LH Group Posts Wider Interim Loss as Revenue Slips

Stock News
Aug 27

LH Group (01978) has released its interim results for the six months ended June 30, 2026, reporting a revenue of HK$506 million, a year-on-year decrease of 6.29%. The company recorded a loss attributable to equity holders of HK$17.414 million, marking a substantial increase of 2,651% compared to the same period last year, with a loss per share of 2.18 HK cents.

The group attributed the widened net loss to revenue pressures stemming from weak consumer demand, coupled with a strategic restructuring of its restaurant network and ongoing proactive transformation initiatives. These factors were further exacerbated by one-off expenses incurred during the period, primarily including write-offs of property, plant and equipment, forfeited lease deposits related to early lease terminations from store closures, and impairment provisions on right-of-use assets and property, plant and equipment. Additionally, the group recognized a share of losses from an associate, mainly driven by initial start-up and pre-operating costs incurred after the associate commenced operations in May 2026.

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