Group 1 - The stock price of Haidilao (HDL) increased by 2.16% on August 20, reaching $20.3 per share, with a total market capitalization of $1.32 billion [1] - As of March 31, 2025, Haidilao reported total revenue of $198 million, representing a year-on-year growth of 5.4%, and a net profit attributable to shareholders of $11.94 million, showing a significant increase of 367.85% [1] Group 2 - Haidilao is set to disclose its mid-year report for the fiscal year 2025 on August 26, with the actual disclosure date subject to company announcements [2] - The company is recognized as a leading Chinese dining brand in the international market, aiming to promote Chinese culinary culture globally [2] - Haidilao restaurants have created a cultural phenomenon globally due to their unique dining experience and excellent service quality [2]

Group 1 - The stock price of Haidilao (HDL) increased by 2.41% on August 16, reaching $19.765 per share, with a total market capitalization of $1.285 billion [1] - As of March 31, 2025, Haidilao reported total revenue of $198 million, representing a year-on-year growth of 5.4%, and a net profit attributable to shareholders of $11.938 million, which is a significant increase of 367.85% [1] Group 2 - Haidilao is set to disclose its mid-year report for the fiscal year 2025 on August 26, with the actual disclosure date subject to company announcement [2] - The company is recognized as a leading Chinese dining brand in the international market, aiming to promote Chinese culinary culture globally [2] - Haidilao restaurants have created a cultural phenomenon globally due to their unique dining experience and excellent service quality [2]

Company Overview - Super Hi International Holding Ltd. operates Haidilao hot pot restaurants internationally, recognized as a leading Chinese cuisine brand [3] - Haidilao has a rich history since 1994, originating from Sichuan, and has become a cultural phenomenon in the global restaurant industry [3] - As of March 31, 2025, Super Hi has 123 self-operated Haidilao restaurants across 14 countries on four continents, making it the largest Chinese cuisine brand in terms of international presence [3] Financial Reporting - The company will report its unaudited financial results for the second quarter of FY2025 on August 26, 2025, before U.S. market opening [1] - An earnings conference call will be held on the same day at 8:00 AM U.S. Eastern Time to discuss the financial results [2] Brand Recognition - Haidilao has been ranked among the world's most valuable restaurant brands for six consecutive years since 2019 and was awarded the title of "World's Strongest Restaurant Brand" for 2024 by Brand Finance [3]

Core Insights - Haidilao's stock price increased by 3.13% on August 8, reaching $20.419 per share, with a total market capitalization of $1.328 billion [1] - For the fiscal year ending March 31, 2025, Haidilao reported total revenue of $198 million, representing a year-on-year growth of 5.4% [1] - The net profit attributable to shareholders was $11.938 million, showing a significant year-on-year increase of 367.85% [1] Important Dates - Haidilao is scheduled to disclose its mid-year report for the fiscal year 2025 on August 26, with the actual disclosure date subject to the company's announcement [2] Company Overview - Haidilao International Holding Ltd. is a leading Chinese dining brand in the international market, focused on promoting Chinese culinary culture globally [2] - The restaurant chain is known for its unique dining experience and high-quality service, which has contributed to its cultural phenomenon status worldwide [2]

Core Insights - The article discusses the expertise of a specialized equity analyst in the restaurant sector, focusing on various dining segments in the U.S. market [1] Company Analysis - The company, Goulart's Restaurant Stocks, is dedicated to analyzing restaurant stocks across multiple segments, including QSR, fast casual, casual dining, fine dining, and family dining [1] - Advanced analytical models and specialized valuation techniques are employed to provide detailed insights and actionable strategies for investors [1] Industry Engagement - The analyst actively participates in academic and journalistic initiatives, contributing to institutions that promote individual and economic freedom [1] - Previous contributions include columns on monetary policy, financial education, and financial modeling aimed at making these topics accessible to a broader audience [1]

Core Insights - Super Hi International Holding Ltd. reported a revenue of US$197.8 million for Q1 2025, marking a 5.4% increase from US$187.6 million in Q1 2024 [4][6] - The company focused on customer-centric initiatives and operational adjustments to enhance long-term customer loyalty and engagement [3][6] - The net profit for the period was US$11.9 million, a significant improvement from a loss of US$4.5 million in the same period of 2024, primarily due to reduced foreign exchange losses [10][11] Financial Performance - Revenue from Haidilao restaurant operations was US$188.4 million, up 4.5% from US$180.3 million in Q1 2024, driven by business expansion and increased guest visits [7] - The income from operation was US$8.2 million, down 33.9% from US$12.4 million in Q1 2024, with an operating margin of 4.1% compared to 6.6% in the previous year [9] - Staff costs increased to US$69.8 million, a 9.7% rise from US$63.6 million in Q1 2024, reflecting the expansion of the workforce and enhanced employee benefits [8] Operational Highlights - The total number of Haidilao restaurants increased from 119 to 123, with 4 new openings and 3 closures of underperforming locations [6] - The same-store table turnover rate was 4.0 times per day, a slight increase from 3.9 times per day in Q1 2024, with total guest visits rising by 6.8% year-over-year to over 7.8 million [6][14] - Average spending per guest decreased to US$24.2 from US$24.9 in the same period of 2024 [17] Strategic Initiatives - The company is implementing a "Pomegranate Plan" to diversify product offerings and enhance customer experience through iterative improvements in restaurant design and operational excellence [3][6] - Continued investment in delivery services resulted in a revenue increase of 37.9% to US$4.0 million, supported by expanded delivery networks [7] - The company aims to strengthen workforce cohesion through team-building initiatives and competitive compensation packages [3]

Core Viewpoint - Super Hi International Holding Ltd. will report its unaudited financial results for the first quarter of FY2025 on May 21, 2025, before the U.S. market opens [1][2]. Company Overview - Super Hi operates Haidilao hot pot restaurants internationally, recognized as a leading Chinese cuisine brand with roots in Sichuan since 1994 [3]. - Haidilao has become one of the most popular and largest Chinese cuisine brands globally, known for its unique dining experience, which includes warm service, great ambiance, and delicious food [3]. - The brand has been ranked among the world's most valuable restaurant brands for six consecutive years since 2019 and earned the title of "World's Strongest Restaurant Brand" for 2024 [3]. - As of December 31, 2024, Super Hi had 122 self-operated Haidilao restaurants in 14 countries across four continents, making it the largest Chinese cuisine restaurant brand internationally in terms of the number of countries covered [3].

