Xiabuxiabu (00520) has released an announcement stating that the group expects revenue for the six months ending June 30, 2026, to be approximately 1.5 billion yuan, a decrease of about 23% compared to the same period in 2025. However, while the group recorded a net loss of about 81 million yuan for the six months ending June 30, 2025, it now expects a net loss between approximately 29 million yuan and 39 million yuan for the six months ending June 30, 2026. This represents a significant narrowing of losses compared to the same period in 2025, with a reduction ranging from about 64% to 51%.
The expected substantial reduction in the group's net loss for the six months ending June 30, 2026, is primarily due to the group's focus during the period on a quality and efficiency dual-improvement system for restaurant operations, implementing multi-dimensional initiatives to enhance quality and efficiency. These include: (i) adhering to a lean supply chain development strategy, utilizing an integrated supply chain layout and full-chain coordination as implementation paths, simultaneously advancing warehouse network consolidation reforms and dynamic procurement review mechanisms to build a cost-control framework with both scale efficiency and agile responsiveness, gradually improving the cost structure and further solidifying the group's cost leadership advantage; (ii) deeply cultivating the membership operation system to effectively enhance brand loyalty, with steadily increasing member consumption contributions and activity levels, driving an orderly narrowing of the loss scope; and (iii) continuously promoting structural upgrades to the restaurant network, strategically eliminating underperforming outlets, focusing on layout in high-potential regions, and striving to improve overall profitability. It is expected that the provision for asset impairment losses on closed and continuously loss-making restaurants will be reduced by approximately 30% compared to the same period in 2025.
Facing challenges in the dining market and changes in consumer demand, the group will continue to actively promote multiple front-end business innovations and refine various operational management aspects. These include: (i) the group focusing on a multi-brand strategy, successively launching innovative formats such as "Xiabu Ranch" and "Xiabu Steak" to enrich the brand matrix and consumption scenarios, with an operational strategy of steady expansion and sustained profitability; (ii) systematically building a full-chain digital operations system, relying on a collaborative data platform to fully achieve real-time monitoring and intelligent analysis of core operational indicators, significantly improving operational efficiency and decision-making quality; (iii) the orderly progress of the "Phoenix Returns to Nest" partner mechanism for the Xiabu brand, with a significant increase in the number of restaurants and stable single-store profitability; the continued implementation of gift card issuance plans, achieving notable results in increasing repurchase rates and effectively improving the group's operating cash flow; (iv) the Coucou brand adhering to a product-driven growth strategy, establishing a new product iteration mechanism, accurately targeting consumer trends and preferences, creating benchmark best-selling items with market penetration on a quarterly basis; and (v) strong growth in the delivery business, with online channels effectively offsetting fluctuations in dine-in traffic, forming a dual-pillar revenue structure of dine-in and delivery.
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