Haidilao International, a leading Chinese hotpot chain, saw its shares jump more than 7% in Hong Kong following the release of its first-half results, which highlighted robust growth in delivery and new restaurant formats [1]. Delivery revenue soared 121.2% to 2.05 billion yuan, making it the company's fastest-growing segment, fueled by rapid expansion in single-serving fast-food offerings and an enlarged delivery network through additional local hubs [1]. Revenue from other restaurant operations also surged 113.1% to 1.27 billion yuan, attributed to the development of new catering brands under Haidilao's 'Pomegranate Plan' and innovative dining scenarios such as camping hotpot and late-night hotpot [1].
Overall, Haidilao's revenue increased 7.9% year-on-year to 22.34 billion yuan ($3.32 billion) for the six months ending June, while core operating profit (a non-IFRS measure) rose 4.4% to 2.51 billion yuan [1]. However, revenue from Haidilao-branded restaurants, which accounted for 79.9% of group sales, declined 4% to 17.84 billion yuan due to a reduction in the number of self-operated restaurants [1]. As of June, the company operated 1,389 restaurants under its core hotpot brand and 183 restaurants across 21 other catering brands [1].
Haidilao stated that its food-stall hotpot and sushi formats have reached maturity at the single-restaurant level and are entering a phase of 'large-scale replication,' with plans to scale up these formats from the second half of this year. These new formats are expected to become significant revenue drivers for other restaurant operations by 2027 [1].
Citi, in a post-earnings note, observed that Haidilao's first-half operating profit before other income rose 13% year-on-year, exceeding its expectations by 6%. The bank expects the seafood-stall hotpot and sushi formats to begin scaling up in the second half of 2026, and anticipates accelerated Haidilao-branded store openings in 2027, likely leading to faster topline growth next year. Citi maintained its buy rating on the stock [1].
CONCLUSION
Haidilao's strong first-half performance, driven by delivery and new restaurant formats, has boosted investor confidence and led to a notable share price increase. The company's strategic expansion into innovative dining concepts and plans for large-scale replication signal positive growth prospects, with analysts expecting further acceleration in revenue and store openings in the coming years. Overall, market sentiment is upbeat, reflecting optimism about Haidilao's future trajectory.