Core Viewpoint - Nomura has downgraded its profit forecasts for Haidilao from 2023 to 2027 by 7% to 10%, with a target price reduced to HKD 16.2 [1] Financial Performance - Nomura expects Haidilao's mid-term revenue to decline by 4.4% year-on-year to RMB 20.5 billion, primarily due to the impact on table turnover rates [1] - Despite improvements in average spending per order, restaurant operations are estimated to decrease by 6% year-on-year [1] - The growth in takeout and barbecue businesses may partially alleviate the decline [1] Profitability Metrics - The firm has lowered its profit margin forecasts, predicting a contraction in operating profit margin and adjusted net profit margin by 0.3% and 0.4% year-on-year, respectively [1] - Food cost ratio is expected to increase by 2.4% compared to the second half of last year [1] - Operating expense ratio is projected to rise by 0.4% year-on-year due to efforts to provide better value products [1] - Adjusted net profit is forecasted to decline by 8% year-on-year to RMB 1.8 billion [1] Long-term Outlook - The downgrade in net profit forecasts for the company from 2023 to 2027 reflects higher-than-expected operating costs [1] - The target price has been revised from HKD 20.2 to HKD 16.2, while maintaining a buy rating [1]

Core Points - The core initiative of the company is the launch of the "Feng Huan Chao" partner program aimed at outstanding internal employees and talented individuals in the restaurant industry [1][3] - The first batch of 21 partners has officially signed with the company, marking the successful implementation of the program [1][3] Group 1 - The first batch of partners mainly consists of excellent internal employees from key positions such as operation managers and store managers across various regions [3] - Partners will engage in a shareholding model with the company, aligning store profits closely with the partners to enhance their motivation and initiative [3] - The company emphasizes that the program is designed to support partners without requiring them to consider opening funds or brand management costs, allowing them to focus on optimizing operational metrics [3] Group 2 - The company commits to providing comprehensive support to partners, including brand authorization, supply chain assurance, and strict management standards, ensuring a win-win development for both the brand and partners [3][4] - All partner stores must adhere to the company's stringent management standards and food safety systems to maintain brand image and service quality consistency [3][4] - The company plans to establish a dedicated service team to support partners throughout the entire process, from site evaluation to operational guidance and marketing planning [3][4] Group 3 - The "Feng Huan Chao" program aims to encourage frontline employees, with a focus on providing the highest profit-sharing ratio to them [4] - The program is rooted in the company's core value of sharing results with those who strive [4] - Currently, there are 5 partner stores in operation, with plans to steadily add approximately 50 to 100 partner stores each year in the future [4]

Core Viewpoint - Haidilao emphasizes the importance of food safety by implementing innovative practices that engage all employees in the process, ensuring that food safety is a collective responsibility rather than just a formal requirement [1][3]. Group 1: Employee Engagement in Food Safety - Haidilao has introduced the "One-Day Food Safety Officer" mechanism, allowing all employees, from kitchen staff to servers, to participate in food safety checks through a role-switching system [3]. - The company has established a "Dual Safety" certification system that integrates food safety knowledge into new employee training, requiring online courses, quizzes, and certification before employees can earn wages [3][5]. - A points redemption system has been implemented to motivate employees, allowing them to earn points by identifying food safety issues, which can be exchanged for rewards [5]. Group 2: Training and Development - New employees undergo a "Teach Three, Practice Four" training method, ensuring they understand key food safety points and essential knowledge for their roles [5]. - The training is conducted one-on-one to guarantee that new hires grasp the critical aspects of food safety from their first day [5]. Group 3: Industry Contribution - In addition to enhancing its own food safety management, Haidilao supports suppliers, participates in standard-setting, and conducts public education to improve food safety standards across the restaurant industry [5].

Core Viewpoint - The introduction of a QR code for tipping at Haidilao could undermine its core service model, leading to consumer distrust and a potential decline in service quality [3][4][46]. Group 1: Haidilao's Service Model - Haidilao's core competitive advantage lies in its service, which is supported by its pricing strategy [7][8]. - Consumer perception of service quality is crucial, and any differentiation in treatment can lead to dissatisfaction [10][12]. Group 2: Impact of Tipping - The introduction of tipping can lead to questions about the motives behind service quality, potentially causing consumer anger [24][35]. - When tipping is involved, consumers may feel that service quality is contingent on whether they tip, which alters their expectations [31][38]. Group 3: Consumer Expectations - With the introduction of tipping, consumer expectations shift, and they may begin to compare Haidilao's service to that of high-end restaurants [39][40]. - The visibility of tipping through a QR code can create a perception of unfairness, leading to a trust crisis between consumers and service staff [46][47].

