HK Stock Market Move | CHABAIDAO (02555) rebounds more than 16% Recent inclusion in Hong Kong stock connect list The institution expects product and supply chain optimization

CHABAIDAO (02555) rebounded by more than 16%, as of the time of publication, it rose by 12.03% to HK$4.75, with a turnover of HK$3.7539 million. On the news front, CHABAIDAO was included in the Hang Seng Composite Index, Hang Seng Composite MidCap & SmallCap Index, Hang Seng MidCap & SmallCap Index (Investable), Hang Seng Consumer Goods Index, and Hang Seng Hong Kong Stock Connect Index in August. Public information shows that CHABAIDAO was included in the list of Hong Kong stocks available for trading under the Shenzhen-Hong Kong Stock Connect and Shanghai-Hong Kong Stock Connect, effective from September 10. It is widely believed that after being included in the Hong Kong Stock Connect, CHABAIDAO is expected to attract more mainland Chinese investors and may increase liquidity and valuation levels. In addition, CHABAIDAO achieved total revenue of HK$2.396 billion in the first half of this year, a decrease of 10.0% year-on-year; net profit attributable to shareholders was HK$237 million, a decrease of 59.7% year-on-year; and adjusted net profit was HK$395 million, a decrease of 34% year-on-year. Guotai Junan pointed out that the company's performance in the first half of the year was below expectations. The ready-to-drink tea market is fiercely competitive, the company continues to expand its penetration, with pressure on single-store revenue, and it is hoping for product and supply chain optimization.