Haidilao International Holding Ltd. provided preliminary group earnings guidance for the year ended December 31, 2022. The board of directors informed the shareholders of the Company and potential investors that, based on a preliminary review of the unaudited management accounts of the Group for the year ended December 31, 2022 and assessment of the latest information currently available to the Board, the revenue of the Group is expected to be no less than RMB 34.6 billion for the year ended December 31, 2022, representing a decrease of no more than 15.8% as compared to the revenue of RMB 41.1 billion for the year ended December 31, 2021, mainly due to (i) the suspension of business operation or dine-in services of certain restaurants and the decrease of customer flow in mainland China resulted from the impact of the COVID-19 pandemic in 2022; and (ii) the decrease in the number of restaurants from January to August 2022 as compared to the corresponding period in 2021 due to the implementation of the "Woodpecker" plan. Despite the decrease in the revenue, the Group is expected to record a net profit of no less than RMB 1,300 million for the year ended December 31, 2022, as compared to the net loss of RMB 4,161.2 million for the year ended December 31, 2021.

The expected profit is mainly attributable to the improved efficiency in restaurant operation as a result of the improvement measures taken under the "Woodpecker" plan; the markedly improved operating performance of the company's restaurants in mainland China and other regions along with the ease of COVID-19 pandemic since June 2022; and a gain of approximately RMB 329 million recognized on cancellation of 2026 notes repurchased from the open market and by tender offer.