Against this backdrop, the return of Zhang Yong as founder and chief strategist may signal adjustments to certain past policies. Market participants are keenly watching whether Zhang Yong can implement changes to gradually restore single-store profitability, pursue higher-quality growth, and ultimately stem the "bleeding" of profit margins.
On January 14, shares of Hong Kong-listed Haidilao surged rapidly after market opening, climbing over 10% during the session and leading gains in the consumer sector. This rally was directly triggered by a personnel announcement released the previous evening, in which Gou Yiqun resigned as executive director and CEO, while founder and board chairman Zhang Yong reassumed the CEO role.
It is noteworthy that this marks the third CEO change at Haidilao in four years since 2022. Why has the founder's return to the frontlines so quickly ignited enthusiasm in the capital markets? Behind this short-term stock volatility, what exactly are investors anticipating?
Founder's Return and Board Rejuvenation Reviewing Haidilao's governance trajectory post-listing, the 55-year-old Zhang Yong had long served concurrently as board chairman and CEO until March 2022, when he passed the CEO baton to Yang Lijuan, renowned as the "top-performing service staff." However, Yang's tenure lasted just over two years, with veteran executive Gou Yiqun taking over in July 2024.
Furthermore, back in April 2020, Zhang Yong announced the launch of a "successor plan," indicating his retirement within 10-15 years. Yet five to six years later, not only has Zhang not faded from the scene, but he has stepped forward again as the company faces challenges, simultaneously implementing sweeping adjustments to the board structure.
Accompanying Zhang Yong's reappointment are four new young female executive directors: Li Nana (38), Zhu Yinhua (44), Jiao Defeng (39), and Zhu Xuanyi (35). This refresh brings the average age of Haidilao's executive director team to just 39 years. The company officially stated that this move aims to support continuous innovation and long-term development while actively cultivating a new generation of management talent.
Notably, this adjustment reunites the chairman and CEO roles under Zhang Yong's leadership. Haidilao's announcement acknowledged that this structure deviates from the corporate governance code's recommendation for role separation under the Listing Rules. However, the board emphasized that balance is maintained through six independent non-executive directors, collective decision-making systems, and regular meetings.
The capital markets have responded relatively positively to this adjustment. Public data shows Haidilao's stock surged 7.35% following the January 14 announcement, while the Hang Seng Index edged down 0.01% and Hong Kong consumer ETFs gained just 0.63% during the same period, indicating Haidilao's outperformance versus broader market and sector indices. Throughout 2025, Haidilao's stock never hit daily price limits, with more significant gains occurring on February 4 and February 27, rising 6.7% and 6.75% respectively.
Additionally, some institutional research reports have recently revised upward their 2025 sales forecasts for Haidilao by 2%, reflecting stronger-than-expected growth in delivery services and contributions from new business segments in the second half of 2025.
Can Zhang Yong's Return Stem the Profit Margin "Bleeding"? The short-term stock surge reflects sentiment and capital flows. Looking beyond surface movements, market expectations for Zhang's return are built on specific logical frameworks, primarily focusing on strategic recalibration, management restructuring, and confidence rebuilding.
In recent years, Haidilao has experienced roller-coaster development. While 2021 saw rapid revenue growth, the company decisively closed approximately 300 stores to improve operational performance, launching the "Woodpecker Plan" led by Yang Lijuan to "stop the bleeding." Subsequently, under Gou Yiqun's leadership, the company entered a "stable and sustainable growth" phase, establishing entrepreneurship and innovation committees, digital operation committees, and initiating the "Pomegranate Plan" to incubate new restaurant brands.
However, latest financial reports indicate ongoing transition pains. First-half 2025 revenue declined 3.7% year-over-year to RMB 20.7 billion, while core operating profit dropped 13.72%. The interim report bluntly stated: "The performance decline reflects management shortcomings in operational capabilities." Meanwhile, the promising "Pomegranate Plan" has yet to demonstrate significant results due to relatively lower margins in emerging businesses, presenting challenges including declining table turnover rates in traditional operations and ongoing adjustments in innovative models.
Against this backdrop, Zhang Yong's return as founder and chief strategist may signal corrections to certain past policies. Market observers are watching whether Zhang can implement changes to gradually restore single-store profitability, pursue higher-quality growth, and ultimately stem the profit margin "bleeding."
In reality, as restaurant industry competition intensifies, the era when "extreme service" alone could create sustainable competitive advantages has gradually passed. Recognizing this reality, Haidilao's board rejuvenation carries clear strategic intentions. The board noted in related announcements that new director appointments align with strategic direction and long-term development needs, aiming to enhance decision-making effectiveness through fresh perspectives and energy while maintaining high governance standards.
Secondly, expectations center on management and cultural "return." Recently, Haidilao's renowned service reputation has faced erosion, with customers complaining about declining service quality and employees calling for improved workplace satisfaction. Negative social incidents like the "urination gate" have further damaged brand image. Ultimately, these issues reflect organizational and cultural challenges amid rapid expansion.
As Haidilao's founder and cultural architect, whether Zhang Yong can effectively transmit and reinforce core values through hands-on leadership, address recent service quality and management efficiency concerns, and refocus operations on business fundamentals will be key indicators for evaluating this personnel adjustment's effectiveness.
From common corporate development patterns, founder returns during challenging periods often signal strong commitment to internal teams and external markets. In the consumer sector, recent years have seen numerous cases of founders returning to frontline leadership, including similar personnel changes at companies like Zhou Hei Ya and Xiang Piao Piao.
Overall, this personnel adjustment represents Haidilao's critical response to growth bottlenecks and governance challenges. Capital markets have responded positively, expressing expectations for founder return and organizational renewal. However, facing multiple tasks including service experience revitalization, single-store profit recovery, and new business incubation, whether this "veteran general with young officers" governance structure can translate into sustainable performance growth remains subject to market and time validation.
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