01388.HK announced that the company expects to record a net profit of about HK $5 million for the six months ended June 30, 2023, which is about HK $1.116 million over the same period in 2022, a more than three-fold increase due to the low base effect. The expected increase in the Group's net profit in the medium term is mainly attributable to (I) reduced other expenses, in particular the reversal of previously recognized impairment of right-to-use assets of the Group and (ii) Group recognition of tax credits.
The group's overall sales from April to June in 2023 were virtually unchanged from the same period last year, mainly due to the devaluation of the renminbi in the second quarter, while sales from the Chinese mainland market rose about 5 per cent at a fixed exchange rate compared with the same period last year. During the second quarter, same-store sales recorded a year-on-year decline in the number of units in stores that had been operating for more than 18 months. As at the end of June 2023, the total number of retail outlets of the Group was 1039, including 872 sales counters and 167 specialty stores. The number of retail outlets of the Group decreased by 45 compared with the end of December last year. The Group has been adjusting its sales network and will continue to close inefficient stores in 2023 to promote overall operational efficiency.