
Summary of Haidilao Conference Call Company Overview - Company: Haidilao - Period: First half of 2025 - Total Revenue: 20.703 billion CNY, a decrease of 3.7% year-on-year [2][3] Financial Performance - Net Profit: 1.755 billion CNY, down 13.7% year-on-year [3] - Core Operating Profit: 2.408 billion CNY, down 15% year-on-year [3] - Self-operated Restaurant Revenue: 18.58 billion CNY, accounting for 89.8% of total revenue [8] - Average Table Turnover Rate: 3.8 times per day, a decline from the previous year [3] - Material and Consumable Costs: 39.8% of revenue, up 0.8 percentage points year-on-year [9] - Labor Costs: 33.8% of revenue, up 0.5 percentage points year-on-year [9] - Total Assets: 21.115 billion CNY, a decrease of 1.666 billion CNY from the end of 2024 [10] Revenue Breakdown by Region - First-tier Cities: 3.161 billion CNY, 17% of total revenue [3] - Second-tier Cities: 6.923 billion CNY, 37.3% of total revenue [3] - Third-tier and Below Cities: 7.757 billion CNY, 41.8% of total revenue [3] - Hong Kong, Macau, and Taiwan: 730 million CNY, 3.9% of total revenue [3] Strategic Initiatives - Differentiated Services: Introduction of dedicated customer manager model and themed store renovations to enhance customer experience [2][4] - Red Pomegranate Plan: Development of a multi-brand matrix, with 14 other restaurant brands and 126 locations, including Yanching BBQ with nearly 200 million CNY in revenue [5][12] - Digital Operations: Implementation of an intelligent management platform to improve operational efficiency and decision-making [2][7] Membership and Franchise Model - Membership Growth: Over 200 million members, with initiatives to enhance engagement through updated task systems and cross-industry collaborations [6] - Franchise Expansion: 41 franchise stores, utilizing a combination of old and new stores to validate scalability and attract quality franchisees [6] Cost Management - Raw Material and Consumable Costs: Increased due to enhanced customer experience initiatives [9] - Labor Cost Management: Adjustments made to optimize employee management and control costs in response to new social security policies [20][24] Market Trends and Challenges - Industry Performance: Overall restaurant industry growth with challenges in same-store sales for hot pot brands [21][22] - Consumer Behavior: Increased demand for differentiated experiences and health-conscious options, with a shift towards online dining [22][23] Future Outlook - Store Opening Plans: Anticipation of over 40 new franchise stores in the second half of 2025 [16][17] - Continued Focus on Digital Transformation: Ongoing efforts to enhance supply chain and operational efficiency through digital initiatives [20] Conclusion - Financial Health: Despite a decline in revenue and profit, the company maintains a strong cash position with 6.017 billion CNY in cash and 5.3 billion CNY in financial products [19] - Strategic Focus: Emphasis on customer-centric services, digital transformation, and multi-brand development to navigate competitive pressures and market changes [20][23]