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]

Summary of Tehai International Conference Call Company Overview - Tehai International reported total revenue of $778.3 million for 2024, a year-on-year increase of 13.4%, with restaurant revenue accounting for 96% of total revenue [2][8] - The company aims to optimize its supply chain, resulting in a gross margin increase to 10.1% [2][8] Financial Performance - In Q4 2025, Tehai International achieved total revenue of $209 million, a 10.4% year-on-year growth, with restaurant revenue at $199 million, representing 95.7% of total revenue [2][8] - The gross margin for Q4 2025 was 67.6%, despite a tax loss of $11.6 million due to foreign exchange fluctuations [2][10][9] - The average daily table turnover rate for Haidilao restaurants reached 3.9 times, with same-store sales growth of 4.2% [3][8] Operational Improvements - The company has launched over 1,000 new products globally, including beef pies and fresh sliced beef, enhancing product offerings and supply chain management [2][6] - Tehai International is focusing on improving operational efficiency, employee welfare, and customer interaction [2][4] - The company plans to increase table turnover rates through regional management optimization and special events [4][14] Market Expansion and Strategy - Tehai International is actively expanding services, including night-time offerings in Malaysia and Canada, and celebrity collaborations in Korea [2][7] - The company emphasizes local employee integration, with 20%-30% of employees and management being local hires, enhancing customer attraction [2][15] - Plans for new store openings include 10 new locations by the end of 2025, with a focus on replicating successful North American market strategies [4][16] Cost Management and Profitability - Raw material costs accounted for 33.1% of total revenue, with employee costs at 33%, reflecting a slight increase due to wage hikes [8][9] - The company recorded a significant foreign exchange loss of $19.7 million, impacting net profit but excluding non-operating factors, actual profit met targets [2][10] Regional Performance - East Asia showed strong performance with a table turnover rate of 4 times, while North America experienced a slight decline in dining frequency [12] - Southeast Asia's restaurant revenue grew by 7.7%, despite challenges in Cambodia and the Philippines [12] Pricing Strategy and Customer Engagement - Tehai International is implementing differentiated pricing strategies to maintain customer spending levels amid inflation [13] - The company is enhancing customer engagement through various dining events and dedicated customer managers [5][7] Future Outlook - The focus for 2025 will be on balancing same-store sales growth with new market expansion, with a cautious optimism towards North American market potential [18][20] - The company is exploring new brand development opportunities, particularly in barbecue and other Asian cuisines [16][27] Conclusion - Tehai International is positioned for growth through operational improvements, market expansion, and strategic pricing, despite facing challenges in foreign exchange and regional performance variances. The company remains committed to enhancing customer experience and optimizing supply chain management for future profitability.

Core Viewpoint - Super Hi International Holding Ltd. Unsponsored ADR (HDL) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based on changes in a company's earnings picture, tracking EPS estimates from sell-side analysts through a consensus measure known as the Zacks Consensus Estimate [2]. - The recent upgrade reflects a positive outlook on the company's earnings, which could lead to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Revisions - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, and their investment actions based on these estimates can significantly influence stock prices [5]. Company Performance Insights - Super Hi International Holding Ltd. is expected to earn $0.34 per share for the fiscal year ending December 2024, representing a year-over-year decline of 32% [9]. - Over the past three months, the Zacks Consensus Estimate for the company has increased by 3.4%, indicating a positive trend in earnings estimates [9]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade to Zacks Rank 2 positions Super Hi International Holding Ltd. in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11].

