TANG PALACE (01181) issues profit warning, expecting the 2024 performance to convert from profit to loss by approximately 15-20 million yuan.

TANG PALACE (01181) announced that the group is expected to incur a loss attributable to owners of the company of approximately RMB 15-20 million in 2024, while the profit attributable to owners of the company in 2023 was approximately RMB 42 million. The board of directors believes that the expected change from profit to loss for the reporting year is mainly due to the following factors: a decrease in the number of customers and average spending per customer at the restaurants during the reporting year, leading to a decrease in the group's revenue by about 9% compared to the previous year; for restaurants with continued losses, management conducted impairment assessments based on prudent and appropriate accounting principles, resulting in impairment losses of approximately RMB 5-7 million for property, factories, equipment, and assets under use rights; fair value losses on financial assets recognized in profit or loss based on valuation reports prepared by independent external valuers are estimated to be between approximately RMB 5-7 million.