borrowings or committed credit facilities[108](index=108&type=chunk)[110](index=110&type=chunk) - The company adopts prudent financial policies, closely monitors liquidity and capital resources regularly, and maintains a robust liquidity position[111](index=111&type=chunk)[115](index=115&type=chunk) [Capital Structure](index=29&type=section&id=Capital%20Structure) As of June 30, 2025, the company's capital structure consisted of issued share capital and reserves, with no changes since December 31, 2024, and no debt securities or other capital instruments - As of June 30, 2025, the company's capital structure consisted of issued share capital and reserves[113](index=113&type=chunk)[116](index=116&type=chunk) - The capital structure remained unchanged since December 31, 2024, with no debt securities or other capital instruments[113](index=113&type=chunk)[116](index=116&type=chunk) - The company regularly reviews and manages its capital structure, making timely adjustments in response to changes in economic conditions[113](index=113&type=chunk)[116](index=116&type=chunk) [Cash and Cash Equivalents](index=29&type=section&id=Cash%20and%20Cash%20Equivalents) Cash and cash equivalents increased 1.5% to $258.5 million, primarily utilized for new restaurant openings, network expansion, ingredient procurement, supply chain management, R&D, and restaurant renovations - Cash and cash equivalents were **$258.5 million**, an increase of **1.5%** from **$254.7 million** as of December 31, 2024[114](index=114&type=chunk)[117](index=117&type=chunk) - Cash is primarily used for working capital to open new restaurants and expand the store network, procure ingredients and consumables and equipment, enhance supply chain management capabilities, conduct R&D to strengthen digital store management and other technology applications, and renovate and decorate restaurants[114](index=114&type=chunk)[117](index=117&type=chunk) [Capital Expenditure](index=30&type=section&id=Capital%20Expenditure) Capital expenditure amounted to $22.1 million, mainly for new and renovating restaurants, with future plans to fund through cash from operations, unutilized IPO proceeds, and cash equivalents - Capital expenditure was **$22.1 million**, primarily for newly opened restaurants and those under renovation and preparation[119](index=119&type=chunk)[120](index=120&type=chunk) - Future plans include funding capital expenditure through cash generated from operations, unutilized proceeds from the Nasdaq IPO, and cash and cash equivalents[120](index=120&type=chunk)[122](index=122&type=chunk) [Charge on Assets](index=30&type=section&id=Charge%20on%20Assets) As of June 30, 2025, the company pledged $3.0 million in bank deposits to several banks as security for rental payments to landlords - As of June 30, 2025, the company pledged **$3.0 million** in bank deposits to several banks as security for rental payments to landlords[121](index=121&type=chunk)[123](index=123&type=chunk) [Future Plans for Material Investments or Capital Assets](index=31&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of the report date, the company has no specific committed plans for material investments or capital assets to disclose but will continue to seek potential strategic investment opportunities and quality target businesses - As of the date of this interim report, the company has no specific committed plans for material investments or capital assets that require disclosure[124](index=124&type=chunk)[125](index=125&type=chunk) - The company will continue to broadly seek potential strategic investment opportunities and acquire potential quality target businesses and assets that can bring synergistic effects to the Group[124](index=124&type=chunk)[125](index=125&type=chunk) [Financial Ratios](index=31&type=section&id=Financial%20Ratios) As of June 30, 2025, the company's current ratio was 2.5 and its debt-to-asset ratio was 0.3, remaining stable compared to December 31, 2024 Company Financial Ratios (as of) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Ratio | 2.5 | 2.5 | | Debt-to-Asset Ratio | 0.3 | 0.3 | [Foreign Exchange Risk and Hedging](index=31&type=section&id=Foreign%20Exchange%20Risk%20and%20Hedging) The company faces foreign exchange risk from foreign currency-denominated transactions and currently has no hedging policy, but management closely monitors exchange rate movements and considers hedging significant risks when necessary - The company conducts certain transactions denominated in foreign currencies, exposing it to foreign currency risk[127](index=127&type=chunk)[129](index=129&type=chunk) - The company currently has no foreign exchange risk hedging policy, but management closely monitors foreign exchange risk and considers hedging significant foreign exchange risks when necessary[128](index=128&type=chunk)[129](index=129&type=chunk) [Contingent Liabilities](index=32&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the company had no material contingent liabilities, guarantees, or pending litigations that could significantly adversely affect its business, financial condition, or operating results - As of June 30, 2025, the company had no material contingent liabilities, guarantees, or any material pending or