Summary of Haidilao Conference Call Company Overview - **Company**: Haidilao - **Date**: September 5, 2025 Key Points Industry and Company Performance - Haidilao opened 25 self-operated stores and closed 33 in the first half of the year, totaling 1,299 self-operated stores in Greater China as of June [2][3] - Overall revenue for the first half was 20.703 billion yuan, a decrease of 3.7% year-on-year [3] - Core operating profit was 2.408 billion yuan, down 14% year-on-year, and net profit was 1.755 billion yuan, down 13.7% year-on-year [3] - The table turnover rate was 3.8 times per day, a decline compared to the previous year [3] Revenue Growth in Specific Segments - Under the Red Pomegranate plan, 126 restaurants generated a revenue increase of 227% year-on-year, with takeout revenue growing nearly 60% [2][3] - The takeout segment saw significant contributions from single-serve hot pot and side dishes, with average order values around 30-50 yuan [11] Customer Experience and Innovation - Haidilao observed a notable recovery in customer traffic in July and August, with a peak table turnover rate of 7 times on Qixi Festival [2][5] - The company is innovating through product, scene, and pricing strategies, including the introduction of fresh-cut theme stores and night snack themes [5][6] - New store concepts include high-end selection stores in Beijing and private room-focused stores in Xi'an, enhancing customer interaction and operational efficiency [7] Management and Operational Adjustments - The company is diversifying dining experiences to cater to families and pet owners, providing independent dining environments to enhance customer satisfaction [8][9] - Management has shifted to a more flexible assessment system, focusing on soft indicators like food safety and customer satisfaction rather than strict performance metrics [9][10] Future Strategies and Expansion Plans - Haidilao plans to continue expanding its innovative projects while stabilizing its second growth curve, particularly in the Red Pomegranate initiative [13] - The company aims to introduce high-priced menu items in its rotating hot pot segment to enhance brand value and attract more customers [15] Challenges and Adjustments - The Red Pomegranate brand is experiencing slower growth due to rapid expansion and quality issues, prompting a focus on improving service processes and product quality [17][18] - The company is cautious about dividend payouts due to the cash flow-intensive nature of the restaurant industry, balancing investments with shareholder returns [16] Conclusion - Haidilao is actively working on enhancing customer experiences through innovative dining concepts and operational adjustments while navigating challenges in revenue growth and service quality. The company remains focused on long-term strategies to stabilize and grow its market presence.