Haidilao International Holding Ltd. announced that after reviewing the operating performance of its restaurants, the Group decided to adjust its restaurant expansion planning decisions. The board of directors of the Company (the "Board") hereby announced that the Group has decided to shut down or suspend the operation of about 300 Haidilao restaurants with relatively low customer traffic and unsatisfying results of operations gradually by December 31, 2021, of which some restaurants will be temporarily closed of no more than two years and resume operation in appropriate times. The Company will not lay off employees and will properly settle the employees of such restaurants within the Group. In addition, in order to improve the operating performance of the Group, the Board decided to launch the "Woodpecker" plan led by the executive director and the deputy chief executive officer Ms. Yang Lijuan. The main contents of the plan include: Continuing to pay attention to the restaurants with unsatisfying results of operations, including overseas restaurants, and taking improvement measures accordingly. Rebuilding and strengthening part of the functional departments of the Group and restoring the regional management system. Under the premise of scientifically assessing various departments, keeping conveying to employees the corporate culture and the values of "changing your future with your own hands", and vigorously advocating the dedication spirit with love and trust as the core. Slowing down the Group's business expansion plan timely. If the average table turnover rate of Haidilao restaurants of the Group is less than 4 times/day, no new Haidilao restaurants will be opened on a large scale in principle.