Green Tea company sees increased profits due to improved efficiency and business expansion.
In a positive development for Green Tea Group Ltd., the restaurant chain is anticipating a significant increase in net profit for the first half of 2025. The projected net profit is expected to range between 230 million yuan and 237 million yuan, marking a promising 38% to 42% increase compared to the same period last year.
This significant profit growth is likely due to operational improvements and favourable market conditions, although the specific contributing factors are not detailed. The company's forecast indicates strong earnings momentum in H1 2025 relative to its performance in H1 2024.
Green Tea Group's revenue is also expected to see a substantial boost, with estimates putting it between 465 million yuan and 495 million yuan for the first half of 2025. This represents an impressive increase of 391 million yuan from the year-ago period.
However, it's important to note that listing expenses of approximately 15 million yuan to 20 million yuan from the company's IPO earlier this year partly offset the improved store-level profitability. Excluding these one-time listing fees and non-cash, equity-settled share-based compensation, the company's adjusted net profit is still expected to be between 247 million yuan and 254 million yuan, representing the same 38% to 42% increase year-on-year.
Shares of Green Tea Group opened up 8.8% at HK$8 on Friday, reflecting investor optimism about the company's prospects.
Green Tea Group Ltd. is also planning to subscribe to a weekly free newsletter, with the option available on their website.
This article was written by Lau Chi Hang. For more updates, follow Green Tea Group on various social media platforms such as Facebook, Twitter, LinkedIn, WeChat, Sina Weibo, Share, and Fast News.
- With the projected net profit increase and substantial boost in revenue, Green Tea Group Ltd.'s positive financial standing could potentially attract more investors in the business sector, enabling them to further invest in the company.
- Although the specific factors contributing to Green Tea Group's financial growth are not detailed, the company's strategic business decisions and favorable market conditions might have provided a solid foundation for future investing opportunities.
