Summary by Moomoo AI
The company's profit warning issued a profit warning, which expects revenue of about RMB 59 billion in 2023, an increase of approximately 25% compared to 2022. The company expects the 2023 net loss to be between RMB 1.8 billion and RMB 2 billion, a decrease from the previous year's $3.31 billion. The decrease in loss was primarily attributed to the expected closing of loss-making restaurants, reduced deferred tax assets, and increased market competition and weak consumer spending. The company is laying the foundation for future operational improvements and performance growth by optimizing management and operating models, including reducing procurement costs, improving operational efficiency, introducing new dishes and events, and upgrading internal training. The Board remains confident in the future development of the company and expects to release the annual results announcement before the end of March 2024.