Tang Palace China (01181) issued a profit warning. It is expected that losses attributable to shareholders in the medium term will narrow year-on-year from 4 million yuan to 9 million yuan

According to Zhitong Finance App, Tang Palace China (01181) issued an announcement. It is expected that the Group's losses due to the Company's owners for the six months (period) ending June 30, 2026 will be between RMB 4 million and RMB 9 million, while the loss attributable to the Company's owners for the six months ending June 30, 2025 is approximately RMB 18.2 million. The narrowing in expected losses is mainly due to the combined effects of the following factors: (i) a significant reduction in fair value losses of financial assets that are counted as profit and loss during the period; (ii) reduction in staff costs; but this is partly offset by (iii) a decrease in revenue due to a decrease in both consumer spending and dine-in customer traffic.

In order to adapt to the changing market environment, the Group has introduced a series of measures in various operating regions, including: (i) actively implementing cost control measures in response to revenue pressure; (ii) cooperating with well-known hotel brands and expanding through investing in lightly decorated restaurants; and (iii) strengthening the catering sector with the theme of family gatherings and festivals. The Board believes that with its experienced management team, a series of operational adjustments and effective cost control measures, the Group will have sufficient advantages to meet market challenges and achieve sustainable development.