SUPER HI INTERNATIONAL HOLDING LTD.

the 2021-2025 earnings call of Super High International. Attendees of this conference are Mrs. Yang Lijian, Executive Director, NCO, and Ms. Qu Chong, CFO and the Secretary of the Board of Directors. Today's meeting may include forward-looking statements, including but not limited to the company's statements on strategic and business plans, as well as performance outlook. The updates at this earnings conference, the management's comments and response to your questions only will be presented today. Please refer to the latest Safe Harbor Statement in the earnings press release, which applies to this conference call. This meeting will be conducted in Chinese. An external agency will provide simultaneous English interpretation. In case of any discrepancies, the Chinese content shall prevail. The meeting presentation materials have been uploaded to the company's investors' relations page for your review. Now let's invite Ms. Yang Lijian, Executive Director, to give you an update on the company's performance in Q1 2025. Thank you, moderator. Dear investors, analysts, hello everyone. I'm Yang Lijian, the Executive Director and CEO of I'd like to update you on the Q1 performance of Superhigh. In Q1, the overall average table turnover rate remained flat at 3.9 times per day compared to last year. While the same store turnover rate further increased by 0.1 times per day -on-year to 4.0 times per day, the company achieved a revenue of $198 million, a -on-year increase of Q1. In Q1, we proactively adjusted operating strategies by providing benefits and credits to our guests by including more reasonable pricing, bigger proportion of the food, and enriched and diversified dining gatherings and scenarios, hope by taking the initiative that more guests would be willing to choose them for the longer run. At the meanwhile, we also pay attention to team including them with better benefits packages to better create synergy and collective vision among our staff members. So through this implementation of the initiative, in the short period of for sure, our operational margin were under pressure. That's in Q1, our operating profit was 4.1%, a -on-one decrease of 2.5 percentage points, but it is to our conviction that we must have a long-term dedication to our strategy of a dual focus on both employee empowerment and customer-centric operation. Next, I will update you on the main initiative of this quarter. In Q1, we continue to implement our strategy of dual focus on both employee empowerment and customer-centric operation. In this year, we have a review of the management as well as the operation of various countries, and we believe we need to continue to our strategy of dual focus. In terms of our customer satisfaction, we believe we need to start from two directions. One is better quality for price. Second is building a differentiated -de-law. In order to give the sense of a better quality for price, we have streamlined and revealed the table turnover rate, the growth margin of different countries and stores, thus adjusting the pricing and proportion of the offerings. And it goes out to the guests. And also, we have tightened our management procedures by taking advantage of the full-color card system so that the guests can have access to better quality of our services, dining environment, and product offerings. Also, we have launched a project called a different -de-law. So based on the fundamental scenarios that we offer previously, we have iterated our product offerings, furnishings, and operations. Especially, we have explored and created immersive dining scenarios in terms of a late-night snack, fresh-cut meals, family gatherings, and pet gatherings so that we can bring the customer experiences to a high level by bringing with them improved quality of the food, freshness of the ingredients, and social bars. Engagement. We have conducted a deep dive of the languages and culture backgrounds of our employees. And we want to bring tangible benefits to increase the employee engagement in terms of a salary level, benefit packages, employee care, dormitory conditions, employee meals, team building, et cetera. This requires intensifying and more investment in the very beginning so that our staff globally can have a stronger sense of... So the country managers and the regional managers will be the chief owners of this initiative. So we have reshaped and rationalized our salary, benefit packages, a standard for team building, and the regular checks of the implementation from different countries. So we advocate to print diversified employee activities such as outings, ballgames, team buildings to intensify our synergy in an official manner. By implementing these strategies in the short term, the operating margin will be short on the pressure while we're really starting to see the signal in the Q1 performance. But it is to our conviction, these measures are necessary and worthwhile so that we can gain long-term customer loyalty and the trust from the employees. And we believe we should have a long-termism perspective of the above-mentioned investment areas. While... The second building that will continue to focus on product innovation and the marketing campaigns. Well, in terms of the product, we have accumulatedly launched 300 times of new products covering the soup base, the menu offerings, snacks, beverages, and et cetera. And the different regions have nurtured their killer categories. For example, in Southeast Asia, we have launched the grassland of... The beef brisket. The local order rate was the passing 20%. In Japan, we have also provided a localized twist to our traditional beef gallon base soup. This new and fresh choice saw the collection rate or the order rate surpassing 15%. While in terms of branding, we have diversified ways to engage and reach our... Yes, taking a time in collaboration. In January this year, we have launched a peripheral and themed doors by featuring the happiness and the fortune hot pot as a social event. And also on March the 20th and the brand birthday, together with the celebrities, we have launched a collaboration event with 250 million sets of meals sold out and you receiving a buzz as well as... These practices and initiatives do not only consolidate the brand awareness, also inject impetus to our global expansion. Third, in terms of the store expansion, we will adopt a Boucher-Nut model, i.e. the country manager... We have four net NSOs in Malaysia, the Philippines, Japan, and Australia. At the same time, we close the three underperforming stores and continue to focus on the healthness of... The rest of the stores with contract already signed but not yet open and teams of locations for materialization. It is expected that we will have double digits new stores open in 2025, reserving momentum for long-term development. Fourth, under our Promenade Gate plan, we are building the second curve. This quarter, the revenue of existing stores from the second curve increased by 25% while why? And we are... To... Some country managers have already launched innovative plans in their territories, such as hot pot variances, barbecue, and fast food. The headquarters aim to provide all-around support to such projects in areas like market research, product development, and brand building through a standardized global playbook. Currently, the first barbecue store in Malaysia will come in soon, and we are evaluating extension opportunities in countries we already play. These projects... Looking into the future, we're building a globally leading integrated catering group at our vision. We'll stay focused on five strategic pillars. Customer experience improvement, restaurant network optimization, operational efficiency enhancement, emerging business cultivation, and headquarters capability strengthening. Through a solid operational foundation and innovative business layout, we will strive to achieve a higher ambition in the global market. Of the Heidi Lau restaurant, which still $188 million, a .5% -on-year increase, mainly driven by the continuous business expansion. The number of Heidi Lau restaurants increased by four compared to the same period in 2024. Meanwhile, the brand influence has continued to grow, with traffic increasing by .8% on a -on-year basis. In this quarter, benefiting... From new delivery menu offerings, such as Ma La Hot Pot at many stores, and the great expansion of online delivery channels and delivery radius. The revenue of a delivery business reached $4.024 million, a significant .9% -on-year increase. Other income reached $5.357 million, a .7% -on-year increase. This is partly due to the growing popularity of our hot pot... And its sub-brands among local consumers and retailers, and partly due to the revenue growth contributed by restaurants incubated under the Promenade Gate plan. While in terms of costs, the raw material cost was $67.167 million, with a growth margin of 66%, a -on-year decrease of 0.5 percentage points. This is mainly attributed to our continuous... Critical investment in expanding the guest base, as well as the adjustment of the pricing strategies. Personnel cost was $69.832 million, accounting for .3% of revenue, a -on-year increase of 1.4 percentage points. This is primarily because we increased the investment in team building in this quarter, improving employee benefits and talent reserves. Rent and facilities was $5.561 million, accounting for .2% of revenue, a -on-year increase of 0.5 percentage points. Main contributors increased the number of leased properties versus last year as the business expanded, along with an overall rise in property costs. Utility expenses were $6.963 million, accounting for .5% of revenue, and 0.2 percentage points, mainly due to scaling fact brought by increased revenue. Depreciation and amortization were $19.898 million, accounting for .1% of revenue, a -on-year decrease of 0.8 percentage points, mainly due to the expiration of DNA for some stores and the benefits of store fleet rationalization.

