The Profits Of Burlung Were Reduced By 10.13%, And Shareholders' Losses Should Be Expanded By 1.2 Times.

Burshlung International (00592) released its interim results for the 6 months ended December 31, 2018, which gained HK $875 million in the period, down 10.13% from the same period last year. Gross profit was HK $457 million, a year-on-year decrease of 10.7%. The losses attributable to the company owners during the period amounted to HK $25 million 748 thousand, an expansion of 1.2 times compared to the previous year. The basic loss per share is 1.57 Hong Kong cents, and an interim dividend of HK $1.22 per share is to be issued.

The announcement indicates that the decrease in profit attributable to the group's owners is due to the unusual warm winter climate in the core markets operated by the group and the low consumption of local consumers. The group's overall revenue fell 10%, while same store sales fell 5%. Gross margin fell 1 percentage points to 52%.

During the review period, the operating profit in Hongkong and Macao areas of China has improved. As part of the expansion plan of the business network, the group's export franchising business added 114 new shops in 6 months to the end of December 31, 2018, covering 27 countries.

Looking ahead, the group will further expand the children's wear market in addition to the young market, so as to expand the company's customer base. The market is changing rapidly, and the group is strengthening supply chain management to improve operational efficiency.