[Corporate Information](index=10&type=section&id=Corporate%20Information) This section details the company's governance structure, including its Board, committees, key personnel, and principal business locations [Corporate Information Details](index=10&type=section&id=Corporate_Information_Details) This section outlines the key corporate governance structure, including the Board of Directors, various committees, and principal business locations. It also identifies the company's secretaries, authorized representatives, auditor, and legal advisors - The **Board of Directors** is chaired by **Ms. SHU Ping** (**Non-executive Director**) and includes executive and independent non-executive directors[16](index=16&type=chunk) - The company has established an **Audit Committee**, **Remuneration Committee**, and **Nomination Committee**, with specific members assigned to each[16](index=16&type=chunk)[17](index=17&type=chunk) - Key external partners include **Deloitte & Touche LLP** as the auditor and **Kirkland & Ellis** as the legal advisor[18](index=18&type=chunk) - The company's **principal places of business** are located in Singapore and Hong Kong, with its **registered office** in the Cayman Islands[18](index=18&type=chunk)[21](index=21&type=chunk) [Five-Year Performance Review](index=13&type=section&id=Five-Year%20Performance%20Review) This section highlights the company's five-year financial performance, including revenue growth, return to profitability, and equity recovery [Financial Highlights (2020-2024)](index=13&type=section&id=Financial_Highlights) The company has demonstrated significant revenue growth over the past five years, increasing from **US$221.4 million** in **2020** to **US$778.3 million** in **2024**. After experiencing losses from **2020** to **2022**, the company achieved profitability in **2023** and maintained it in **2024**. Total equity has recovered substantially from a deficit in **2020** and **2021** to a positive **US$361.7 million** in **2024** Five-Year Condensed Consolidated Statement of Profit or Loss (US$ '000) | Indicator | 2024 | 2023 | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 778,308 | 686,362 | 558,225 | 312,373 | 221,411 | | **Profit (Loss) before tax** | 33,243 | 33,107 | (32,230) | (149,592) | (51,746) | | **Profit (Loss) for the year** | 21,399 | 25,257 | (41,263) | (150,752) | (53,760) | | **EPS (Basic and diluted) (US$)** | 0.04 | 0.05 | (0.07) | (0.27) | (0.10) | Five-Year Condensed Consolidated Statement of Financial Position (US$ '000) | Indicator | 2024 | 2023 | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Assets** | 684,425 | 576,883 | 576,112 | 626,723 | 601,585 | | **Total Liabilities** | 322,764 | 304,762 | 334,075 | 813,905 | 668,555 | | **Total Equity (Deficits)** | 361,661 | 272,121 | 242,037 | (187,182) | (66,970) | [Chairlady's Statement](index=14&type=section&id=Chairlady%27s%20Statement) This statement reviews **2024** performance, strategic expansion, operational improvements, and future plans, including the "**Pomegranate plan**" [Performance and Operations Overview](index=15&type=section&id=Performance_and_Operations_Overview) In **2024**, the company achieved stable growth with revenue reaching **US$778.3 million**, a **13.4% increase** from **2023**. The income from operation margin slightly improved to **6.8%**. The company maintained a cautious expansion strategy, opening **10 new restaurant openings and 3 closures**, bringing the total to **122 restaurants** across **14 countries**. Operational efficiency improved, with the average table turnover rate increasing to **3.8 times/day**. The company also launched the "**Pomegranate plan**" to explore new business forms beyond its core Haidilao brand 2024 Key Financial and Operational Metrics | Metric | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | US$778.3M | US$686.4M | +13.4% | | Income from Operation Margin | 6.8% | 6.3% | +0.5 p.p. | | Net Profit | US$21.4M | US$25.3M | -15.4% | | Restaurant Level Operating Margin | 10.1% | 9.0% | +1.1 p.p. | | Average Table Turnover Rate | 3.8 times/day | 3.5 times/day | +0.3 times/day | - The decrease in **net profit** was primarily attributed to **foreign exchange fluctuations**[27](index=27&type=chunk)[51](index=51&type=chunk) - Expansion strategy remained cautious with a "**bottom-up approach**", resulting in **10 new restaurant openings and 3 closures** in **2024**. As of year-end, the company operated **122 restaurants** in **14 countries**[28](index=28&type=chunk) - The company launched the "**Pomegranate plan**" to diversify its business into new forms such as barbecue, specialty hot pot, and fast food, aiming to become a **global comprehensive catering group**[30](index=30&type=chunk)[45](index=45&type=chunk) - **Digital operations were enhanced** to improve **member loyalty**, resulting in the number of overseas members exceeding **6 million**, a **growth of over 40%** from **2023**[39](index=39&type=chunk) [Future Prospect](index=19&type=section&id=Future_Prospect) Looking ahead, the company plans to continue its localized development strategy to become a multi-brand chain catering enterprise. Key priorities include enhancing the dining experience, expanding the restaurant network cautiously, improving internal management and cost control, and actively developing secondary business forms through the "Pomegranate plan" - The company successfully listed on **NASDAQ** in May **2024** to enhance **global recognition and brand image**[52](index=52&type=chunk) - Future strategic priorities include: - Enhancing **customer dining experience** through service, products, and environment - Continuing to expand the **restaurant network** with a "**bottom-up approach**" - Improving **internal management** to control **cost control** and enhance **customer satisfaction** - Actively developing **secondary business formats** via the "**Pomegranate plan**" through **incubation, exploration, and