Xiaobu Xiaobu's projected loss narrows to nearly 300 million yuan in 2025, launching two major new brands. Experts: The key lies in refined operational capabilities.

Red Star Capital Bureau, March 7 — The “First Chain Hotpot Stock” Xiabuxiabu (00520.HK) announced last night that it expects revenue in 2025 to be about 3.8 billion yuan, a decrease of approximately 20% year-on-year; net loss in 2025 is projected to be between 290 million and 310 million yuan, narrowing compared to 2024, representing a reduction of about 22.2% to 27.2%.

Since 2021, Xiabuxiabu has experienced five consecutive years of losses. Although the losses narrowed for the first time in 2023, they widened again in 2024, with a net loss of 398 million yuan. Combined with the forecast data for 2025, the company’s losses over the past five years will exceed 1.5 billion yuan.

Red Star Capital Bureau has noted that in response to continuous losses, Xiabuxiabu has been active since the end of last year. In December 2025, it launched the “Xiabuxiabu Ranch” self-selected small hotpot brand, and in January 2026, it introduced “Xiangniu Steak,” focusing on the steak segment.

On March 7, industry experts told Red Star Capital Bureau: “Currently, these two brands still have significant market opportunities, but the ultimate success depends on refined operational capabilities, such as whether they can truly lower the prices of high-end ingredients, how to make consumers feel it’s ‘worth it,’ and how to control costs to avoid falling back into losses. Given the current financial situation, the market opportunities for the group are limited.”

Xiabuxiabu Near 300 Million Yuan Loss in 2025

Loss Narrowing Compared to Previous Years

Public information shows that Xiabuxiabu was founded in Beijing in November 1998. Its predecessor was the small hotpot brand “Xiabuxiabu,” introduced to mainland China by Taiwanese businessman He Guangqi, based on the Taiwanese “one person, one pot” hotpot model. In 1999, Xiabuxiabu opened its first restaurant in Beijing. In 2014, it was listed on the Hong Kong Stock Exchange, becoming the “First Chain Hotpot Stock.”

In terms of business layout, the company is involved in multiple areas, with main brands including Xiabuxiabu and Coucou. According to the company’s official website, in the restaurant sector, Xiabuxiabu has launched the Taiwanese-style small hotpot “Xiabuxiabu,” the semi-luxury Taiwanese hotpot “Coucou,” the joyful barbecue “Zhen Shao,” and the new-style tea drinks “Cha Mi Cha.” In the new retail sector, it has introduced “Xiabuxiabu Food” and “Yixin Kitchen,” focusing on hotpot base ingredients, dipping sauces, pre-made dishes, and convenience foods. With over 20 years of experience in restaurant design and decoration, the company established a design engineering firm in May 2021 to enter the restaurant renovation and design industry.

According to the mid-2025 report, as of June last year, Xiabuxiabu operated a total of 937 restaurants, including 763 Xiabuxiabu outlets, 174 Coucou outlets, and 11 stores of Cha Mi Cha, with Zhen Shao no longer operating.

Red Star Capital Bureau has observed that since 2021, Xiabuxiabu has been in a state of continuous losses. From 2021 to 2024, it recorded net losses of 293 million yuan, 353 million yuan, 199 million yuan, and 401 million yuan respectively. On the evening of March 6, the company forecasted a net loss of 290 million to 310 million yuan for 2025, narrowing compared to 2024, representing a reduction of about 22.2% to 27.2%. Based on this, Xiabuxiabu’s cumulative losses over five years amount to between 1.536 billion and 1.556 billion yuan. In terms of revenue, it is expected that 2025 revenue will be about 3.8 billion yuan, a decrease of approximately 20% year-on-year.

Screenshot from Xiabuxiabu Group’s 2024 Annual Report

“The failure of Zhen Shao mainly stems from bad timing. The early barbecue with over 200 yuan per customer is hard to gain recognition in a cost-performance-focused market. Barbecue is inherently a down-to-earth dining category. Without enough experience and emotional value, repeat purchases are unlikely,” Lin Yue, chief consultant at Lingyan Management Consulting and industry analyst for food and dining, told Red Star Capital Bureau on March 7.

Lin Yue believes that Xiabuxiabu’s continuous losses over several years are mainly due to strategic misjudgments and wavering. The original positioning was high cost-performance “one person hotpot,” but later, in an attempt to transition to casual dining, prices kept rising, leading to frequent food safety complaints and poor customer experience, resulting in significant customer loss during the consumption downgrade period. Additionally, the mid-to-high-end brand Coucou continued to lose money without establishing a clear differentiation, and the incubated barbecue brand Zhen Shao also failed, leaving the company in a difficult situation with no clear solution.

Actively Promoting Multiple Front-End Business Innovations

Founder once said “Price wars have no future”

Red Star Capital Bureau has also noted that in its latest announcement, the company stated that in response to challenges in the restaurant market and changing consumer demands, the group will continue to actively promote front-end business innovations and refine operational management. One key point is leveraging the scale advantages of its wholly owned meat processing subsidiary to deepen the “source control—centralized processing—multi-brand direct supply” integration model, providing stable and cost-effective supply for newly launched brands such as “Xiabuxiabu Ranch” and “Xiangniu Steak,” further strengthening the long-term competitive barrier of an autonomous supply chain.

Lin Yue said that currently, Xiabuxiabu Ranch and Xiangniu Steak aim to return to affordable pricing, using the group’s supply chain advantages to create a “quality-price ratio.” If the business model can succeed, there are still significant market opportunities. However, the ultimate success depends on refined operational capabilities, such as whether they can truly lower the prices of high-end ingredients, how to make consumers feel it’s “worth it,” and how to control costs to avoid further losses. “Given the current financial situation, the market opportunities for the group are limited.”

According to Jiemian News, in January this year, He Guangqi, founder of Xiabuxiabu, stated in an interview: “Price wars have no future. There is no sustainable space, and profits are gone. What’s the point of doing that?” Facing the company’s entry into a restructuring phase and ongoing losses, he has adopted measures such as adjusting store models, menu combinations, and launching new sub-brands with better value propositions.

Meituan platform shows that Xiangniu Steak currently has one store at Beijing Longde Plaza, with an average price of 102 yuan per person. The store recently launched a trial promotion, allowing customers to buy a Black Pepper Legendary Steak Set for 84 yuan and enjoy 158 side dishes, with over 1,000 units sold in the past six months.

Xiabuxiabu Ranch has two stores in Shanghai—Anting Fortune Plaza and Shanghai Yuchao 96 Plaza—priced at 56 yuan and 47 yuan per person, respectively. The best-selling vegetarian single meal costs 28.8 yuan, with over 200 units sold at the Anting store.

Regarding the total number of stores and expansion plans for “Xiangniu Steak” and “Xiabuxiabu Ranch,” Red Star Capital Bureau attempted to contact Xiabuxiabu staff on March 7. As of press time, no response has been received.

Red Star News reporters: Yu Yao, Zhou Yi

Editor: Xiao Shiqing

Review: Feng Lingling