Summary of the Conference Call Company Overview - The conference call discusses the performance of Tehai International for Q3 2024, highlighting key metrics and operational strategies. Key Points Financial Performance - Total revenue for Q3 2024 reached $199 million, a year-over-year increase of 14.6% [5] - Restaurant operating income was $191 million, accounting for 96% of total revenue, also up 14.5% year-over-year [5] - Average customer spending increased to $25.8, up $2.1 from the previous year [7] - The company reported a net profit of $37.66 million for Q3, with a significant foreign exchange gain of $25.9 million [7] - Operating cash flow improved to $40 million, an increase of $20 million year-over-year [7] Operational Metrics - Average table turnover rate was 3.8 times, an increase of 0.1 times year-over-year [7] - Customer traffic reached 7.4 million, a 4.2% increase from the previous year [7] - The company optimized over 300 new products across various categories, enhancing customer engagement [3] Strategic Initiatives - The company is focusing on enhancing store management through better KPI understanding and management tools for store managers [1] - New marketing strategies were implemented, including collaborations with popular games to attract younger customers [3] - The company is exploring new restaurant formats and concepts, including hot pot, barbecue, and fast food, supported by market research and product development [4][23] Store Expansion Plans - The company plans to open a double-digit number of new stores in 2024, with ongoing projects in North America, Southeast Asia, East Asia, the Middle East, and Europe [11][12] - The management is cautious about setting specific store opening targets to avoid misalignment in strategy [12] Cost Management - Labor costs increased due to higher minimum wage requirements, but rent and utility costs decreased as a percentage of revenue [6] - The company is working on optimizing supply chain processes to reduce costs and improve efficiency [25] Market Dynamics - The competitive landscape remains intense, with ongoing price adjustments and promotional strategies to maintain customer interest [14][26] - The company is committed to maintaining reasonable pricing while adapting to market conditions and customer preferences [14] Future Outlook - The management anticipates stable profit margins in the mid-single digits for the upcoming quarters, with a long-term target of 10% to 15% profit margin per restaurant [16][28] - The company is focused on improving operational efficiency and customer satisfaction through enhanced management practices and localized strategies [18][35] Additional Insights - The company is actively working on localizing its offerings in various markets, achieving up to 90% localization in some Asian countries [35] - There is a strong emphasis on data-driven decision-making to enhance marketing effectiveness and operational performance [18] This summary encapsulates the key insights and strategic directions discussed during the conference call, providing a comprehensive overview of Tehai International's current performance and future plans.

Financial Performance - Revenue for Q3 2024 was US$198.6 million, reflecting a 14.6% increase from US$173.3 million in Q3 2023[6] - Income from operations was US$14.9 million, a 52.0% increase from US$9.8 million in the same period last year, with an operating margin of 7.5% compared to 5.7% in Q3 2023[10] - Profit for the period was US$37.7 million, compared to a loss of US$1.4 million in Q3 2023, driven by increased revenue and operational efficiency[11] - Revenue from Haidilao restaurant operations was US$190.9 million, a 14.5% increase from US$166.7 million in Q3 2023[11] - Profit before tax surged to USD 41,220,000 compared to USD 358,000 in the same period last year, marking a significant improvement[22] - Total comprehensive income for the period was USD 24,070,000, compared to USD 1,617,000 in Q3 2023, reflecting a strong turnaround[22] - Basic and diluted earnings per share improved to USD 0.06 from a loss of USD 0.00 in the previous year[22] Operational Metrics - Total guest visits reached over 7.4 million, up 4.2% from 7.1 million in Q3 2023[6] - Same-store sales growth was 5.6%[6] - The total number of Haidilao restaurants as of September 30, 2024, was 121, with a net increase of 6 since December 31, 2023[6] - Average spending per guest increased to US$25.8, up from US$23.7 in the same period of 2023[14] Cost and Expenses - Raw materials and consumables used were US$65.5 million, a 9.9% increase from US$59.6 million in Q3 2023, but as a percentage of revenue, it decreased to 33.0%[8] - Staff costs were US$65.8 million, a 15.2% increase from US$57.1 million in Q3 2023, accounting for 33.1% of revenue[9] Cash Flow and Liquidity - Net cash from operating activities rose to USD 40,699,000, a 104.0% increase from USD 19,911,000 in Q3 2023[25] - Current assets increased to USD 310,559,000, up from USD 218,962,000 at the end of 2023, indicating improved liquidity[23] - Net current assets rose significantly to USD 183,513,000 from USD 90,391,000, showcasing enhanced financial health[23] - Cash and cash equivalents at the end of the period reached USD 215,162,000, a substantial increase from USD 75,271,000 in Q3 2023[25] Equity and Liabilities - The company reported a total equity of USD 360,907,000, up from USD 272,121,000 at the end of 2023, reflecting strong growth in shareholder value[24] - Non-current liabilities increased to USD 178,481,000, up from USD 176,191,000, primarily due to higher deferred tax liabilities[24]