strategic acquisitions**[54](index=54&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) This section analyzes the company's business performance, financial results, and liquidity, detailing revenue drivers, cost structure, and capital resources [Business Performance Analysis](index=20&type=section&id=Business_Performance_Analysis) The Group's revenue grew by **13.4%** to **US$778.3 million** in **2024**, driven primarily by a **13.0% increase** in Haidilao restaurant operations. This growth was supported by an increased average table turnover rate of **3.8 times/day** and strategic network expansion to **122 restaurants**. All geographic regions saw revenue growth, with North America showing the highest average revenue per restaurant. Same-store sales increased by **7.1%** overall. Delivery and other business segments also saw strong growth of **15.3%** and **27.9%** respectively Revenue Breakdown by Source (US$ '000) | Revenue Source | 2024 | 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Haidilao Restaurant Operation | 747,296 | 661,162 | +13.0% | | Delivery Business | 11,300 | 9,800 | +15.3% | | Others | 19,719 | 15,393 | +27.9% | | **Total Revenue** | **778,308** | **686,362** | **+13.4%** | Haidilao Restaurant Network and Revenue by Region (2024) | Region | Number of Restaurants | Revenue (US$ '000) | Average Revenue per Restaurant (US$ '000) | | :--- | :--- | :--- | :--- | | Southeast Asia | 73 | 405,429 | 5,554 | | East Asia | 19 | 93,900 | 4,942 | | North America | 20 | 158,131 | 7,907 | | Others | 10 | 89,836 | 8,884 | | **Total** | **122** | **747,296** | **6,125** | Key Performance Indicators by Region (2024 vs 2023) | Metric (Overall) | 2024 | 2023 | | :--- | :--- | :--- | | Total Guest Visits (million) | 29.9 | 26.7 | | Average Table Turnover Rate (times/day) | 3.8 | 3.5 | | Average Spending per Guest (US$) | 25.0 | 24.8 | | Restaurant Level Operating Margin (%) | 10.1% | 9.0% | - **Overall same-store sales** grew from **US$610.7 million** in **2023** to **US$654.0 million** in **2024**, a **7.1% increase**. The **average same-store table turnover rate** increased from **3.6** to **3.9 times/day**[74](index=74&type=chunk) [Financial Review](index=26&type=section&id=Financial_Review) In **2024**, the cost of raw materials and consumables decreased as a percentage of revenue to **33.1%** due to economies of scale and procurement optimization. Staff costs slightly increased to **33.3%** of revenue, driven by network expansion and wage increases. Depreciation and amortization decreased to **10.4%** of revenue. The company recorded a net other loss of **US$17.9 million**, primarily due to a **US$14.7 million** increase in net foreign exchange losses. Consequently, net profit for the year decreased by **15.4%** to **US$21.4 million** - **Raw materials and consumables used** increased by **9.8%** to **US$257.7 million**, but decreased as a percentage of revenue from **34.2%** in **2023** to **33.1%** in **2024**, attributed to **business scale enlargement** and **procurement cost optimization**[86](index=86&type=chunk) - **Staff costs** rose **14.7%** to **US$259.3 million**, representing **33.3%** of revenue (up from **32.9%** in **2023**), due to an **increased number of employees and higher minimum wages** in certain countries[88](index=88&type=chunk) - **Depreciation and amortization** decreased as a percentage of revenue from **11.5%** in **2023** to **10.4%** in **2024**, mainly due to **revenue growth**[96](index=96&type=chunk) - The company recorded **net other losses** of **US$17.9 million**, a significant shift from **net other gains** of **US$1.2 million** in **2023**. This was mainly driven by a **US$14.7 million** increase in **net foreign exchange losses** and a **US$6.0 million net increase in impairment loss** on property, plant and equipment[108](index=108&type=chunk) - **Net profit** for the year was **US$21.4 million**, a **15.4% decrease** from **US$25.3 million** in **2023**, primarily due to the increase in **net foreign exchange loss**[114](index=114&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity_and_Capital_Resources) The Group's financial position strengthened in **2024**, with cash and cash equivalents increasing by **66.6%** to **US$254.7 million**, boosted by business growth and proceeds from its NASDAQ IPO in May **2024**. The company had no bank borrowings as of year-end. Capital expenditure was **US$37.4 million**, mainly for new restaurants. The current ratio improved significantly from **1.7** in **2023** to **2.5** in **2024**, indicating enhanced liquidity - **Inventory turnover days** remained stable at **42.8 days**, while **trade payable turnover days** decreased from **51.1 days** in **2023** to **45.5 days** in **2024** due to **enhanced payment cycle management**[117](index=117&type=chunk)[126](index=126&type=chunk) - In May **2024**, the company completed an **IPO** on **NASDAQ**, issuing **3,096,600 ADSs** and receiving **gross proceeds** of **US$60.57 million** to fund **operations, expansion, and capital expenditures**[131](index=131&type=chunk) - **Cash and cash equivalents** increased by **66.6%** to **US$254.7 million** as of December **31**, **2024**, from **US$152.9 million** in **2023**[138](index=138&type=chunk) - **Capital expenditure** for **2024** amounted to **US$37.4 million**, primarily for **new restaurant openings and renovations**[139](index=139&type=chunk) Key Financial Ratios | Ratio | As of Dec 31, 2024 | As of Dec 31, 2023 | | :--- | :--- | :--- | | Current Ratio | 2.5 | 1.7 | | Gearing Ratio | 0.3 | 0.4 | - The non-IFRS measure, **restaurant level operating margin**, improved to **10.1%** in **2024** from **9.0%** in **2023**[175](index=175&type=chunk) [Directors and Senior Management](index=39&type=section&id=Directors%20and%20Senior%20Management) This section provides biographical details of the company's Board and senior management, outlining their roles and