LH GROUP (01978) announces profit expectations, with shareholders' share of profit not expected to exceed HK$2 million in 2025, turning a loss into profit compared to the previous year.

LH GROUP (01978) announced that the Group is expected to achieve a profit attributable to shareholders of not more than HK$2 million for the current review year (year ending December 31, 2025), while the loss attributable to shareholders for the year ending December 31, 2024 is approximately HK$32.1 million. The Board of Directors believes that the turnaround from a loss to a profit in the current review year is mainly due to the following factors: 1. Increase in revenue, benefiting from the Group's continuous efforts to optimize its restaurant network, introduce new concepts and brands to develop a diversified brand portfolio, supporting revenue growth in the current review year; 2. Decrease in operating costs, due to effective cost control and operational efficiency measures implemented in the current review year. These measures were implemented while maintaining a focus on providing high-quality food and service to customers; and 3. Reduction in impairment provisions for properties, factories, equipment, and intangible assets related to underperforming stores in the current review year. This positive development is mainly attributed to the improved revenue performance of the Group in the current review year. The improvement is a result of the Group actively optimizing its store portfolio, making decisive adjustments to underperforming stores, and innovating menus to adapt to the constantly changing market landscape, thereby enhancing customer experience and competitiveness.