Business Context and Reporting Period
Company: SUPER HI INTERNATIONAL HOLDING LTD. (Haidilao International)
Filing Type: Form 20-F (Annual Report)
Reporting Period: Fiscal year ended December 31, 2025
Business Overview: The Company operates the Haidilao hot pot restaurant brand internationally, excluding Greater China. As of December 31, 2025, it operated 126 self-operated restaurants across 14 countries in Asia, North America, Europe, and Oceania. The Company is an emerging growth company incorporated in the Cayman Islands with principal executive offices in Singapore.
Key Financial Metrics (2025 vs. 2024)
| Metric (USD) | 2025 | 2024 | Change |
|---|---|---|---|
| Revenue | $840.8 million | $778.3 million | +8.0% |
| Net Profit | $36.3 million | $21.4 million | +69.6% |
| Operating Cash Flow | $114.6 million | $119.7 million | -4.3% |
| Income from Operation Margin | 4.4% | 6.8% | -240 bps |
| Restaurant Level Operating Margin | 8.7% | 10.1% | -140 bps |
| Total Indebtedness | $228.8 million | $212.6 million | +7.6% |
| Cash and Cash Equivalents | $144.6 million | $254.7 million | -43.2% |
Note: Indebtedness consists entirely of lease liabilities. There were no outstanding bank borrowings as of December 31, 2025.
Material Changes and Performance Drivers
- Revenue Growth: Driven by a 5.7% increase in restaurant operations revenue and a 68.1% surge in delivery business revenue. Same-store sales growth was 2.9% in 2025.
- Profitability Surge: Net profit increased significantly primarily due to a $33.8 million swing in foreign exchange results, moving from a net loss in 2024 to a $14.1 million net gain in 2025 due to the appreciation of local currencies against the U.S. dollar.
- Margin Compression: Despite revenue growth, operating margins declined. Restaurant level operating margin dropped from 10.1% to 8.7% due to increased staff costs (up 10.1% year-over-year) and raw material costs, partially offset by revenue growth.
- Asset Impairment: The Company recognized net impairment losses of $2.0 million on property, plant, and equipment and right-of-use assets in 2025, compared to net reversals in prior years, reflecting business optimization measures.
- Capital Expenditures: Capital expenditures increased to $51.4 million in 2025 from $37.4 million in 2024, supporting restaurant network expansion.
Guidance, Outlook, and Risks
Outlook and Strategy: The Company plans to continue expanding its restaurant network and exploring new markets. Strategic initiatives include the "Pomegranate Plan" to incubate secondary business forms and brands, enhancing supply chain localization, and investing in technology (e.g., automated bussers, customized soup bases) to improve efficiency and guest experience.
Key Risks and Contingencies:
- Foreign Exchange: Significant exposure to currency fluctuations, as evidenced by the $33.8 million swing in FX results between 2024 and 2025.
- Expansion Risks: Risks associated with opening new restaurants in unfamiliar markets, including longer ramp-up times, higher costs, and potential cannibalization of existing stores.
- Operational Costs: Rising labor costs due to minimum wage increases and inflation in food ingredient prices.
- Geopolitical and Regulatory: Multi-jurisdiction operations expose the company to varying regulatory environments, food safety regulations, and geopolitical tensions.
- Related Party Transactions: The Company relies on a royalty-free trademark license from Sichuan Haidilao (controlled by the controlling shareholders) and purchases condiments from Yihai International (also controlled by controlling shareholders).
Investor Verification Checklist
- FX Sensitivity: Verify the Company's hedging strategy (or lack thereof) given the material impact of FX on net profit.
- Margin Sustainability: Assess whether the decline in restaurant-level operating margins is a temporary anomaly or a structural trend driven by rising labor and food costs.
- Related Party Dependence: Review the terms of the trademark license and supply agreements with entities controlled by the controlling shareholders (Mr. Yong Zhang and Ms. Ping Shu).
- Impairment Trends: Monitor future impairment charges on right-of-use assets as the company continues to optimize its restaurant portfolio.
- Cash Burn vs. Generation: Evaluate the sustainability of the $114.6 million operating cash flow against the $177.3 million cash used in investing activities (driven largely by financial asset purchases and time deposits).