SUPER HI INTERNATIONAL HOLDING LTD.

The investors and analysts, hello. Thank you for joining the 2024 fourth quarter and full year performance call of Super High International today. The company management participating in this call are Executive Director and CEO, Ms. Yang Lijuan, and Finance Director and Board Secretary, Ms. Qu Zhong. Today's conference call may include forward-looking statements about strategy, business plans, and performance outlook. Management's views are current as of today. For details, refer to the latest Safe Harbor Statement in the evening's press release. The call will be conducted in Chinese with simultaneous English translation provided by an external agency. In case of discrepancies, refer to the Chinese content. Presentation materials are available on the company's investor relations page. Next, we're going to invite Ms. Yang Lijuan, Executive Director and CEO of Superhigh International, to present the company's performance for the fourth quarter of 2024. Great, thank you. Hello, investors and analysts. I'm Yang Lijuan, Executive Director and CEO of Superhigh International. I'd like to introduce the company's performance in the fourth quarter and the full year of 2024. We insisted on implementing the three tables management and improving the four color cards capabilities. Combined with the factors of the year-end holidays, we achieved good results in the fourth quarter. Revenue was $209 million, an increase of 10.4% year-over-year. The average table turnover rate of Haidilao hotpot restaurants was 3.9 rounds, and same-store sales growth was 4.2%. The company's operating profit margin was 8.4%, an increase of 2 percentage points year-over-year. In 2024, we opened 10 new stores. The table turnover rate increased to 3.8 rounds, up 0.3 year-on-year. Total revenue grew by 13.4%, with same-store sales of Haidilao Hot Pot restaurants rising by 7.1%. Operating efficiency improved profits, leading to a restaurant-level operating profit margin of 10.1%, up 1.1 percentage points. year over year and a 23.7% increase in company operating profits. Despite overseas challenges, our company still demonstrated strong resilience. Next, I'll share our ongoing efforts in business improvement. First, we engaged both employees and customers. In the fourth quarter, we rigorously implemented the three tables management tool and the four color cards performance review tool. Emphasizing accuracy and excellence, we identify shortcomings in leadership regarding employee growth, welfare, compensation, and care. Therefore, besides the aligned interest incentive scheme, we also improved our systems and tools to enhance cohesion among diverse employees and foster material and spiritual connections. This really helped employees understand the corporate value of changing destiny with your own hands and make effective plans for their career growth. In addition to that, we enhanced customer engagement by creating various dining experiences like birthday celebrations, family get-togethers, and meals with friends. Introducing exclusive account managers strengthened employee-customer connections, allowing teams to efficiently attract customers and provide diverse services. And this method has incentivized a lot of our employees to provide better services with high quality. Thanks to our progress in engaging employees and customers, we can now implement our dual management store and multi-management store policies. Currently, we have nearly 20 outstanding managers who have successfully taken on double or multiple management roles for different stores. These managers not only oversee a greater number of stores with their exceptional management skills, but they also play a key role in developing a talent training pipeline. Number two, by concentrated on enhancing customer experience, we persisted in optimizing our products, services, and cost effectiveness to establish a distinctive identity for Heidi Lau. In 2024, we launched over 1,000 new products globally. Highlights include Lau Pai Beef in Singapore, Fresh Cut Diao Long Beef in the UK, and Fish and Shrimp in the US, all well-received by customers. Using a market insight, we developed a system that assess click rate coverage and gross profit margin optimizing our offerings and improving our supply chain. In 2024 we improved our research development and quality control. the product. We incorporated raw material traceability into production standards, enhance supplier grading and tighten ingredient quality checks.

Each supply chain segment

Each supply chain segment can intercept unqualified products, promoting accountability and ensuring higher quality dishes for our customers. Regarding services, we focused on expanding our services and building emotional connections with customers. For example, in some Malaysian and Canadian stores, we hired DJs for late night hours, improved lighting and atmosphere, and introduced snacks and drinks for late night cravings. We also piloted a nightclub-style decor in selected stores to create a diverse environment. In Q4, two celebrity collaborations events in South Korea were organized, which drew local fans' attention, increasing customer traffic and sales. Alongside enhancing the dining experience, we are also placing greater emphasis on takeaway options. We've introduced a range of quick-serve foods like spicy hot pots, rice bowls, and pasta across various countries' takeaway platforms. In 2024, our takeaway revenue saw a 15.3% year-over-year increase. effectively meeting customer needs and bolstering our revenue generating capabilities. When it comes to cost effectiveness, to maintain a high standard, country heads actually classify stores by local consumption, performance, and demographics. They allocated budgets to reward customers through better shopping environment, product quality, discounts, and surprises, aiming to build