HK Stock Market Move | XIABUXIABU (00520) falls more than 10%, total market value falls below HK$1 billion, the company is expected to accumulate losses of over HK$1.2 billion in the past four years.

XIABUXIABU (00520) fell more than 10%, as of the time of writing, down 10.31% to HKD 0.87, with a turnover of HKD 107.41 million, and the total market value falling below HKD 1 billion. On the news side, XIABUXIABU recently issued a profit warning, expecting revenue for the fiscal year ending December 31, 2024 to be approximately RMB 4.8 billion, a decrease of about 20% year-on-year. The net loss is expected to be between RMB 390 million and RMB 410 million, compared to a net loss of RMB 190 million in the same period last year. The company attributed the net loss primarily to the intense competition in the catering market, sustained weak consumer spending, causing a year-on-year decline in revenue for its subsidiary brands, and continued losses for its mid-to-high-end brands; as well as closures of some restaurants and ongoing losses, resulting in total closure and impairment losses of approximately RMB 260 million. It is worth noting that XIABUXIABU has been incurring losses for four consecutive years. From 2021 to 2023, the company incurred losses of RMB 293 million, RMB 353 million, and RMB 199 million, respectively. Based on this calculation, XIABUXIABU has accumulated losses of between RMB 1.235 billion and RMB 1.255 billion in the past four years.