Hong Kong-based restaurateur 1957 & Co. (Hospitality) Limited reported a consolidated loss of HK$1.53 million for the year ended 31 December 2025, reversing the HK$2.39 million profit recorded in 2024.

Revenue fell 7.5% year on year to HK$435.15 million, largely due to weaker same-store performance and the net closure of one restaurant (12 outlets at year-end versus 13 a year earlier). Restaurant operations contributed 96.7% of total turnover, with Shanghainese cuisine remaining the largest contributor at HK$213.99 million, followed by Japanese (HK$97.30 million), Italian (HK$45.08 million), Thai (HK$35.92 million) and Vietnamese (HK$28.35 million).

Key cost lines moved broadly in line with the sales contraction: • Cost of inventories sold: HK$110.44 million (25.4% of revenue, unchanged YoY) • Employee benefit expenses: HK$157.91 million, down 7.9% • Depreciation & amortisation: HK$74.49 million, down 16.5%

The company booked HK$1.88 million in trade-receivable impairments and HK$3.25 million in asset impairments. Net finance costs narrowed to HK$6.91 million from HK$8.49 million. Income-tax expense rose to HK$1.75 million, reflecting a write-down of deferred tax assets following restaurant closures.

Adjusted profit before tax (excluding government grants and impairment charges) inched up 4.1% to HK$5.10 million.

Balance-sheet highlights as at 31 December 2025: • Cash and cash equivalents: HK$53.81 million (flat YoY) • Bank borrowings: HK$25.64 million, down HK$9.22 million • Loans from non-controlling shareholders: HK$2.90 million, down HK$1.70 million • Net gearing (borrowings/equity): 43.7% (2024: 55.7%) • Total equity: HK$65.33 million, down 7.8%

The board proposed no final dividend, consistent with the prior year.

Operational developments included the relocation of the “10 Shanghai” outlet via a joint venture and the renewal of key leases for Paper Moon (Italian) and Modern Shanghai Imperial (Shanghainese). Two joint-venture restaurants and four partner venues were under management at year-end.

Management flagged continued cost pressures, shifting consumer behaviour and “northbound consumption” as key uncertainties, and outlined a three-pillar strategy focused on core restaurant operations, catering management services and packaged F&B product sales.