XIABUXIABU appears to have weathered its darkest period.

In the first half of 2025, XIABUXIABU generated revenue of 19.42 billion yuan, down 18.9% year-over-year. However, net losses significantly narrowed from 2.73 billion yuan in the same period last year to 0.8 billion yuan, representing a 71% reduction in losses.

The loss narrowing primarily benefited from cost reduction and efficiency improvements in supply chain and logistics operations.

XIABUXIABU stated that it implemented multiple strategic initiatives during the first half to reduce costs and enhance management efficiency.

These included establishing deep strategic partnerships with key suppliers to secure advantageous resources, adopting advance price-locking strategies for certain bulk ingredients, and utilizing digital procurement platforms for online price comparison and sourcing to improve procurement efficiency and transparency.

Restaurant portfolio optimization also contributed significantly to profit recovery.

The company has been consistently eliminating underperforming stores in recent years while strategically opening new locations in high-potential areas. As of June 30, the total store count reached 937, a 13% decrease from the same period last year.

The scale adjustment combined with operational efficiency improvements drove substantial reductions in two core cost categories: raw material costs decreased by 186 million yuan, down 22.5% year-over-year, while labor costs fell by 148 million yuan, a decline of 18.1%.

Asset impairment losses from store closures and continuously loss-making locations decreased dramatically by 130 million yuan year-over-year, representing a 64.1% reduction.

By brand, XIABUXIABU and Coucu have further differentiated their operational strategies.

Coucu continued its premium positioning, achieving a counter-trend increase of 6 yuan in average spending per customer during the first half despite industry-wide pressure. The XIABUXIABU brand attracted customer traffic by reducing per-capita consumption, boosting table turnover rate from 2.3 to 2.6.

Under current overall operating pressure in the restaurant market, both brands experienced declining same-store sales, with year-over-year decreases exceeding 10%.

However, the XIABUXIABU brand reversed its net store closure trend, opening 32 new stores in the first half and achieving a net increase of 3 locations.

New store deployment was highly focused on tier-one cities, with over 40% located in first-tier cities. Some new stores in Beijing and Shanghai performed exceptionally well, with table turnover rates exceeding 6.5.

XIABUXIABU is currently driving more refined operations and efficient expansion through its "Phoenix Homecoming" partnership program.

Officially launched in July, this program recruits new store partners from outstanding internal employees and external restaurant industry talent, aiming to stimulate operational enthusiasm among store managers and core teams through an "equity + dividend" mechanism.

As of August, the program has established 5 partnership stores, primarily distributed across the Beijing-Tianjin-Hebei region.

Existing stores have demonstrated strong operational performance, with restaurant profit margins all exceeding 30%, monthly revenues per store surpassing 350,000 yuan, and table turnover rates maintaining above 3 times. Among these, the shortest investment payback period was 4 months, while the longest was 10 months.