HAIDILAO(06862)2024-08-27 11:42Financial Performance - Revenue for the first half of 2024 reached RMB 21,490.9 million, a 13.8% increase compared to the same period in 2023[4] - Core operating profit (non-IFRS measure) for the first half of 2024 was RMB 2,798.9 million, up 13.0% year-over-year[4] - The company's net profit for the first half of 2024 was RMB 2,033.1 million, a 10.0% decrease compared to the same period in 2023[4] - Revenue increased by 13.8% from RMB 18,885.9 million in H1 2023 to RMB 21,490.9 million in H1 2024[6] - Net profit decreased from RMB 2,258.9 million in the six months ended June 30, 2023, to RMB 2,033.1 million in the same period in 2024[25] - Core operating profit (non-IFRS measure) increased from RMB 2,476.4 million in the six months ended June 30, 2023, to RMB 2,798.9 million in the same period in 2024[26] - Revenue for the six months ended June 30, 2024, is RMB 21,490.9 million, a 13.8% increase compared to RMB 18,885.9 million in the same period in 2023[38] - Net profit for the six months ended June 30, 2024, is RMB 2,033.1 million, a decrease of 10.0% compared to RMB 2,258.9 million in the same period in 2023[38] - Basic earnings per share for the six months ended June 30, 2024, is RMB 0.38, compared to RMB 0.42 in the same period in 2023[39] - Total revenue for the six months ended June 30, 2024, was RMB 21,490.9 million, compared to RMB 18,885.9 million for the same period in 2023, representing a 13.8% increase[46] - Restaurant business revenue for the six months ended June 30, 2024, was RMB 20,596.4 million, up 14.2% from RMB 18,040.0 million in the same period in 2023[46] - Delivery business revenue for the six months ended June 30, 2024, was RMB 581.2 million, a 23.3% increase from RMB 471.4 million in the same period in 2023[46] - Revenue from Mainland China accounted for RMB 20,760.6 million (96.6% of total revenue) for the six months ended June 30, 2024, up 14.2% from RMB 18,182.3 million in the same period in 2023[48] - Basic earnings per share for the six months ended June 30, 2024, were RMB 2,038,125 thousand, compared to RMB 2,258,052 thousand in the same period in 2023[54] Restaurant Operations - The average table turnover rate for Haidilao restaurants in the first half of 2024 was 4.2 times per day, up from 3.3 times per day in the same period in 2023[3] - The company served over 209.9 million customers in the first half of 2024[4] - Haidilao opened 11 new restaurants and closed 43 underperforming restaurants in the first half of 2024, resulting in a total of 1,343 restaurants as of June 30, 2024[4] - As of June 30, 2024, Haidilao operated 1,320 restaurants in Mainland China and 23 in the Hong Kong, Macau, and Taiwan regions[4] - Haidilao restaurant operations accounted for 95.0% of total revenue, with a 13.8% increase from RMB 17,935.4 million in H1 2023 to RMB 20,414.0 million in H1 2024[8] - Average table turnover rate increased from 3.3 times/day in H1 2023 to 4.2 times/day in H1 2024[8] - Same-store sales in first-tier cities increased to RMB 3,502,065 thousand, up 11.3% YoY[12] - Same-store sales in second-tier cities rose to RMB 7,632,547 thousand, up 13.9% YoY[12] - Same-store sales in third-tier and below cities grew to RMB 7,836,184 thousand, up 19.9% YoY[12] - Total same-store sales reached RMB 19,605,740 thousand, up 15.3% YoY[12] - Average daily sales per same-store in first-tier cities increased to RMB 88.6 thousand, up 10.5% YoY[12] Customer Metrics - Customer spending per capita decreased to RMB 97.4 in the first half of 2024, down from RMB 102.9 in the same period in 2023[3] - Customer per capita spending decreased from RMB 102.9 in H1 2023 to RMB 97.4 in H1 2024[8] Expansion and New Formats - The company plans to significantly increase the number of new restaurant openings in the second half of 2024 compared to the first half[4] - The company introduced a franchise model to expand coverage and enter lower-tier markets[5] - The "Red Pomegranate Plan" was launched to incubate and develop new dining brands, with 5 projects in operation in H1 2024[6] - New dining formats