[1978] Shu Fu Lou Issues Profit Warning - Expected to Turn Loss into Profit Last Year, Making Approximately 2 Million Yuan

SocialAnxietyStaker · 2026-03-16T03:23:44+00:00

Xu Fu Lou Group is expected to turn losses into profits last year, with net profit not exceeding 2 million yuan, compared to a loss of 32.1 million yuan in the previous year. The profit was achieved through optimizing the restaurant network and developing multiple brands. The company will adjust its strategy according to market conditions and take measures to ensure business stability and improve cash flow.

SocialAnxietyStaker

2026-03-16 03:23:44

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Xufu Lou Group (01978)
Preliminary profit announcement, expecting last year’s results to turn a loss into a profit, with net profit not exceeding HKD 2 million, compared to a loss of HKD 32.1 million in the previous year. Xufu Lou’s stock price rose over 4%, reaching a high of HKD 0.37.

The company stated that the profit last year was mainly due to continuous optimization of its restaurant network and diversification of its brand portfolio through the introduction of new concepts and brands to support revenue growth. Additionally, the company effectively controlled costs and implemented operational efficiency measures, leading to a decrease in operating expenses. It also related to reduced impairment provisions for properties, factories, equipment, and right-of-use assets associated with underperforming branches.

Xufu Lou indicated that it will closely monitor market conditions, adjust business strategies as needed, and implement multiple proactive measures to enhance brand diversification and reduce costs. These include introducing and developing suitable new brands for the market, negotiating rent reductions with landlords, improving supplier terms, and launching diverse promotional activities. The company will also effectively manage working capital to ensure healthy cash flow and maintain business stability.

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