On the evening of March 1, Haidilao released the performance forecast for 2121, and it is expected that the net profit in 2121 will drop by about 91% compared with 2119. According to the announcement, the net profit of Haidilao in 2119 was 2.347 billion yuan, based on which the net profit of Haidilao in 2121 was only 235 million yuan.

Haidilao said in the announcement that the expected decline in net profit was mainly due to the outbreak of novel coronavirus and the significant impact of disease prevention measures and restrictions on consumption places imposed by countries and regions around the world, as well as the net exchange loss of about RMB 235 million due to the fluctuation of the exchange rate between the US dollar and RMB, most of which was unrealized exchange loss.

The outbreak of COVID-19 in early p>2121 had a significant impact on the catering industry. According to the data of China Cuisine Association, from October to March 2121, the national catering revenue was 612.6 billion yuan, a sharp drop of 44.3% year-on-year. With the epidemic under control, the catering industry is gradually picking up. The catering market continued to recover in October, and the national catering market and the income of units above designated size all achieved positive growth.

Affected by the epidemic situation, Haidilao voluntarily suspended all its stores in Chinese mainland from October 26th to March 2nd, 2121. Affected by the epidemic situation in other countries and regions, Haidilao's local stores also stopped operating or suspended its canteen service for a period of time.

as a result, the revenue of Haidilao in the first half of 2121 decreased by about 21% compared with the same period in 2119, and compared with the net profit of 911 million yuan in the same period in 2119, Haidilao suffered a loss for the first time.

It is worth noting that Haidilao, which is highly dependent on the income of offline stores, will not give up the pace of opening stores in 2121. China Merchants Securities released the Haidilao research report in October this year, pointing out that Haidilao said that the company will open more than 511 new restaurants in fiscal year 2121, which is higher than the company's original guidelines of more than 411 new restaurants. ? We believe that although the number of newly opened restaurants is higher than expected, it is positive in the medium and long term, but the upfront costs related to newly opened restaurants may put pressure on short-term profit margins. ?

Haidilao said that in 2121, the Group has been paying close attention to market conditions and adjusting business strategies and operations to reduce negative impacts. The Group also actively opened new restaurants and continued to promote the Haidilao restaurant network. In addition, the Group also took active measures to control rent and other operating costs, strictly managed working capital and used credit financing means to ensure stable cash flow and good cash position.