Group 1: Recent IPOs - Six new stocks were listed last week, raising approximately $1.33 billion in total [1] - MENS raised $20 million by issuing 2.67 million shares at $7.5 per share [1] - Caris Life Sciences raised $494 million by issuing 23.53 million shares at $21 per share [1] - Slide Insurance Holdings raised $408 million by issuing 24 million shares at $17 per share [1] - Enigmatig raised $14.27 million by issuing 285,000 shares at $5 per share [1] - SPAC Axiom Intelligence Acquisition raised $175 million, while Pioneer Acquisition I raised $220 million [1] - Seven companies submitted prospectuses to the SEC, including one from China, Jiamai New Materials [1] Group 2: Upcoming IPOs - Happy City Holdings Limited, a chain hotpot restaurant based in Hong Kong, plans to go public on June 24, 2025, on NASDAQ under the ticker HCHL, aiming to raise approximately $7 million by issuing 1 million shares at $5 to $7 per share [3][4] - Kandal M Venture Ltd, a luxury leather goods manufacturer, plans to go public on June 25, 2025, on NASDAQ under the ticker FMFC, aiming to raise approximately $10 million by issuing 2 million shares at $4 to $5 per share [5][7] - Jefferson Capital, Inc., a consumer debt acquisition and collection company, plans to go public on June 26, 2025, on NASDAQ under the ticker JCAP, aiming to raise approximately $170 million by issuing 10 million shares at $15 to $17 per share [9][10] Group 3: Financial Data - For the fiscal year 2023-2024, Happy City Holdings reported revenues of $6.75 million and $8.3 million, with net profits of -$1.09 million and $1.32 million respectively [4] - Kandal M Venture reported revenues of $9.52 million for the six months ending September 30, 2024, compared to $8.01 million in the same period last year, with net profits of $0.65 million and $0.77 million respectively [8] - Jefferson Capital reported revenues of $155 million for Q1 2025, up from $99.96 million in the same period last year, with net income of $64.23 million compared to $32.90 million [11]

Core Viewpoint - Haidilao is promoting a culture of saving and reducing food waste through various initiatives, including encouraging customers to order smaller portions and implementing efficient inventory management practices [1][2] Group 1: Customer Engagement - Haidilao advocates for customers to order appropriately by allowing 90% of its dishes to be ordered in half portions, with over 80% of these half-portion dishes being popular among customers [1] - The introduction of the "Lao Pai Nine Grid" offers a selection of nine signature dishes in a compact format, providing diverse options for consumers while promoting the idea of tasting without waste [1] Group 2: Operational Efficiency - The company employs visual management in its storage facilities to enhance organization and cleanliness, which helps in tracking inventory effectively and reducing waste from expired products [1] - Haidilao utilizes a demand-based inventory replenishment system and small packaging initiatives to ensure the freshness of ingredients and minimize waste [1] - The implementation of a digital ordering forecast model allows for more accurate inventory management in the kitchen, further reducing waste associated with overstocking [1] Group 3: Supply Chain Innovations - Haidilao has adopted a "central kitchen + clean vegetable delivery" model to minimize waste from rough processing of ingredients at the store level [2] - The company collaborates with suppliers to adjust packaging sizes, converting larger packages into smaller ones to enhance the utilization efficiency of raw materials [2] - Through comprehensive innovation across the supply chain, Haidilao integrates the concept of saving into its operational philosophy, benefiting both customers and internal processes [2]

Core Viewpoint - Banu, a hot pot chain, is preparing for an IPO in Hong Kong, following a trend of consumer companies successfully listing in the market, indicating a strategic move for capital planning and expansion [1][20]. Financial Performance - Banu's revenue has shown significant growth, with figures of approximately 14.33 billion RMB in 2022, 21.12 billion RMB in 2023, and 23.07 billion RMB in 2024, alongside a profit turnaround from a loss of 5.2 million RMB in 2022 to a profit of 1.23 billion RMB in 2024 [3][5]. - The adjusted net profit for the same periods was approximately 420 million RMB, 1.44 billion RMB, and 1.96 billion RMB, with a net profit of 550 million RMB in the first quarter of 2025 [3][5]. Customer Metrics - The average customer spending has decreased from 147 RMB in 2022 to 138 RMB in the first quarter of 2025, reflecting a shift in consumer behavior [2][7]. - Banu's same-store sales increased by 22.6% from 2022 to 2023 but then declined by 9.9% from 2023 to 2024, attributed to changes in product offerings and customer spending [9][10]. Expansion Plans - Banu plans to open approximately 52, 61, and 64 new restaurants in China from 2026 to 2028, aiming to expand its self-operated restaurant network [2][15]. - As of June 9, 2023, Banu operates 145 stores across 39 cities, with a rapid growth strategy in place [11][15]. Market Position - Banu aims to become the third hot pot company listed on the Hong Kong Stock Exchange, following Haidilao and Xiaobuxiang [2]. - The hot pot market in China is fragmented, with the top five players holding only about 8.1% of the market share, and Banu's share is less than 1% [18]. Operational Efficiency - Banu's restaurant operating profit margins have improved, with figures of 15.2%, 21.3%, 21.5%, and 23.7% from 2022 to the first quarter of 2025 [5]. - The table turnover rate has increased from 3 times per day in 2022 to 3.7 times per day in the first quarter of 2025, indicating improved operational efficiency [6].

