Xie Ruilin (00417) announced that the group is expected to achieve significant results for the year ending March 31, 2024...
According to Zhitong Finance App News, Xie Ruilin (00417) announced that the group is expected to obtain significant losses attributable to company owners of not less than HK$220 million for the year ended March 31, 2024 (before the annual assessment of property, plant and equipment impairment and inventory provisions), compared with the net loss attributable to company owners of about HK$71 million for the year ended March 31, 2023.
The expected loss is mainly due to a significant drop in consumer demand for natural diamond jewelry in the mainland China market and a sharp increase in profit margins due to a sharp increase in the proportion of the Group's transformation and sales of 24K gold products. The Group is still in the process of transforming its business model to adapt to a rapidly changing sales mix, which requires considerable time and capital investment to reverse profitability.
Beginning in the second half of this fiscal year, the Group has taken a series of measures to restructure the Group's operating structure to achieve the above goals. In addition to some special or non-operating expenses, it is estimated that restructuring costs account for no less than HK$70 million of the anticipated losses. Major restructuring efforts include implementing various cost control strategies, such as reorganizing the store network, streamlining organizational functions through allocating human resources, drastically reducing employee costs, and restructuring inventory portfolios. Despite this, the Group is committed to maintaining sufficient cash flow and finding opportunities in the changing retail environment.