Chinese hotpot chain Haidilao sees profit plunge over 200% in H1
Published: Aug 26, 2020 10:51 AM

A inside view of a Haidilao chain restaurant in Shanghai on Thursday Chen Xia/GT

Chinese hotpot chain Haidilao recorded losses of 965 million yuan ($139.81 million) in the first half of the year, plunging over 200 percent year-on-year due to its restaurants being "materially affected" by the outbreak of COVID-19.

According to the financial results released on Tuesday night, its revenue was down 16.5 percent year-on-year to 9.76 billion yuan. During the period, its average table turnover rate decreased to 3.3 times a day, compared with 4.8 times a day during the same period last year, which it said was mainly due to decreased customer flow as a result of COVID-19.

Despite the global pandemic, the average spend per diner at Haidilao restaurants nevertheless increased to 112.8 yuan in the first half of 2020, up from 104.4 yuan previously.

In addition, Haidilao opened 173 new restaurants in the first half of the year to reach a total of 935 outlets, while launching retail products such as semi-finished eat-at-home dishes, and expanding online sale channels such as through the Haidilao App and third party e-commerce platforms. As a result, its delivery business soared by 123.7 percent between January and June to 409.6 million yuan.

Haidilao said that the company will continue to increase its restaurant density and geographical coverage, while continuing to invest in technology for optimizing its business management systems and intelligent restaurant technology.

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