Hot pot giant Haidilao lends $14M to founder Zhang Yong
What's the deal? HaidilaoDealroom has a profile for this one. Try Dealroom → (6862.HK) said on October 12 it would lend founder and chief executive officer Zhang Yong up to US$13.8M in Hong Kong dollars. The 30-day loan carries a rate of one-month HIBOR plus 60 basis points.
Zhang, who holds roughly 45.51% of the hot pot chain, may use the money only for personal financial arrangements. The terms bar him from buying Haidilao shares, lending to third parties, or any illegal use, and the company can monitor how the funds are spent.
Why now? The loan follows a move by Zhang's wife and Haidilao co-founder Shu Ping, who cut her stake in September to raise US$332.4M, sending the stock down sharply that day. SP NP Ltd.Dealroom has a profile for this one. Try Dealroom →, part of the controlling shareholder group, sold 259 million shares at US$1.28 each, about 4.65% of issued shares.
Morgan Stanley said the sale surprised the market, given that Zhang had bought 11.35 million shares in May at US$1.62 each. It estimated the move may be tied to new offshore trust tax rules requiring residents to report and settle taxes within 90 days.
By the numbers: Haidilao's business is recovering. First-half revenue rose 7.9% year on year to US$3.07B, a record for the period, while system-wide restaurant sales grew 0.8%.
Core operating profit reached US$345.1M, up 4.4%, and profit for the period rose 0.5% to US$242M. Net profit edged up after two consecutive years of decline, according to Wind data.
The signal: The intra-group loan lets Haidilao redirect internal resources to its controlling family while shielding daily operations. It underscores how much the chain's fortunes remain bound to the Zhang and Shu household amid shifting tax rules.
Read more: sohu.com
Image credit: Geoff Peters 604
