China's Longhui H1 revenue falls amid lower customer traffic

Longhui International Holdings

23/09/2026 15:36

Overview
China hotpot restaurant operator's H1 2026 revenue fell 21% yr/yr amid lower customer traffic
Loss for H1 2026 narrowed to RMB6.3 mln, driven by cost controls and fewer restaurants
Company faces material uncertainty over going concern due to large net current liabilities

Outlook
Company anticipates seat turnover and average spending will remain below pre-pandemic levels
Longhui plans to implement cost-saving measures and productivity enhancements in coming years
Company sees material uncertainty over ability to continue as going concern due to liquidity challenges

Result Drivers
LOWER CUSTOMER TRAFFIC - Co said revenue decline was mainly due to decreased customer traffic amid challenging hotpot industry conditions
FEWER RESTAURANTS - Co attributed lower employee and material costs to reduction in number of restaurants
COST CONTROLS - Co implemented targeted cost controls and portfolio restructuring to improve liquidity and narrow losses

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
RMB 15.60 mln
 

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)