Goldlion Group's Interim Net Profit Decreased By 4.54%, Directly Operating 100 Stores.

In August 15th, Goldlion group announced the interim results for the six months ended June 30, 2019. In the 6 months ended June 30, 2019, Goldlion group achieved a turnover of HK $745 million, a decrease of 4.89% compared to the same period last year. The company's owners should earn HK $163 million, down 4.54% from the same period last year; the basic and diluted earnings per share were 16.63 Hong Kong cents; the proposed interim dividend was 5.5 cents per share.

The announcement indicated that the total turnover of Goldlion group was HK $744 million in the first half of this year, which was about 5% lower than that of HK $783 million in the same period last year, mainly because the RMB exchange rate adopted during the period dropped by 5% compared with the same period last year. There were no significant differences in domestic business income calculated in Renminbi during the period, compared with the same period last year, but sales of clothing and apparel business in Singapore were down compared with last year.

The gross profit margin for the period was HK $432 million, down about 5% from HK $457 million in the same period last year, which is roughly the same as the decrease in total turnover. The gross gross profit margin was 58.1%, slightly lower than the 58.5% share in the same period last year, about 0.4 percentage points. Among them, the gross profit margin of domestic clothing sales is about 52.4%, down by about 0.3 percentage points.

The operating profit for the period was HK $186 million, down about 4% from HK $194 million in the same period last year. The operating interest rate is about 25%, roughly the same as that of the same period last year.

The total turnover in mainland China and the Hongkong SAR market was HK $580 million during the period, representing a decrease of about 5% compared with the same period last year. In terms of self retailing business, there is still room for improvement in the period. The turnover of self operated retail stores (excluding outlets) in Renminbi is roughly the same as that in the same period last year. Among them, Guangzhou performed better, recorded an increase of about 5%, while other units, including Beijing, Shanghai and Chongqing, recorded a decline in unit numbers.

Owing to the fact that the supply of goods from other special products is lagging behind the original plan, the group has increased the sales proportion of over the season inventory in outlets. Sales of these goods are subject to higher discounts and thus lower sales, so the turnover of the outlets operated by Renminbi in the interim period fell by about 10% compared with the same period last year.

The terminal group has about 935 sales outlets in China, and about 100 are operated directly by the group, including about 35 outlets.

During the period, the group's electronic business continued to sell mainly for goods, and sales in Renminbi were similar to that in the same period last year, accounting for about 33% of the domestic apparel sales in the group.

Despite the need for improvement in the domestic retail market, the group will continue to consolidate domestic self retailing and atrice business, including plans to build larger self operated stores and provide more diversified products to meet market needs and ensure continued business growth. In addition, due to the fact that electronic commerce and group customized sales are more concentrated in the second half of the year, it is expected that the sales will improve in the second half of the year.