China Hotpot Company Haidilao’s Net Loss Reaches CNY 266M in the First Half of the Year

Haidilao’s (06862:HK) revenue reaches CNY 16.764 billion (USD 2.4 billion) in H1 2022, down about 16.57% year-on-year. Net loss of CNY 266 million, which includes one-time losses, impairment losses and other losses totaling about CNY 308 million, as well as fixed expenses and staff costs incurred during the suspension of operations or suspension of dine-in at some restaurants in mainland China in H1 2022.

Haidilao said in its earnings report that from March to May this year, due to the epidemic, an average of more than 200 stores suspended dine-in every day, and also affected by the reduction in customer traffic. Haidilao, whose main source of revenue is restaurant operations, experienced a year-on-year decline in revenue in the first half of the year.

As of June 30, 2022, Haidilao operated 1,435 restaurants worldwide, of which 1,310 were located in mainland China, a net decrease of 162 stores from the same period a year earlier. Haidilao said it will continue to enhance the dining experience, continue to invest in innovation and new technologies, and strategically seek to acquire quality resources to further enrich the group's restaurant business and customer base.

As of Aug 30, Haidilao closed down 1.24% at HKD 17.46, with its share price having retreated nearly 80% from its high in February 2021.