(Yicai Global) Sept. 1 -- Shares in Nayuki Holdings soared as much as 8.9 percent today after the Chinese bubble tea chain reported that, despite its first fall in revenue in the first half since the firm went public last June, online orders now account for almost half of its earnings as the company successfully adapts to doing business during Covid times.

Nayuki’s share price [HKG:2150] was trading up 7.5 percent at HKD6.14 (USD0.78) as of 1.20 p.m. China time today. Earlier in the day it had hit HKD6.22. The stock has lost more than 30 percent of its value so far this year.

Revenue dipped 3.8 percent in the first six months from a year earlier to CNY2 billion (USD296 million), the Shenzhen-based firm said in its latest earnings report released yesterday. It posted a loss of CNY249 million (USD36 million) compared with profit of CNY48.2 million a year earlier, according to international financial reporting standards. 

Nayuki saw a big jump in its takeout business during the latest Covid-19 flare-ups, the report said. Revenue from online deliveries in the first half surged 21.6 percent from a year ago to CNY837 million (USD121 million), accounting for 44.6 percent of total revenue, while that for dine-in orders plunged 33 percent to CNY373 million.

The company issued a profit warning earlier this month, as losses started to mount during the flare-ups on falling consumer spending but greater expenditure on staff and rents as the tea chain continued to expand. The firm opened 87 new outlets in the first half, bringing the total to 904. More stores are needed to attract more customers, it said.

In March, Nayuki entered the mid-range market by bringing out a new product line priced under CNY20 (USD3). This lowered its price per consumer transaction by 15 percent from a year earlier to CNY36.70. Average daily orders also did not pick up to last year’s levels. One store had 346.2 orders a day on average in the first half, a drop of 29 percent year on year.

Editor: Kim Taylor