threatened litigations or claims against any member of the Group that could significantly adversely affect its business, financial condition, or operating results[131](index=131&type=chunk)[137](index=137&type=chunk) [Material Acquisitions and Disposals](index=32&type=section&id=Material%20Acquisitions%20and%20Disposals) In H1 2025, the company had no material acquisitions or disposals of subsidiaries, associates, and joint ventures to disclose - For the six months ended June 30, 2025, the company had no material acquisitions or disposals of any subsidiaries, associates, and joint ventures that require disclosure[132](index=132&type=chunk)[138](index=138&type=chunk) [Significant Investment Under Hong Kong Listing Rules](index=32&type=section&id=Significant%20Investment%20Under%20Hong%20Kong%20Listing%20Rules) During the reporting period, the company did not hold any significant investments as defined by the Hong Kong Listing Rules - The company did not hold any significant investments as defined by the Hong Kong Listing Rules during the reporting period[133](index=133&type=chunk)[139](index=139&type=chunk) [No Material Changes](index=32&type=section&id=No%20Material%20Changes) Except as disclosed in this interim report, there were no material changes affecting the company's performance during the reporting period that require disclosure - Except as disclosed in this interim report, there were no material changes affecting the Group's performance during the reporting period that require disclosure in accordance with paragraphs 40(2) and 46 of Appendix D2 to the Hong Kong Listing Rules[134](index=134&type=chunk)[140](index=140&type=chunk) [Employees and Remuneration Policy](index=32&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the company had 13,651 full-time and part-time employees, with staff costs of $140.2 million; remuneration policy is based on regional salary levels, employee rank, performance, and market conditions, offering benefits like medical, pension, and share awards, along with regular training - As of June 30, 2025, the company had **13,651 full-time and part-time employees**[135](index=135&type=chunk)[141](index=141&type=chunk) - During the reporting period, the company incurred staff costs of **$140.2 million**[135](index=135&type=chunk)[141](index=141&type=chunk) - Remuneration policy is determined based on salary levels in different regions, employee rank, performance, and market conditions, offering benefits such as medical plans, pension contribution schemes, and share award schemes[136](index=136&type=chunk)[141](index=141&type=chunk) - The company provides regular professional training and workshops to maintain employee quality, knowledge, and skill levels[136](index=136&type=chunk)[141](index=141&type=chunk) [Non-IFRS Financial Measure](index=33&type=section&id=Non-IFRS%20Financial%20Measure) The company uses the non-IFRS financial measure "restaurant-level operating profit margin" to assess restaurant performance and profitability, calculated by dividing restaurant-level operating profit by restaurant-level revenue, and provides a reconciliation to IFRS operating profit - The company uses the non-IFRS measure **"restaurant-level operating profit margin"** as a supplementary metric to review and assess its operating performance[142](index=142&type=chunk)[147](index=147&type=chunk) - Restaurant-level operating profit margin is calculated by dividing restaurant-level operating profit by restaurant-level revenue[142](index=142&type=chunk)[147](index=147&type=chunk) - The company believes that restaurant-level operating profit margin is an important metric for evaluating the performance and profitability of individual restaurants and for benchmarking against competitors[146](index=146&type=chunk)[148](index=148&type=chunk) Restaurant-level Operating Profit Margin Calculation (in $ thousands) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Restaurant-level Revenue | 385,206 | 361,682 | | Less: Restaurant-level Costs and Expenses | (360,390) | (330,319) | | Restaurant-level Operating Profit | 24,816 | 31,363 | | Restaurant-level Operating Profit Margin* | 6.4% | 8.7% | Reconciliation of Operating Profit to Restaurant-level Operating Profit (in $ thousands) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Operating Profit | 11,811 | 20,869 | | Less: Revenue (Others) | (11,527) | (9,248) | | Less: Other Income | (1,084) | (1,853) | | Add: Non-restaurant-level Costs and Expenses | 25,616 | 16,695 | | **Restaurant-level Operating Profit** | **24,816** | **31,363** | [Corporate Governance and Other Information](index=36&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section covers the company's corporate governance practices, directors' and substantial shareholders' interests, share award schemes, and other relevant disclosures [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=37&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures) As of June 30, 2025, the company's directors and chief executive held interests in the company's shares, with Ms. Shu Ping holding 51.92% and Ms. Yang Lijuan holding 2.73% Interests of Directors and Chief Executive in the Company (as of June 30, 2025) | Name | Nature of Interest | Number of Shares | Approximate Percentage of Total Issued Share Capital | | :--- | :--- | :--- | :--- | | Ms. Shu Ping | Founder of discretionary trust, interest in controlled corporation, beneficiary of trust, spouse's interest | 337,667,125(L) | 51.92% | | Ms. Yang Lijuan | Beneficial owner, beneficiary of trust | 17,757,122(L) | 2.73% | | Mr. Li Yu | Beneficial owner | 39,750(L) | 0.006% | | Ms. Liu Li | Beneficial owner | 3,096,650(L) | 0.48% | - As of June 30, 2025, the company had a total of **650,299,000 issued shares**[164](index=164&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=39&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, UBS Trustees (B.V.I.) Limited, Mr. Zhang Yong, and Ms. Shu Ping were substantial shareholders, holding 59.40% and 51.92% of the company's shares, respectively Interests and Short Positions of Substantial Shareholders in Shares and Underlying Shares (as of June 30, 2025) | Name of Shareholder/Entity | Nature of Interest | Number of Shares | Approximate Percentage of Total Issued Share Capital | | :--- | :--- | :--- | :--- | | UBS Trustees (B.V.I.) Limited | Trustee | 386,245,826(L) | 59.40% | | Mr. Zhang Yong | Founder of discretionary trust, interest in controlled corporation, beneficiary of trust, spouse's interest | 337,667,125(L) | 51.92% | | Ms. Shu Ping | Founder of discretionary trust, interest in controlled corporation, beneficiary of trust, spouse's interest | 337,667,125(L) | 51.92% | | ZY NP LTD | Beneficial owner, interest in controlled corporation | 295,070,923(L) | 45.37% | | NP UNITED HOLDING LTD | Beneficial owner | 180,197,011(L) | 27.71% | | Ms. Li Haiyan | Founder of discretionary trust, interest in controlled corporation, spouse's interest, beneficial owner | 53,828,702(L) | 8.28% | | Mr. Shi Yonghong | Founder of discretionary trust, interest in controlled corporation, spouse's interest | 53,828,702(L) | 8.28% | | SP NP LTD | Beneficial owner | 42,596,202(L) | 6.55% | | LHY NP LTD | Beneficial owner | 33,115,501(L) | 5.09% | | Futu Trustee Limited | Trustee | 61,933,000(L) | 9.52% | | ESOP Platform I | Beneficial owner | 43,353,100(L) | 6.67% | - NP United will distribute all its shares to its shareholders in specie according to their shareholding proportion on September 2, 2025, after which NP United will no longer be a shareholder of the company[172](index=172&type=chunk) [Share Award Scheme](index=43&type=section&id=Share%20Award%20Scheme) The company adopted a share award scheme on June 24, 2022, with 61,933,000 awards granted before listing, mostly to employee participants, and no new awards available for grant during the reporting period [Unvested Awards Granted Under the Share Award Scheme](index=43&type=section&id=Unvested%20Awards%20Granted%20Under%20the%20Share%20Award%20Scheme) As of June 30, 2025, a total of 61,933,000 shares were granted and unvested under the share award scheme, with no new awards granted during the reporting period - As of June 30, 2025, the total number of shares for awards granted and unvested under the share award scheme was **61,933,000 shares**[176](index=176&type=chunk)[181](index=181&type=chunk) - During the reporting period, no awards were available for grant under the share award scheme, and no new shares could be issued for granted awards[175](index=175&type=chunk)[179](index=179&type=chunk) - The maximum vesting period for unvested awards is **ten years** from the date the company and the grantee agree on the vesting conditions[188](index=188&type=chunk) - Whether awards vest depends on the performance indicators set by the Board or the Award Assessment Committee and whether the relevant grantees meet these indicators from time to time[188](index=188&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=45&type=section&id=Directors'%20Rights%20to%20Acquire%20Shares%20or%20Debentures) During the reporting period, neither the company nor its subsidiaries participated in any arrangements enabling directors to acquire benefits through company shares or debentures, nor were any directors, their spouses, or children granted or exercised rights to subscribe for company equity or debt securities - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries was a party to any arrangement enabling directors to receive benefits through acquiring company shares or debentures[183](index=183&type=chunk)[186](index=186&type=chunk) - No director or any of their spouses or children under 18 years of age was granted any right to subscribe for equity or debt securities of the company or any other body corporate, nor had they exercised any such rights[183](index=183&type=chunk)[186](index=186&type=chunk) [Changes in the Information of the Directors](index=45&type=section&id=Changes%20in%20the%20Information%20of%20the%20Directors) Independent Non-executive Director Mr. Teo Sze Leong was appointed as an independent director of MindChamps Preschool Limited on August 14, 2025; otherwise, the company is unaware of any other changes in directors' information - Independent Non-executive Director Mr. Teo Sze Leong was appointed as an independent director of MindChamps Preschool Limited on **August 14, 2025**[184](index=184&type=chunk)[187](index=187&type=chunk) - Except as disclosed herein, the company is