SUPER HI INTERNATIONAL HOLDING LTD. Annual Report - How They Did This Year

I’ve put together this guide to help you understand Super Hi International’s latest annual report. Instead of digging through dense financial documents, I’ve broken down the key points so you can see how the company is performing and what that means for your investment.

1. What does this company do?

Super Hi International is the global arm of the famous Haidilao hot pot brand. Spun off from its Chinese parent company, it focuses exclusively on international markets. They operate 126 restaurants across 14 countries, including key hubs in the U.S., Singapore, the UK, Japan, and Canada.

They bring the "Haidilao experience"—known for high-touch service, free manicures, and noodle dances—to international diners. They own and manage every location directly. This gives them full control over the customer experience and all the profits, avoiding the complexities of a franchise model.

2. Financial performance: The Numbers

The company is growing, but it’s a balancing act. Here is how the last three years look:

• Total Sales: They brought in $840.8 million in 2025. This is an 8.0% increase from 2024 and a 22.5% jump from 2023.
• Profit: They earned $36.3 million in 2025. This is a 69.6% increase from the $21.4 million they made in 2024. Their profit margin reached 4.3%, showing they are becoming more efficient as they grow.
• Same-Store Sales: Sales at existing locations rose 3.2% in 2025. This shows that their current restaurants are becoming more popular.

3. Major wins and challenges

The company is growing quickly, expanding from 111 restaurants in 2023 to 126 by the end of 2025. Their biggest challenge is maintaining that signature service quality across different countries. They must navigate local labor laws, strict food safety regulations, and the need to adapt menus to local tastes without losing their brand identity.

4. Financial health

The company has about $420 million tied up in long-term lease obligations for their restaurant locations. They also hold $28.5 million in "deferred revenue"—money collected from prepaid cards and loyalty programs. This acts as an interest-free cash cushion. With $115 million in cash, they have enough money to keep funding their expansion plans.

5. Key risks

• Growing Pains: As they open more restaurants, keeping food quality and service consistent becomes harder. A food safety issue could damage their reputation and lead to fines or store closures.
• Expansion Costs: Opening new restaurants is expensive, costing between $2 million and $4 million per site. They pay for staff, rent, and training before opening. These costs hit their short-term profit.
• Cannibalization: Opening too many restaurants in one city might cause new locations to steal customers from existing ones, lowering the average sales per store.
• Innovation Gamble: They are testing smaller stores and new menu items. If these experiments fail, the money spent—often over $500,000 per project—could strain their cash flow.

6. Competitive positioning

They bet that their brand and unique service will keep them ahead of local competitors. However, they are in a "growth phase," prioritizing expansion over steady profits. They face intense competition from both traditional restaurants and cheaper, fast-casual dining options.

The bottom line: Super Hi is growing its sales and profit, but they are spending heavily to get there. For an investor, the question is whether they can keep the "Haidilao magic" alive while scaling globally and managing the high costs of their premium, full-service model.