It Is Expected That The Medium-Term Shareholders Will Account For Losses Of About 50 Million To 54 Million Yuan.

In July 30th, a thousand Profit International Holdings Limited (hereinafter referred to as "1000 degrees") issued a profit warning notice. It is expected that the net loss attributable to shareholders will be about 50 million yuan to 54 million yuan in the 6 months ended June 30, 2019, and a net loss of 14 million 97 thousand yuan during the same period last year.

The announcement said that the increase in net loss was mainly attributable to the increase in the loss of the group's retail retail business (Hamleys Global Holdings Limited and its Affiliated Companies). The professional fees and other expenses related to the sale of all the issued shares of the group were recorded in the period, and the income of the retail and wholesale shoe operation division of the group decreased.

In May of this year, the company announced that it would sell Hamleys to the Reliance Brands Ltd (RBL) of India retail giant Reliance Industries Ltd (RIL) for 34 million 290 thousand pounds. At the same time, it paid 33 million 670 thousand pounds to repay the loan provided by Hamleys to 67 million 960 thousand, or about 600 million yuan. In July 16th, the company announced the sale of Hamleys. Hamleys currently operates 3 stores in China, and it will retain Hamleys franchise for 20 years after the transaction is completed.

It is understood that in 2015, 100 billion bought Hamleys at the price of about 100 million pounds. Today, at a total cost of 67 million 960 thousand pounds, Hamleys will change its RBL to India's rich, which is about 30% less than its 4 years ago purchase price.

Since the acquisition of Hamleys in 2015, the performance of the latter has not been achieved. For this sale, the company said that the synergy between the business and the toy business failed to achieve the expected diversification of the group business. The sale will also release the resources invested by Hamleys in order to enable the company to focus on the development of high-end ladies' shoes in its core business.