Who needs people?
That’s one of the subtler messages in a new business update from premium tea chain Nayuki Holdings Ltd. (2150.HK), as the company grapples with recurring challenges created by China’s pandemic. The country’s frequent lockdowns, most recently in the northwestern city of Xi’an, have been especially tough for retailers like Nayuki, which rose to prominence in the pre-pandemic era on the soaring popularity for premium teas costing around 20 yuan ($3.13) per cup.
Investors seemed to welcome the update, which also includes the latest information on the company’s drive to go upscale and escape rampant competition at the lower end of the premium tea market. The stock was up nearly 4% on Monday morning, following the update’s release after markets closed at the end of last week.