HAIDILAO(HK:06862)2020-09-15 09:20Financial Performance - Haidilao reported a revenue of HK$3.2 billion for the first half of 2020, representing a decrease of 24% compared to the same period in 2019[6]. - Haidilao's net profit for the first half of 2020 was HK$300 million, down 56% from HK$680 million in the same period last year[6]. - For the six months ended June 30, 2020, the revenue was RMB 9,760,605, a decrease of 16.5% compared to RMB 11,694,626 for the same period in 2019[21]. - The loss for the period was RMB 964,507, compared to a profit of RMB 912,165 in the same period of 2019[21]. - Total revenue for the group decreased by 16.5% from RMB 11,694.6 million for the six months ended June 30, 2019, to RMB 9,760.6 million for the corresponding period in 2020[33]. - The company reported a loss of RMB 964,602 for the six months ended June 30, 2020, compared to a profit of RMB 911,035 for the same period in 2019[121]. - Total comprehensive expense for the period attributable to owners of the company was RMB 997,996, compared to a comprehensive income of RMB 910,988 in the same period of 2019[114]. Operational Changes - The company opened 12 new restaurants in the first half of 2020, bringing the total number of restaurants to 1,000[6]. - The Company temporarily suspended operations of all restaurants in Mainland China since January 26, 2020, due to the Covid-19 epidemic[23]. - Most restaurants in Mainland China were reopened starting March 12, 2020, following effective control measures by the government[23]. - In the first half of 2020, Haidilao opened 173 new restaurants, increasing its global network from 768 to 935 locations[24]. - The Company implemented customer flow control measures and separate seating arrangements in reopened restaurants[23]. Customer Engagement and Sales - Haidilao reported a significant increase in takeaway and delivery orders, which accounted for 20% of total sales during the first half of 2020[6]. - Revenue from the delivery business increased by 123.7% from RMB183.2 million for the six months ended June 30, 2019, to RMB409.6 million for the corresponding period in 2020, mainly due to an increase in the number of delivery orders[35]. - The average revenue per restaurant decreased by 30% year-on-year due to the impact of COVID-19[6]. - The average spending per guest increased from RMB104.4 in the first half of 2019 to RMB112.8 in the same period of 2020[32]. - The Company served over 81 million customers during the six-month period, with an average table turnover rate of 3.3 times per day[23]. Financial Position and Assets - As of June 30, 2020, total assets increased to RMB 23,036,420 from RMB 20,613,932 as of December 31, 2019[22]. - The equity attributable to owners of the Company decreased to RMB 8,921,592 from RMB 10,623,001 as of December 31, 2019[22]. - Non-current assets increased to RMB 15,589,587 from RMB 13,413,641 as of December 31, 2019[22]. - Total liabilities rose to RMB 14,111,701 from RMB 9,987,899 as of December 31, 2019[22]. - The Group's debt-to-equity ratio was 38.1% as of June 30, 2020, calculated by dividing total borrowings by total equity[56]. Cost Management - Raw materials and consumables used decreased by 11.3% from RMB 4,902.6 million in 2019 to RMB 4,348.2 million in 2020, accounting for 44.5% of revenue[44]. - Staff costs increased by 11.6% from RMB 3,651.9 million in 2019 to RMB 4,074.0 million in 2020, rising from 31.2% to 41.7% of revenue[44]. - Depreciation and amortization rose by 56.2% from RMB 830.1 million in 2019 to RMB 1,297.0 million in 2020, increasing from 7.1% to 13.3% of revenue[45]. - Other expenses increased by 10.7% from RMB 461.6 million in 2019 to RMB 510.8 million in 2020, rising from 3.9% to 5.2% of revenue[45]. Strategic Initiatives - The company plans to expand its presence in international markets, particularly in the United States and Europe, with a focus on increasing brand awareness[6]. - Haidilao is investing in technology to enhance customer experience, including the development of a mobile app for online ordering and payment[6]. - The company is exploring potential mergers and acquisitions to accelerate growth and market penetration[6]. - Future plans include increasing restaurant density, enhancing dining experience, investing in technology, and pursuing strategic acquisitions to diversify the business[58]. Governance and Compliance - The company complied with the mandatory code provisions in the Corporate Governance Code during the six months ended June 30, 2020[83]. - The Audit Committee reviewed the unaudited financial information for the six months ended June 30, 2020, which was prepared in accordance with applicable accounting standards[91]. - The company has adopted the Model Code for securities transactions, and no incidents of non-compliance were noted during the six months ended June 30, 2020[82]. Shareholding Structure - Mr. Zhang Yong holds 3,612,501,243 ordinary shares, representing approximately 68.16% of the total issued share capital[61]. - Ms. Shu Ping, as the spouse of Mr. Zhang Yong, is deemed to have an interest in the same shares, also holding 68.16%[62]. - Mr. Shi Yonghong holds 845,424,028 ordinary shares, representing approximately 15.95% of the total issued share capital[61]. - As of June 30, 2020, UBS Trustees (B.V.I.) Limited holds 4,457,925,271 shares, representing 84.11% of the total shareholding[73].