"Profit Warning" XIABUXIABU narrows losses, estimated to lose up to 310 million RMB for the whole year

XIABUXIABU (00520.HK) issued a profit warning, expecting a loss of between RMB 290 million and RMB 310 million for the fiscal year 2025, a decrease of 22.2%-27.2% compared to the previous year. This is mainly due to the group's firm commitment to structural optimization of restaurants and cost reduction and efficiency enhancement measures. It is expected that the impairment loss provision for closed and continuously loss-making restaurants will significantly decrease by approximately 51.4%; continuous efforts in cost optimization will achieve overall resource coordination; and refined membership operations will significantly improve the new member registration conversion rate and overall member consumption ratio. Annual revenue is expected to decrease by 20% to RMB 3.8 billion