HK Stock Market Move | HAIDILAO (06862) drops over 3% to a near four-year low; Citi says August table turnover rate fell short of expectations; major shareholder reduction adds to negative sentiment.

HAIDILAO (06862) fell over 3% intraday, hitting a new low since November 2022. As of press time, it was down 2.97% at HK$8.995, with a turnover of HK$83.834 million. Citi recently issued a research report stating that, according to HAIDILAO's communication with investors, the company's table turnover rate for the full month of August fell by a low single-digit percentage year-on-year, compared with management's statement after the interim results that the table turnover rate for the first three weeks of August rose by a low single-digit percentage year-on-year, underperforming expectations. The bank believes that the weekly volatility in the table turnover rate in August was greater than expected, reflecting a generally soft consumption environment. It is worth noting that on September 8, controlling shareholder member Shu Ping (wife of founder Zhang Yong) sold approximately 259 million shares, equivalent to about 4.7% equity interest, further weighing on negative sentiment toward the stock. The sale price was about 20% lower than Zhang Yong's buyback price in late May. After the sale, the controlling shareholders' combined shareholding decreased from about 50.2% to about 45.5%. The controlling shareholders stated that they still have full confidence in the company's business prospects, growth potential and long-term value.