SUPER HI INTERNATIONAL HOLDING Ltd. American Depositary Shares Q3 FY2025 earnings call

Store Operation: Continued to reduce headquarters oversight of stores, eliminated performance ranking for individual taps, shifted focus to support, guidance, and communication. Around 90 potential key personnel are being built for overseas management. ### Fresh-Cut Scene: Over 60% of stores have launched fresh-cut meat products, with an adoption rate surpassing 11%, leading to higher per table consumption. Some Southeast Asian stores with nightclub-style theme renovations saw increased late-night table turnover rates. ### Store Network Expansion: Opened 2 new Haidilao stores in Malaysia and Indonesia, discontinued a Singapore store, and adjusted 1 Thailand store to a secondary brand. As of Q3 end, operated 126 Haidilao restaurants overseas, with 10 new stores opened and 6 discontinued year-to-date. Anticipate opening a few stores in Q4. ### Pomegranate Plan: Second international brand, Hi Bowl malatang, launched in Canada and became profitable. Sparkora BBQ in Indonesia and Vietnam, and Izakaya in Japan opened, showing consistent growth.

In Q3, Super Hi International generated total revenue of USD 214 million, a 7.8% year-over-year increase. Haidilao restaurant operating revenue was USD 201 million, up 5.1% year-over-year. Takeaway revenue reached USD 4.4 million, a 69.2% rise from the previous year, and other business revenue stood at USD 8.9 million, a 74.5% increase. Raw material costs totaled USD 71.2 million with a gross profit margin of 66.7%, down 0.3 percentage points year-over-year. Employee costs were USD 71 million, representing 33.2% of revenue, up 0.1 percentage points year-over-year. Operating profit was USD 12.64 million, a decrease of USD 2.3 million or 15.4% compared to the same period last year, with an operating profit margin of 5.9%, down 1.6 percentage points year-over-year. The company served approximately 8.1 million customers in Q3, a 9.5% rise year-over-year. Haidilao had a daily table turnover rate of 3.9 rounds, up 0.1 rounds from last year. Average order value was USD 24.6, down USD 1.2 from last year. Average daily revenue per restaurant reached USD 18,000, a USD 300 increase from last year. East Asia was a top performer, serving 1.2 million customers, a 50% increase from last year.

Full-Year: 2025 total revenue expected to reach USD 610 million with an operating profit of USD 24.45 million, operating profit margin 4% from Jan-Sept. ### Store Opening: Anticipate opening a few Haidilao stores in Q4, with over 10 new stores expected to open year-to-date. ### Long-Term: Continue to enhance store management, open high-quality new stores, and explore innovative business models for Pomegranate initiatives. ### Localization: Localization rates vary by region; Asia and South Korea have above 90% localization, North America around 40%-50%.

Exchange Rate Fluctuations: Net profit after tax was affected by foreign exchange loss of USD 5.8 million in Q3 compared to a gain of USD 25.8 million in the same period last year. ### Cyclical Fluctuations: Operating cash flow in Q3 was USD 34.1 million, down USD 6.5 million from last year due to cyclical fluctuation in operating receivables and lower operating profit than last year's same period.

Q: What are the strategic plans for operations and expansion in each region next year? What will be the focus and pace of operation in different regions? And how should we project profit margins?

A: Different regions have distinct strategies. Southeast Asia and East Asia focus on increasing local customer base and new business formats. North America focuses on internal improvement and talent development. Thailand focuses on internal development. Profit margins are prioritized based on customer and employee health, not short-term numerical goals.

Q: What has been the trend of table turnover rate since Q4? What are the expectations for store performance during the upcoming peak season? Also are there any further plans or construction projects regarding overseas supply chain? And how are the new overseas brands progressing?

A: Q4 is typically a peak season; demand is higher than Q3. No large-scale investment plans for new supply chains. Hi Bowl malatang launched in Canada is profitable; Sparkora BBQ and Izakaya are in stable growth. New brands are managed cautiously with focus on sourcing sharing and management efficiency, with no specific M&A plans currently