responsibilities [Board and Management Team](index=40&type=section&id=Board_and_Management_Team) This section provides biographical details of the company's directors and senior management. Key leadership includes Ms. SHU Ping as Chairlady and Non-executive Director. A significant change occurred on July 1, 2024, with Ms. June YANG Lijuan appointed as Executive Director and CEO. The board is supported by three independent non-executive directors with extensive experience in public and private sectors. The senior management team includes the CEO, CFO, and a Vice President - **Ms. SHU Ping** serves as the **Chairlady of the Board** and **Non-executive Director**, responsible for **strategic planning for internationalization**[182](index=182&type=chunk) - **Ms. June YANG Lijuan** was appointed as **Executive Director** and **Chief Executive Officer** on July **1**, **2024**, responsible for **overall management and strategic development**[187](index=187&type=chunk) - **Mr. LI Yu**, an **Executive Director**, served as CEO until June **30**, **2024**, and became the **Chief Operating Officer** from March **17**, **2025**[190](index=190&type=chunk) - The **senior management team** also includes **Ms. QU Cong** as **Chief Financial Officer** and **Mr. ZHOU Shaohua** as **Vice President and Senior Regional Manager**[226](index=226&type=chunk)[228](index=228&type=chunk) [Corporate Governance Report](index=49&type=section&id=Corporate%20Governance%20Report) This report details the company's corporate governance, board structure, committee functions, risk management, and shareholder communication [Governance Practices and Board Structure](index=50&type=section&id=Governance_Practices_and_Board_Structure) The company is committed to high standards of corporate governance, adhering to the principles of the Corporate Governance Code. The Board, comprising seven directors (three executive, one non-executive, three independent), is responsible for overall leadership and strategy. The roles of Chairlady (Ms. SHU Ping) and CEO (Ms. June YANG Lijuan) are separate. The Board met six times during the reporting period with full attendance from all serving members - The company's **corporate culture** is based on the **management philosophy of "aligned interests and disciplined management"**[239](index=239&type=chunk) - The company has complied with **all applicable principles and code provisions** of the **Corporate Governance Code** during the year ended December **31**, **2024**[246](index=246&type=chunk) - As of the report date, the **Board consists of seven directors**, including **three independent non-executive directors**, meeting the requirements of the **Hong Kong Listing Rules**[258](index=258&type=chunk)[266](index=266&type=chunk) - The roles of **Chairman and Chief Executive Officer are held separately** by **Ms. SHU Ping** and **Ms. June YANG Lijuan**, respectively, ensuring a **clear division of responsibilities**[297](index=297&type=chunk) [Board Committees](index=60&type=section&id=Board_Committees) The Board has established three committees: Audit, Nomination, and Remuneration. The Audit Committee, chaired by Mr. TEO Ser Luck, consists of three independent non-executive directors and met four times. The Nomination Committee, chaired by Ms. SHU Ping, met three times to review board composition and diversity. The Remuneration Committee, chaired by Mr. LIEN Jown Jing Vincent, met three times to review remuneration policies for directors and senior management - The **Audit Committee** consists of **three independent non-executive directors** and met **four times** in **2024** to review **financial reporting, internal controls, and risk management**[303](index=303&type=chunk)[304](index=304&type=chunk)[305](index=305&type=chunk) - The **Nomination Committee** reviewed the **Board's structure and composition**, noting an increase in **female representation** from **28.6%** to **42.9%** in **2024**[318](index=318&type=chunk) - The **Remuneration Committee** reviewed and made recommendations on the **remuneration packages** for all directors and senior management[327](index=327&type=chunk) [Risk Management and Shareholder Communication](index=66&type=section&id=Risk_Management_and_Shareholder_Communication) The company has adopted a Board Diversity Policy and ensures director independence. It adheres to the Model Code for securities transactions. The Board is responsible for maintaining a sound risk management and internal control system based on the COSO framework, which is reviewed at least annually. Effective communication with shareholders is maintained through a dedicated policy, general meetings, and the company website. The company's constitutional documents were amended in June 2024 to align with new listing rules on electronic communication - The Board has adopted a **Board Diversity Policy**, and as of December **31**, **2024**, the Board consists of **three female and four male directors**[334](index=334&type=chunk)[335](index=335&type=chunk) - The company has adopted the **Model Code for securities transactions**, and all directors confirmed compliance for the year[342](index=342&type=chunk) - The Board is responsible for the **risk management and internal control systems**, which are based on the **COSO framework** and **reviewed at least annually**[356](index=356&type=chunk)[363](index=363&type=chunk) - The company maintains a **Shareholders' Communication Policy** to ensure **effective communication** through various channels, including **general meetings** and its **company website**[372](index=372&type=chunk) [Directors' Report](index=74&type=section&id=Directors%27%20Report) This report summarizes the Group's principal activities, dividend policy, public float, key risks, and statutory disclosures including directors' interests [Business and Financial Summary](index=75&type=section&id=Business_and_Financial_Summary) This section confirms the Group's