TAO HEUNG HLDGS issued a profit warning, expecting a loss attributable to shareholders of approximately HKD 35 million to 45 million for the interim period, a year-on-year turnaround from profit to loss

According to the announcement from TAO HEUNG HLDGS (00573), the group expects to incur a loss attributable to equity holders of approximately HKD 35 million to HKD 45 million for the six months ending June 30, 2025, compared to a profit of HKD 4 million attributable to equity holders in the same period last year. This is mainly due to a decrease in the group's revenue of 5% to 15% compared to the six months ending June 30, 2024.

During this period, the global economy continued to be affected by geopolitical and macroeconomic uncertainties, leading to a slowdown in economic growth. In the Hong Kong dining market, local customers increasingly travel north for consumption, and the consumption patterns of mainland Chinese tourists have shifted, resulting in a challenging overall operating environment. In mainland China, the industry faces reduced large corporate banquets and celebratory events, intense market competition, and a general consumer preference for takeout over dining in. In response to the challenging market environment, the group has launched more attractive menus, promoted products that cater to market and customer tastes, implemented strict controls on ingredient and operating costs, and effectively utilized technology to enhance product and service quality. Additionally, the group is committed to strengthening brand awareness through online and offline marketing channels to enhance market competitiveness and promote sustainable business development