Shares of Haidilao International, a Chinese hotpot operator, climbed 7% in Hong Kong following the release of the company’s first-half financial results. The company reported total revenue growth of 7.9% year-on-year to 22.34 billion yuan ($3.32 billion) for the six-month period ending in June, while core operating profit increased 4.4% to 2.51 billion yuan.
Delivery operations emerged as the company’s most robust growth segment, with revenue surging 121.2% to 2.05 billion yuan. This expansion was primarily driven by growth in single-serving fast-food offerings and an expanded delivery infrastructure supported by additional local distribution hubs. In contrast, revenue from Haidilao-branded restaurants, which comprised 79.9% of total group sales, declined 4% to 17.84 billion yuan, largely attributable to a reduction in the number of self-operated locations. As of the end of June, the company operated 1,389 restaurants under its primary hotpot brand alongside 183 restaurants spanning 21 other catering concepts.
Other restaurant operations generated 1.27 billion yuan in revenue, representing 113.1% growth year-on-year. The company attributed this surge to its “Pomegranate Plan,” which explores new dining formats and concepts including camping hotpot and late-night hotpot venues. Notably, Haidilao’s food-stall hotpot and sushi restaurant formats have reached operational maturity with reproducible single-location business models, positioning them for large-scale expansion starting in the second half of this year.
Analysts at Citi noted that Haidilao’s operating profit before other income rose 13% from the prior year, exceeding the bank’s projections by 6%. The investment bank projected that new restaurant formats would begin scaling operations in the second half of this year, while Haidilao-branded locations should accelerate openings in 2027. Citi maintained its buy rating on the stock, citing expectations for accelerated revenue growth in the following year.
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