HAIDILAO(HK:06862) Mei Ri Jing Ji Xin Wen·2025-12-09 16:28Core Viewpoint - The recent opening of a pet-friendly Haidilao restaurant in Shenzhen has sparked controversy regarding public health and brand image, despite being an innovative attempt to tap into the pet economy amid declining performance in the core business [4][5]. Group 1: Company Initiatives - Haidilao has launched its first pet-friendly restaurant in Shenzhen, allowing customers to bring pets for dining, with specific health and safety measures in place [4][3]. - The restaurant features a separate dining area for pets, provides free clean drinking water, and offers pet-specific meals without salt or seasoning [4][3]. - The company is exploring the pet economy as a strategic choice to counteract declining revenue and customer traffic, as evidenced by a 3.7% year-on-year revenue drop in the first half of 2025 [5][6]. Group 2: Market Context - The hot pot market in China is projected to reach a scale of 617.5 billion yuan in 2024, with a year-on-year growth of 5.6%, indicating a competitive landscape as the number of hot pot restaurants fluctuates [5]. - Haidilao's store count has decreased from 1,433 in 2021 to 1,368 by the end of 2024, reflecting challenges in maintaining growth in a saturated market [5]. - The company's cash flow remains strong, with operating cash flow of 3.25 billion yuan in the first half of 2025, providing a financial cushion for new initiatives like the "Red Pomegranate Plan" [5][6].