such as camping hotpot, campus hotpot, and corporate hotpot were introduced to diversify customer experience[6] - Haidilao's new brands, such as "Yanqing BBQ Shop" and "Xiao Hi Hotpot," are targeting different price segments and consumer groups[6] Costs and Expenses - Employee costs increased by 24.0% to RMB 7,155.7 million, accounting for 33.3% of revenue[16] - Raw material and consumables costs rose by 9.1% to RMB 8,387.2 million, but decreased as a percentage of revenue to 39.0%[15] - Depreciation and amortization decreased by 11.1% to RMB 1,339.1 million, accounting for 6.2% of revenue[20] - Other expenses increased by 28.9% to RMB 881.1 million, mainly due to increased marketing activities[21] - Financial costs decreased by 23.2% to RMB 140.5 million, driven by reduced interest on bank borrowings and lease liabilities[24] - Income tax expenses increased by 54.1% from RMB 554.9 million in the six months ended June 30, 2023, to RMB 855.0 million in the same period in 2024, primarily due to higher tax losses utilized in the previous year[25] - Employee costs for the six months ended June 30, 2024, increased to RMB 7,155,747 thousand from RMB 5,769,263 thousand in the same period in 2023[52] - Depreciation and amortization expenses for the six months ended June 30, 2024, were RMB 1,339,057 thousand, down from RMB 1,506,422 thousand in the same period in 2023[52] - Financial costs for the six months ended June 30, 2024, totaled RMB 140,504 thousand, a decrease from RMB 183,021 thousand in the same period in 2023[51] - Tax expenses for the six months ended June 30, 2024, amounted to RMB 854,957 thousand, compared to RMB 554,930 thousand in the same period in 2023[51] Cash Flow and Financial Position - Cash and cash equivalents increased from RMB 6,475.5 million as of December 31, 2023, to RMB 8,424.9 million as of June 30, 2024, driven by operating activities[29] - Inventory decreased from RMB 1,074.6 million as of December 31, 2023, to RMB 818.9 million as of June 30, 2024, with inventory turnover days decreasing from 23.9 days to 20.4 days[31] - Trade receivables decreased from RMB 412.0 million as of December 31, 2023, to RMB 278.6 million as of June 30, 2024, with turnover days decreasing from 3.2 days to 2.9 days[32] - Trade payables decreased from RMB 1,859.4 million as of December 31, 2023, to RMB 1,470.7 million as of June 30, 2024, with turnover days increasing from 34.3 days to 35.9 days[33] - Bank borrowings as of June 30, 2024, amounted to RMB 294.4 million, with new loans of RMB 50.0 million and repayments of RMB 379.7 million during the six-month period[33] - The company held time deposits with initial maturities exceeding 3 months of RMB 3,256.8 million as of June 30, 2024, with total bank balances and cash amounting to RMB 11,681.7 million[29] - Right-of-use assets recognized under IFRS 16 amounted to RMB 3,207.9 million as of June 30, 2024[30] - Capital-to-debt ratio as of June 30, 2024, is 24.6%[34] - Total assets as of June 30, 2024, are RMB 25,372.7 million, compared to RMB 24,677.0 million as of December 31, 2023[40] - Total liabilities as of June 30, 2024, are RMB 15,833.5 million, compared to RMB 13,160.1 million as of December 31, 2023[41] - Non-current assets as of June 30, 2024, were RMB 6,825.2 million, a decrease of 13.0% from RMB 7,844.5 million as of December 31, 2023[48] - Interest income for the six months ended June 30, 2024, was RMB 244.8 million, an 83.8% increase from RMB 133.1 million in the same period in 2023[49] - Government subsidies for the six months ended June 30, 2024, were RMB 23.0 million, a 31.6% decrease from RMB 33.6 million in the same period in 2023[49] - Net impairment losses reversed for the six months ended June 30, 2024, were RMB 30.6 million, compared to a net impairment loss of RMB 11.5 million in the same period in 2023[50] - Exchange loss for the six months ended June 30, 2024, was RMB 25.9 million, compared to an exchange gain of RMB 192.5 million in the same period in 2023[50] - Dividends declared for the six months ended June 30, 2024, were RMB 4,061,454 