TAO HEUNG HLDGS (00573) Issues Profit Warning, Expects Interim Loss of Approximately HK$35-45 Million Attributable to Shareholders, Turning from Profit to Loss Year-on-Year

Stock News08-20

TAO HEUNG HLDGS (00573) announced that the group expects to record a loss attributable to owners of the parent company of approximately HK$35 million to HK$45 million for the six months ending June 30, 2025, compared to a profit attributable to owners of the parent company of HK$4 million in the same period last year. This is mainly due to the group's revenue declining by 5% to 15% compared to the six months ended June 30, 2024.

During this period, the global economy continued to be affected by geopolitical and macroeconomic uncertainties, resulting in slower economic growth. In Hong Kong's restaurant market, the trend of local customers traveling north for consumption and changes in mainland Chinese tourists' spending patterns have made the overall operating environment remain challenging. In mainland China, the industry faced reduced corporate banquets and celebration events, intense market competition, and consumers' general preference for takeaway services over dine-in dining.

Facing the challenging market environment, the group launched more attractive menus, promoted products that cater to market and customer preferences, implemented stringent cost control measures for ingredients and operations, and leveraged technology to enhance product and service quality. Additionally, the group is committed to strengthening brand recognition through both online and offline marketing channels to enhance market competitiveness and promote sustainable business development.

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