China News Service, August 15th (Xie Yiguan, China-News Financial Reporter) On the evening of August 14th, Haidilao issued a profit warning. The revenue for the six months ended June 30, 2022 is expected to be no less than RMB 16.7 billion, which is higher than that of last year. Compared with the same period, the highest decline was 17%, and the revenue in the same period in 2021 was approximately RMB 20.1 billion.
Screenshot of Haidilao announcement.
Haidilao said that it was mainly due to the impact of the new crown epidemic from March to May 2022, which led to the closure of certain restaurants in mainland China or the suspension of dine-in services and the decrease in customer traffic, as well as the reduction in the number of “Woodpecker Project” restaurants compared to the same period in 2021.
In terms of net profit, the announcement shows that it is expected to record a net loss of approximately RMB 225 million to 297 million for the six months ended June 30, 2022, and a net profit of approximately RMB 96.5 million for the same period in 2021.
The announcement mentioned that there are two main aspects of the expected loss. One is the closure of some stores under the "Woodpecker Plan" and the impact of the new crown epidemic in the first half of 2022. The one-time loss and impairment loss on the disposal of long-term assets that occurred totaled about RMB. 255 million to 327 million yuan.
Second, from March to May 2022 in mainland China, the COVID-19 epidemic repeated, and some restaurants closed or suspended dine-in services for a period of time, but there were still fixed expenses and staff costs incurred.
Haidilao said that with the gradual easing of the new crown epidemic, since June 2022, the operating performance of restaurants in mainland China and other regions has improved significantly month-on-month.
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