Core Viewpoint - Haidilao is diversifying its product offerings beyond hot pot, introducing affordable meal options like a 22 yuan self-service lunch to attract cost-conscious consumers, particularly workers [1][5][6] Group 1: New Product Offerings - Haidilao has launched a self-service lunch priced at 22 yuan, featuring various dishes including hot and cold items, fruit, drinks, and staples [1] - The company previously introduced smaller portion dishes priced between 4-25 yuan, reflecting a strategy to cater to individual dining preferences [4] - New products like breakfast items and boxed meals are being sold at lower prices, such as 1.5 yuan for tea eggs and around 15 yuan for boxed meals [8] Group 2: Market Strategy - The introduction of lower-priced offerings is a response to increased competition and a challenging market environment, as Haidilao seeks new growth avenues without extensive new store openings [4][11] - The company is focusing on meeting the needs of budget-conscious workers, leveraging its brand reputation to provide affordable dining options [5] Group 3: Business Performance and Adjustments - Haidilao's average customer spending has decreased from a peak of 110.1 yuan in 2020 to 97.5 yuan in 2024, indicating a shift towards more affordable dining experiences [14] - The company has implemented a decentralized management approach, allowing regional managers to tailor offerings to local tastes, which has contributed to a more diverse product range [13] Group 4: Franchise and Expansion - Haidilao is cautiously exploring franchise opportunities, having received over 20,000 applications but only opening 13 franchise locations by the end of 2024, with most being transfers of existing stores [20] - The franchise model aims to reduce operational costs while providing support to franchisees, although the current contribution to total revenue remains minimal at 0.1% [18][20]

Financial Performance - In 2024, the company achieved operating revenue of 675.85 million yuan, a year-on-year increase of 26.57% [1] - The net profit attributable to shareholders decreased by 17.43% to 25.20 million yuan [1] - The net profit after deducting non-recurring gains and losses fell by 21.35% [1] - As of December 31, 2024, the net assets attributable to shareholders were 973.97 million yuan, a decrease of 0.41% [1] - In Q1 2025, operating revenue was 16.21 million yuan, a growth of 1.29% year-on-year [1] - The net profit attributable to shareholders in Q1 2025 was 2.86 million yuan, down 38.70% [1] Operational Metrics - The average occupancy rate for direct-operated hotels in 2024 was 63.68%, with an average room price of 483.49 yuan, resulting in a RevPAR of 307.89 yuan [1] - In Q1 2025, the average occupancy rate was 56.51%, with an average room price of 471.81 yuan, leading to a RevPAR of 266.62 yuan [1] - During the "May Day" holiday in 2025, the average RevPAR exceeded 550 yuan, with significant performance from the "Pagoda" and "Night Boat" brands, which saw a 10% year-on-year increase [3] Market Strategy and Adjustments - The company is actively adjusting marketing strategies and channel layouts in response to market changes, particularly in the face of reduced business travel and traditional customer channels [5] - The company has expanded its overseas market presence, benefiting from government policies, which has stabilized hotel pricing [6] - The membership base surpassed 18 million in 2024, with a steady increase in the proportion of revenue from membership channels [6] Investment and Expansion Plans - A new investment project in Chengdu is in the planning stage, expected to open in Q4 2025, featuring over 300 rooms [8] - The company has launched a franchise business model, signing eight new franchise projects in key cities like Guangzhou and Chengdu [12] - The company aims to enhance its investment efficiency and project development channels through partnerships with professional institutions [8] Challenges and Opportunities - The hotel industry is facing challenges due to changes in customer structure and booking channels, necessitating a shift in operational strategies [5] - The company is focusing on the growing demand in lower-tier markets and the silver economy, developing products tailored to family and elderly travelers [10] - The company is leveraging its experience in property renovation to capitalize on the current market dynamics, particularly in high-end vacation hotels [15]

