Haidilao Expects a Net Loss of about 3.8 Billion to 4.5 Billion Yuan Last Year

On February 21, Haidilao (06862.HK) announced on the Hong Kong Stock Exchange that it is expected to record a net loss of approximately RMB 3.8 billion to RMB 4.5 billion for the year ending December 31, 2021.

Compared with the revenue of approximately RMB 28.6 billion in 2020, the Group's revenue in 2021 is expected to exceed RMB 40 billion, an increase of more than 40%.

Haidilao said the expected loss is mainly attributable to two aspects.

First, in 2021, the closing of more than 300 restaurants and the decline in restaurant operating performance will result in one-off losses and impairment losses on the disposal of long-term assets totaling approximately RMB 3.3 billion to RMB 3.9 billion.

The second is the impact of the continuous changes and repeated epidemics in the world, the rapid expansion of the store network in 2020 and 2021, and the company's internal management issues on the operation of Haidilao restaurants.

"Especially in the second half of 2021, our restaurant operations were significantly affected by the global and regional outbreaks and public health control measures, resulting in a decline in the operating performance of Haidilao Restaurant in the second half of 2021 compared to the same period in 2020.

Stores will experience increased losses in 2021." Haidilao said.