Group said in a statement: "Although the operating environment is challenging, during the festival period in the second half of fiscal year 2025, the group achieved overall sales stronger than a year ago, making net profits in the six months ended at the end of March. However, net profits in the second half of fiscal year 2025 are not enough to completely offset the net loss in the first half of the year, resulting in an overall net loss in fiscal year 2025."
Tongle operates more than 35 restaurants in Singapore, Indonesia, China, Japan and Vietnam. The company's stock price closed at 8.9 points on Friday, with no change.
The Group conducts preliminary review based on unaudited consolidated financial statements. It is currently finalizing unaudited financial results for fiscal 2025.
Group made a profit of 2.046,000 yuan in fiscal year 2024, a sharp drop of 51.3% from fiscal year 2023.
Given the challenging economic environment, Tung Lok Restaurants is expected to suffer a net loss in fiscal year 2025 to the end of March this year, contrary to the situation of net profit in fiscal year 2024.
In November last year, Tongle Food disclosed that it suffered a loss of 2.625,000 yuan in the first half of fiscal year 2025, which is relative to the profit of 267,000 yuan a year ago. Meanwhile, revenue fell 9.5% in the first half of the year to RMB 38.5 million.
Tongle Diet issued a profit warning through the Singapore Exchange on the evening of Friday (May 16). The group pointed out in its statement that the overall sales declined due to the challenging economic environment, especially the performance in the first half of the year ended September last year, resulting in a decrease in the group's revenue this year.