By Claire Lim
Shares of Jiumaojiu International Holdings Ltd. fell after the Chinese restaurant operator said it expects lower first-half profits due to pandemic-related disruptions and currency losses.
The company’s Hong Kong-listed shares fell 4.2% in early trading on Tuesday before paring gains somewhat.
Guangzhou-based Jiumaojiu said late Monday that he expects first-half revenue to fall 6.1% from a year earlier to 1.90 billion yuan ($280.7 million). dollars) and net profit drops by as much as 70%.
Jiumaojiu cited the effects of recurring Covid-19 outbreaks in China on food services at its restaurants in top-tier cities as well as continued expansion spending as it opened 37 new restaurants in the first half of the year. ‘year. The company also expects to recognize unrealized foreign exchange losses due to the depreciation of the yuan against the Hong Kong dollar.
Other Chinese restaurateurs also fell in early trading in Hong Kong. Haidilao International Holding Ltd. fell 5.1% and Xiabuxiabu Catering Management (China) Holdings Co. fell 5.7%. The benchmark Hang Seng index recently fell 2.5%.
Write to Claire Lim at [email protected]