The operator of China’s best-known hotpot chain posted total revenue of 22.34 billion yuan ($3.32 billion) for the six months ending June, driven by rapid expansion in single-serving fast-food formats and localized delivery hubs.
The Bottom Line
- Delivery Dominance: Delivery revenue surged 121.2% year-on-year to reach 2.05 billion yuan, making it the company’s fastest-growing segment.
- Core Softness: Revenue from flagship self-operated restaurants fell 4% to 17.84 billion yuan, reflecting a smaller footprint of physical stores under the core brand.
- New Growth Engines: Revenue from alternate catering brands under the “Pomegranate Plan” jumped 113.1% to 1.27 billion yuan, signaling successful diversification.
Decoding the First-Half Balance Sheet
When the books for the first half of the year closed at the end of June, Haidilao International (HKG: 6862) reported a 7.9% year-on-year increase in total revenue, landing at 22.34 billion yuan ($3.32 billion). Core operating profit, calculated on a non-IFRS basis, advanced 4.4% to 2.51 billion yuan. Here is the math: while the headline figures appear incremental, the underlying business mix is shifting rapidly away from traditional dine-in models.
The core hotpot brand still accounts for the lion’s share of operations, encompassing 1,389 self-operated restaurants alongside 183 outlets spread across 21 other catering brands as of June. Yet, sales from these flagship brick-and-mortar locations slipped 4% to 17.84 billion yuan. Management attributed this decline directly to a smaller overall count of self-operated stores, forcing investors to look toward auxiliary channels for growth momentum.
Delivery Networks and Single-Serving Formats
The real engine behind the mid-week equity jump was the delivery segment. Delivery revenue more than doubled, leaping 121.2% to 2.05 billion yuan. According to company disclosures, this acceleration stemmed from two precise operational adjustments: the scaling of single-serving fast-food lines and the build-out of localized delivery hubs.
By shortening transit times and tailoring portions for individual consumers eating at home or in offices, Haidilao International (HKG: 6862) captured shifting consumer habits across major Chinese urban centers. Citi analysts noted that the group’s first-half operating profit before other income rose 13% from the previous year, beating bank expectations by 6%. Institutional confidence remained intact, prompting the firm to maintain its buy rating on the stock.
Financial Performance at a Glance
| Financial Metric (H1) | Results (CNY) | YoY Change (%) |
|---|---|---|
| Total Revenue | 22.34 Billion Yuan ($3.32B) | +7.9% |
| Core Operating Profit (Non-IFRS) | 2.51 Billion Yuan | +4.4% |
| Delivery Revenue | 2.05 Billion Yuan | +121.2% |
| Flagship Restaurant Revenue | 17.84 Billion Yuan | -4.0% |
| Other Restaurant Operations | 1.27 Billion Yuan | +113.1% |
Scaling the Pomegranate Plan and 2027 Projections
Beyond delivery, the company’s secondary dining ventures posted extraordinary gains. Revenue from alternate restaurant operations surged 113.1% to 1.27 billion yuan. This division houses experimental formats developed under the “Pomegranate Plan,” including camping hotpot, late-night hotpot, seafood-stall hotpot, and sushi concepts.
Management indicated that several of these newer formats have established mature single-store economics and are primed for large-scale replication starting in the second half of the year. Citi analysts project that seafood-stall hotpot and sushi formats will scale significantly through late 2026, paving the way for accelerated topline growth and accelerated flagship store openings by 2027.
Market Trajectory and Future Outlook
The market’s willingness to reward Haidilao International (HKG: 6862) despite a contraction in its core restaurant footprint signals a broader tolerance for structural pivot strategies. As delivery hubs multiply and new casual dining formats exit the pilot phase, the company is successfully decoupling its revenue growth from pure square-footage expansion.
Sustaining this trajectory will depend heavily on maintaining delivery efficiency and managing the capital expenditure required to scale new brands. For now, institutional backers appear convinced that management’s diversification playbook offers a viable hedge against softening traffic in traditional shopping mall complexes.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
