This article only represents the author's own views.
China’s catering industry had a tough year in 2022, as restaurants suffered from frequent closures under Beijing’s ultimately futile attempt to stop the spread of the highly contagious Covid Omicron variant. But a taste of spring could be just around the corner with China’s scrapping of its “zero Covid” policy, providing reason for hope among investors in these embattled companies.
That appears to be the logic behind investor reaction to an otherwise gloomy profit warning issued this week by Jiumaojiu International Holdings Ltd. (9922.HK), operator of a well-known hotpot chain serving a popular dish called “sauerkraut fish.” The company said its net profit tumbled 86.2% to 47 million yuan ($6.8 million) last year, while its revenue dropped by a milder 4.2% to 4 billion yuan.