TSE SUI LUEN (HKEX: 00417) has issued an announcement forecasting a profit of no less than HK$1 billion for the financial year ending March 31, 2026. This represents a significant turnaround from the approximately HK$1.98 billion loss recorded in the previous financial year ending March 31, 2025.

The anticipated shift from loss to profit is primarily attributed to the successful execution of the group's business transformation strategy. Key factors include (i) an improvement in same-store sales performance and an increased profit contribution from the franchising business in mainland China, and (ii) a reduction in selling, distribution, and administrative expenses alongside lower restructuring costs, achieved through effective cost optimization strategies.

Furthermore, (iii) favorable changes in certain global economic factors, such as rising gold prices and a decrease in the US federal funds rate, have contributed positively. Additionally, (iv) a reduction in certain non-cash provisions for impairments related to retail store assets and other assets, made in compliance with applicable accounting standards, has also aided in the overall financial recovery.