Tongqinglou Dining Co Ltd

Tongqinglou released its 2026 interim report. Total operating revenue was 1.328 billion yuan, down 0.18% from the same period last year. Net profit attributable to the parent company was 1.3966 million yuan, down 98.06% year on year. Net cash inflow from operating activities was 307 million yuan, down 6.36% year on year. The company's asset-liability ratio was 62.28%, gross margin was 15.35%, return on equity was 0.06%, and diluted earnings per share was 0.01 yuan. The number of shareholders was 18,300, and the top ten shareholders held 71.50% of total share capital.

Tongqinglou released its 2026 interim report, showing first-half net profit attributable to the parent of only 1.4 million yuan, a sharp year-on-year decline of 98.1%. Operating revenue was 1.328 billion yuan, down 0.2% year on year; non-GAAP net profit attributable to the parent was 450,000 yuan, down 99.3%; net operating cash flow was 307 million yuan, down 6.4%; earnings per share were 0.01 yuan. In the second quarter, operating revenue was 611 million yuan, down 4.3% year on year, while net profit attributable to the parent recorded a loss of 15.37 million yuan, down 176.2% year on year. As of the end of the second quarter, total assets were 6.145 billion yuan, up 3.2% from the end of the previous year; net assets attributable to the parent were 2.318 billion yuan, up 0.5% from the end of the previous year. The company said demand for its catering business remains strong, but banquet business order volume declined somewhat due to the high base in 2025; the hotel business drove room growth through multi-format collaboration, with Fumao Hotel now operating 12 stores; and the food business plans to begin building a food processing plant in the second half of 2026 to enhance supply chain capabilities.

Tongqinglou disclosed a profit forecast, expecting net profit attributable to the parent for the first half of 2026 to be between 1.2316 million yuan and 1.8194 million yuan, a year-on-year decline of 97.47% to 98.29%. Deducted non-recurring net profit is expected to be between 315,700 yuan and 466,400 yuan, a year-on-year decline of 99.31% to 99.53%. The company stated that new store openings and the room business led to total depreciation and amortization of 160 million yuan, and new stores are in a customer cultivation phase with periodic losses, while earlier capital investment pushed up financial expenses, jointly dragging down profits. In addition, banquet order volume fell year-on-year, and the average spending per customer in private dining rooms declined, leading to a drop in revenue. The company indicated that banquet bookings for the third quarter have already increased year-on-year, overall operating cash flow remains solid, and the short-term profit pressure is a phase-specific characteristic.