(Yicai Global) Aug. 25 -- Shares in Haidilao International Holding slumped as much as 6 percent today after the Chinese hotpot chain said that its three co-founders were resigning after its first-half performance fell below management's expectations despite the firm making a profit after ringing up huge losses last year.

Haidilao’s share price [HKG:6862] closed down 2.95 percent today at HKD27.95 (USD3.59). Earlier in the day it had fallen to HKD27.05. The stock has lost nearly 70 percent of its value since hitting an all-time high in February.

Co-founders Zhang Yong, who is also chairman, his wife Shu Ping and Executive Director Shi Yonghong have all stepped down due to internal structural adjustments and in order to focus on other businesses, the Jianyang, southwestern Sichuan province-based company said.

The company failed to meet the targets set by the board of directors in the six months ended June 30, it said, without specifying what the goals were. This is despite the restaurant chain turning a profit of CNY94.5 million (USD14.6 million), an increase of 110 times from the losses of CNY965 million in the same period last year, while revenue doubled to CNY20.1 billion (USD3.1 billion). The rapid growth was largely due to the low baseline last year when restaurants were shut during the pandemic.

Management were also likely unimpressed with the table turnover rate, a key gauge of restaurant profitability, that was at just three times a day, less than the 3.3 times a year ago. Customers’ per capita spending also dropped to CNY107.30 (USD16.60) from CNY112.80.

Haidilao opened another 299 outlets in the first half, bringing the total number of restaurants to 1,491 on the mainland and 106 in Hong Kong, Macao, Taiwan and overseas countries.

Editor: Kim Taylor