Tai Hing Group warns of profit drop for 2024

Tai Hing Group Holdings (HKEX: 6811) issued a profit warning, forecasting a profit attributable to owners in the range of HK$60 million to HK$65 million for the year ended December 31, 2024. This is a decrease compared to the HK$93.836 million reported for FY2023. The company attributes the expected decline primarily to Hong Kong residents' enthusiasm for northbound consumption, consumption downgrades across Hong Kong and Mainland China, and the depressed catering industry in the Chinese Mainland. Further impacting profits were increased impairment provisions for restaurant assets and closure-related expenses, stemming from the closure of less efficient stores and consolidation efforts in Mainland China. The company is implementing stringent cost control measures and promotional campaigns. While the company is still in the process of preparing and finalizing the Group's annual results for the Year, profit attributable to the owners of the Company for the second half of the Year has increased in comparison with that of the first half of the Year and the second half of FY2023.