Tung Lok Restaurants said it is expected to report a net loss for the half-year ended September 30 citing fall in revenue.
Shares in the company fell as much as 14 percent to S$0.220 on the Singapore Exchange.
The loss is "mainly attributable to the decrease in the group's revenue as a result of the challenging economic environment which has affected overall sales".
Tung Lok further added that the group's performance in the first half of the financial year is traditionally weaker than that of the second half of the financial year, it said in a regulatory filing on Wednesday.
The company will disclose further details when it announces its unaudited financial results around November 14.
Tung Lok Restaurants owns and operates restaurants in Singapore. The Company also operates a food processing facility to distribute dianxin and dianxin ingredients, festive food items and pastries to its restaurants for sale.
At 0250 GMT, shares in the company were down 12 percent at S$0.225. The stock has surged 120 percent so far this year.
