HK Stock Market Move | Xiabuxiabu (00520) fell by more than 3% after issuing a profit warning, with an expected increase in losses compared to last year to around 390 million to 410 million yuan.

XIABUXIABU (00520) fell more than 3% after issuing a profit warning, dropping 3.16% to HKD 0.92 as of the time of writing, with a turnover of 2.9081 million Hong Kong dollars. On the news front, XIABUXIABU issued a profit warning, expecting annual revenue for the year ending December 31, 2024 to be around RMB 4.8 billion, a decrease of about 20% year-on-year; and a net loss between RMB 3.9 billion and RMB 4.1 billion, compared to a net loss of about RMB 1.9 billion in the same period last year. The company stated that the net loss for the year ending December 31, 2024 was mainly due to intense competition in the catering market, continued weak consumer spending, resulting in a year-on-year decrease in revenue for the group's subsidiary brands, with the high-end brands still incurring losses; as well as store closures and ongoing losses leading to closures and impairment losses totaling approximately RMB 2.6 billion.