HAIDILAO's net profit in 2024 increased by 4.6% year-on-year, with a continuous improvement in table turnover rate | Financial Report Insights

In an increasingly competitive environment in the restaurant industry, HAIDILAO has delivered a relatively robust performance report. In 2024, the company achieved a total revenue growth of 3.1% year-on-year, with core operating profit significantly increasing by 18.7%.

The key driving factor behind this is the improvement in store operating efficiency. Data shows that the average table turnover rate of HAIDILAO restaurants rose from 3.8 times per day in 2023 to 4.1 times per day in 2024, serving a total of 415 million customers throughout the year, an increase of 4.5% compared to the previous year.

On Tuesday evening, HAIDILAO released its full-year financial report for 2024, with the following key points:

Financial performance: Revenue in 2024 increased by 3.1% year-on-year to CNY 42.75 billion; core operating profit for the year grew by 18.7% year-on-year to CNY 6.23 billion; net profit for the year increased by 4.6% year-on-year to CNY 4.7 billion;

Operational data highlights: Average table turnover rate improved from 3.8 times per day to 4.1 times per day; the total number of customers served throughout the year reached 415 million, a year-on-year increase of 4.5%;

Diversification strategy: The "Pomegranate Plan" has incubated 11 sub-brands, covering various dining scenarios such as formal dining, casual dining, and fast food; revenue from other restaurants increased by 39.6% year-on-year to CNY 483 million.

Franchise business: As of the end of 2024, 13 franchise restaurants have been established, with over 70% of franchise applications coming from third-tier cities and below;

In addition, HAIDILAO announced that it will distribute a final dividend of HKD 0.507 per share for the year ending December 31, 2024, on June 19, 2025.

Actively Expanding Diversified Business

From the perspective of revenue composition, HAIDILAO still relies heavily on its main business, with restaurant operating income accounting for 94.5% of total revenue. However, it is worth noting that the company is actively expanding its diversified business:

Revenue from takeout services grew by 20.4% to CNY 1.25 billion;

Although the franchise business is still in its early stages, it has begun to contribute revenue;

Revenue from other restaurant operations saw a significant increase of 39.6% to CNY 483 million, mainly benefiting from the innovative dining brands launched under the "Pomegranate Plan."

Significant Effect of Differentiated Operations, Efficiently Improving Table Turnover Rate

HAIDILAO's operational strategy in 2024 focuses on differentiation. The company proposes to create a "different HAIDILAO" concept, giving more initiative to frontline restaurants and encouraging differentiated operations to meet the diverse needs of customers.

In terms of specific measures, HAIDILAO has made flexible adjustments in three areas: products, scenarios, and pricing. Regarding products, dishes and seasonings are adjusted according to the dietary habits of different regions; in terms of scenarios, special themes such as private rooms, parent-child themed restaurants, and late-night snack themed restaurants have been introduced; and in terms of pricing, a pricing strategy of "absolutely good, relatively cheap" is adopted, allowing stores to implement differentiated pricing strategies based on their own situations This differentiated strategy has significantly improved the operational efficiency of the restaurant, with same-store sales increasing from CNY 36.33 billion in 2023 to CNY 37.63 billion in 2024. The average daily sales per store rose from CNY 818,000 to CNY 844,000, and the table turnover rate increased from 3.8 times per day to 4.1 times per day. Notably, the table turnover rate in third-tier cities and below saw the most significant improvement, rising from 3.6 times per day to 4.0 times per day, indicating that Haidilao's differentiated business strategy has achieved good results in the sinking market.

Cost Control Optimization, Significant Reduction in Raw Material Expenditure

It is worth noting that while Haidilao's revenue has grown, cost control has also been effective. The cost of raw materials and consumables decreased by 4.3% from CNY 16.95 billion in 2023 to CNY 16.21 billion in 2024, with the proportion of revenue dropping from 40.9% to 37.9%, mainly due to lower procurement prices for raw materials.

However, employee costs have risen, increasing by 8.2% from CNY 13.04 billion in 2023 to CNY 14.11 billion in 2024, with the proportion of revenue rising from 31.5% to 33.0%. This is primarily because the company has improved overall employee salary and benefits levels and increased staffing in certain positions to better motivate employees and enhance customer experience.

Depreciation and amortization expenses significantly decreased, falling by 13.1% from CNY 2.95 billion in 2023 to CNY 2.56 billion in 2024, due to some restaurant properties, factories, and equipment having been fully depreciated and amortized. This factor has also positively contributed to the overall gross profit margin improvement.

In addition, in 2024, the company officially launched the "Pomegranate Plan," aimed at incubating and developing more new dining brands. By the end of the year, 11 sub-brands had been incubated (including "Flame Barbecue," "Flame Official," "Little Hi Hot Pot," etc.), totaling 74 stores. Meanwhile, the franchise business is also progressing steadily. By the end of 2024, the company had completed the review and establishment of 13 franchise restaurants, initially validating the feasibility of the franchise model in large-scale layouts. Notably, over 70% of franchise applications come from third-tier cities and below, indicating that the Haidilao brand still has considerable growth potential in the sinking market