Haidilao billionaire chairman's wife sells $353M in shares, sending stock to 4-year low
Shu Ping, wife of hotpot giant Haidilao's billionaire chairman Zhang Yong, is selling as much as US$353 million worth of company shares, prompting the stock to hit its lowest since March 2022.
Morgan Stanley analysts were taken aback by the Haidilao billionaire chairman's wife offloading 259 million shares through a family trust. The discount of approximately 6% from the previous closing price was higher than expected, causing the stock to plummet to a four-year low. The latest move comes after China imposed a tax on offshore trusts in July, aimed at targeting wealthy families who had previously used them for asset protection and succession planning.
These shares account for 4.6% of the company's total stock and 12.2% of its free float, making up around 9% of the couple's combined holdings. As co-founders, Zhang Yong and Shu Ping have a 50% stake in the business, managed through discretionary trusts held by holding companies. Haidilao, established in 1994, has evolved into a globally renowned Chinese restaurant brand, with all original co-founders now billionaires.
The company reported a 7.9% year-on-year revenue increase to 22.34 billion yuan (US$3.32 billion) in the first half of the year, with core operating profits growing by 4.4% to 2.51 billion yuan. Beyond hotpot, Haidilao has ventured into sushi (Nyoisushi) and burger chains, with the latter launching last month. Both Zhang and Shu Ping are naturalized citizens of Singapore, ranking as the 12th wealthiest couple with a combined net worth of $7.2 billion, according to Forbes' Singapore rich list.
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