Super Hi Reports Unaudited Financial Results for the Second Quarter of 2024


SINGAPORE, Aug. 27, 2024 (GLOBE NEWSWIRE) -- Super Hi International Holding Ltd. (NASDAQ: HDL and HKEX: 9658) (“Super Hi” or the “Company”), a leading Chinese cuisine restaurant brand operating Haidilao hot pot restaurants in the international market, today announced its unaudited financial results for the second quarter of FY2024 ended June 30, 2024.

Second Quarter 2024 Highlights

  • Revenue was US$183.3 million, representing an increase of 12.5% from US$163.0 million in the same period of 2023.
  • In the second quarter of 2024, the Company opened 4 new Haidilao restaurants and closed 1 restaurant in Southeast Asia that had been underperforming for a prolonged period, resulting in an increase of 3 net new Haidilao restaurants. Total number of Haidilao restaurants expanded from 119 as of March 31, 2024 to 122 as of June 30, 2024.
  • Total table turnover rate1 and same-store table turnover rate2 were both 3.8 times per day, compared to 3.3 times per day in the same period of 2023.
  • Had over 7.2 million total guest visits, representing an increase of 14.3% from 6.3 million in the same period of 2023.
  • Same-store sales growth3 was 6.6%.

Ms. Yang Lijuan, CEO & Executive Director of Super Hi, commented, “During the second quarter of 2024, we focused on enhancing our local restaurant management across key areas including environment, services, products, and food safety. This approach aims to improve guest satisfaction, strengthen guest connections, and boost operational efficiency. Our efforts yielded tangible results, with our table turnover rate increasing to 3.8 times per day, up 0.5 times per day from the same period of last year. During the quarter, revenue grew by 12.5% year over year, driven by the ongoing recovery of the macro environment and our local restaurants’ concerted efforts to improve performance by enhancing guest satisfaction, expanding our guest base, capturing more diverse consumption scenarios, and optimizing product offerings. Our achievements underscore our commitment to sustainable growth and position us well for continued success in the evolving restaurant industry landscape.”

Second Quarter 2024 Financial Results
Revenue was US$183.3 million, representing an increase of 12.5% from US$163.0 million in the same period of 2023.

  • Revenue from Haidilao restaurant operations was US$176.2 million, representing an increase of 12.3% from US$156.9 million in the same period of 2023. The increase was mainly driven by (i) continued recovery in international markets; (ii) our continuous efforts in increasing guest visits and table turnover rates; and (iii) ongoing business expansion and increased brand influence.
  • Revenue from delivery business was US$2.3 million, representing a decline of 11.5% from US$2.6 million in the same period of 2023. The decline was primarily attributable to the strategic decision of some restaurants to prioritize the dine-in business compared to the same period of last year.
  • Revenue from other business was US$4.8 million, representing an increase of 37.1% from US$3.5 million in the same period of 2023. The increase was a result of the growing popularity of hot pot condiment products and Haidilao-branded and sub-branded food products to local customers and retailers.

Raw materials and consumables used were US$61.7 million, representing an increase of 11.4% from US$55.4 million in the same period of 2023. As a percentage of revenue, raw materials and consumables decreased slightly to 33.7% in the second quarter of 2024 from 34.0% in the same period of 2023.

Staff costs were US$62.7 million, representing an increase of 14.8% from US$54.6 million in the same period of 2023. As a percentage of revenue, staff costs were 34.2%, compared to 33.5% in the same period of 2023. The increase was primarily due to (i) the increase in the number of employees in line with the expansion of restaurant network, and the increase in guest visits and table turnover rate, (ii) the Company’s operation strategy of ensuring sufficient number of employees to provide superior customer experience, and (iii) the increase in statutory minimum wages in several countries.

Income from operations4 was US$8.5 million, representing a decline of 14.1% from US$9.9 million in the same period of 2023. Income from operation margin5 was 4.6%, compared to 6.1% in the same period of 2023. This decline in income from operations was primarily due to (i) an increase in rentals and related expenses of US$1.9 million, mainly representing increased property management fees resulting from the opening of new restaurants and the increase in variable lease payments in line with the increase in revenue from relevant restaurants, and (ii) listing expenses of US$1.8 million.

Loss for the period was US$0.1 million, compared to a loss of US$2.2 million in the same period of 2023. This change was mainly due to an increase in revenue compared to the same period of 2023.

Basic and diluted net loss per share were both approximating nil, remaining flat compared to the same period of 2023.

