HAIDILAO(06862)2021-04-26 10:00Financial Performance - Haidilao reported a consolidated revenue of HK 1.2 billion, which is a 15% increase compared to the previous year[5]. - In 2020, the company's revenue was RMB 28,614.3 million, an increase of 7.8% compared to 2019, primarily driven by the expansion of the restaurant network[19]. - The profit for the year was RMB 309.5 million, a decrease of 86.8% compared to 2019[19]. - The overall gross revenue for the year ended December 31, 2020, was RMB 27,571.4 million, compared to RMB 25,677.4 million in 2019, reflecting a growth of 7.4%[45]. - The company reported a significant increase in user engagement, with a 25% rise in customer visits year-over-year[73]. - Haidilao's revenue for the last fiscal year reached approximately 500 million in new technology for enhancing customer experience and operational efficiency[5]. - Haidilao is investing in technology development, particularly in enhancing its Super APP for better customer experience and operational efficiency[74]. - More than 50 new-technology restaurants were built and reconstructed, incorporating dish supplying machines and intelligent soup bases preparation machines[25]. - Robot waiters were deployed in over 900 restaurants, enhancing the dining experience for customers[25]. - The company launched over 200 new dishes, beverages, and snacks in 2020, which were well recognized by customers[26]. Customer Engagement and Experience - User data indicated that the total number of customers served reached 30 million, reflecting a growth of 10% year-on-year[5]. - Haidilao served over 250 million customers in 2020, achieving an average table turnover rate of 3.5 times per day, and the number of members increased to over 71 million[24]. - The average spending per guest increased from RMB105.2 in 2019 to RMB110.1 in 2020[35]. - Delivery business revenue surged by 60.0% from RMB448.5 million in 2019 to RMB717.7 million in 2020, driven by an increase in delivery orders[36]. Sustainability and Corporate Responsibility - Haidilao's management emphasized a commitment to sustainability, aiming for a 30% reduction in food waste by 2025[5]. - The management team emphasizes a commitment to sustainability, aiming to reduce food waste by 20% over the next two years[73]. - Charitable and other donations made by the Group in 2020 amounted to RMB 9.05 million[178]. Governance and Management - The company has a remuneration committee as part of its governance structure[8]. - The management philosophy focused on aligning employee interests with the company while strictly controlling food safety and other risks[20]. - The company has established Board committees to delegate various responsibilities as outlined in their terms of reference[105]. - The Board is responsible for major decisions, including approval and monitoring of all major policies and overall strategies[105]. - The company has complied with the Corporate Governance Code provisions for the year ended December 31, 2020[104]. Financial Management and Risk - The Group's risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatement or loss[169]. - The Group has established a risk management system based on the COSO framework and ISO 31000:2009, focusing on design, implementation, monitoring, assessment, and continuous improvement[167]. - The company emphasizes effective communication with shareholders to enhance investor relations and understanding of business performance[171]. Challenges and Market Conditions - The company faced unprecedented pressures in the catering service industry in 2020, challenging management capacity and brand value[20]. - The COVID-19 pandemic has created uncertainties that may affect consumer demand for the company's services, potentially impacting financial performance[62]. - The company must manage costs effectively to avoid negative impacts on operations and profitability[192]. - Economic conditions in operating markets may affect average spending per guest, impacting consumer choices for high-margin items[192]. Acquisitions and Partnerships - The company has initiated a strategic partnership with local suppliers to enhance its supply chain resilience[5]. - The Group's acquisition of 80% equity interests in Shanghai Shuhai was at a consideration of RMB120 million[57]. - The Group's acquisition of 80% of HN&T Holdings was at a total consideration of US$3.04 million[57]. - The company is exploring potential acquisitions to enhance its market share in the hot pot industry, particularly in Europe[75].