Xie Ruilin (00417) issued a profit warning. It is estimated that losses attributable to mid-term shareholders will not be less than HK$50 million, with a year-on-year profit to loss

Zhitong Finance ·  10/17/2023 16:43

Zhitong Financial App News, Xie Ruilin (00417) issued an announcement, it is expected that the Group will make a loss attributable to the company owners of not less than HK $50 million in the six months ended September 30, 2023 (compared with the profit attributable to the company owners for the six months ended September 30, 2022, about HK $2 million).

Mainland China has only achieved steady economic growth due to the weakening consumer confidence due to the downturn in the real estate market and the bleak economic outlook, the notice said. While the Chinese government's steady growth policy is gradually boosting the recovery, it will take some time to stimulate consumption of luxury goods, especially natural diamonds. During the period, the Group's overall sales performance in mainland China gradually improved, mainly due to an increase in sales of 24-carat gold jewellery but a low profit margin. At the same time, the devaluation of the RMB and the rise in interest rates continue to put pressure on the group's earnings.

With the steady increase in inbound passengers and passenger traffic, the Group's turnover in Hong Kong, China, Macau, China and Malaysia increased during the period. In the face of macroeconomic and geopolitical uncertainty, the Group maintains a cautious attitude towards business development. The Group will continue to maintain adequate cash flow and seize the opportunities of the post-epidemic era.

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