BELLE Sheng Bai Pepper: Hongkong Consumption Is Worse Than That During The Middle Period.

Today, after the shareholders' meeting, Sheng Bai, CEO of International Holdings Limited (hereinafter referred to as BELLE), said that this year is expected to be held this year.

Similar shop sales decline is not suspense, only the magnitude of the problem, due to climate change, the company's first quarter from March to May during the same store sales fell 16%.

The picture shows BELLE's shoe brand STACCATO.

In terms of Hongkong market, Sheng Bai Jiao refers to the fact that Hongkong's business situation has changed greatly compared with the previous years. The consumption situation in the past year is even worse than that in the middle period.

Due to the sharp decline in mainland tourists and the slowing local economy, Hongkong's retail industry has officially entered a recession. In the first quarter of this year, the total retail sales fell by 12.5%, and the total sales volume decreased by 11.3%. The performance was the worst quarterly in Hongkong's retail industry in 17 years.

BELLE's footwear business has its own business.

It mainly includes Belle, Teenmix, Tata, Staccato, Senda, Basto, Joy&Peace, Millies, SKAP and Mirabell, etc.

Unlike footwear business, sports and apparel business is currently dominated by distribution agents, including front-line sports brands Nike, Adidas, PUMA and Converse.

Asked about the timing of the pformation, Sheng Bai Chai said with a smile that he hoped to complete his retirement.

He stressed that the pformation of the company is proceeding in an orderly way according to the plan, including the arrangement of the shop structure, the re examination of the number of shops and the closure of low production shops.

In the first quarter, BELLE has 20876 retail outlets in China, 13655 of which are footwear shops and 7221 are sports and clothing stores.

Sheng Bai pepper admitted at the May earnings conference that the performance of the group could not be reversed in the foreseeable one to two years. Therefore, the group is considering whether there is a need to make a pition. At the same time, it points out that the group will only die slowly if it does not pform, but if fundamental changes are made, it will face huge risks and accelerate the decline of the performance.

BELLE's net profit plunged 38.4% to HK $2 billion 934 million last year due to changes in consumer demand for shoes and the impact of e-commerce. This is the first time a profit decline has been recorded in the nine years since listing.

Among them, the footwear business fell 8.5% to 21 billion 100 million yuan in the whole year, even if the income in sports and clothing business increased by 16.2% to 19 billion 700 million yuan, it still can not make up for the decline of footwear business income.

According to Credit Suisse's report in June 22nd, if BELLE decides not to restructure, the group's footwear business profits will drop 25% to 30% every year in the next 3 to 4 years. However, structural reforms may lead to a further decline in profits. For example, footwear business profits fell by more than 50% on a yearly basis. The bank expects BELLE's footwear business to remain arduous in the next few years.

BELLE is not alone in the shoe market downturn. Lies Dan, the shoe brand listed in Hong Kong, plummeted 35.5% to 122 million yuan last year.

Lies Dan also pointed out that this year's retail sales in Hongkong are still tough. The former CEO Liu Shunhui, who left in May this year, has said that the operation data of Lies Dan in March and April show that the business has not improved and the same store sales have continued to fall. It is expected that this year will still be a difficult year. The store data will be re examined in the future, and some potential shops will be closed.