Scorching Dragon Holdings Limited has issued a profit warning, indicating an expected net loss of roughly HK$26.00 million to HK$28.00 million for the year ended 31 December 2025 (FY2025). The projected deficit is broadly in line with the HK$27.00 million loss recorded in FY2024.

Management attributes the FY2025 shortfall to two main factors:

1. Revenue contraction: Turnover is anticipated to fall 75.93%, from HK$54.40 million in FY2024 to about HK$13.10 million in FY2025. The sharp decline follows the closure of two restaurants during 2024 and the suspension of the Group’s last operating outlet in October 2025. Lower staff and operating costs partially mitigated the revenue impact.

2. Impairment losses: The Group expects to book HK$7.40 million in impairment losses on financial assets, reversing a HK$0.40 million impairment reversal recognised in FY2024. The write-down stems from a decrease in the fair value of these assets during the period.

To revive its restaurant operations, Scorching Dragon opened a new Chinese dining venue—“旺角(龍皇)海鮮菜館 (Mong Kok (Dragon King) Seafood Restaurant)”—in January 2026, offering Cantonese cuisine and seafood dishes.

The FY2025 results remain subject to audit and may change. The company’s shares have been suspended from trading since 20 October 2025 pending fulfilment of resumption requirements. Scorching Dragon plans to release its full FY2025 results in late March 2026.