Xiabuxiabu Catering Management (China) Holdings Co., Ltd. provided earnings guidance for the six months ended 30 June 2022. For the period, the company is expected to record a revenue of approximately RMB 2.16 billion, representing a decrease of approximately 29% as compared to that of the six months ended 30 June 2021. The Group is expected to record a net loss ranging from approximately RMB 270 million to RMB 290 million, as compared to the net loss of approximately RMB 47 million recorded by the Group for the six months ended 30 June 2021.

The Company recorded such net loss for the six months ended 30 June 2022 mainly due to the failure to achieve full operational capacity of the restaurants in most regions during the first half of 2022 as a result of the lingering impacts from the Covid-19 pandemic. Among the 116 cities in which the Group had operations, 92 cities were affected by the Covid-19 pandemic, accounting for approximately 79% of the total number of cities. In particular, major first-tier cities were severely affected by the Covid-19 pandemic, such as Beijing, Shanghai, Shenzhen, Tianjin, etc.