JEANSWEST Was Sold To Its Parent Company, Sunrise Enterprise, Earning More Than 20% Throughout The Year.

After stripping the Jeanswest JEANSWEST China business, Glorious Sun Enterprises Ltd. (0393.HK) Xu Sun Enterprise Co., Ltd. made more than 20% of the total profit in the whole year, and its net profit increased from HK $88 million 669 thousand to $107 million 400 thousand, an increase of 21.16%.

During the reporting period, the group's income was HK $1 billion 271 million, an increase of 6.47% compared with HK $1 billion 193 million 700 thousand in 2017, of which Hongkong's retail business revenue plunged 15.33%, from HK $78 million 670 thousand to HK $66 million 612 thousand, and 12 JEANSWEST stores to 11.

In early August 2018, sunrise group announced that HK $800 million would sell mainland retail brand business and focus on profitable interior decoration business and brand Hongkong and Macao markets.

The trading announcement is very sad. Asahi group said that despite the past few years, the group has made the product supply more flexible and accurate through restructuring the retail network and improving the efficiency of the supply chain. It has invested more resources and publicity in product design and marketing, and launched online business to hold China's expanding electricity supplier market.

However, as the market competition is becoming more intense, the rise of the electricity supplier has hit the store business. Until now, JEANSWEST is hard to attract customers only by its reputation of "value for money".

Therefore, all efforts of the management did not bring substantial improvement to JEANSWEST's mainland business.

In the first half of 2018, JEANSWEST's retail sales recorded a decline in figures, gross margins continued to suffer, and overall performance was disappointing. Therefore, the sale of the business was a forced act.

By the end of June, JEANSWEST had operated 1164 stores, a net decrease of 494 from 1658 in the same period in 2017, and the volume contracted by 30%, of which 867 were franchised stores, while 1010 in 2017.

Up to 5 months before May 31, 2018, 12 months before December 31, 2017 and 12 months before December 31, 2016, JEANSWEST's mainland China business recorded pre tax profits of HK $-4532.0, HK $-5045.3, HK $31 million 199 thousand, and after tax profits of HK $-4594.2, HK $-4509.6 and HK $66 million 747 thousand.