HDL · SUPER HI INTERNATIONAL HOLDING Ltd. American Depositary Shares

Operationally, the company has embedded Haidilao’s proven management philosophy across its restaurant portfolio, emphasizing expansion strategy, employee training and management, performance assessment, food safety, and supply chain management. This standardization, balanced with localization via a focused management system, supports consistent execution. Competitive dynamics center on food quality and consistency, brand reputation, value for money, ambiance, service, location, quality ingredients, and trained staff availability against chain and single-store rivals. To bolster efficiency, management implemented advanced information systems, including the IKMS, which collects and analyzes kitchen data for real-time monitoring of production, inventory, and shelf life—enhancing both guest experience and operational effectiveness.

Liquidity and capital resources remain integral, with discussions on capital expenditures highlighting investment in growth. The company plans to explore new business formats tailored to target markets, formulating restaurant opening plans to expand the network further. Post-opening, regional managers provide ongoing support through site visits and reviews of initial table turnover rates and performance metrics, mitigating ramp-up challenges. However, new restaurants may prove less profitable than mature locations due to potential declines in average sales or spending per customer, alongside elevated construction, occupancy, or operating costs.

This framework positions the company for sustained momentum, leveraging core operational strengths and disciplined expansion while navigating FX volatility and new store risks. The investor should note the emphasis on data-driven management and Haidilao tenets as foundational to scaling the network effectively.