HAIDILAO(HK:06862) Sou Hu Cai Jing·2026-01-14 06:43Core Viewpoint - The return of founder Zhang Yong as CEO of Haidilao is seen as a strategic move to navigate the company out of its current transformation challenges, following a series of leadership changes and operational adjustments over the past few years [1][12]. Leadership Changes - Haidilao has experienced frequent leadership changes, with Zhang Yong returning after four years, marking the third CEO change in recent years, indicating a need for alignment with the company's evolving strategic requirements [2][12]. - The previous CEOs, including Yang Lijuan and Gou Yiqun, were all part of the founding team, reflecting a strong internal leadership pipeline [2][3]. Operational Challenges and Strategies - The company faced significant operational challenges, including a historic loss of 4.16 billion RMB in 2021 due to aggressive expansion, leading to the implementation of the "Woodpecker Plan" to close underperforming stores [3][4]. - Yang Lijuan's leadership saw the closure of 276 restaurants in 2021, with subsequent years showing a reduction in closures, indicating effective strategic adjustments [3][4]. Financial Performance - In 2023, Haidilao achieved record revenues of 41.453 billion RMB and a net profit of 4.495 billion RMB, with significant growth compared to 2019 [4]. - Despite growth in key metrics, the average customer spending in 2023 declined from 103.2 RMB to 97.3 RMB, reflecting broader consumer spending trends [4][13]. New Strategic Initiatives - The "Pomegranate Plan" was initiated to diversify the business model and mitigate risks associated with the main brand's performance, with a focus on developing new restaurant brands [8][12]. - By the end of 2024, Haidilao had established 11 new restaurant brands, contributing 4.83 million RMB in revenue, although this still represented a small portion of overall revenue [12][13]. Market Response - Following the announcement of Zhang Yong's return, Haidilao's stock price surged over 10%, indicating positive market sentiment towards the leadership change [15].