Shares of GREEN TEA GROUP (06831) tumbled as much as 14% during Monday's Hong Kong trading session, with the stock last down 9.99% at HK$5.45 on turnover of HK$282 million. The sharp selloff comes after media reports exposed that Xiamen Green Forest Environmental Technology Co., Ltd. had been using dichlorvos, a highly toxic pesticide, for pest control at dozens of chain restaurant companies, including Green Tea restaurants.
The investigative report quoted employees of the service provider as bluntly stating, "Personally, I would never eat at the restaurants we've treated, no matter what." In response, media outlets contacted Green Tea's headquarters, where staff acknowledged the company was aware of the situation and is now conducting a comprehensive internal investigation.
Adding to the market jitters, a significant cross-trade transaction was executed earlier in the morning, involving 46.0968 million shares at a price of HK$4.60 per share, totaling approximately HK$212 million. That execution price represents a steep discount of roughly 24% compared to the previous closing price of HK$6.055, further intensifying bearish sentiment around the stock.
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