On the evening of July 11, Haidilao announced on the Hong Kong Stock Exchange that the company is considering splitting the shares of Super Hi International Holding (referred to as: Super Hi) in the form of physical distribution and listing on the main board of the Hong Kong Stock Exchange by way of introduction. Possibility of separate listing.Super Hi and its subsidiaries are principally engaged in the catering business outside of Greater China.
Industry insiders said that the introduction of listing does not issue new shares, and to a certain extent, it does not involve the issue of raising funds.In addition, Haidilao has differences in the requirements and standards of operation and management in different markets. In order to facilitate management and localize the development direction of overseas business as much as possible, this move is made.
Plans to spin off overseas business and list separately
The board of directors of Haidilao believes that the proposed spin-off will enable Super Hi’s business and the rest of the Group’s businesses to achieve better development in their respective geographic areas, and generate future value-added income on an independent listing platform. the interests of the company and its shareholders as a whole.
The company stated in the announcement that as of the announcement date, Super Hi has not yet submitted an application for listing of Super Hi shares to the Stock Exchange, and the proposed spin-off has not been realized.If the proposed spin-off goes ahead, the company will publish a further announcement in due course in accordance with the requirements of the Rules Governing the Listing of Securities on the Stock Exchange to keep its shareholders and potential investors informed of the latest developments.
The announcement shows that the listing method Super Hi intends to adopt is the introduction of physical distribution.Industry insiders told the China Securities Journal that compared with the traditional IPO, the difference between the introduction and listing is that no new shares are issued, but the corporate shareholders apply for the listing of their own issued shares. From a certain level, the issue of raising funds is not involved.
According to the company's annual report, as of December 31, 2021, Haidilao had 1,443 stores worldwide, of which 1,329 were located in mainland China.
A brokerage analyst told a reporter from China Securities Journal that Haidilao has different requirements and standards for operation and management in different markets.The development direction of Haidilao's overseas business is to localize as much as possible. In order to facilitate management, the idea of spin-off was formed."At present, the specific timetable is still being formulated, and it is recommended to continue to pay attention to the follow-up related announcements for further actual progress."
Adjust expansion strategy
Affected by factors such as the epidemic, in 2021, Haidilao achieved revenue of 41.11 billion yuan, a year-on-year increase of 43.7%; loss of 4.16 billion yuan, of which due to the one-time loss and impairment loss of long-term assets due to the store closing plan in 2021, and management's actions The impairment loss accrued with a prudent attitude exceeded 3.65 billion yuan.
Based on the overall operation of the restaurant, in 2021, Haidilao decided to adjust its expansion strategy, close some restaurants and plan to appropriately reduce future capital investment.In November 2021, Haidilao launched the "Woodpecker Plan", which mainly includes closing some stores, continuously promoting and polishing the store management system, rebuilding and strengthening functional departments, emphasizing corporate culture, and improving employee training.As of the end of 2021, 260 Haidilao restaurants have been permanently closed under the "Woodpecker Plan", and 32 restaurants have been temporarily closed for refurbishment; at the same time, 421 new restaurants have opened throughout the year.
Haidilao said that the number of employees in the company has remained stable while promising not to lay off staff.Judging from the operating conditions since 2022, the effect of Haidilao's "Woodpecker Plan" is showing, and the data on the turnover rate has improved.
