China's Xiabuxiabu falls on forecasting bigger-than-expected 2022 loss

Xiabuxiabu Catering Management (China) Holdings

08/03/2023 03:48

** Shares of hot pot restaurant chain Xiabuxiabu Catering
Management (China) Holdings Co Ltd  0520.HK  fall as much as
6.9% to HK$7.82, their lowest since Feb. 9 
    ** Stock set for biggest daily pct decline since Jan. 10 if
current losses hold, and on track for fifth straight session of
decline
    ** Beijing-based company expects net loss of up to 340 mln
yuan ($48.8 mln) for 2022 vs analyst estimates of 230 mln yuan
loss, as per Refinitiv data; sees revenue falling 23.1% Y/Y to
4.72 bln yuan  
    ** Co reported 283 mln yuan loss in 2021
    ** Says net loss mainly due to failure to operate in full
capacity amid temporary suspension of dine-in services or due to
operation time limits on restaurants owing to Covid-19 pandemic 
    ** Hang Seng Commerce & Industry Index  .HSNC  drops 2.8%
and Hang Seng Consumption Index  .HSCGSI  falls 2%
    ** Hang Seng Composite Index  .HSCI  and Hang Seng Index
 .HSI  both decline 2.5%

    ($1 = 6.9722 yuan)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))