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1
Calculated by dividing the total tables served for the period by the product of total Haidilao restaurant operation days for the period and average table count during the period.
2 Calculated by dividing the total tables served for the period by the product of total Haidilao restaurant operation days for the period and average table count at the Company’s same stores during the period.
3 Refers to the year-over-year growth of the aggregate gross revenue from Haidilao restaurant operations at the Company’s same stores for the period indicated.
4 Calculated by excluding interest income, finance costs, unrealized foreign exchange differences arising from remeasurement of balances which are not denominated in functional currency, net gain arising on financial assets at fair value through profit or loss and income tax expense from (loss) profit for the period.
5 Calculated by dividing income from operation by total revenue.

Operational Highlights

Haidilao Restaurant Performance
The following table summarizes key performance indicators of Haidilao’s restaurants for the quarters indicated.

 As of/For the Three Months Ended June 30,
 2024 2023
Number of restaurants   
Southeast Asia74 70
East Asia18 17
North America20 18
Others(1)10 10
Total122 115
    
Total guest visits (million)   
Southeast Asia5.1 4.5
East Asia0.7 0.6
North America0.9 0.7
Others(1)0.5 0.5
Overall7.2 6.3
    
Table turnover rate(2) (times per day)   
Southeast Asia3.7 3.3
East Asia4.1 3.2
North America4.0 3.3
Others(1)3.9 3.7
Overall3.8 3.3
    
Average spending per guest(3) (US$)   
Southeast Asia19.1 19.7
East Asia27.3 28.4
North America41.9 47.2
Others(1)42.4 40.3
Overall24.4 25.0
    
Average daily revenue per restaurant(4) (US$ in thousands)   
Southeast Asia15.1 14.4
East Asia15.2 11.6
North America20.7 18.8
Others(1)24.7 22.9
Overall16.9 15.4


Notes: 
(1)Others include Australia, the United Kingdom and the United Arab Emirates.
(2)Calculated by dividing total number of tables served for the periods by the product of total Haidilao restaurant operation days for the period and average table count during the period in the same geographic region.
(3)Calculated by dividing gross revenue of Haidilao restaurant operation for the periods by total guests served for the periods in the same geographic region.
(4)Calculated by dividing the revenue of Haidilao restaurant operation for the periods by the total Haidilao restaurant operation days of the periods in the same geographic region.
  

Same-Store Sales
The following table sets forth details of the Company’s same store sales for the quarters indicated.

 As of/For the Three Months Ended June 30,
 2024 2023
    
Number of Same Stores(1)   
Southeast Asia66
East Asia13
North America18
Others(5)8
Total105
    
Same Store Sales(2) (US$ in thousands)   
Southeast Asia90,736 89,692
East Asia17,725 14,474
North America34,862 30,848
Others(5)19,654 17,802
Total162,977 152,816
    
Average same store sales per day(3) (US$ in thousands)   
Southeast Asia15.1 14.9
East Asia15.0 12.2
North America21.3 18.8
Others(5)27.0 24.5
Total17.1 16.0
    
Average same store table turnover rate(4) (times/day)   
Southeast Asia3.7 3.3
East Asia4.0 3.2
North America4.0 3.3
Others(5)4.2 3.9
Total3.8 3.3


Notes: 
(1)Includes restaurants that commenced operations prior to the beginning of the periods under comparison and opened for more than 75 days in the second quarter of 2023 and 2024, respectively.
(2)Refers to the aggregate gross revenue from Haidilao restaurant operation at our same stores for the periods indicated.
(3)Calculated by dividing the gross revenue from Haidilao restaurant operation for the periods by the total Haidilao restaurant operation days at our same stores for the periods.
(4)Calculated by dividing the total tables served for the periods by the product of total Haidilao restaurant operation days for the period and average table count at our same stores during the periods.
(5)Others include Australia, the United Kingdom and the United Arab Emirates.
  

Recent Developments
On June 21, 2024, the Company announced the appointment of Ms. Yang Lijuan as the new Chief Executive Officer and as executive director of the Company, effective July 1, 2024.

About Super Hi
Super Hi operates Haidilao hot pot restaurants in the international market. Haidilao is a leading Chinese cuisine restaurant brand. With roots in Sichuan from 1994, Haidilao has become one of the most popular and largest Chinese cuisine brands in the world. With over 30 years of brand history, Haidilao is well-loved by guests for its unique dining experience — warm and attentive service, great ambiance and delicious food, standing out among global restaurant chains, which has made Haidilao restaurants into a worldwide cultural phenomenon. As of June 30, 2024, Super Hi had 122 self-operated Haidilao restaurants in 13 countries across four continents, making it the largest Chinese cuisine restaurant brand in the international market in terms of number of countries covered by self-operated restaurants.

