HAIDILAO(HK:06862)2023-03-30 10:47Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 34,740.96 million, a decrease of 15.5% compared to RMB 41,111.62 million in 2021[2] - Revenue from continuing operations for the year was RMB 31,038.63 million, down 20.6% from RMB 39,096.73 million in 2021[4] - The net profit for the year was RMB 1,373.22 million, a significant recovery from a loss of RMB 4,161.21 million in 2021[2] - The group reported a profit from continuing operations of RMB 1,637.3 million for the year ended December 31, 2022, compared to a loss of RMB 3,247.8 million in the previous year[42] - The company reported a profit attributable to owners of RMB 1,374,477 thousand for the year ended December 31, 2022, compared to a loss of RMB 4,163,175 thousand in 2021, marking a significant turnaround[43] - The total comprehensive income attributable to owners from continuing operations was RMB 1,517,650 thousand, compared to a loss of RMB 3,238,120 thousand in the previous year[43] - Basic and diluted earnings per share from continuing and discontinued operations were RMB 0.25, recovering from a loss of RMB 0.78 in 2021[43] Revenue Breakdown - Revenue from restaurant operations accounted for 93.3% of total revenue in 2022, amounting to RMB 28,942.6 million, a decrease of 22.9% compared to RMB 37,547.0 million in 2021[10] - The revenue from the takeaway business surged by 103.3% from RMB 629.8 million in 2021 to RMB 1,280.1 million in 2022, driven by an increase in the number of cities and stores covered[11] - Restaurant business revenue was RMB 29,087,006, down 22.9% from RMB 37,744,701 in the previous year[50] Operational Changes - The number of Haidilao restaurants increased to 1,371 by December 31, 2022, compared to 1,349 in 2021[3] - The company opened 24 new restaurants in 2022 while reopening 48 previously closed locations and closing 50 underperforming restaurants[4] - The management initiated the "Hard Bone" plan in September 2022 to restore operations of previously closed restaurants[5] - The number of restaurants providing community operations increased from fewer than 450 at the beginning of 2022 to over 1,400 by the end of the year, covering more than 300 cities[10] Customer Metrics - The average customer spending increased to RMB 104.9 in 2022 from RMB 102.3 in 2021[3] - The average table turnover rate remained stable at 3.0 times per day for both 2022 and 2021[3] - The company served over 276.3 million customers in the Greater China region in 2022, with registered members exceeding 116.0 million[7] Cost Management - The cost of raw materials and consumables decreased by 25.2% to RMB 12,906.4 million, representing 41.6% of revenue, down from 44.1% in 2021[18] - Employee costs reduced by 26.6% to RMB 10,239.8 million, accounting for 33.0% of revenue, down from 35.7% in 2021[19] - Rent and related expenses decreased by 7.5% to RMB 274.3 million, maintaining a stable percentage of 0.9% of revenue[20] Cash Flow and Assets - Cash and cash equivalents increased from RMB 5,766.8 million as of December 31, 2021, to RMB 6,300.8 million as of December 31, 2022, primarily due to increased net cash from operating activities and reduced capital expenditures[29] - Inventory decreased from RMB 1,456.2 million as of December 31, 2021, to RMB 1,141.8 million as of December 31, 2022, with inventory turnover days increasing from 26.5 days to 35.2 days due to reduced procurement amid the pandemic[31] - Trade receivables decreased from RMB 367.7 million as of December 31, 2021, to RMB 306.9 million as of December 31, 2022, with turnover days increasing from 2.9 days to 3.7 days[32] Future Plans and Strategies - The company plans to continue focusing on product innovation and operational improvements in 2023[5] - The group plans to continue enhancing dining experiences and investing in new technologies, including optimizing business management systems and smart restaurant technologies[41] - The company aims to expand its market presence and enhance its product offerings in the coming years[46] Shareholder Information - The board proposed a final dividend of HKD 0.116 per share (equivalent to RMB 0.102), subject to shareholder approval at the annual general meeting on June 7, 2023[95] - The company declared a final dividend of approximately RMB 549.8 million for the year ended December 31, 2022, compared to RMB 92.8 million in 2021[67] Compliance and Governance - The audit committee reviewed the annual performance for the year ended December 31, 2022, and confirmed compliance with relevant accounting standards[90] - The company has complied with the corporate governance code and has separated the roles of the chairman and CEO since March 1, 2022[88]