Shu Ping, a co-founder and wife of Haidilao (6862)’s chairman and chief executive Zhang Yong, has reportedly offloaded about 260 million of the company’s shares at HK$10.62 apiece at the pre-opening session on Wednesday, Bloomberg reported.
The sale represents a 6.68 percent discount to yesterday's close – totaling roughly HK$2.75 billion. The speculation came after the company saw multiple large-block trades at the pre-opening session, involving about 260 million shares.
Haidilao’s shares tumbled as much as 12 percent to HK$10, the lowest since March 2022. It closed down 9.2 percent as the worst-performing blue chip.
Haidilao confirmed after market close that members of its core holding vehicle of the controlling shareholder group, SN NP, sold the stake that represents 4.65 percent of the total shares outstanding. It said the disposal was soley for SN NP’s capital financing needs, and was a shareholder-level private matter unrelated to the Haidilao's business, operations, financial condition or prospects.
Following the sale, the controlling shareholders' combined stake fell to about 45.49 percent, with their control and management of the Haidilao remaining unchanged.
Haidilao said SN NP is a discretionary trust set up by Shu, acting as settlor and protector, for the benefit of herself, her husband Zhang Yong, and their family. The shareholder has affirmed that the controlling shareholders maintain strong confidence in the company's business outlook, growth potential, and long-term value, and will continue to support the company's long-term development going forward.
Haidilao emphasised that its current business operations and financial condition remain normal, with all business activities in line with its established strategy. The company believes that the disposal will not have any adverse impact on its business, operations, financial condition, management stability, or corporate governance.
Morgan Stanley said the sell will weigh on near-term sentiment until investors regain confidence in the company's earnings outlook and are assured no further share reductions.
Meanwhile, Zhang bought about 11.3 million shares at HK$13.39 per share in May, according to Morgan Stanley.
