Haidilao’s billionaire co-founder steps down as CEO as Chinese hotpot chain flags first ever loss amid pandemic

Name: Chinese hotpot restaurant chain adapts as coronavirus fears push communal meals off the menu
Uploaded: 2022-03-02T07:29:50.000Z
Duration: 3 min 31 s
Description: Chinese hotpot restaurant chain adapts as coronavirus fears push communal meals off the menu

Hotpot restaurant chain prepares to post its first loss since at least 2015 as pandemic forces closures, suspension in operations

Yang Lijuan, China’s second-richest professional female executive, has been promoted to the top job

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Co-founder and chairman Zhang Yong seen during the company’s listing in September 2018. Photo: Getty Images

Martin Choi

Published: 3:29pm, 2 Mar 2022Updated: 3:59pm, 2 Mar 2022

Zhang Yong, once Singapore’s richest tycoon, has stepped down as the chief executive of Haidilao International, as the Chinese hotpot restaurant chain prepares to report its first loss in at least six years.

The businessman, who co-founded the chain in 1994, will relinquish the day-to-day management to his deputy Yang Lijuan, who was ranked China’s second-wealthiest professional woman manager in 2021, according to an exchange filing late on Tuesday.

Zhang will retain his role as chairman and executive director to guide and supervise the group’s operations, and to formulate its long term strategies. The group also separately appointed new chiefs for its mainland China and overseas operations in the management reshuffle.

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Chinese hotpot restaurant chain adapts as coronavirus fears push communal meals off the menu

Haidilao last month warned that the group will incur a net loss of 3.8 billion yuan to 4.5 billion yuan (US$713 million) for the year ended December 31, 2021, its worst results since at least 2015. Earnings slumped 90 per cent in 2020 to 309.5 million yuan as the Covid-19 pandemic forced the group to shut or suspend about one-fifth of its outlets.

Haidilao shares have risen 1.3 per cent this year. The stock crashed 71 per cent in 2021, wiping out more than US$28 billion of its market value while the Hang Seng Index fell 14 per cent. Haidilao became an index member in March last year.