principal activities in restaurant operation and delivery services, with no significant changes during the year. The Board does not recommend a final dividend for 2024. The company has maintained a sufficient public float as required by Hong Kong Listing Rules - The **principal activities** of the Group are **restaurant operation and related delivery businesses** in the international market[396](index=396&type=chunk) - The Board does not recommend the payment of a **final dividend** for the year ended December **31**, **2024**[398](index=398&type=chunk) - The company maintained a **sufficient public float** throughout the reporting period[416](index=416&type=chunk) [Principal Risks and Uncertainties](index=79&type=section&id=Principal_Risks_and_Uncertainties) The Group faces several principal risks, including those associated with multi-jurisdiction operations such as regulatory compliance, geopolitical issues, and management challenges. Other key risks include food safety incidents, maintaining service quality and brand reputation, fluctuations in foreign exchange rates, and potential challenges from new business initiatives under the "Pomegranate plan" - Risks of **multi-jurisdiction operations** include **adapting to different consumer preferences**, **supply chain difficulties**, **geopolitical risks**, and **compliance with complex local laws**[447](index=447&type=chunk)[449](index=449&type=chunk) - **Food safety incidents** and **food-borne illnesses** are critical risks, dependent on the **effectiveness of quality control systems** across a **geographically diverse network**[459](index=459&type=chunk) - Maintaining and enhancing **brand recognition** is crucial and can be affected by **negative publicity** (including that related to Haidilao International), **customer disputes**, and the ability to maintain **service quality**[469](index=469&type=chunk) - The Group is exposed to **foreign exchange rate fluctuations**, which resulted in a **net foreign exchange loss** of **US$19.7 million** during the reporting period[474](index=474&type=chunk) - The new "**Pomegranate plan**" to explore **innovative business forms** faces challenges such as **intense competition**, **potential dispersion of management focus**, and **long return cycles**[482](index=482&type=chunk) [Statutory Disclosures](index=89&type=section&id=Statutory_Disclosures) This section covers statutory disclosures, including directors' interests, connected transactions, and the share award scheme. Ms. SHU Ping is a controlling shareholder with a **51.92%** interest. The company has ongoing connected transactions with YIZHIHUA and Yihai Group, all of which were within their annual caps for **2024**. The company completed an offering of ADSs on NASDAQ in May **2024**, raising net proceeds of **US$51.91 million**, which are being utilized for brand strengthening, network expansion, and other corporate purposes - As of December **31**, **2024**, **Ms. SHU Ping**, Chairlady and a **controlling shareholder**, held an interest in **337,667,125 shares**, representing approximately **51.92%** of the total issued share capital[505](index=505&type=chunk) - **Continuing connected transactions** with **YIZHIHUA** for **decoration services** had a total actual transaction amount of **US$3.1 million**, well within the combined **annual cap** of **US$8.69 million** for **2024**[540](index=540&type=chunk)[543](index=543&type=chunk) - Purchases from **Yihai Group** under a **master purchase agreement** amounted to **US$16.6 million** in **2024**, below the **annual cap** of **US$32.56 million**[550](index=550&type=chunk) - The company has a **Share Award Scheme** adopted in June **2022**, with **61,933,000 awards** outstanding as of December **31**, **2024**, representing **9.52%** of issued shares[570](index=570&type=chunk)[595](index=595&type=chunk) Use of Net Proceeds from NASDAQ Offering (as of Dec 31, 2024) | Description | Allocation of Net Proceeds (US$M) | Utilized Amount (%) | Unutilized Amount (%) | | :--- | :--- | :--- | :--- | | Strengthening brand and expanding network | 36.34 | 33% | 37% | | Investing in supply chain capabilities | 5.19 | 1% | 9% | | R&D for digitalization and technology | 5.19 | 3% | 7% | | Working capital and general purposes | 5.19 | 4% | 6% | | **Total** | **51.91** | **41%** | **59%** | [Environmental, Social and Governance Report](index=110&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report) This report outlines the company's ESG governance, product responsibility, customer experience, employee welfare, and environmental management [ESG Governance and Strategy](index=111&type=section&id=ESG_Governance_and_Strategy) The company has established a robust ESG governance structure, with the Board overseeing ESG strategies and an ESG Working Group responsible for implementation. A materiality assessment identified key issues for stakeholders, with food safety, food quality, anti-corruption, and employee welfare ranked as highly material. The company engages with stakeholders through various channels to understand their expectations and priorities - The Board is responsible for formulating, approving, and reviewing the company's **ESG vision, policies, and goals**, with an **ESG Working Group** handling implementation[648](index=648&type=chunk)[649](index=649&type=chunk) - A **materiality assessment identified 8 highly material ESG issues**, including **Food Safety**, **Food Quality**, **Anti-corruption Training**, **Occupational Health and Safety**, and **Protection of Employees' Rights and Interests**[670](index=670&type=chunk)[674](index=674&type=chunk) [Product Responsibility](index=122&type=section&id=Product_Responsibility) The company prioritizes food safety and quality, implementing a multi-level control system from restaurant to CEO. In **2024**, **1,500** on-site inspections were conducted, and no products were recalled for safety reasons. The company also focuses