According to the announcement released by LH Group (01978), the company expects that its shareholders' share of losses for the six-month period ending on June 30, 2024 will not exceed 30 million Hong Kong dollars, while the shareholders' share of profits for the six months ending on June 30, 2023 was about 47.6 million Hong Kong dollars.

According to the information currently available to the board of directors, the main reasons for the shift from profit to loss are: (1) the instability of the global economy in the first half of 2024, geopolitical changes leading to financial market volatility and global conflicts, the continued high-interest rate environment, coupled with the Hong Kong dollar pegged to the U.S. dollar relative to other currencies such as the renminbi and the yen, which leads to consumers being more inclined to consume outside Hong Kong, and the continued weakness of local consumption capacity, resulting in a decrease in income compared to the six months ending June 30, 2023; and (2) the group made provisions for impairment of property, plant and equipment, and right-of-use assets for some underperforming branch locations during this review period.

During this review period, the group closely monitored market conditions, adjusted its business strategies from time to time, and implemented multiple positive strategies to enhance the development of a diversified brand and save costs, in order to reduce negative impacts and maintain business stability. These strategies include, but are not limited to, introducing and developing new brands suitable for the market, negotiating rent reductions with landlords, improving supplier terms, and launching a variety of promotional activities. In addition, the group effectively managed its operating funds to ensure healthy cash flow.