Hongkong Tourists Slump Net Profit In The First Half Of

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Xie Ruilin (00417.HK) released the first half of last year's performance, and reported net profit of HK $11 million 739 thousand in the first half of the year, down 24.05% from the same period last year, with a turnover of HK $1 billion 550 million, down 11.56% from the same period last year, and gross profit of HK $754 million, down 5.46% from the same period last year.

The analysis is due to the continued decline in the number of visitors to mainland China and the visit to Australia in the first half of the year, the weakness of consumers' overall consumption intention and the uncertainty of the global economy during the first half of the year, resulting in a 32.6% decrease in sales volume in Hong Kong and Macao. The two regional sales in the same store dropped by 31.4%.

In addition, Britain's influence on Europe has been pushed up by more than 6.9%.

Xie Ruilin said that the rentals of shops were reduced during the same period.

Store rental costs decreased by 14.4%.

The company plans to open two new stores in Hong Kong and Macao this year to expand its local sales network.

Retail sales in mainland China increased by 5%, while same store sales increased by 1.5%, accounting for 44.9% of the total turnover of the group, and the retail business in Malaysia recorded a 8.4% decline.

During the period, the group's business in mainland China continued to expand, and 16 new franchises were added under the group affiliation mode. The number of franchisees grew from 83 to 98, together with 197 self operated shops of the company. The group had 295 shops in the mainland of China.

In addition, the group further expanded its e-commerce platform in the first half of the year, and business turnover increased by five times compared with the same period last year.

A group spokesman said that it will continue to explore more new channels and complement the existing e-commerce platforms and Group brands. The Group expects that the e-commerce channel in the second half of this year will maintain the high growth rate.