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Tang Palace Warns of Deeper 2025 Loss as Revenue Falls and Store Count Shrinks

Story Highlights
  • Tang Palace’s 2025 revenue and gross profit declined over 12%, with margins stable but net loss widening sharply and no final dividend declared.
  • The restaurant group cut both self-owned and joint-venture outlets, while investment losses and joint-venture drag compounded operational headwinds for stakeholders.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Tang Palace Warns of Deeper 2025 Loss as Revenue Falls and Store Count Shrinks

Meet Samuel – Your Personal Investing Prophet

An announcement from Tang Palace (China) Holdings Limited ( (HK:1181) ) is now available.

Tang Palace (China) Holdings Limited, a Chinese restaurant operator with a portfolio of self-owned and joint-venture outlets, reported weaker results for the year ended 31 December 2025 as it navigated a challenging dining market. The group’s revenues depend heavily on foot traffic and consumer confidence, making it sensitive to shifts in discretionary spending and cost pressures across the food and beverage industry.

For 2025, the company’s revenue declined 12.4% year on year to RMB894.6 million, while gross profit fell 12.6% to RMB589.8 million with gross margin broadly stable at 65.9%. The loss attributable to shareholders widened sharply to RMB59.1 million, translating to a net loss margin of 6.6% and a higher basic loss per share of 5.50 RMB cents, and the board proposed no final dividend after paying none at interim.

The group also reduced its store footprint, operating 30 self-owned and 12 joint-venture restaurants at year-end versus 32 and 17, respectively, a sign of ongoing network rationalisation. Additional pressure came from a larger negative fair value change on financial assets and losses from joint ventures, highlighting both operational headwinds and investment-related drag on earnings that may concern investors and other stakeholders.

The most recent analyst rating on (HK:1181) stock is a Hold with a HK$0.19 price target. To see the full list of analyst forecasts on Tang Palace (China) Holdings Limited stock, see the HK:1181 Stock Forecast page.

More about Tang Palace (China) Holdings Limited

Tang Palace (China) Holdings Limited operates a chain of self-owned and joint-venture restaurants in mainland China, focusing on Chinese cuisine and related catering services. The group targets the mid- to upper-end dining market, and its performance is closely tied to consumer spending trends and operating costs in the restaurant sector.

Average Trading Volume: 208,590

Technical Sentiment Signal: Strong Sell

Current Market Cap: HK$210.9M

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