Okay.

At $21.149 million, accounting for .7% of the revenue, a -on-year increase of approximately 1.3 percentage points. This is mainly due to our incremental investment in dining experiences and product offerings and the rising cost of outsourcing services and daily maintenance as the restaurant network expands. The profit was 8.157 million, decrease of 4.26 million from the $12.43 million in the same period last year. The operating profits in Q1 was 4.1%, decrease of 2.5 percentage points from .6% in the same period last year, mainly because we continue to implement the strategy of dual focus on employees and customers. Well, in terms of the regional performances, the estate of the overall local operations, the traffic increased by .5% compared with the same period last year. And also the traffic in other regions increased by 20% on a -on-year quarters. North America, traffic in North America increased by .1% compared to the same period last year. As Southeast Asia, the table turner of rates in Southeast Asia remained at 3.7 this quarter on par with the same period last year. It was $18.7, a decrease of $0.7 compared with the same period last year. While same store performance this quarter, the average table turnover rate over 102 same stores was four times per day, an increase of 0.111, then driven by the same store table turnover in East Asia and OW. The SSS performance per region is trending similar to the overall. So we will soon enter the Q&A session.

In the first quarter,

the $7.8 million, a decrease of $4.246 million from a $12.43 million in the same period last year. The operating profit in Q1 was 4.1%, a decrease of 2.5 percentage point from the .6% in the same period last year, mainly because we continue to implement the strategy of dwell focus. In Q1, the company's net profit after tax was $11.88 million, turning around from $5.45 million in the same period last year. This is mainly due to FX fluctuations in the Q1 this year, which led to a revaluation of the items in the US dollar, generating approximately $7.435 million non-cash FX gains compared to an FX loss of $13.045 million in the same period last year. The operating cash flow in Q1 2025 was... $4.324 million from the same period last year. In Q1, we served about 7.8 million customers, a .8% increase compared to the same period in 2024. Average table turnover rate was 3.9 times per day, same as last year. Our ATV was $24.2, a decrease of $0.7 from a $24.4 million to $4.9 million. This is mainly due to the rationalization of manual offerings and marketing activities, providing customers with more choices. In addition, compared to last year, the overall FX impact on ATV was negative this quarter, excluding the FX impact ATV was decreasing by $0.4 YOY.

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