Core Insights - Haidilao reported a revenue of 20.703 billion RMB and a net profit of 1.755 billion RMB for the first half of 2025, indicating challenges in the restaurant industry amid slowing growth and increased competition [1][2]. Financial Summary - Total revenue for the first half of 2025 was 20.703 billion RMB, down from 21.491 billion RMB in 2024, representing a decrease of approximately 3.7% [2]. - Restaurant operating income was 19.177 billion RMB, compared to 20.596 billion RMB in the previous year, reflecting a decline [2]. - The core operating profit was 2.408 billion RMB, down from 2.799 billion RMB in 2024 [2]. - Basic earnings per share were 0.32 RMB, a decrease from 0.38 RMB in the previous year [2]. Industry Context - The overall restaurant industry in China saw a 4.3% year-on-year increase in revenue from January to June, but the growth rate for key enterprises was only 3.6%, with a decline of 0.4% in June [3]. - The China Cuisine Association described the industry's situation as "slowing revenue growth, declining profits, and intensified competition" for the first half of the year [3]. Operational Performance - Haidilao's self-operated restaurant turnover rate was 3.8 times per day, down from 4.2 times in the previous year, with a total customer count of nearly 190 million in the first half of 2025 [5][6]. - The company operated 1,363 restaurants as of mid-2025, an increase from 1,343 in the same period last year, with 1,299 in mainland China and 23 in Hong Kong, Macau, and Taiwan [5][6]. - Haidilao opened 25 new self-operated restaurants and 3 franchise restaurants while closing 33 underperforming locations [5]. Business Highlights - The takeaway business saw a nearly 60% increase in revenue, with "one-person meal" offerings contributing over 55% of takeaway income [6]. - The "Red Pomegranate Plan," launched in August 2024, has been in effect for a year, focusing on incubating internal and external entrepreneurs [7]. - Other restaurant brands under Haidilao, including "Yanjing Barbecue," opened 46 new locations, contributing to a 227% year-on-year increase in "other restaurant income," totaling 597 million RMB [7].