Haidilao’s Shares Surge Despite First-Half Loss Alert Amid Covid-19
(Yicai Global) July 7 — Haidilao International Holding’s shares rose today even though the expanding Chinese hotpot chain said that expects to report a net loss in the first half of this year due to Covid-19.
Haidilao’s stock price [HK: 6862] climbed 3.5 percent to HKD37 (USD4.80) this afternoon.
The firm’s revenue should fall by 20 percent from a year ago, the Beijing-based company said in a statement today. It made CNY11.7 billion (USD1.7 billion) in revenue and CNY911 million (USD129.9 million) in net profit in the first half of last year.
The restaurant chain that also offers home delivery invested to expand its network over the six months although all its mainland outlets were shut from Jan. 26 to March 12 to stay safe amid the pandemic. Since then, more than 80 percent of its locations have reopened. Its overseas outlets were also closed for some time.
The company has ensured employment in accordance with regulations and engaged in epidemic prevention so its costs have not been greatly reduced during the shutdowns, it added.
Haidilao plans to operate a total of 1,000 restaurants by the end of this year. By 2019, it had 768 outlets.
Editor: Emmi Laine