Zhou Dafu Plunged 15% In The Same Quarter In The Three Quarter, Hongkong Needs Positive Energy.

The continued weakness in the local retail market in Hongkong and Macao and the decrease in the number of mainland visitors resulted in a 23% decline in the same store sales in Hong Kong and Macao, which deteriorated again compared with a 13% decline in the second quarter.

The same store sales in mainland China also decreased by 6% compared with the same period last year, while the 6% quarter growth in the second quarter.

The third quarter

Retail value decreased by 11% compared with the same period last year, while Hong Kong and Macau and the mainland of China decreased by 20% and 6% respectively. After excluding exchange rate factors, the retail value of the group and the retail sales in the mainland of China narrowed to 9% and 2% respectively.

Managing director Zhou Dafu

At the conference call, there was no sign of recovery, but there was no deterioration. He expected such a situation to last until the lunar new year. Therefore, it is expected that there will be double-digit sales in Hong Kong and Macao during the Spring Festival, while the 1-3 quarter data will also be in line with the third quarter.

During the third quarter, the group continued to expand in the mainland of China, opened 28 jewelry retail outlets and 2 watch retail outlets, while Hong Kong and Macau grew by only one retail point. As of December 31, 2015, the group

The total number increased to 2317.

On Friday, Zhou Dafu closed at HK $4.72, an increase of 2.39% in the whole day. Its initial results in the three quarter were released after the Hong Kong stock market closed.

As China entered the A stock market since 2016, Zhou Dafu (1929.HK) has fallen 9.4% as of today.

Earlier, Credit Suisse fell 7.8% to HK $38 billion 80 million on the basis of Hongkong's retail sales in November, showing a nine consecutive drop. On Tuesday, the target price of Zhou Dafu dropped from HK $6.4 to HK $5.5, a decrease of 14%.

Huang Shaoji disclosed that a Mong Kok branch which had recently been renewed had received 30% rent reduction. He hoped that the rent reduction rate of the Mong Kok branch in the future could also reach 20%-30%, but it would also consider closing stores in the tourist area.

Huang Shaoji also pointed out that the Hong Kong and Macau Association of Hong Kong and Macau eventually reduced 5-6 sales points this year, while the mainland China's new store plan also reduced to 50-60. In addition, the group had no plans to reduce prices and layoffs, because the current stock situation was healthy and Hongkong employees were mainly natural wastage. In the first half of this year, the total number of workers in the group had been reduced by 8%, and the manpower cost had been reduced by 13%.

"The jewelry retail industry has been in the integration stage after the rapid growth in the past ten years. We need to better control the cost structure in terms of store rentals and labor costs, and expand our high-end product lines," Huang Shaoji said.