on menu innovation, launching over **1,000** new items globally in **2024**, and protects its intellectual property through established management measures - A **comprehensive food safety framework** is in place, with designated **food safety officers** in restaurants and a **multi-level control system**. **9 restaurants and 1 central kitchen** have obtained **HACCP certification**[679](index=679&type=chunk)[692](index=692&type=chunk) - In **2024**, the company conducted **1,500 on-site food safety inspections** and had **no product recalls** due to safety or health concerns[695](index=695&type=chunk) - The company launched **over 1,000 new products** in **2024**, focusing on **localization and innovation**, including **new BBQ options** and a "**Tomato Hot Pot Upgrade Project**"[713](index=713&type=chunk)[718](index=718&type=chunk) [Customer and Operations](index=135&type=section&id=Customer_and_Operations) Super Hi is committed to safeguarding customer rights, including data privacy and information security, through standardized systems. The company focuses on creating a comfortable and innovative dining environment, introducing technologies like immersive lighting and smart kitchen systems (IKMS) in select locations to enhance efficiency and customer experience - The company has established comprehensive **data protection systems**, including a **Data Storage System** and **Information Data Classification and Grading Protection Management System**, to protect **customer privacy**[742](index=742&type=chunk) - The company is experimenting with **smart restaurant concepts**, including the implementation of an **Integrated Kitchen Management System (IKMS)**, **automatic pot-mixing machines**, and **pass-food robots** in some Singapore locations[774](index=774&type=chunk)[784](index=784&type=chunk) [Employees and Labor Practices](index=161&type=section&id=Employees_and_Labor_Practices) As of year-end **2024**, the company employed **13,057** people. It upholds equal and compliant employment, with zero tolerance for forced or child labor. The company provides extensive training, with **100%** of employees trained during the year, and focuses on occupational health and safety, conducting numerous safety drills and training sessions. Employee welfare is a priority, with benefits including family subsidies and a humanitarian relief fund - As of December **31**, **2024**, the Group had **13,057 employees**, with **52.45%** male and **47.55%** female[341](index=341&type=chunk) - The company maintains a **zero-tolerance policy** for child labor and forced labor, with no cases identified in **2024**[848](index=848&type=chunk) - In **2024**, **100% of employees received training**, with over **37** courses organized by the head office's **Learning and Development Center**[878](index=878&type=chunk) - The company allocated approximately **US$0.29 million** to its **humanitarian relief fund** for employees in **2024**[862](index=862&type=chunk) - There were **zero work-related fatalities** in the past three years. The **rate of work days lost due to work-related injuries** was **22.32** in **2024**[889](index=889&type=chunk) [Environmental Management](index=183&type=section&id=Environmental_Management) The company is committed to environmentally friendly operations, with goals to reduce waste, energy consumption, and emissions. Due to business expansion, total consumption and emissions increased in **2024**. However, initiatives like waste sorting, reducing food waste, and using energy-saving equipment are in place. The company has also identified and is mitigating climate-change-related risks - The company has set **environmental targets**, including **reducing average single-restaurant kitchen waste by 10% by 2025** (vs. **2018**) and **reducing average single-restaurant electricity consumption by 3% by 2025** (vs. **2018**)[938](index=938&type=chunk)[955](index=955&type=chunk) - Due to expansion (**10** new restaurants), **total water consumption, electricity usage, and waste generation increased** in **2024**[935](index=935&type=chunk) - **Energy-saving projects** like **intelligent energy-control and heat recovery systems** have been applied in **117 restaurants**, saving an estimated **30.08 million kWh** of electricity annually[956](index=956&type=chunk) - The company has identified and developed mitigation measures for **climate-related risks**, including **acute physical risks** (e.g., extreme weather affecting power), **chronic physical risks** (e.g., high temperatures), and **policy/market risks**[966](index=966&type=chunk)[967](index=967&type=chunk) [Independent Auditor's Report](index=207&type=section&id=Independent%20Auditor%27s%20Report) This report presents the independent auditor's unqualified opinion on the consolidated financial statements and highlights the key audit matter of asset impairment [Auditor's Opinion and Key Matters](index=208&type=section&id=Auditor%27s_Opinion_and_Key_Matters) The independent auditor, Deloitte & Touche LLP, issued an unqualified opinion, stating that the consolidated financial statements give a true and fair view of the Group's financial position as of December 31, 2024, and its financial performance for the year then ended. The Key Audit Matter identified was the impairment of property, plant and equipment (PPE) and right-of-use (ROU) assets in restaurants, due to the significant management estimation and judgment involved in determining their recoverable amounts - The auditor, **Deloitte & Touche LLP**, provided an **unqualified (clean) opinion** on the **consolidated financial statements**[1020](index=1020&type=chunk) - The **Key Audit Matter** highlighted was the **impairment of property, plant and equipment** and **right-of-use assets** in restaurants. This was significant due to the **material balances** and the **high degree of management judgment** required for **value-in-use