Green Tea Group (06831.HK) shares recovered on August 25 after falling 7.30% the previous day amid reports that third-party pest-control company Xiamen Lvlinsen had used dichlorvos, a highly toxic organophosphate insecticide, at restaurants. The stock reached about HK$6.7 intraday after opening at HK$6.45 and stood at HK$6.455 by the midday close, up 2.62%, with turnover of HK$3.11 million (approximately $400,000). The rebound followed the company’s interim results for the six months ended June 30, 2026, which showed revenue of RMB 2.675 billion (approximately $398.1 million), up 16.8% year-on-year. Profit for the period rose 24.4% to RMB 291 million (approximately $43.3 million), adjusted net profit increased 16.9% to RMB 294 million (approximately $43.8 million), and adjusted net margin was unchanged at 11.0%. Earnings per share was RMB 0.46, and the company proposed an interim dividend of HK$0.3 per share (approximately $0.0383), equivalent to a payout ratio of about 55% based on adjusted net profit. Green Tea Group operated 733 restaurants as of June 30 after opening 131 in the first half, with smaller-format stores, overseas expansion and delivery supporting growth. Restaurant operations revenue rose 14.6% to RMB 2.014 billion, while delivery revenue increased 24.1% to RMB 651 million and reached 24.3% of total revenue. Same-store sales declined 9.7% to RMB 1.535 billion as consumer recovery remained slow and households stayed cautious. Revenue from Hong Kong, Macau and overseas markets surged 266.5% to RMB 163 million, with 22 stores outside mainland China, mainly in Southeast Asia. Guotai Haitong Securities maintained an Overweight rating and set a HK$12.4 target price based on a 12-times 2026 price-to-earnings multiple, while highlighting weak consumer demand, competition and food-safety risks. Green Tea Group said its headquarters was aware of the dichlorvos incident and was investigating; the affected Xiamen outlet suspended operations for half a day for disinfection and tableware sanitization, and the company has not formally announced the investigation’s progress.