thousand, significantly higher than RMB 570,479 thousand in the same period in 2023[52] - The company purchased property, plant, and equipment worth RMB 400,465 thousand during the six months ended June 30, 2024, up from RMB 91,044 thousand in the same period in 2023[55] - Impairment losses on property, plant, and equipment for the six months ended June 30, 2024, were RMB 18,618 thousand, compared to RMB 24,048 thousand in the same period in 2023[57] - Impairment losses on right-of-use assets for the six months ended June 30, 2024, were RMB 20,094 thousand, compared to RMB 7,267 thousand in the same period in 2023[57] - Trade receivables decreased to RMB 278,608 thousand as of June 30, 2024, from RMB 411,995 thousand as of December 31, 2023, a decline of 32.4%[58] - Total trade and other receivables and prepayments decreased to RMB 1,480,897 thousand as of June 30, 2024, from RMB 2,028,657 thousand as of December 31, 2023, a decline of 27.0%[58] - Trade payables within 60 days decreased to RMB 1,384,470 thousand as of June 30, 2024, from RMB 1,784,199 thousand as of December 31, 2023, a decline of 22.4%[59] - Employee cost payables decreased to RMB 1,689,900 thousand as of June 30, 2024, from RMB 1,749,831 thousand as of December 31, 2023, a decline of 3.4%[59] - The company repurchased USD 11.5 million of its 2026 senior notes in April 2024 at a cost of USD 10,795,120, reducing the outstanding principal to USD 285.48 million[60] - As of June 30, 2024, the company had utilized HKD 7,072.9 million of the global offering proceeds, representing 96.9% of the total, with HKD 226.4 million remaining[62] - The company allocated 60.0% of the global offering proceeds (HKD 4,379.5 million) to expansion plans, which have been fully utilized as of June 30, 2024[63] - As of June 30, 2024, the company had utilized HKD 1,545.6 million of the 2021 placement proceeds, representing 66.1% of the total, with HKD 791.4 million remaining[64][65] - The company expects to utilize the remaining HKD 791.4 million from the 2021 placement proceeds by the end of 2026, subject to market conditions and business needs[66] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.391 per share for the first half of 2024[3] - The company announced an interim dividend of HKD 0.391 per share (equivalent to RMB 0.358) for shareholders on the register as of September 16, 2024, totaling HKD 2,117,265 thousand (equivalent to RMB 1,938,570 thousand)[53] - The company has declared an interim dividend of HKD 0.391 per share (equivalent to CNY 0.358) for the six months ending June 30, 2024, payable to shareholders registered by September 16, 2024[68] - The interim dividend is expected to be paid on or before October 2, 2024, calculated based on the average benchmark exchange rate of CNY to HKD published by the People's Bank of China five working days prior to August 27, 2024[68] - Share transfer registration will be suspended from September 11, 2024, to September 16, 2024, to determine eligibility for the interim dividend[68] Management and Governance - Yang Lijuan resigned as Executive Director and CEO, and Gou Yiqun was appointed as Executive Director and CEO, effective July 1, 2024[67] - Zhang Junjie has been appointed as an independent non-executive director effective August 27, 2024, with an annual remuneration of CNY 1,200,000[70] - Zhang Junjie has over 13 years of experience in the catering industry and is the founder and CEO of Chagee Holdings Limited[70] - The company's board now includes Chairman and Executive Director Zhang Yong, Vice Chairman and Executive Director Zhou Zhaocheng, and other executive and independent non-executive directors[72] Strategic Plans - The company plans to continue refining the management of its restaurants, exploring diversified business strategies, and strategically seeking acquisitions of high-quality assets[37] Reporting and Compliance - The company will publish its interim results announcement and interim report on the HKEX website and its own website, with the report containing all information required under Appendix D2 of the Listing Rules[69]