calculations**[1026](index=1026&type=chunk)[1028](index=1028&type=chunk) - **Audit procedures** for the **Key Audit Matter** included reviewing **impairment assessments**, testing **key assumptions** (**revenue growth**, **EBITDA margin**, **discount rates**), checking **calculation accuracy**, and performing **retrospective and prospective reviews of forecasts**[1034](index=1034&type=chunk) [Consolidated Financial Statements](index=214&type=section&id=Consolidated%20Financial%20Statements) This section presents the Group's complete financial statements, including profit or loss, financial position, changes in equity, cash flows, and detailed notes [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=214&type=section&id=Consolidated_Statement_of_Profit_or_Loss_and_Other_Comprehensive_Income) For the year ended December **31**, **2024**, the Group reported revenue of **US$778.3 million**, an increase from **US$686.4 million** in **2023**. Profit before tax was **US$33.2 million**, and profit for the year was **US$21.4 million**, resulting in a basic and diluted EPS of **US$0.04** Key Profit or Loss Items (US$ '000) | Item | 2024 | 2023 | | :--- | :--- | :--- | | Revenue | 778,308 | 686,362 | | Profit before tax | 33,243 | 33,107 | | Income tax expense | (11,844) | (7,850) | | **Profit for the year** | **21,399** | **25,257** | | Total comprehensive income for the year | 33,427 | 29,884 | [Consolidated Statement of Financial Position](index=215&type=section&id=Consolidated_Statement_of_Financial_Position) As of December **31**, **2024**, the Group's total assets were **US$684.4 million**, and total liabilities were **US$322.8 million**, resulting in total equity of **US$361.7 million**. This represents a significant improvement in the equity position from **US$272.1 million** in the prior year Key Financial Position Items (US$ '000) | Item | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Non-Current Assets** | 361,198 | 357,921 | | Property, plant and equipment | 151,901 | 168,724 | | Right-of-use assets | 185,514 | 167,641 | | **Current Assets** | 323,227 | 218,962 | | Bank balances and cash | 254,719 | 152,908 | | **Total Assets** | **684,425** | **576,883** | | **Current Liabilities** | 128,568 | 128,571 | | **Non-Current Liabilities** | 194,196 | 176,191 | | Lease liabilities (Non-Current) | 171,219 | 163,947 | | **Total Liabilities** | **322,764** | **304,762** | | **Total Equity** | **361,661** | **272,121** | [Consolidated Statement of Changes in Equity](index=217&type=section&id=Consolidated_Statement_of_Changes_in_Equity) The Group's total equity increased from **US$272.1 million** at the beginning of the year to **US$361.7 million** at the end of **2024**. The increase was driven by the total comprehensive income of **US$33.4 million** and net proceeds from the issuance of shares amounting to **US$56.1 million** - **Total equity increased** by **US$89.5 million** during **2024**[1068](index=1068&type=chunk) - Key changes in equity include: **Profit for the year** (**US$21.8M attributable to owners**), **Other comprehensive income** (**US$12.0M**), and **proceeds from share issuance** (**US$56.1M**)[1068](index=1068&type=chunk) [Consolidated Statement of Cash Flows](index=219&type=section&id=Consolidated_Statement_of_Cash_Flows) The Group generated net cash from operating activities of **US$119.7 million** in **2024**. Net cash used in investing activities was **US$27.6 million**, primarily for the purchase of property, plant and equipment. Net cash from financing activities was **US$12.6 million**, mainly due to proceeds from the share issuance offsetting lease liability repayments. This resulted in a net increase in cash and cash equivalents of **US$104.7 million** Summary of Cash Flows (US$ '000) | Item | 2024 | 2023 | | :--- | :--- | :--- | | Net cash from operating activities | 119,696 | 114,045 | | Net cash used in investing activities | (27,616) | (11,775) | | Net cash from (used in) financing activities | 12,577 | (43,787) | | **Net increase in cash and cash equivalents** | **104,657** | **58,483** | | Cash and cash equivalents at end of the year | 254,719 | 152,908 | [Notes to the Consolidated Financial Statements](index=221&type=section&id=Notes_to_the_Consolidated_Financial_Statements) This section provides detailed explanations of the accounting policies and breakdowns of the figures presented in the primary financial statements. It covers significant areas such as revenue recognition, impairment assessments, lease liabilities, share capital, and related party transactions, offering crucial context for understanding the Group's financial performance and position

Financial Performance - The company recorded net losses of US$41.3 million in 2022, but generated net profits of US$25.3 million and US$21.4 million in 2023 and 2024, respectively[31]. - Revenue increased from US$558.2 million in 2022 to US$686.4 million in 2023, and is projected to reach US$778.3 million in 2024[31]. - The company recorded net foreign exchange losses of $21.9 million, $5.0 million, and $19.7 million in 2022, 2023, and 2024 respectively, indicating exposure to currency fluctuations[63]. - The company generated net cash from operating activities of US$68.3 million, US$114.0 million, and US$119.7 million in 2022, 2023, and 2024 respectively[117]. - The company recorded net impairment losses of US$7.8 million for property, plant, and equipment due to uncertain future prospects in 2022, but in 2023 and 2024, it reversed impairment losses of US$7.6 million and US$47 thousand respectively[114]. - As of December 31, 2024, the company's total indebtedness was US$212.6 million, primarily consisting of lease liabilities[121]. Restaurant Expansion - The number of restaurants expanded from 94 as of January 1, 2022, to 122 as of December 31, 2024[49]. - The company operates 122 restaurants across 14 countries as of December 31, 2024, and continues to invest significantly in international expansion[107]. - The