Xiaobu Xiaobu's net loss narrows by over 20% in 2025, "Phoenix Returning to the Nest" partnership plan begins to show initial results | Hot Finance

On March 6, Xiabu Xiabu Group (00520.HK) released its 2025 annual financial forecast. The forecast shows that the group expects revenue of approximately RMB 3.8 billion in 2025; net loss of RMB 290-310 million, narrowing by 22.2%-27.2% compared to RMB 398 million in 2024.

In the announcement, Xiabu Xiabu stated that the expected reduction in net loss is mainly due to the group’s firm efforts throughout the year to optimize restaurant structure and reduce costs while increasing efficiency, including focusing on regionalized refined operations, orderly closing of underperforming loss-making restaurants, and consolidating the overall health of the restaurant network. The provision for asset impairment losses related to closed and continuously loss-making restaurants is expected to decrease significantly by about 51.4% compared to the same period in 2024.

New Brands “Double Arrow Launch”

“牧场” + “牛排”

“The group’s long-term profitability goals are clearly visible,” said He Guangqi, founder and chairman of Xiabu Xiabu Group. He noted that the catering industry has entered a critical stage of refined operations and upgrading transformation, with a more obvious trend toward quality consumption. Industry competition is shifting from scale expansion to quality competition.

Looking back at Xiabu Xiabu’s “self-rescue” path, in response to the high-quality and diversified consumer demand trends, the group will launch a new brand, “Xiabu Ranch,” in 2025, focusing on social scenes for young people and creating high-quality, affordable self-serve hotpot.

While deepening its hotpot market, Xiabu Xiabu is also crossing into new sectors by launching a new brand, “Xiagu Niu Pai,” which features a differentiated business model of “Taiwan-style handmade steak + 158 free fusion dishes + afternoon tea drinks.” He Guangqi stated that this model aims to allow consumers to enjoy high-quality steak at an affordable price of around one hundred yuan, pushing high-end steak into an era of affordability and mass-market appeal.

Additionally, the group’s mid-to-high-end brand, Tuo Tuo, will launch a “Selected A La Carte + Happy All-You-Can-Eat” dual-service model in 2025, combining the quality advantages of à la carte with the cost-effectiveness of buffet, effectively boosting restaurant traffic and table turnover.

“Phoenix Returns to the Nest” Activates Organizational Vitality

Partner Store Profit Margin Reaches 30%

Notably, in 2025, Xiabu Xiabu Group launched two rounds of the “Phoenix Returns to the Nest” partner program, with 13 stores already participating and over 50 people joining as internal partners. Data shows that partner stores achieved an impressive profit margin of 30%.

This program transforms employees from “workplace workers” into “business partners,” promoting shared benefits through measures such as lowering management fees and shortening profit-sharing cycles. Partner stores gain more operational autonomy, allowing quick adaptation to local market demands and significantly improving market responsiveness.

Furthermore, the group has broken away from centralized management, dividing its nationwide operations into multiple regions to promote refined restaurant management, improve management efficiency, and enhance market response speed. These initiatives not only attract core talent for the company’s development but also provide a replicable model for talent incentives in the catering industry.

Analysis suggests that the narrowing of Xiabu Xiabu Group’s losses in 2025 compared to the same period is the result of multiple strategic measures working together. The group has adopted a cautious store opening strategy, focusing on regionalized refined operations, maintaining overall store numbers relatively stable throughout the year, and steadily improving operational quality. The provision for asset impairment losses related to closed and continuously loss-making restaurants is expected to decrease significantly by about 51.4% compared to the same period in 2024.

Text, photos | Reporter Sun Qiman