Chinese hotpot chain Haidilao International experienced a significant share price increase following the release of its first-half financial results. The company reported total revenue of 22.34 billion yuan, representing a year-on-year increase of 7.9%, while core operating profit rose 4.4% to 2.51 billion yuan during the six-month period ending in June.
The standout performance came from Haidilao’s delivery segment, which emerged as the company’s fastest-growing business division. Delivery revenue surged 121.2% to reach 2.05 billion yuan, fueled primarily by expansion of the company’s single-serving fast-food offerings and growth across its delivery hub network. This growth in the delivery channel was credited as a key driver of investor confidence.
While the core Haidilao-branded restaurant business, which contributed 79.9% of overall sales, experienced a decline with revenue falling 4% to 17.84 billion yuan due to fewer self-operated locations, the company offset this through diversification efforts. As of the end of June, Haidilao operated 1,389 restaurants under its primary hotpot brand alongside 183 restaurants across 21 alternative catering brands. Other restaurant operations posted revenue growth of 113.1% to 1.27 billion yuan, driven by its “Pomegranate Plan” initiative exploring new dining formats and concepts such as camping and late-night hotpot experiences.
Haidilao indicated that its food-stall hotpot and sushi concepts had achieved mature single-location business models and were moving into large-scale expansion phases beginning in the second half of this year. The company expects these new formats to contribute substantially to revenue growth during 2027. Financial analysis from Citi supported the outlook, noting that first-half operating profit exceeded expectations and maintaining a buy rating on the stock.
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