company plans to continue expanding its restaurant network internationally, which may increase risks and uncertainties[49]. - The company faces significant risks in opening new restaurants, which could adversely affect growth and financial results if new locations are less profitable than existing ones[51]. - The breakeven for new restaurants opened in 2022, 2023, and 2024 was generally within six months[201]. Competition and Market Risks - The company faces intense competition in the international catering market, particularly in the hot pot segment[30]. - Intense competition in the catering service industry could hinder the company's ability to sustain revenues and profitability, especially in new markets[54]. - The company’s ability to attract and retain customers is critical, with potential impacts from changing consumer preferences and dining trends[41]. - Rising labor costs and minimum wage increases in various jurisdictions may adversely affect the company's profit margins and operating results[113]. - The company faces risks related to food ingredient cost volatility, which could impact profitability if menu prices do not adjust accordingly[110]. Operational Challenges - The company’s management system may face challenges in effectively managing operations across multiple jurisdictions as it continues to grow[37]. - Labor costs are increasing, and the company may struggle to attract and retain qualified employees across various geographical locations, impacting service quality[52]. - Food safety incidents and food-borne illnesses pose significant risks that could adversely affect the company's reputation and financial performance[46]. - The company relies on third-party logistics for food ingredient delivery, which poses risks of delays and contamination that could adversely affect operations[62]. - The company may need to close underperforming restaurants, which could materially impact overall business performance and financial results[60]. Marketing and Customer Engagement - The company invests significantly in marketing to attract guests, but competition may limit the effectiveness of these efforts, impacting financial performance[57]. - The guest loyalty program had approximately 6.31 million members as of December 31, 2024, up from 1.87 million on January 1, 2022[196]. - Haidilao aims to enhance brand awareness and promote Chinese culinary culture through innovative online marketing campaigns[208]. - The company plans to capitalize on off-peak hours by offering special discounts and menu items to improve overall restaurant performance[215]. Product and Service Innovation - The company launched the "Pomegranate plan" in 2024 to diversify its business offerings, including barbecue and specialty hot pot, but faces challenges in market competition and brand positioning[53]. - The company launched new products in 2024, including "Haidilao Beef" in Southeast Asia and "Pork Tripe and Pepper Soup Base" in South Asia, with a click-through rate of over 15% for three consecutive months in Japan[225]. - The menu typically offers 110 to 180 types of food ingredients, including Haidilao signature dishes and localized items, depending on restaurant size and ingredient availability[217]. - The company features localized soup bases, such as tom yum in Southeast Asia and miso in Japan, to cater to local tastes[220]. - The company provides personalized services for first-time local guests, including suggested cooking times for hot pot ingredients[214]. Regulatory and Compliance Issues - Compliance with regulatory requirements is critical; failure to obtain necessary licenses and permits could result in fines and operational disruptions[94]. - The company is subject to anti-corruption and anti-bribery laws, and non-compliance could adversely affect its business and reputation[104]. Corporate Governance and Shareholder Rights - The largest shareholder, Mr. Yong Zhang, controls 45.37% of the outstanding shares, which may influence corporate decisions and affect other shareholders' interests[133]. - The company is incorporated in the Cayman Islands, which may limit shareholders' ability to protect their rights through U.S. courts due to the majority of operations and assets being outside the U.S.[149]. - Corporate governance practices in the Cayman Islands differ significantly from those in the U.S., potentially affording shareholders less protection[151]. - The deposit agreement governing the ADSs includes a waiver of the right to a jury trial, which may lead to less favorable outcomes for plaintiffs in legal actions[153]. Economic and Environmental Factors - Macroeconomic factors, including changes in consumer spending patterns, may materially affect the company's financial conditions and results of operations[96]. - Health epidemics and natural disasters pose significant risks that could disrupt operations and adversely impact business performance[99]. - Rising interest rates could increase borrowing costs, negatively impacting the company's ability to finance restaurant expansions and acquisitions[65].

Core Insights - The article discusses the expertise of a specialized equity analyst in the restaurant sector, focusing on various dining segments in the U.S. market [1] Company Analysis - The company, Goulart's Restaurant Stocks, is dedicated to analyzing restaurant stocks across multiple segments, including QSR, fast casual, casual dining, fine dining, and family dining [1] - Advanced analytical models and specialized valuation techniques are employed to provide detailed insights and actionable strategies for investors [1] Industry Engagement - The analyst actively participates in academic and journalistic initiatives, contributing to institutions that promote individual and economic freedom [1] - Previous contributions include columns on monetary policy, financial education, and financial modeling aimed at making these topics accessible to a broader audience [1]