On September 21, Hong Kong-listed restaurant operator Green Tea Group (06831.HK) announced that its second-largest shareholder, Partners Group Gourmet House Limited, had disposed of its entire stake through an off-market transaction, achieving a complete exit. Simultaneously, non-executive director Rui-Jie Xu, who was appointed by Partners Group, resigned with effect from September 21, 2026. The catering firm, which only debuted on the Hong Kong Stock Exchange in May 2025, has now witnessed a full-scale withdrawal by a strategic investor merely one year and four months after its listing.
The nine-year marathon concludes: a "graceful" retreat for the financial investor
The association between Partners Group and Green Tea Group dates back to 2015. According to the prospectus, Green Tea Group was introduced to Partners Group through the latter's private equity investment team's professional network. Following a systematic assessment of the mainland Chinese dining industry and multiple meetings with Green Tea's directors, Partners Group ultimately decided to invest. As the company's only "external shareholder," Partners Group's stake once reached 15.76%, serving as a vital counterbalancing force within the corporate governance structure.
This exit was not an unexpected event. As early as April 8 of this year, Partners Group had announced three share sale arrangements, involving a total of 106.14 million shares, representing approximately 15.96% of the company's total issued shares. The placement price at that time carried a noticeable discount to the market price, and the announcement triggered a 10.71% single-day plunge in Green Tea Group's stock price. From the initial reduction in April to the final liquidation in September, Partners Group executed this "orderly retreat" over a five-month period. Estimates suggest that Partners Group cashed out approximately HK$724 million in this final clearance, and when combined with proceeds from share sales at the time of the IPO and multiple dividends, the nine-year investment yielded an overall return exceeding double the original capital.
In response to market concerns, Green Tea Group stated on September 23 that the second-largest shareholder had accompanied the company for nearly a decade, noting that "the fund has reached its exit timeline and achieved solid returns on its overall investment." The company also emphasized that this transaction has "resolved the overhang concerns the market had been worried about." Furthermore, the company reiterated that its fundamentals remain robust, citing a nearly 17% growth in both revenue and profit in the first half of the year, alongside the opening of 131 new outlets.
Share price tumbles from HK$9.81 to HK$4.995 as growth narrative clashes with a trust deficit
Partners Group's departure must be viewed against the backdrop of sustained share price pressure since Green Tea Group's listing. The company went public on May 16, 2025, with an IPO price of HK$7.19 per share. However, the stock immediately broke below its issue price on its debut, closing at HK$6.29, a drop of 12.52%. Although the share price experienced some fluctuations thereafter, its overall trajectory has been weak. As of the close on September 22, the stock was trading at HK$4.995 per share, down nearly 50% from its historical high, perilously close to being halved. The company's total market capitalization has contracted to approximately HK$3.3 billion.
From a financial standpoint, Green Tea Group's fundamentals are hardly poor. For the full year 2025, the company generated revenue of RMB 4.76 billion, up 24.1% year-over-year, and adjusted net profit of RMB 509 million, an increase of 41%. Its adjusted net profit margin stood at 10.7%, improving by 1.3 percentage points from the prior year. In the first half of 2026, revenue reached RMB 2.675 billion, up 16.78% year-over-year, while net profit rose 24.40% to RMB 291 million. Store expansion is also accelerating. The company opened 131 new restaurants in the first half, bringing its total to 733 as of June 30, an increase of 231 compared to the same period in 2025. The company plans to open 200 new restaurants for the full year, 183 of which will be smaller outlets with a floor area under 450 square meters, reflecting a strategic pivot toward a leaner, higher-efficiency operational model.
However, scale expansion has not fully offset market reservations about brand quality and per-store profitability. Financial data reveals that while store count has grown rapidly, both table turnover rates and same-store sales have declined, indicating diminishing marginal returns from expansion. More directly damaging to market confidence was a food safety incident that surfaced in late August. Media reports alleged that a third-party pest control service provider, operating for multiple Green Tea Group outlets in Xiamen, had long been using dichlorvos—a highly toxic pesticide—in violation of regulations. Test results showed that residual liquid on restaurant floors tested positive for dichlorvos. The World Health Organization classifies dichlorvos as a Group 2B carcinogen, and its use in food establishments is strictly prohibited. Following the revelations, Green Tea Group's share price fell sharply intraday, at one point tumbling over 14%. For a dining brand characterized by "high frequency and mass market appeal," the cycle required to restore consumer trust in food safety typically extends far beyond the initial buzz of the incident itself.
An interwoven web of risks
Partners Group's exit, the impact of the food safety incident, and the continued decline in the share price are forging a mutually reinforcing chain of risk. The complete withdrawal of a strategic investor not only represents a "vote of no confidence" on the capital front but also erodes the external checks and balances within corporate governance. In its response, Green Tea Group framed the second shareholder's departure as a routine "fund maturity exit," which is a reasonable explanation given the investment horizon. Yet, the market's genuine concern is not why Partners Group left, but rather who will step in to fill the confidence vacuum left behind by the strategic investor. With the challenges of rapid store expansion, pressure on same-store metrics, and a brand reputation still in need of repair, Green Tea Group will have to rely on sustained operational performance to re-establish its valuation anchor in the eyes of the market.
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