Underwater Hotpot International Holdings Limited (Underwater Hotpot) saw a 14% decrease in net profit in 2025, while its core operating profit also dropped by 13.3%. The report indicated a 7.5% decline in the number of diners compared to the previous year.
On March 24, Underwater Hotpot released its “Annual Performance Announcement for the Year Ended December 31, 2025.” According to the announcement, “During the reporting period, the Group’s revenue was 43,225.4 million yuan, a year-on-year increase of 1.1%; the core operating profit was 5,403.2 million yuan, a decrease of 13.3% year-on-year; and the net profit for the year was 4,041.9 million yuan, a decrease of 14.0% year-on-year.”
Furthermore, the main source of revenue for Underwater Hotpot—operating revenue from its restaurants—decreased from 40,397.6 million yuan in 2024 to 37,543.0 million yuan in 2025, a 7.1% decrease.
The announcement also stated that in 2025, a total of 383.9 million customers were served throughout the year, representing a 7.5% decrease from the previous year.
The decline in profits was attributed to “mainly the decrease in table turnover rate, as well as adjustments in innovative models such as products and scenes.”
As a major brand in China’s food and beverage chain, the decline in performance at Underwater Hotpot reflects the serious internal competition within the Chinese catering industry.
At the 8th Catering Industry Conference on October 16 last year, Wang Puzhong, CEO of Meituan’s core local business, pointed out that the current catering industry is facing significant challenges. The average customer spending for dining in has almost returned to the level of 2015. He mentioned that the annual revenue of the catering industry began fluctuating in 2020, and the average customer spending in the industry has been declining since 2023, almost reaching the levels of a decade ago. Among the new takeaway orders, 75% are from the price range below 15 yuan.
Underwater Hotpot is a Chinese hotpot chain brand founded in Sichuan in 1994. In February 2026, it ranked 211th in the “2025 Hurun China 500.”