Core Viewpoint - The incident involving a consumer purchasing a food item with a future packaging date raises significant concerns about food safety and regulatory oversight in the food industry [1][2][3]. Group 1: Incident Details - A consumer in Shanxi, Ms. Wang, reported that the sesame sauce in a meal purchased from Haidilao had a packaging date of June 15, 2025, despite being sold on June 9, 2023 [1]. - Ms. Wang experienced health issues, including diarrhea, after consuming the product, leading to questions about the quality of the sesame sauce [1]. Group 2: Regulatory Response - The local market supervision department initially stated that the seller's actions fell within a non-penalty range according to the "first violation not punished" policy, which sparked controversy [2]. - The department later indicated that the case was still under investigation, suggesting a lack of clarity and consistency in their response [2][3]. Group 3: Legal and Ethical Considerations - The incident highlights potential violations of the Food Safety Law, which mandates that food labels must be truthful and accurate, raising concerns about the seller's practices [2][3]. - The regulatory approach of "soft enforcement" and the "first violation not punished" policy, while intended to support small businesses, must be applied with clear boundaries to maintain consumer trust [3].

Core Viewpoint - The article discusses a consumer complaint regarding a food safety issue with Haidilao's product, highlighting the regulatory response and the company's subsequent actions to address the situation [1][2][4]. Group 1: Consumer Complaint - A consumer in Taiyuan reported purchasing a Haidilao "Douhua Dry Mixed Spicy Hotpot Set" with a peanut sesame sauce labeled with a future production date of June 15, 2025, raising concerns about food safety [1]. - The consumer experienced symptoms of diarrhea after consuming the product, prompting her to report the issue to local authorities [1]. Group 2: Regulatory Response - The local market regulatory department indicated that the incident fell under a "no penalty" category due to the absence of severe consequences and the low monetary value of the product involved [1][2]. - According to the Food Safety Law of the People's Republic of China, penalties for false production dates can range from fines of 50,000 to 100,000 yuan, depending on the value of the goods and the severity of the violation [2]. Group 3: Company Response - Haidilao stated that the actual production date of the peanut sesame sauce was June 9, 2023, and the labeling error was due to a keyboard mishap by an employee, affecting seven orders [4]. - The company expressed regret for the confusion caused and has initiated a system upgrade to prevent similar errors in the future, enhancing operational efficiency [4].

Core Viewpoint - The article highlights the growth and development of the Macau hotpot brand "Guan Ye Street" in mainland China, emphasizing its commitment to providing authentic Macau flavors and adapting to the rising consumer demand for quality dining experiences [1][2]. Group 1: Company Development - "Guan Ye Street" was founded by Chen Zhensheng, who aimed to bring authentic Macau cuisine to mainland consumers, with the first restaurant opening in Beijing's Chaoyang District [1]. - The brand has expanded to three direct-operated stores, reflecting its successful adaptation to the mainland market [1]. - The sourcing of ingredients has evolved from "ice-fresh" to fresh seafood, with a focus on quality and speed, now sourcing directly from international locations such as Canada and Australia [2]. Group 2: Consumer Engagement - The restaurant has been recognized on the mainland's "Black Pearl" dining list for seven consecutive years, with over 70% of customers being repeat visitors, indicating strong consumer loyalty [2]. - The dining environment has been meticulously designed to enhance customer experience, incorporating unique materials and decor that reflect Macau's cultural heritage [2]. Group 3: Market Environment - The business has benefited from an improved business environment, with government initiatives aimed at enhancing commercial conditions and supporting local businesses [2]. - The establishment of "Hong Kong and Macau Youth Beijing Association" aims to create opportunities for young people from Hong Kong and Macau, fostering community and support among them [3].