Haidilao International Holding (06862.HK) saw its stock plummet 6.25% in pre-market trading, heading towards its worst single-day performance in four and a half months. The sharp decline comes as the Chinese hot-pot restaurant chain operator reported a significant drop in its half-year profit and revenue.
According to the company's latest financial report, Haidilao's net profit for the first half of the year fell by 13.7% year-on-year to 1.76 billion yuan ($246.05 million). Revenue also declined by 3.7% to 20.7 billion yuan during the same period. These disappointing figures have rattled investor confidence, triggering a sell-off in the stock.
The stock's decline is particularly notable within the broader market context. Haidilao emerged as the top percentage loser on the Hang Seng Commerce & Industry Index, which itself slipped 0.6%. The benchmark Hang Seng Index also eased by 0.5%, indicating a generally bearish sentiment in the market. Year-to-date, Haidilao's stock has now fallen by 10.6%, reflecting ongoing challenges in the consumer sector amid China's economic slowdown.