XIABUXIABU: Hong Kong stores generally have good profitability, proving that going overseas effectively addresses the pressure of competition

Xiabuxiabu (00520.HK) Group Chairman He Guang stated at the event that the internal competition in the mainland catering market is self-destructive, "inflicting 800 wounds on oneself to kill 1,000 enemies," which compresses prices and profit margins; in contrast, the profit margins in overseas markets are much broader. He used Hong Kong as an example, indicating that the internal competition in Hong Kong's catering industry is not as severe as that in the mainland; although there are differences in service awareness compared to the mainland, the profitability of stores is generally good, proving that going overseas is one of the effective ways to cope with domestic competitive pressure.

He mentioned that consumers now focus not only on cost performance but also on quality-price ratio, including the warmth of service and the overall experience. Regarding the group's business model, He Guang revealed that the group recently launched a new model of "a la carte + self-service," breaking the limitations of traditional pure self-service or pure a la carte, allowing for "flexibility in abundance and frugality." The model has shown initial results, with stores that adopted this model experiencing a year-on-year revenue growth of 70%, and some stores even exceeding 100% growth