Group 1: Company Overview - Hushang Auntie (Shanghai) Industrial Co., Ltd. will begin trading on the Hong Kong Stock Exchange on May 8, with a global offering of 2,411,340 H-shares priced at a maximum of HKD 113.12 per share [1] - The company operates the fourth largest ready-to-drink tea shop network in China, with a significant presence in lower-tier markets [1] - The number of stores increased from 5,307 at the end of 2022 to 7,789 by the end of 2023, and is projected to exceed 9,176 by the end of 2024, with 99.7% of stores being franchisee-operated [1] Group 2: Financial Performance - The Gross Merchandise Volume (GMV) grew from CNY 6.068 billion in 2022 to CNY 9.732 billion in 2023, and is expected to reach CNY 10.736 billion in 2024 [1] Group 3: Fundraising and Future Plans - The funds raised from the IPO will be used to enhance digital capabilities, develop new products, upgrade equipment, strengthen supply chain capabilities, expand the store network, invest in marketing activities, and supplement working capital [2] - The company aims to deepen its existing market presence and expand into more third-tier and below cities [2]

Investment Rating - The investment rating for the company is "Maintain Buy" [5] Core Views - The company reported a revenue of 42.755 billion yuan in 2024, a year-on-year increase of 3.1%, and a net profit of 4.708 billion yuan, up 4.6% year-on-year, with core operating profit rising by 18.7% to 6.230 billion yuan [1] - The company is focusing on shareholder returns, increasing the dividend payout ratio from 90% in 2023 to 95% in 2024 [9] - The company has initiated the "Pomegranate Plan" and is steadily advancing its franchise business, which is expected to open new growth avenues [4][9] Summary by Sections Financial Performance - In 2024, the company achieved a gross margin of 62.1%, an increase of 3.0 percentage points year-on-year, with the second half of 2024 showing a gross margin of 63.2%, up 4.2 percentage points year-on-year [3] - The net profit for 2024 was 4.708 billion yuan, with a net profit margin of 11.0%, reflecting a slight increase of 0.1 percentage points year-on-year [3] Business Expansion - As of the end of 2024, the company operated 1,355 direct stores, with a net reduction of 19 stores throughout the year, but began a steady expansion in the second half of 2024 [2] - The company has completed the review and establishment of 13 franchise stores, indicating a commitment to expanding its franchise network [9] Sales and Customer Metrics - The overall average customer spending in 2024 was 97.5 yuan, with a slight decrease compared to the previous year, but showing a recovery in the second half of 2024 [2] - The overall table turnover rate was 4.1 times per day, with a year-on-year increase of 0.3 times per day, although it showed a slight decline compared to the first half of 2024 [2] Future Projections - Revenue projections for 2025, 2026, and 2027 are 44.146 billion yuan, 46.880 billion yuan, and 49.751 billion yuan respectively, with corresponding net profits of 4.843 billion yuan, 5.568 billion yuan, and 6.218 billion yuan [10]

Meeting Overview - The meeting took place in March 2025, with both onsite and online participation [1] - Attendees included representatives from various securities firms and investment funds [1] Cost Reduction and Efficiency Improvement - The company established a special task force for cost reduction and efficiency improvement, focusing on organizational reform and process reengineering [1] - Specific measures include enhancing management efficiency through talent development, standardizing procurement processes, optimizing property resources, and strengthening financial controls [1] Chronic Disease Management Services - The company offers comprehensive health management services for chronic disease patients, utilizing digital tools to enhance service quality and customer retention [2] - As of Q3 2024, the company has established health records for over 16.84 million chronic disease patients, with a higher repurchase rate for chronic disease self-test members compared to regular members [2] - The company has equipped 9,352 stores with free self-testing devices for chronic diseases [2] Franchise Business Strategy - The franchise business is a key strategic focus for the company, leveraging its asset-light model to rapidly expand market presence [3] - The franchise model allows better penetration into county and town markets, benefiting from local franchisees' customer loyalty and resource advantages [3] - The company has a strong brand influence and operational management capabilities, with over 20 years in the pharmaceutical retail industry [3]