Haidilao International’s stock climbed in Hong Kong trading following the release of the company’s first-half financial results. The Chinese hotpot operator reported total revenue of 22.34 billion yuan, representing a year-over-year increase of 7.9%, while core operating profit, a non-IFRS measure, grew 4.4% to 2.51 billion yuan for the six months ended in June.
Delivery operations emerged as the company’s most dynamic segment, with revenue surging 121.2% to 2.05 billion yuan. This expansion was primarily driven by accelerating growth in single-serving fast-food offerings and the broadening of its delivery infrastructure through additional local distribution centers. In contrast, revenue from the core Haidilao-branded restaurants, which represented 79.9% of total group sales, declined 4% to 17.84 billion yuan, largely attributed to a reduction in the number of company-operated locations. The company maintained 1,389 restaurants under its flagship hotpot brand as of late June, alongside 183 establishments operating under 21 alternative catering concepts.
Other restaurant operations demonstrated substantial growth, with revenue jumping 113.1% to 1.27 billion yuan. The company attributed this performance to progress under its “Pomegranate Plan,” an initiative designed to develop diverse dining formats and experiences, including camping hotpot venues and late-night service concepts. The company noted that its food-stall hotpot and sushi formats have achieved relatively established financial models at the individual-restaurant level and were entering a phase of broad expansion beginning in the latter half of the year, with expectations to materially contribute to revenue growth in 2027.
Analysts from Citi noted that first-half operating profit before other income rose 13% compared with the prior year, exceeding the bank’s projections by 6%. The bank anticipated that seafood-stall hotpot and sushi operations would commence scaling efforts later in the year, while the company’s main-brand restaurant expansion should accelerate in 2027, likely supporting stronger top-line growth. Citi maintained its buy recommendation on the stock.
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