(Yicai Global) May 21 -- Shares of Xiabuxiabu Catering Management tumbled after the Chinese hotpot chain replaced its chief executive due to the poor performance of its sub-brands.

Xiabuxiabu’s stock price [HK: 0520] plunged 15 percent to HKD10 (USD1.30) in the afternoon, almost half down from the beginning of this year.

Founder and Chairman Ho Kuang-Chi took up the reins as chief executive after Zhao Yi vacated the position because of the worse-than-expected performance, the Beijing-based company said in a statement today, without disclosing more details about the issues.

Founded in 1998, Xiabuxiabu operates three Taiwan-style hotpot brands, including Xiabuxiabu, Coucou, and In Xiabuxiabu.

The Covid-19 epidemic erased momentum. Net profit dropped 96 percent to CNY11.5 million (USD1.8 million) in 2020 from a year ago, according to the firm's earnings report published on April 27. Revenue decreased by 10 percent to CNY5.5 billion (USD855 million).

On April 16, the catering company said Zhang Zhenwei, CEO of its sub-brand Coucou, had resigned due to personal reasons. Those reasons seem entrepreneurial. Zhang had told the Paper that he will open his first hot pot restaurant in Shanghai by December.

Zhao joined Xiabuxiabu in 2012 as chief financial officer and was promoted to CEO in 2019. She had nearly 18 years of financial work experience in many multinational companies, including PepsiCo, Unilever, and McDonald's.

Editor: Emmi Laine, Xiao Yi