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    Zhou Dafu'S Executive Director Has 30% Pay Cuts And No Layoffs.

    2020/3/12 9:57:00 0

    Zhou DafuExecutive Director Of Zhou DafuJewelry Brand

    In March 10th, Zhou Dafu announced that he was willing to spend time with his employees and decided that the executive director would reduce his salary by 30% from February to April.

    At the same time, Zhou Dafu said that there is no layoff plan at this stage. Instead, it takes the importance of protecting employees' employment as an important consideration, actively develops online sales channels, launches online sales platform, and opens full sales.

    According to Zhou Dafu's performance Bulletin released in March 8th, the retail sales in mainland China fell by 42% in the first two months of this year, while the sales in the same store dropped by 49%, while the retail sales in Hongkong and Macao dropped by 60% compared with the same period last year, while sales in the same store dropped by 59%.

    According to the products, the sales of jewellery and jewelry in mainland China also dropped by 50%, while gold products fell by 53%. The sales of jewellery and jewellery in Hongkong and Macao dropped by 57% compared with the same period last year, and the gold products also fell 61%. What is more worrying to investors is that Zhou Dafu's electricity business in mainland China has also declined significantly, with sales plunging 36% over the same period.

    In his report, Zhou Dafu stressed that with the outbreak of the new crown pneumonia, the retail sales of the group in mainland China and Hongkong and Macao were temporarily suspended from the end of January 2020 and early February, and their performance was inevitably affected. However, as of February 29, 2020, about 70% and 64% of retail outlets in mainland China, Hongkong and Macao have resumed business.

    In terms of supply chain, the production line of Zhou Dafu in Shunde and Shenzhen has been restarted, and the Wuhan production center is temporarily closed until further notice. The center mainly produces gold products, accounting for about 15 to 20% of jewelry production in the group.

    With the decline in the number of visitors to Hong Kong in the past nine months and the downturn in consumer sentiment, the sales of the same stores in Hongkong and Macao fell by 35% in the three months ending last December, and the retail value dropped by 38% in the three months ending last year.

    In view of the sluggish performance of the Hongkong market, Zhou Dafu said in January 13th that a group of about 40 Hongkong stores will expire from the beginning of April 2019 to the end of March 2020, when the spokesman said that the company will close more than 15 stores. At present, Zhou Dafu opens 91 stores in Hongkong, 86 of which are retail outlets, which means that Zhou Dafu will close 1/5 of its retail stores in Hong Kong.

    Faced with performance challenges and still high rent, Zhou Dafu had to start saving himself. In February 27th, MTR announced that it had entered into an agreement with the new world development and Zhou Dafu. The proceeds from the two shopping malls of the Kowloon Bay Defoe Plaza and the PopCorn2 shopping mall of Tseung Kwan O after the acquisition were priced at HK $3 billion. In mid January, Zhou Dafu also acquired the full stake of Enzo, a coloured jewellery brand, to further expand its business scale in the mainland of China.

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