Hong Kong Stock Market News | XIABUXIABU plunges 16% to a new low after issuing a profit warning, expecting the annual net loss to narrow to around 180-200 million yuan YoY.

XIABUXIABU issued a profit warning, causing a plunge of over 16% in the morning session, hitting a new low of HKD 1.48. As of the time of writing, it has dropped by 14.61% to HKD 1.52, with a turnover of HKD 102.062 million. According to the announcement, XIABUXIABU expects its annual revenue for the year ending December 31, 2023, to be around RMB 5.9 billion, representing a YoY increase of about 25%. Compared to a net loss of approximately RMB 331 million in 2022, it is expected to narrow its net loss to between approximately RMB 180 million and RMB 200 million in 2023, an improvement from the previous year. The announcement stated that the net loss recorded last year was mainly due to cautious review of expected closures and continued loss-making restaurants, with impairment losses on related assets not exceeding RMB 160 million; deferred tax assets of some subsidiaries decreased by about RMB 60 million; intense competition and weak consumption in the catering market, coupled with consumption downgrading, have impacted its business profitability.