unaware of any changes in directors' information that require disclosure under Rule 13.51B(1) of the Hong Kong Listing Rules[185](index=185&type=chunk)[187](index=187&type=chunk) [Compliance with the Corporate Governance Code](index=46&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) The company adopted the Corporate Governance Code in Appendix C1 of the Hong Kong Listing Rules and regularly reviews compliance; the Board approved changes to the Nomination Committee's terms of reference to align with revisions effective July 1, 2025 - The company adopted the code provisions of the Corporate Governance Code set out in Appendix C1 to the Hong Kong Listing Rules[190](index=190&type=chunk)[194](index=194&type=chunk) - The Board approved changes to the terms of reference of the Nomination Committee to align with the revisions to the Corporate Governance Code effective **July 1, 2025**[190](index=190&type=chunk)[194](index=194&type=chunk) - The company has complied with all applicable principles and code provisions of the Corporate Governance Code for the six months ended June 30, 2025, and up to the date of this interim report[191](index=191&type=chunk)[194](index=194&type=chunk) [Compliance with the Model Code](index=46&type=section&id=Compliance%20with%20the%20Model%20Code) The company adopted the Model Code in Appendix C3 of the Hong Kong Listing Rules as its code of conduct for directors' securities transactions and confirmed that directors and employees with inside information complied with it during the reporting period - The company adopted the Model Code set out in Appendix C3 to the Hong Kong Listing Rules as its own code of conduct for directors' dealings in the company's securities[192](index=192&type=chunk)[195](index=195&type=chunk) - The directors confirmed that they have complied with the Model Code for the six months ended June 30, 2025, and up to the date of this interim report[192](index=192&type=chunk)[195](index=195&type=chunk) - The company found no instances of employees violating the Model Code[193](index=193&type=chunk)[195](index=195&type=chunk) [Purchase, Sale, Redemption or Issue of Listed Securities](index=47&type=section&id=Purchase,%20Sale,%20Redemption%20or%20Issue%20of%20Listed%20Securities) During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities, nor did the company issue any equity securities or sell treasury shares for cash - For the six months ended June 30, 2025, and up to the date of this interim report, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's securities listed on the Stock Exchange or other securities exchanges[196](index=196&type=chunk)[198](index=198&type=chunk) - As of June 30, 2025, the company held no treasury shares[196](index=196&type=chunk)[198](index=198&type=chunk) - For the six months ended June 30, 2025, the company did not issue any equity securities or sell any treasury shares for cash[197](index=197&type=chunk)[198](index=198&type=chunk) [Audit Committee](index=48&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed the company's H1 2025 interim results, accounting principles, and internal controls, concluding that the financial results complied with relevant accounting standards and disclosure requirements - The Audit Committee comprises three independent non-executive directors: Mr. Teo Sze Leong (Chairman), Mr. Chan Hong Wai, and Mr. Liew Chong Chee[200](index=200&type=chunk)[206](index=206&type=chunk) - The Audit Committee reviewed the company's interim results for the six months ended June 30, 2025, accounting principles and practices, and discussed internal controls and financial reporting matters[201](index=201&type=chunk)[206](index=206&type=chunk) - The Audit Committee believes that the interim financial results comply with relevant accounting standards, rules, and regulations, and appropriate disclosures have been duly made[202](index=202&type=chunk)[206](index=206&type=chunk) [Interim Dividend](index=48&type=section&id=Interim%20Dividend) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025[203](index=203&type=chunk)[207](index=207&type=chunk) [Offering of ADS in the United States and Use of Proceeds](index=48&type=section&id=Offering%20of%20ADS%20in%20the%20United%20States%20and%20Use%20of%20Proceeds) The company completed an ADS offering in May 2024, raising $51.91 million net to access US investors; as of June 30, 2025, proceeds were used as planned for brand strengthening, network expansion, supply chain investment, R&D, and working capital - The company completed an offering of American Depositary Shares (ADS) in **May 2024**, issuing **3,096,600 ADS** and raising **$51.91 million** net[204](index=204&type=chunk)[208](index=208&type=chunk) - This offering aimed to reach untapped investor groups and establish a presence in the US securities market[205](index=205&type=chunk)[208](index=208&type=chunk) Net Proceeds Utilization (as of June 30, 2025) | Description | Percentage of Net Proceeds | Allocation (in $ millions) | Amount Utilized During Reporting Period (in $ millions) | Amount Unutilized at End of Reporting Period (in $ millions) | Expected Timeline for Utilization | | :--- | :--- | :--- | :--- | :--- | :--- | | Strengthening brand and expanding global store network | 