SUPER HI INTERNATIONAL HOLDING Ltd. American Depositary Shares

In Q1 2026, Super Hi International reported total revenue of RMB 226 million, up 14.2% YoY. Haidilao restaurant operating revenue was RMB 204 million, up 8.4% YoY, and same-store sales increased about 4% YoY. Operating profit was RMB 13.993 million, up 7.7% YoY according to management, with operating margin at 6.2% versus 4.1% a year ago. Gross margin was 66.1%, up 0.1 percentage point YoY. Delivery revenue was RMB 7.3 million (+82.5% YoY) and other business revenue was RMB 14.4 million (+166.7% YoY). Operating cash flow was HKD 24.24 million, up 23.1% YoY, and cash reserves were HKD 240 million at quarter-end, down from HKD 270 million at the end of 2025. Looking ahead, management did not provide formal numerical guidance, but said store expansion will continue with a “double-digit” pipeline and will prioritize stability and quality over speed.

CEO Li Yu said the quarter showed a “positive improvement trend” with simultaneous gains across core metrics. He emphasized that the company is focused on the “three fundamentals” of employees, customers, and front-line staff, and that the strategic direction of prioritizing customer experience and employee benefits has not changed after recent leadership changes. He also highlighted localized menu innovation, new scenarios such as kids meals and late-night offerings, and a multi-brand Red Pomegranate strategy to build a global integrated catering group.

CFO Cong Qu highlighted revenue growth, improving cost structure, and operating leverage. She said raw material cost was about RMB 76 million and gross margin was 66.1%, employee costs were RMB 76.6 million and 34% of revenue, utilities were RMB 7 million (3.2% of revenue), and D&A was RMB 20.658 million (9.2% of revenue). She also noted that net profit was affected by foreign exchange: the company recorded a forex loss of about HKD 4.292 million versus a gain of HKD 7.435 million last year, which pressured reported net profit despite better underlying business profitability. Cash flow was HKD 24.24 million, and cash declined to HKD 240 million mainly because of store expansion and second-brand investment.

Analysts focused on whether the departure of Mr. Young would change strategy, and management said it would not: the company will continue to prioritize customer experience, food quality, and employee engagement, with regional managers still responsible for store openings and operations. Questions also addressed the Red Pomegranate plan, where management said decision-making is shared between regional teams and headquarters, with local autonomy preserved but HQ support deepening via cross-functional teams. Analysts asked about consumer trends, margins, labor, rent, and store openings; management said consumers are more value-conscious, gross margin pressure from oil and commodities is manageable, labor costs are around 34%, and store expansion will stay disciplined rather than target a specific numeric opening plan.