XIABUXIABU (00520) has announced its projections for the fiscal year ending December 31, 2025. The group expects annual revenue to be approximately 3.8 billion yuan, representing a decrease of about 20% compared to the revenue for the year ended December 31, 2024. However, following a net loss of 3.98 billion yuan in the 2024 fiscal year, the company forecasts a narrowed net loss in the range of 2.9 billion to 3.1 billion yuan for 2025. This indicates a significant reduction in losses, estimated between 22.2% and 27.2% compared to the previous year.
The anticipated decrease in net loss for 2025 is primarily attributed to the company's steadfast implementation of structural restaurant optimization and cost-efficiency measures. Key initiatives include a focus on regionalized and refined operations, the orderly closure of underperforming and loss-making restaurants throughout the year to strengthen the overall health of the restaurant network, which is expected to lead to a substantial reduction of approximately 51.4% in asset impairment provisions for closed and persistently loss-making outlets compared to 2024. The group has also continued its efforts in cost optimization, achieving full digitalization and online management of procurement orders, inventory across the network, and restaurant replenishment. By leveraging a centralized supply chain platform to coordinate regional distribution centers and logistics partners, the company has realized more efficient global resource allocation. Furthermore, refined member operations and the strategic sale of gift cards during the year have significantly boosted new member registration conversion rates and the proportion of overall spending by members compared to the same period in 2024.
In response to challenges in the catering market and evolving consumer demands, the group will continue to actively promote various front-end business innovations and refine operational management. This includes utilizing the scale advantages of its wholly-owned meat processing subsidiary to deepen an integrated model of "source control - centralized processing - multi-brand direct supply." This strategy aims to provide stable, cost-advantageous coordinated supplies for newly launched brands such as "XIABU Ranch" and "XIABU Steak," thereby strengthening the long-term competitive barrier of a self-controlled and secure supply chain. The core XIABU brand will further embed its value proposition of "sharing success with strivers" by refining its "Phoenix Return" partnership mechanism, aiming for shared risks and benefits, which is expected to effectively stimulate organizational vitality and restaurant performance. Concurrently, the group is transitioning from a centralized management model by dividing its national operations into multiple regional management units to drive more refined restaurant management, enhance operational efficiency, and improve market responsiveness. The company plans to further deepen its instant delivery service ecosystem, leading to structured improvements in business scale, quality, and operational efficiency. Additionally, the COUCOU brand will fully implement its dual-operation model of "À La Carte Selection + Unlimited Happy Dining" to cover diverse consumption scenarios, effectively driving increases in restaurant customer traffic and table turnover rates.
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