70% | 36.34 | 18.97 | 17.37 | Before end of 2025 | | Investing in supply chain management capabilities | 10% | 5.19 | 1.33 | 3.86 | Before end of 2026 | | R&D to strengthen digital store management and other technology applications | 10% | 5.19 | 1.19 | 4.00 | Before end of 2026 | | Working capital and other general corporate purposes | 10% | 5.19 | 2.53 | 2.66 | Before end of 2025 | | **Total** | **100%** | **51.91** | **24.02** | **27.89** | | [Continuing Disclosure Obligation Pursuant to the Hong Kong Listing Rules](index=50&type=section&id=Continuing%20Disclosure%20Obligation%20Pursuant%20to%20the%20Hong%20Kong%20Listing%20Rules) As of June 30, 2025, the directors were unaware of any circumstances triggering disclosure obligations under Rules 13.20, 13.21, and 13.22 of the Hong Kong Listing Rules - As of June 30, 2025, the directors were unaware of any circumstances that would give rise to disclosure obligations under Rules 13.20, 13.21, and 13.22 of the Hong Kong Listing Rules[214](index=214&type=chunk)[216](index=216&type=chunk) [Events After the Six Months Ended June 30, 2025](index=50&type=section&id=Events%20After%20the%20Six%20Months%20Ended%20June%2030,%202025) Except for disclosed matters, the company had no material disclosable events after June 30, 2025, up to the date of this interim report - Except as disclosed above, the company had no material disclosable events after June 30, 2025, and up to the date of this interim report[215](index=215&type=chunk)[217](index=217&type=chunk) [Independent Auditor's Review Report on the Unaudited Interim Condensed Consolidated Financial Statements](index=51&type=section&id=Independent%20Auditor's%20Review%20Report%20on%20the%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the independent auditor's review report on the company's unaudited interim condensed consolidated financial statements for the six months ended June 30, 2025 [Introduction](index=51&type=section&id=Introduction) Deloitte Touche Tohmatsu was engaged to review Haidilao International Holding Ltd.'s unaudited interim condensed consolidated financial statements for the six months ended June 30, 2025, prepared in accordance with Hong Kong Listing Rules and IAS 34 - Deloitte Touche Tohmatsu has reviewed the unaudited interim condensed consolidated financial statements of Haidilao International Holding Ltd. and its subsidiaries for the six months ended June 30, 2025[219](index=219&type=chunk)[224](index=224&type=chunk) - The report was prepared in compliance with the relevant requirements of the Hong Kong Listing Rules and International Accounting Standard 34 "Interim Financial Reporting"[219](index=219&type=chunk) [Scope of Review](index=51&type=section&id=Scope%20of%20Review) The review was conducted in accordance with International Standard on Review Engagements 2410, primarily involving inquiries and analytical procedures, with a scope narrower than an audit, thus no audit opinion is expressed - The review was conducted in accordance with International Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity"[220](index=220&type=chunk)[222](index=222&type=chunk) - The review primarily involved inquiries of persons responsible for financial and accounting matters and applying analytical and other review procedures[220](index=220&type=chunk)[222](index=222&type=chunk) - As the scope of a review is substantially less than that of an audit, no audit opinion is expressed[220](index=220&type=chunk)[222](index=222&type=chunk) [Conclusion](index=52&type=section&id=Conclusion) Based on the review, the auditor found no matters leading them to believe that the unaudited interim condensed consolidated financial statements were not prepared, in all material respects, in accordance with IAS 34 - Based on the review, the auditor found no matters that caused them to believe that the unaudited interim condensed consolidated financial statements were not prepared, in all material respects, in accordance with International Accounting Standard 34[223](index=223&type=chunk) [Condensed Consolidated Financial Statements](index=53&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the company's condensed consolidated financial statements, including the statement of profit or loss, financial position, changes in equity, and cash flows [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=53&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company achieved revenue of $396.7 million and a profit for the period of $28.3 million, reversing the loss from H1 2024 Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (in $ thousands) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 396,733 | 370,930 | | Profit (Loss) for the Period | 28,271 | (4,649) | | Profit (Loss) for the Period Attributable to Owners of the Company | 28,352 | (4,583) | | Earnings (Loss) Per Share (Basic and Diluted) | 0.05 | (0.01) | [Condensed Consolidated Statement of Financial Position](index=54&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company reported non-current assets of $374.9 million, current assets of $327.5 million, current liabilities of $129.5 million, and net assets of $374.9 million Summary of Condensed Consolidated Statement of Financial Position (in $ thousands) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current Assets | 374,928 | 361,198 | | Current Assets | 327,511 | 323,227 | | Current Liabilities | 129,495 | 128,568 | | Net Assets | 374,907 | 361,661 | | Equity Attributable to Owners of the Company | 373,355 | 360,028 | [Condensed Consolidated Statement of Changes In Equity](index=56&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20In%20Equity) As of June 30, 2025, equity attributable to owners of the company was $373.4 million, with total comprehensive income for the period amounting to $13.2 million Summary of Condensed Consolidated Statement of Changes In Equity (in $ thousands) | Indicator | June 30, 2025 | January 1, 2025 | | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 373,355 | 360,028 | | Total Comprehensive Income for the Period | 13,246 | N/A | [Condensed Consolidated Statement of Cash Flows](index=58&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities was $46.3 million, net cash used in investing activities was $18.1 million, net cash used in financing activities was $26.5 million, and cash and cash equivalents at period-end were $258.5 million Summary of Condensed Consolidated Statement of Cash Flows (in $ thousands) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 46,292 | 48,002 | | Net Cash Used in Investing Activities | (18,092) | (92,274) | | Net Cash Used in Financing Activities | (26,535) | 32,830 | | Cash and Cash Equivalents at End of Period | 258,471 | 140,659 | [Notes to the Condensed Consolidated Financial Statements](index=60&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes and explanations supporting the condensed consolidated financial statements [General Information](index=60&type=section&id=General%20Information) Haidilao International Holding Ltd. was incorporated in the Cayman Islands on May 6, 2022, primarily operating restaurants, delivery services, and seasoning sales in overseas markets outside mainland China, Hong Kong, Macau, and Taiwan, with shares listed on HKEX in 2022 and Nasdaq in 2024 - The company was incorporated in the Cayman Islands on **May 6, 2022**[239](index=239&type=chunk) - It primarily engages in restaurant operations, delivery services, and sales of seasonings and food ingredients in overseas markets outside mainland China, Hong Kong, Macau, and Taiwan[240](index=240&type=chunk) - The company's shares were listed on the Hong Kong Stock Exchange on **December 30, 2022**, and on Nasdaq on **May 16, 2024** (Eastern Standard Time)[240](index=240&type=chunk) - The company's functional and presentation currency is the **US dollar**[241](index=241&type=chunk) [Basis of Preparation and Material Accounting Policy Information](index=60&type=section&id=Basis%20of%20Preparation%20and%20Material%20Accounting%20Policy%20Information) The financial statements are prepared in accordance with IAS 34, using a historical cost basis, consistent with the 2024 annual consolidated financial statements, and the company's business is subject to seasonal fluctuations - The unaudited interim condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" issued by the International Accounting Standards Board and the applicable disclosure requirements of the Hong Kong Listing Rules[242](index=242&type=chunk)[245](index=245&type=chunk) - The financial statements are prepared on a historical cost basis, except for certain financial instruments which are measured at revalued amounts or fair value[246](index=246&type=chunk)[250](index=250&type=chunk) - The company's business and financial performance are affected by seasonal fluctuations such as local holidays, school holidays, weather conditions, and food price volatility[248](index=248&type=chunk)[250](index=250&type=chunk) [Adoption of New and Revised Standards](index=61&type=section&id=Adoption%20of%20New%20and%20Revised%20Standards) The company adopted IFRS accounting standards effective for accounting periods beginning on or after January 1, 2025, but these adoptions had no material impact on accounting policies, disclosures, or reported amounts - The company has consistently applied accounting policies that comply with IFRS accounting standards effective for accounting periods beginning on or after **January 1, 2025**[251](index=251&type=chunk)[254](index=254&type=chunk) - The adoption of these revised IFRS accounting standards did not result in changes to the company's accounting policies, nor did it have a material impact on disclosures or reported amounts for the current or prior years[252](index=252&type=chunk)[254](index=254&type=chunk) - The company has not yet applied IFRS amendments that have been issued but are not yet effective, including "Amendments to IFRS 10 and IAS 28" and "IFRS 18," among others[253](index=253&type=chunk)[254](index=254&type=chunk) [Key Sources of Estimation Uncertainty](index=63&type=section&id=Key%20Sources%20of%20Estimation%20Uncertainty) The key judgments and sources of estimation uncertainty made by management remain consistent with the company's annual financial statements for the year ended December 31, 2024 - The key judgments made by management and the primary sources of estimation uncertainty remain consistent with the company's annual financial statements for the year ended