“Science and Technology Innovation Board Daily”, November 26 (Reporter Xu Cihao) Yang Lijuan, the former CEO of Haidilao, can be called a “firefighting captain”. After taking office, Te Hai International handed over a financial report that turned losses into profits.

Yesterday evening (25th), Haidilao's overseas business, Tehai International, disclosed financial results for the third quarter of 2024. According to financial reports, revenue for the third quarter of 2024 was 0.199 billion US dollars, up 14.6% from 0.173 billion US dollars in the same period in 2023.

In terms of net profit, Tehai International lost 37.7 million US dollars in the third quarter of this year and 1.4 million US dollars for the same period in 2023. In response, Tehai International explained in its financial report that it was mainly due to continued business expansion driving revenue growth and efforts to increase passenger traffic and turnover rates; improvements in the company's operating efficiency; in particular, net exchange earnings increased by 34.6 million US dollars over the same period in 2023.

Haidilao was founded in 1994 in Jianyang, Sichuan. Until 2012, it went abroad for the first time and opened its first overseas store in Singapore. Over the next two years, it successively entered the US, South Korea, etc.

At the end of 2022, Haidilao decided to split its overseas business, Te Hai International, and go public separately. On December 30, 2022, TEHAI was listed on the Hong Kong Stock Exchange by introducing a listing. In May of this year, TEHAI also went public in the US.

However, until now, Tehai International has been in a state of loss. Although it successfully turned a loss into a profit last year, it lost money again in the first half of this year.

According to previously disclosed financial data, in 2019-2022, Tehai International achieved operating income of 0.233 billion US dollars, 0.221 billion US dollars, 0.312 billion US dollars, and 0.558 billion US dollars, respectively, and annual net losses of 33.019 million US dollars, 53.76 million US dollars, 0.151 billion US dollars, and 41.248 million yuan, respectively. In 2023, Tehai International's revenue was 0.668 billion US dollars (about 4.827 billion yuan), and net profit was 25.653 million US dollars (about 0.185 billion yuan). As of the end of December 2023, Tehai International had 115 stores, 70 of which were located in Southeast Asia.

Fire captain Yang Lijuan fights overseas again

It is worth mentioning that on July 1, Yang Lijuan, the former CEO and executive director of Haidilao, resigned and was later appointed as CEO of Tehai International to compete in overseas markets.

According to Te Hai International's previous announcement, Yang Lijuan led the Haidilao brand's overseas business process. It successfully deployed in Singapore and the US in 2012 and 2013, respectively, laying the foundation for TEHAI's current operations in the international market.

According to the latest financial data, as of September 30, 2024, Tehai International's total number of restaurants worldwide was 121, a net increase of 6 over the end of 2023. Among them, there are 73 in Southeast Asia, 18 in East Asia, and 20 in North America.

The overall average turnover rate was 3.8 times per day, compared to 3.7 times per day for the same period in 2023. Total passenger traffic exceeded 7.4 million, up 4.2% year-on-year from 7.1 million in the same period in 2023. Same-store sales grew by 5.6%. Operating margin was 7.5% compared to 5.7 for the same period in 2023

It is worth mentioning that the turnover rate in East Asia increased 10.26% year-on-year from 3.9 times per day in the same period last year to 4.3 times per day, while the average daily revenue of each store in East Asia increased from 0.013 million US dollars in the same period last year to 0.0177 million US dollars.

Regarding the increase in revenue in East Asia, senior officials at Tehai International said in the financial results report that they mainly adjusted food prices to bring departmental food back into the price range, thus achieving a turnover rate and revenue growth.

Investors are concerned about future overseas store layouts and strategies. Tehai International executives said at the performance conference that the future penetration rate and store opening efforts will be arranged according to the market needs of each region, and the highest opening space will not be set up.

As of press release, Techai International's Hong Kong stock closed at HK$13.2, up 3.12%, with a market capitalization of HK$8.584 billion. Techai International's US stock closed at $16.54, up 1.53%, with a market capitalization of $1.076 billion.