Advance Losses Expanded To HK $132 Million, HK $311 Million.

In May 27th, Shi Shi announced the results for the year ended February 28, 2019.

During the reporting period, the yield of HK $312 million was decreased by 12% compared with the same period last year. The loss of share holders should account for HK $132 million, an increase of 45.9% over the same period, and a HK $0.2 loss per share.

The announcement said that the increase in losses was mainly due to an increase of HK $18 million 300 thousand in the classified loss of general merchandise business, while the classified loss in securities trading increased by HK $17 million 800 thousand compared with last year.

The reason for the increase in losses is the unusually warm winter, resulting in a relatively cold sales at the end of the year, reducing the gross profit of department stores.

The loss in the Department's business operations has resulted in an impairment loss for the property, plant and equipment of the group; and the market loss of the financial assets invested by the group at fair value through profit and loss has increased the net realized net loss and unrealized loss generated by the paction.

In the year of review, the revenue of the group's core department store was HK $311 million (HK $353 million in 2018), a decrease of 12% over last year.

Gross profit in department stores fell sharply, resulting in a loss of HK $104 million (HK $85 million 600 thousand in 2018), representing an increase of 21.4% over last year.

The Sino US trade war and the exceptionally warm winter problem seriously affected all 6 department stores, resulting in a 9% to 17% decline in sales.

The impairment loss of property, plant and equipment in group retail business was HK $9 million 500 thousand (2018: HK $5 million 400 thousand) as a result of continuous operating losses in department stores.

In addition, the abnormal warm winter in 2018 also seriously affected the revenue generated by department stores during the year.

This warm weather has changed the consumption pattern of customers, reducing the demand for warm clothing, warmers and bedding.

This has seriously affected the sales volume of department stores.

Looking ahead, the group has implemented a number of measures to improve the performance of department stores.

For example, the Tsuen Wan Tsuen sin world store was renovated in August 2018 to attract more customers with a brand new image.

To effectively utilize resources, the group will close its poor Sincere CWB store at the expiration of the lease in early July 2019.

In addition, in order to enhance the flow of shop owners and expand the product category of the group, a number of new consignments will be launched in Tsuen Wan Tsuen sin Tien tin store, deep water West Kowloon Centre store and SincereMK store to sell snack snacks. The women's sales team has purchased fashionable Spanish costumes and footwear.