December 31, 2024[256](index=256&type=chunk)[258](index=258&type=chunk) [Revenue](index=63&type=section&id=Revenue) Revenue primarily derives from Haidilao restaurant operations, delivery business, and other sources (hotpot seasonings and sub-brand food sales), all recognized at a point in time - The company's revenue is derived from Haidilao restaurant operations, delivery business, and others (primarily including sales of hotpot seasonings and sub-brand foods to local customers and retailers)[257](index=257&type=chunk)[258](index=258&type=chunk) Revenue by Type of Service or Goods (in $ thousands) | Type of Service or Goods | 2025 | 2024 | | :--- | :--- | :--- | | Haidilao Restaurant Operations | 377,468 | 356,488 | | Delivery Business | 7,738 | 5,194 | | Others | 11,527 | 9,248 | | **Total** | **396,733** | **370,930** | - Revenue recognition for all types is at a point in time[260](index=260&type=chunk) [Other Income](index=64&type=section&id=Other%20Income) Other income primarily includes interest income from bank deposits and lease deposits, as well as government grants Composition of Other Income (in $ thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest income from bank deposits | 3,395 | 1,108 | | Interest income from lease deposits | 304 | 314 | | Government grants | 732 | 1,259 | | Others | 352 | 594 | | **Total** | **4,783** | **3,275** | [Other Expenses](index=64&type=section&id=Other%20Expenses) Other expenses include administrative expenses, consulting service expenses, bank service fees, routine maintenance expenses, outsourcing service fees, business development expenses, and warehousing expenses Composition of Other Expenses (in $ thousands) | Type of Expense | 2025 | 2024 | | :--- | :--- | :--- | | Administrative expenses | 9,132 | 8,372 | | Consulting service expenses | 4,641 | 3,096 | | Bank service fees | 6,560 | 5,991 | | Routine maintenance expenses | 3,924 | 3,522 | | Outsourcing service fees | 12,243 | 9,113 | | Business development expenses | 2,938 | 1,654 | | Warehousing expenses | 1,291 | 1,381 | | **Total** | **40,729** | **33,129** | [Other Gain (Loss) – Net](index=65&type=section&id=Other%20Gain%20(Loss)%20%E2%80%93%20Net) Net other gains (losses) were primarily affected by net exchange gains (losses), with a net exchange gain of $23.8 million recorded in H1 2025, compared to a net exchange loss of $19.5 million in H1 2024 Composition of Other Gains (Losses) – Net (in $ thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net reversal (loss) of impairment | (382) | 584 | | Loss on disposal of property and termination of leases | (59) | (586) | | Net gain on financial assets at fair value through profit or loss | 927 | 1,788 | | Net exchange gain (loss) | 23,761 | (19,525) | | Others | (845) | (380) | | **Total** | **23,402** | **(18,119)** | [Finance Costs](index=65&type=section&id=Finance%20Costs) Finance costs primarily include interest on lease liabilities and interest expenses on derecognition provisions Composition of Finance Costs (in $ thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest on lease liabilities | 5,179 | 3,754 | | Interest expenses on derecognition provisions | 346 | 172 | | **Total** | **5,525** | **3,926** | [Income Tax Expense](index=66&type=section&id=Income%20Tax%20Expense) Income tax expense comprises current tax and deferred tax, calculated at tax rates ranging from 9% to 33% in relevant jurisdictions Composition of Income Tax Expense (in $ thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current tax (current period) | 5,815 | 4,966 | | Current tax (under-provision in prior years) | 267 | 34 | | Deferred tax | 320 | 277 | | **Total** | **6,402** | **5,277** | - The company's taxes are calculated at prevailing tax rates ranging from **9% to 33%** in the relevant jurisdictions[272](index=272&type=chunk) [Profit (Loss) for the Period](index=67&type=section&id=Profit%20(Loss)%20for%20the%20Period) Profit (loss) for the period is calculated after deducting depreciation and amortization, rentals and related expenses, directors' remuneration, and other staff costs Key Deductions for Profit (Loss) for the Period (in $ thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Total depre

Summary of Key Points Core Viewpoint - The report highlights the top short-selling stocks in the market, indicating significant investor sentiment and potential market movements for these companies [1][2]. Short Selling Ratios - The top three companies with the highest short-selling ratios are China Resources Beer (100.00%), Li Ning (100.00%), and Tencent Holdings (95.84%) [1][2]. - The short-selling ratio reflects the percentage of shares that are sold short compared to the total shares outstanding, indicating bearish sentiment among investors [2]. Short Selling Amounts - The companies with the highest short-selling amounts are Alibaba (35.98 billion), Baidu (25.30 billion), and Xiaomi (14.66 billion) [1][2]. - These figures represent the total monetary value of shares that have been sold short, suggesting a significant level of investor concern regarding these companies [2]. Deviation Values - The top three companies with the highest deviation values are China Ping An (46.83%), Tencent Holdings (43.52%), and Yixin Group (38.34%) [1][2]. - Deviation value indicates the difference between the current short-selling ratio and the average short-selling ratio over the past 30 days, highlighting stocks that may be experiencing unusual trading activity [2].

