By Clarence Leong


Shares of Haidilao International Holding Ltd. jumped in Monday morning trade, after the Chinese hot-pot chain operator said its operations have improved markedly since June, even though it expects to post a loss for the first half.

Haidilao's stock climbed 6.9% to HK$17.12 in Hong Kong, helping to pare year-to-date losses to 2.7%. The city's benchmark Hang Seng Index was recently down 0.7%.

The company said it has taken measures to ensure healthy cash flow and a strong cash position, including controlling operating costs and stringent management of working capital, according to a filing late Sunday.

Haidilao said it expects first-half revenue to decline up to 17% from a year earlier and to swing to net loss of 225 million-297 million yuan ($33.4 million-$44.0 million). It attributed the expected loss to one-off losses from restaurant closures and impact from the pandemic.

The share-price rebound was largely due to the market expecting Haidilao's performance to improve sequentially, UOB Kay Hian analysts Ng Jo Yee and Shen Zhifeng said. But they still hold a cautious view on China's catering sector and said Haidilao's share-price gains may not be sustainable.


Write to Clarence Leong at clarence.leong@wsj.com


(END) Dow Jones Newswires

08-14-22 2253ET