LH Group Limited Announces Positive Profit Alert: Turnaround From Loss to Profit in 2025

Key Highlights

• Profit Forecast: LH Group Limited expects to record a profit attributable to shareholders of up to HK\$2.0 million for the year ended 31 December 2025, marking a significant turnaround from a loss of approximately HK\$32.1 million in the previous year (2024).
• Revenue Growth: The Group achieved revenue growth in 2025, supported by ongoing optimisation of its restaurant network and the introduction of new concepts and brands. This strategic diversification drove improved sales performance.
• Cost Controls: Effective cost control measures and enhanced operational efficiency contributed to lower operating costs, while the Group maintained premium quality food and services for customers.
• Reduced Impairments: There was a notable decrease in provision for impairment of property, plant and equipment, as well as right-of-use assets. This was primarily due to improved performance of previously underperforming stores, aided by decisive portfolio adjustments and menu revamps.
• Proactive Business Strategies: LH Group implemented several initiatives throughout 2025, including:
  • Introducing and developing new brands to enhance diversity
  • Negotiating rental reductions with landlords
  • Optimising supplier terms
  • Launching diverse promotional campaigns
• Healthy Cashflow: The Group actively managed its working capital to maintain a robust cashflow position.

Price-Sensitive Information for Shareholders

This announcement contains price-sensitive information:

• The turnaround from a substantial loss to a positive profit may have a material impact on the Company’s share price and investor sentiment.
• Key drivers for this turnaround were revenue growth, cost reduction, and improved store performance, all of which are positive signals for future stability and potential growth.
• The Company is still finalising its annual results for 2025; figures provided are based on unaudited management accounts and may be subject to adjustments.
• The official annual results announcement is expected on 26 March 2026. Shareholders and investors are advised to review this announcement carefully and exercise caution when dealing in the Company’s shares ahead of the final results.

Additional Details

During 2025, LH Group closely monitored market conditions and adjusted its business strategy proactively. The Group focused on brand diversification, cost controls, and operational efficiency to minimise negative impacts and maintain business stability. Measures included developing suitable new brands, negotiating rent reductions, optimising supplier terms, and running promotional campaigns. These efforts not only improved revenue but also reduced impairment provisions, supporting a healthier financial outlook.

The Group’s working capital management ensured a stable cashflow, further underpinning its operational resilience. While the preliminary figures signal a positive turnaround, shareholders and investors should await the audited results for definitive information.

Board and Management

• Chairman: Prof. Wong Kit Lung Simon, BBS, JP
• Executive Directors: Prof. Wong Kit Lung Simon, BBS, JP; Ms. Ko Sau Chee Grace
• Independent Non-Executive Directors: Mr. Sin Yat Kin, SBS, CSDSM, JP; Mr. Hung Wai Man, Prof, JP; Mr. Mak Kam Chiu

Conclusion

LH Group Limited’s positive profit alert marks a substantial turnaround and reflects successful strategic initiatives. This development is likely to influence the share price and represents price-sensitive information. Shareholders and investors should monitor the upcoming annual results announcement and remain cautious in trading the Company’s shares.

Disclaimer: This article is based on preliminary, unaudited information disclosed by LH Group Limited. The final audited results may differ and will be published on 26 March 2026. Investors should not rely solely on this report for investment decisions and are advised to exercise caution and consult professional advisers as appropriate.

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