LH GROUP (01978) announced that the group expects to record a shareholder loss of no more than HK$1 million for the six months ended June 30, 2025, compared to a shareholder loss of approximately HK$26.5 million for the six months ended June 30, 2024.

The board believes that the reduction in expected shareholder loss during the review period is primarily attributable to the combined effects of the following factors: increased revenue and gross profit, benefiting from the group's continued commitment to optimizing its restaurant network and developing a diversified brand portfolio through the introduction of new concepts and brands, supporting revenue growth during the review period; and reduced impairment provisions for property, plant and equipment and right-of-use assets related to certain underperforming stores during the review period.

This positive development primarily benefits from the group's improved revenue performance during the review period. The improvement is due to the group's proactive optimization of its store portfolio, decisive adjustment of underperforming stores, and enhancement of customer experience and competitiveness through menu innovation to adapt to the evolving market landscape.

During the review period, the group closely monitored market conditions, adjusted business strategies from time to time, and implemented multiple proactive strategies to enhance multi-brand development and reduce expenses, thereby minimizing negative impacts and maintaining business stability. These strategies include but are not limited to introducing and developing new brands suitable for the market, negotiating rent reductions with landlords, improving supplier terms, and launching diversified promotional activities. Additionally, the group effectively managed working capital to ensure healthy cash flow.