First, the decline in net profit is due to the impact of the epidemic.
The impact of the epidemic on Haidilao is enormous. After all, after the outbreak, restaurants and consumer places like Haidilao have been restricted to a certain extent. You know, this is a huge blow to Haidilao, because the profit-making model of Haidilao lies in the turnover rate. If the passenger flow is not high, the turnover rate will naturally not go up, which will naturally reduce the turnover income and lead to a decline in net profit. In other words, the model of sea fishing is indeed profitable under normal circumstances, but in special periods, they will also lose money. Therefore, it is not surprising that the net profit of Haidilao will drop by about 90% in 2020.
Second, things are getting better.
Although the income in 2020 is not very good, overall, the situation is getting better. Because as the epidemic was slowly controlled, more people went to restaurants and entertainment places to spend money, and Haidilao gradually began to return to normal profits. We should know that from the data published in the semi-annual report of Haidilao in 2020, Haidilao was still losing money in the first half of the year, but from the annual report, Haidilao turned losses into profits in the second half of the year, which shows that Haidilao has slowly recovered from the blow of the epidemic, which is beyond doubt.
Generally speaking, although the net profit of Haidilao will drop by 90% in 2020, it will not have much impact on Haidilao, especially after the epidemic environment begins to improve gradually.