Key Points - The top three companies with net inflows of southbound funds are Alibaba-W (09988) with 4.234 billion, Ping An of China (02318) with 844 million, and Southern Hang Seng Technology (03033) with 480 million [1] - The top three companies with net outflows of southbound funds are Xiaomi Group-W (01810) with -1.733 billion, Meituan-W (03690) with -852 million, and Kangfang Biologics (09926) with -462 million [1] - In terms of net inflow ratio, Tehai International (09658) leads with 62.75%, followed by Yancoal Australia (03668) with 51.59%, and Yimeng Biologics-B (09606) with 51.01% [1] - The companies with the highest net outflow ratios are GX China (03040) at -100.00%, Kangji Medical (09997) at -60.98%, and China International Marine Containers (02039) at -48.45% [1] Top 10 Net Inflows - Alibaba-W (09988) had a net inflow of 4.234 billion, representing a 16.56% increase in closing price to 141.900 [2] - Ping An of China (02318) saw a net inflow of 844 million, with a 24.06% increase in closing price to 57.200 [2] - Southern Hang Seng Technology (03033) recorded a net inflow of 480 million, with a 6.20% increase in closing price to 5.715 [2] Top 10 Net Outflows - Xiaomi Group-W (01810) experienced a net outflow of -1.733 billion, with a -17.96% decrease in closing price to 56.200 [2] - Meituan-W (03690) had a net outflow of -852 million, with a -5.77% decrease in closing price to 99.650 [2] - Kangfang Biologics (09926) faced a net outflow of -462 million, with a -15.64% decrease in closing price to 140.100 [2] Net Inflow Ratios - Tehai International (09658) had a net inflow ratio of 62.75% with a net inflow of 7.0962 million, closing at 14.980 [3] - Yancoal Australia (03668) recorded a net inflow ratio of 51.59% with a net inflow of 28.6046 million, closing at 27.620 [3] - Yimeng Biologics-B (09606) had a net inflow ratio of 51.01% with a net inflow of 194 million, closing at 406.400 [3] Net Outflow Ratios - GX China (03040) had a net outflow ratio of -100.00% with a net outflow of -11.4 thousand, closing at 38.140 [3] - Kangji Medical (09997) recorded a net outflow ratio of -60.98% with a net outflow of -20.9363 million, closing at 8.850 [3] - China International Marine Containers (02039) had a net outflow ratio of -48.45% with a net outflow of -16.1516 million, closing at 8.020 [3]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 特海国际控股有限公司 呈交日期: 2025年9月3日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 09658 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | 10,000,000,000 | USD | | 0.000005 | USD | | 50,000 | | 增加 / 減少 (-) | | | 0 | | | USD | | 0 | | 本月底結存 | | 10,000,000,000 | USD | | 0.000005 | USD | | 50,000 | 本月底法定/註冊股本總額： USD 50,0 ...

Core Viewpoint - The company reported a revenue of $19.9 million in Q2 2025, reflecting an 8.5% year-over-year increase, but operating profit decreased by 56.5% to $3.7 million due to increased labor costs impacting profitability [1] - The company aims to enhance customer experience and employee satisfaction, which may temporarily affect operating margins but is expected to strengthen brand quality and long-term growth potential [1] Financial Performance - Q2 2025 revenue reached $19.9 million, with a year-over-year growth of 8.5%, while operating profit was $3.7 million, down 56.5% year-over-year, resulting in an operating margin of 1.9%, a decrease of 2.7 percentage points [1] - The net profit attributable to shareholders for Q2 2025 was $1.6 million, marking a turnaround from losses, primarily due to a reduction in foreign exchange losses by $2.3 million [1] - For the first half of 2025, revenue totaled $39.7 million, up 7.0% year-over-year, with a net profit of $2.8 million, also a turnaround from losses [1] Operational Insights - The company maintained stable same-store sales growth of 5.3% in Q2 2025, with notable performance in East Asia, where same-store sales increased by 28.7% [1][2] - The company operated 126 stores as of Q2 2025, with a net increase of 3 stores from Q1 2025, focusing on both the quality and quantity of new openings [2] - The average customer spending was $24.3, showing a slight decrease of $0.1 year-over-year, indicating stable core business operations [1] Strategic Initiatives - The company is advancing its "Pomegranate Plan" to diversify customer experiences and has identified over 10 new project opportunities for future growth [2] - The company opened its first barbecue restaurant in Malaysia and plans to explore other types of dining experiences, including hot pot and fast food, to establish a second growth curve [2] Profit Forecast and Valuation - The company has adjusted its net profit forecasts for 2025-2027 down by 43%, 21%, and 17% to $3.0 million, $5.2 million, and $6.8 million respectively, due to increased operational investments and cost pressures [2] - The company is assigned a target price of HKD 17.46, based on a 28X PE ratio for 2026, reflecting a premium valuation due to its differentiated positioning in the Chinese dining market [2]