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| Middle-End Watches Reached a Sound Growth of 13.9% |
HONG KONG, Aug 29, 2013 - (ACN Newswire) - Hengdeli (3389), a world-leading retailer of internationally renowned brand watches, announced its interim results. The Group recorded sales of RMB6,294 million, representing a growth of 9.5% over the corresponding period last year. Retail sales amounted to RMB4,819 million and accounted for 76.6% of the total sales. The Group's net profit for the period decreased by 50.8% year-on-year to RMB302 million. Apart from a decrease in gross profit margin of sales and an increase in expenses arising from higher labor cost and rental expenses, the corresponding impairment provision of shares of Ming Fung Jewellery Group Limited held by the Group upon the Company's share swap with the Ming Fung Group made according to accounting standards after the share price of Ming Fung Group plunged from the beginning of the year, and the relatively substantial impact on the non-recurring gain from the disposal of OMAS in the first half of 2012 also caused the decrease in net profits.
The Group's retail network progressed soundly in a forward-looking manner. In Mainland China and Taiwan markets, the Group continued to expand its retail network for middle-end watches. New outlets have been set up prudently in the regions with the highest sales records, such as third and fourth tier cities as well as emerging second and third tier cities. More efforts were also made in streamlining outlets in the first tier market and high-end watch retail market to lay a solid foundation for the structural adjustment of the Group. As for Hong Kong, the Group continued to expand its market share through a multi-level distribution system. During the first half of 2013, the number of the Group's retail outlets increased from 452 at the end of last year to 462. What's more, operations at Hong Kong are stable and positive. The Group operated a total of 18 retail outlets in Hong Kong, which are mainly located in prime commercial districts such as Tsim Sha Tsui, Central, Causeway Bay and Shatin. The Group recorded an increase of 12.6% in sales in Hong Kong for first half of 2013.
In response to the strong demand for middle-end watches, Hengdeli cautiously advanced the expansion in second, third and even fourth tier cities and stepped up the adjustment of the retail structure in first tier cities, resulting a strong momentum in middle-end watches sales with a sound growth of 13.9%. Moreover, Hengdeli will gradually merge the middle-end "With Time" shops into the middle-to-high-end "Prime Time" shops to build a single presence of "Prime Time" shops, so as to enhance the sales of middle-end and middle-to-high-end brands with consolidated resources. It is expected to realize remarkable prospects.
Topic: Press release summary
Source: Hengdeli Holdings Ltd
Sectors: Daily Finance, Daily News
http://www.acnnewswire.com
From the Asia Corporate News Network
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