Tang Palace (China) Holdings Limited released its audited results for the year ended 31 December 2025.
Financial Highlights • Revenue dropped 12.4% year-on-year to RMB 894.58 million. • Gross profit slid 12.6% to RMB 589.77 million; gross margin held largely stable at 65.9% (2024: 66.1%). • Net loss attributable to shareholders expanded to RMB 59.13 million, versus a RMB 18.92 million loss in 2024; net loss margin deteriorated to –6.6% (2024: –1.9%). • Basic loss per share widened to RMB 5.50 cents (2024: RMB 1.76 cents). • No final dividend proposed (2024: HK 1.00 cent).
Cost Structure • Staff costs represented 42.0% of revenue, essentially flat year-on-year after excluding 2024 share-award expense. • Depreciation of property, plant and equipment accounted for 3.5% of revenue; depreciation of right-of-use assets 5.9%. • Utilities and consumables consumed 5.5% of revenue. • Finance costs linked to lease liabilities were 1.1% of revenue.
Balance Sheet and Liquidity • Cash and cash equivalents stood at RMB 170.01 million (31 Dec 2024: RMB 328.28 million). • Restricted time deposits and cash totaled RMB 137.66 million. • The group reported net current liabilities of RMB 26.52 million versus net current assets of RMB 22.99 million a year earlier; gearing remained nil with no bank borrowings. • Total equity decreased to RMB 125.51 million (31 Dec 2024: RMB 205.21 million) after recording fair-value and impairment charges.
Operational Metrics • Self-owned restaurant count fell to 30 (2024: 32); joint-venture outlets decreased to 12 (2024: 17). • Average customer spending at flagship “Tang Palace” outlets declined to RMB 218.70 (2024: RMB 229.60). • Take-away revenue share rose to 16.8% of mainland sales, up from 11.6% in 2024. • Banquet-related dine-in revenue share increased from 7.9% to 25.7% following targeted marketing campaigns.
Management Discussion The group attributed the revenue contraction to muted consumer sentiment, intensified market competition and continued outbound leisure travel that weighed on Hong Kong traffic. It highlighted efforts to: 1) deepen banquet-themed marketing under the “36 Banquets of Life” initiative; 2) expand delivery coverage through satellite kitchens; 3) pilot low-capex partnerships with hotel groups—two openings in Shanghai and Suzhou in 2H 2025; 4) streamline costs via procurement consolidation, workforce efficiency measures and digital tools.
Outlook For 2026, Tang Palace plans a “prudent and disciplined” strategy focused on member-centric marketing, further cost optimisation and selective low-capital expansion across mainland China, Hong Kong and overseas. No quantitative guidance was provided.
Auditor and Governance Ernst & Young have agreed the figures in the preliminary announcement to the draft consolidated financial statements. The board confirms full compliance with the HKEX Corporate Governance Code; no purchase, sale or redemption of the company’s listed securities occurred during the year.
Annual General Meeting The AGM is scheduled for 5 June 2026; the share register will close from 1 June to 5 June 2026.