SUPER HI INTERNATIONAL HOLDING Ltd. American Depositary Shares

Q2 2026 total revenue was $219 million, up 10% year over year. Haidilao restaurant operating revenue was $198 million, up 4.6% year over year. Delivery revenue was $7.562 million, up 105%, and other business revenue was $13.39 million, up 119.7%; together they contributed $21 million, up 114.3%, and nearly 9.6% of revenue. Raw material and consumable cost was $74 million, and gross profit margin was 65.9%, down 0.1 percentage point year over year. Operating profit was $8.1 million, up 118.9%, with operating margin at 3.7% versus 1.9% last year. Net loss was $1.93 million versus net profit of $16.39 million a year ago, mainly due to FX: a $4.34 million foreign exchange loss versus a $16.33 million gain last year. Operating cash inflow was $28 million, and cash reserves were approximately $266 million. For the full year, management said new-store openings are targeted in the double digits; for the second half, they expect double-digit new stores in North America, East Asia, and Southeast Asia. Same-store sales were about $179 million, down 0.8%, with 111 same-store restaurants.

Li Yu emphasized that earlier investments in employees and customers are now translating into better operations, with higher traffic, better turnover, and stronger operating leverage. He framed overseas execution as a localized model: headquarters builds shared capabilities like digital systems, supply chain, finance, and membership, while regions and stores retain autonomy for local decisions. He was constructive on second-brand and Pomegranate Plan projects, saying the company will keep investing, but only scale formats that are proven to be viable and replicable.

Qu Cong focused on margin improvement and the cost structure. She said employee cost ratio fell from 35.3% last year, rent and related expenses dropped to 2.6% of revenue, utilities to 3.3%, and depreciation and amortization to 9.6%, which helped operating margin expand to 3.7%. She also noted operating cash inflow of $28 million and cash reserves of about $266 million, saying liquidity is ample for continued store expansion. On FX, she said the $4.34 million loss was a non-operating, non-cash translation effect and reiterated a cautious approach centered on natural hedging, with selective hedging only where appropriate.

Analysts focused on overseas competition, the Pomegranate Plan, cost control, pricing, store expansion, payback periods, FX exposure, supply-chain localization, and talent retention. Management said more Chinese brands going overseas is a positive sign because it broadens category awareness, but the company will compete through product, service, local customer acquisition, and membership conversion rather than aggressive marketing spend. On weak markets, especially North America and some other regions, management said traffic is being supported through menu changes and off-peak actions, but the real fix is a more diversified customer base and store-by-store diagnosis using operating data. Management also said average payback is roughly 3 to 4 years, with Southeast Asia faster and Europe/America slower.