(Yicai Global) Aug. 31 -- Shares of Haidilao International Holding jumped after the Chinese hotpot chain's first-half net loss came in near the lower end of the company’s projection and revenue was a little better than it expected.

Haidilao’s stock price [HKG: 6862] gained 6.5 percent to finish at HKD18.60 (USD2.37) today, after jumping by as much as 8.1 percent in the morning session.

Haidilao’s net loss was CNY267 million (USD38.6 million) in the six months ended June 30, versus a net profit of CNY97 million (USD14.1 million) a year earlier, mainly due to the impact of Covid-19, the Beijing-based firm said in its latest earnings report released yesterday. On Aug. 14, Haidilao had said it expected a net loss of between CNY225 million and CNY297 million.

Revenue fell 16.6 percent to CNY16.8 billion (USD2.4 billion) in the period, compared with the 17 percent drop Haidilao had predicted.

The net loss included nonrecurring and impairment losses of CNY308 million, fixed expenses, and labor costs incurred during the suspension of business and dine-in services at some restaurants in the Chinese mainland, the firm noted.

Haidilao halted dine-in services at more than 200 eateries a day on average from March to May, as customer numbers fell amid sporadic Covid outbreaks in China. Dine-in services were suspended at less than 90 restaurants on average in June and at less than 30 in July, it added.

The chain's performance has improved since June, with limited impact from shutterings, Haidilao said, adding that it plans to resume operations at some restaurants at an appropriate time.

China's caterers saw income decline an average of 7.7 percent in the first six months from a year ago, with drops of 22.7 percent and 21.1 percent in April and May, according to data from the National Bureau of Statistics.

Haidilao had 1,435 restaurants worldwide as of June 30, a net decrease of 162 from the year before.

Editor: Futura Costaglione