Tehai International announced the results for the first half of 2023. 1H23's revenue was US$324 million, an increase of 31.8% year-on-year; net profit of US$03 billion (net loss of US$56 million for 1H22) was in line with previous forecasts. 1H23's restaurant-level operating profit margin was 8.3%, an increase of 6.8 pct over the previous year and an increase of 2.2 pct over the previous year. The increase in performance mainly comes from: ① The epidemic prevention and control measures in the country where the 1H23 company operates have been abolished. ② Under the “low base salary, high dividend” salary structure, emphasis is placed on the level of store operating efficiency, actively open source (improving services and products, adjusting food prices, adopting appropriate marketing, improving customer satisfaction) and saving money (improving employment efficiency, seeking preferential terms of cooperation, and optimizing the cost structure).

Regions outside of Southeast Asia are increasing their contributions, and new businesses provide new opportunities. In terms of revenue structure, ① restaurant operating revenue was US$313 million, up 30.4% year on year. Among them, Southeast Asia accounted for 57.6%, a decrease of 3.4 pct, while East Asia, North America, and others (Australia, the United Kingdom, and the United Arab Emirates) accounted for 11.5%, 19.8%, and 11.1% respectively, increasing by 1.0 pct, 0.1 pct, and 2.3 pct, respectively. ② Revenue from the takeaway business was $0.04 billion, a slight increase of 3.0%.

③ Other revenue was US$07 billion, an increase of 266.4% year-on-year, mainly due to the popularity of hot pot condiments and ingredients in the market and increased sales of new businesses (such as noodle products).

The restaurant network has been steadily expanded, and the quality of newly opened restaurants has improved. ① Restaurant size: 1H23 The total number of last restaurants is 115, 1H23 opens 4 new stores, and no restaurants are closed. By region, Southeast Asia, East Asia, North America, and other regions each had 70, 17, 18, and 10, an increase of 2, 0, and 2 from the beginning of the year. ② Restaurant performance:

1H23 received a total of 112 million customers, up 32.3% year on year; the overall customer unit price was 25.5 US dollars, down 1.2% year on year; the overall average turnover rate was 3.3 times per day, up 0.3 times per day from 3.0 times per day for 1H22, up 0.3 times/day, and restaurant reception capacity increased. ③ Same-store management: The average daily sales volume of same-store sales in Southeast Asia, East Asia, North America and other regions was US$16,1.4, 19,24,000, respectively, up 4.7%, 40.2%, 18.2%, and 21.8%; the same store turnover rate was 3.4, 3.5, 3.2, and 3.4 times/day, respectively, with a year-on-year increase of 0.2, 0.8, 0.6 times per day.

Profits have been achieved at the restaurant level in all regions, and gross margins have continued to be optimized. At 1H23, restaurant profit margins in Southeast Asia have been restored to 10.9%, an increase of 1.3 pct over the previous year; East Asia, North America, and other regions have all reversed losses at the restaurant level. Restaurant profit margins were 5.7%, 5.8%, and 1.8%, respectively, with significant increases of 19.4 pct, 17 pct, and 9.2 pct, respectively. (1) Raw materials and consumables: An increase of 26.1% to US$110 million, accounting for 33.7% of revenue, a year-on-year and month-on-month decrease of 1.5 pct, mainly due to increased revenue, optimized procurement costs, and strengthened restaurant management strategies. (2) Employee costs: An increase of 19% to US$110 million, accounting for 33.2% of revenue, a year-on-year decrease of 3.6 pct, a year-on-year increase of 1.7 pct. The absolute increase was mainly due to an increase in the number of employees and an increase in piece-rate wages, and a year-on-year decline mainly due to employee efficiency optimization. (3) Depreciation and amortization: An increase of 25.4% to US$0.4 billion, accounting for 12.9% of revenue, a year-on-year decrease of 0.7 pct, a year-on-year increase of 0.2 pct, and a month-on-month increase of 0.2 pct, maintaining relative stability. (4) Property rent and related expenses (short-term rental portion): An increase of 11.6% to US$0.06 billion, accounting for 1.9% of revenue, a year-on-year and month-on-month decrease of 0.4 pct. (5) Utility expenditure: An increase of 42.5% to US$112 million, accounting for 3.9% of revenue. The year-on-year and month-on-month increases were 0.3 pct and 0.4 pct respectively, mainly due to an increase in the number of restaurants, an increase in turnover rate, and an increase in electricity costs in several jurisdictions. (6) Travel and related expenses: Decreased by 3.0% to US$02 billion, accounting for 0.7% of revenue, with year-on-year and month-on-month decreases of 0.3 pct and 0.1 pct, respectively.