TANG PALACE (CHINA) HOLDINGS LIMITED (01181) has announced an expected attributable loss to the company's owners for the year ending December 31, 2025, projected to be between approximately RMB 55 million and RMB 60 million. This compares to an attributable loss of about RMB 19 million for the year ended December 31, 2024. The anticipated increase in loss for the reporting year is primarily attributed to the following factors: (i) As detailed in the company's announcement dated August 8, 2025, recent Chinese government regulations promoting frugality, curbing waste, and imposing strict alcohol bans on civil servants have negatively impacted spending among certain customer segments. Concurrently, consumers in Mainland China and Hong Kong have maintained a cautious spending trend, leading to a decline in both average customer spending and dine-in footfall. Consequently, the Group's revenue has decreased by approximately 12% compared to the previous year. (ii) For restaurants experiencing persistent losses, management has conducted impairment assessments based on prudent and appropriate accounting principles, resulting in an impairment loss provision for property, plant, equipment, and right-of-use assets estimated to be between RMB 5 million and RMB 10 million. (iii) According to a valuation report prepared by an independent external valuer in accordance with applicable accounting standards, an increase in credit risk is expected to lead to a fair value loss on financial assets at fair value through profit or loss, estimated to be between approximately RMB 18 million and RMB 20 million. In response to the evolving market landscape, the Group has implemented a series of measures across its operational regions. These include a strategic shift to focus on family gatherings and festive-themed dining experiences; the introduction of online promotions and discount vouchers to enhance customer engagement; expansion through investments in lightly-renovated restaurant formats; and efforts to stabilize costs by leveraging centralized procurement advantages and optimizing labor expenses. The Board of Directors is confident that, through its capable management team, a series of operational model adjustments, and effective cost-control measures, the Group will achieve favorable outcomes for its sustainable development.