Revenue Performance - The Group's revenue for the six months ended June 30, 2024, was US$370.9 million, a 14.5% increase from US$323.9 million in the same period of 2023[17]. - Revenue from Haidilao restaurant operations reached US$356.5 million, up 14.0% from US$312.7 million year-over-year, driven by increased guest visits and table turnover rates[19]. - Revenue from the delivery business was US$5.2 million, a 20.9% increase from US$4.3 million in the prior year[29]. - Revenue from other sources, including hot pot condiments, rose to US$9.2 million, marking a 33.3% increase from US$6.9 million[30]. - Total revenue for the six months ended June 30, 2024, was USD 370,930,000, an increase of 14.5% from USD 323,931,000 in the same period of 2023[91]. - Revenue from external customers for the six months ended June 30, 2024, was USD 370,930,000, up from USD 323,931,000 for the same period in 2023, representing an increase of approximately 14.5%[140]. - The Group's revenue from Singapore increased to USD 80,773,000 in 2024 from USD 77,605,000 in 2023, marking a growth of about 2.8%[140]. Guest Metrics - Total guest visits increased to 14.5 million, up from 12.3 million in the same period last year, reflecting a recovery in the catering industry[23]. - The average spending per guest decreased to US$24.6, down US$0.9 from US$25.5 in the previous year, primarily due to exchange rate fluctuations[19]. - The restaurant network expanded to 122 locations across 13 countries, with Southeast Asia contributing 60.7% of total revenue[20]. Financial Performance - The Group recorded a net loss of US$4.6 million for the six months ended June 30, 2024, compared to a net profit of US$3.4 million for the corresponding period in 2023[52]. - Other expenses increased by 19.1% to US$33.1 million for the six months ended June 30, 2024, from US$27.8 million in the same period of 2023, representing 8.9% of revenue[46]. - The Group's finance costs decreased slightly to US$3.9 million for the six months ended June 30, 2024, from US$4.3 million in the same period of 2023[49]. - The Group's income tax expense for the six months ended June 30, 2024, was USD 5,277,000, an increase from USD 3,926,000 in the same period of 2023[98]. - The loss attributable to the owners of the Company for the six months ended June 30, 2024, was USD 4,583,000, compared to a profit of USD 3,541,000 in the same period of 2023[102]. Cost and Expenses - Staff costs increased to US$126.3 million, a 17.3% rise from US$107.7 million, attributed to network expansion and increased guest traffic[36]. - Raw materials and consumables used amounted to US$124.6 million, a 14.0% increase from US$109.3 million, maintaining a stable percentage of revenue at 33.7%[33]. - Administrative expenses decreased to US$8,372,000 from US$9,996,000, a reduction of 16.3%[94]. - The Group incurred a total depreciation and amortization expense of USD 39,022,000 for the six months ended June 30, 2024, down from USD 41,795,000 in the previous year[100]. Assets and Liabilities - The Group's cash and cash equivalents decreased by 8.0% to US$140.7 million as of June 30, 2024, from US$152.9 million as of December 31, 2023[62]. - The Group's inventories decreased by 10.7% to US$26.6 million as of June 30, 2024, from US$29.8 million as of December 31, 2023[53]. - The turnover days of inventory improved from 42.8 days to 40.7 days for the same periods, indicating better inventory management[54]. - The current ratio improved to 2.3 as of June 30, 2024, compared to 1.7 as of December 31, 2023[68]. - The Group's total current liabilities decreased to USD 31,230,000 as of June 30, 2024, compared to USD 34,887,000 as of December 31, 2023, indicating a reduction of about 10.0%[124]. - The Group's total trade receivables decreased to USD 15,765,000 from USD 18,430,000 as of December 31, 2023, reflecting a decline of approximately 9.0%[120]. - The Group's total assets decreased from USD 336,767,000 as of December 31, 2023, to USD 321,783,000 as of June 30, 2024, representing a decline of approximately 4.4%[142]. Investments and Future Plans - Capital expenditure for the six months ended June 30, 2024, amounted to US$17.7 million, primarily for new restaurant openings and renovations[64]. - The Group plans to continue identifying strategic investment opportunities but currently has no concrete plans for material investments[67]. - The Group's capital expenditure commitments for property, plant, and equipment as of June 30, 2024, were USD 6,714,000, up from USD 6,650,000 as of December 31, 2023[131]. Compliance and Governance - The Company has complied with the Corporate Governance Code throughout the reporting period[143]. - The Audit Committee reviewed the interim results and confirmed compliance with relevant accounting standards[149]. - There were no material events for disclosure after June 30, 2024[149]. - The interim report will be published on the Stock Exchange and the Company's website[152].