A positive profit alert has been issued by restaurant group Tang Palace (China) Holdings.

The Hong Kong-listed group says it expects to record a substantial increase in its profit attributable to the owners of the company for the period to June 30 compared to the previous year.

It says the increase is mainly because of revenue growth from existing and new stores, as well as the positive impact of VAT reforms.

The alert follows its board reviewing the group’s unaudited consolidated management accounts for the five months to the end of May. Detailed interim results for the year are expected to be released next month.