Forward-Looking Statements
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Super Hi may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the “SEHK”), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Super Hi’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Super Hi’s operations and business prospects; future developments, trends and conditions in the industry and markets in which Super Hi operates; Super Hi’s strategies, plans, objectives and goals and Super Hi’s ability to successfully implement these strategies, plans, objectives and goals; Super Hi’s ability to maintain an effective food safety and quality control system; Super Hi’s ability to continue to maintain its leadership position in the industry and markets in which Super Hi operates; Super Hi’s dividend policy; Super Hi’s capital expenditure plans; Super Hi’s expansion plans; Super Hi’s future debt levels and capital needs; Super Hi’s expectations regarding the effectiveness of its marketing initiatives and the relationship with third-party partners; Super Hi’s ability to recruit and retain qualified personnel; relevant government policies and regulations relating to Super Hi’s industry; Super Hi’s ability to protect its systems and infrastructures from cyber-attacks; general economic and business conditions globally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Super Hi’s filings with the SEC and the announcements and filings on the website of the SEHK. All information provided in this press release is as of the date of this press release, and Super Hi does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Contacts
Investor Relations
Email: superhi_ir@superhi-inc.com
Phone: +1 (212) 574-7992

Public Relations
Email: media.hq@superhi-inc.com

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

 For the three months ended June 30,
 20242023
 USD’000USD’000
   
   
Revenue183,283 162,993 
Other income2,375 2,387 
Raw materials and consumables used(61,734)(55,416)
Staff costs(62,692)(54,615)
Rentals and related expenses(4,699)(2,761)
Utilities expenses(6,858)(6,397)
Depreciation and amortization(18,544)(20,097)
Travelling and communication expenses(1,731)(1,226)
Listing expenses(1,832)- 
Other expenses(17,726)(14,301)
Other losses - net(5,785)(8,873)
Finance costs(1,937)(1,991)
Profit (Loss) before tax 2,120  (297)
Income tax expense(2,224)(1,870)
Loss for the period (104)(2,167)
   
Other comprehensive income   
Item that may be reclassified subsequently to profit or loss:  
Exchange differences arising on translation of foreign operations7,143 10,477 
Total comprehensive income for the period7,039 8,310 
   
Loss for the period attributable to:  
Owners of the Company(126)(2,074)
Non-controlling interests22 (93)
 (104)(2,167)
   
Total comprehensive income attributable to:  
Owners of the Company7,017 8,403 
Non-controlling interests22 (93)
 7,039 8,310 
   
(Loss) Earnings per share  
Basic and diluted (USD)(0.00)(0.00)
   


UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

 As at June 30,As at December 31,
 20242023
 USD’000USD’000
     
Non-current Assets    
Property, plant and equipment159,881 168,724 
Right-of-use assets161,604 167,641 
Intangible assets298 402 
Deferred tax assets1,625 1,995 
Other receivables1,960 1,961 
Prepayment242 295 
Rental and other deposits18,683 16,903 
 344,293 357,921 
     
Current Assets    
Inventories26,632 29,762 
Trade and other receivables and prepayments29,489 29,324 
Financial assets at fair value through profit or loss77,130 - 
Rental and other deposits2,920 3,882 
Pledged bank deposits2,994 3,086 
Bank balances and cash140,659 152,908 
 279,824 218,962 
     
Current Liabilities    
Trade payables32,994 34,375 
Other payables31,230 34,887 
Amounts due to related parties840 842 
Tax payable7,713 9,556 
Lease liabilities38,389 38,998 
Contract liabilities8,334 8,306 
Provisions721 1,607 
 120,221 128,571 
     
Net Current Assets 159,603 90,391 
     


UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

 As at June 30,As at December 31,
 2024 2023
 USD’000USD’000
   
Non-current Liabilities  
Deferred tax liabilities1,273 1,347 
Lease liabilities154,420 163,947 
Contract liabilities2,533 3,098 
Provisions8,833 7,799 
 167,059 176,191 
   
Net Assets336,837 272,121 
   
   
Capital and Reserves  
Share capital3 3 
Shares held under share award scheme* * 
Share premium550,593 494,480 
Reserves(215,728)(224,397)
Equity attributable to owners of the Company334,868 270,086 
Non-controlling interests1,969 2,035 
Total Equity 336,837 272,121 


*Less than USD1,000


UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 For the three months ended June 30,
 20242023
 USD’000USD’000
   
Net cash from operating activities23,984 36,011 
Net cash (used in) from investing activities(18,726)1,051 
Net cash from (used in) financing activities45,348 (11,667)
Net increase in cash and cash equivalents 50,606   25,395  
Cash and cash equivalents at beginning of the period90,031 93,311 
Effect of foreign exchange rate changes22 230 
Cash and cash equivalents at end of the period 140,659   118,936