According to the Zhitong Finance App, Xufulou Group (01978) issued an announcement. The Group expects to obtain losses attributable to shareholders of not more than HK$18 million in the six months ending June 30, 2026, while losses attributable to shareholders for the six months ending June 30, 2025 are approximately HK$600,000. The board of directors believes that the increase in expected losses due to shareholders during the review period is mainly due to the combined effects of the following: 1. Sluggish consumer demand and the group's strategic restructuring of its restaurant network, leading to a decrease in revenue; 2. The one-time expenses incurred during the review period mainly include the write-off of properties, plants and equipment corresponding to the closure of stores that did not meet expectations, and impairment provisions for property, plant, equipment and usage rights assets corresponding to several stores that did not meet expectations; 3. The losses due to the joint company's initial operation and establishment of operation from 2026 Due to prior costs.
During the review period, the Group paid close attention to market conditions, adjusted business strategies from time to time, and implemented a number of active strategies to enhance diversified brand development and save expenses to reduce negative impacts and maintain business stability. These strategies include, but are not limited to, introducing and developing suitable new brands, negotiating rent reductions with landlords, improving supplier terms, and launching diverse promotional activities. Furthermore, the Group actively manages working capital to ensure healthy cash flow.