Si Jie Global Year 169 Stores In The Future Will Continue To Shop Adjustment

00330-HK announced its year-round results as at the end of June this year, earning 12 billion 932 million yuan, an annual decrease of 16.3%. Compared with the same period last year, the loss of 2 billion 554 million yuan narrowed to 2 billion 144 million yuan. During the period, the loss of basic business before interest and tax was narrowed from 909 million yuan to 587 million yuan.

Anders Kristiansen, chief executive officer of the company, said that because of a series of cost saving measures, the company saved more than 2 billion yuan in the year. During the year, the company closed 169 non profitable shops, 14 received rent reduction, 3 reduced the area, the remaining 20 expected to close or reduce the rent in the financial year (priority), and the company cut the number of non shop staff to reduce the related expenses by nearly 1/3.

Looking ahead to the performance of the next year, he expects that the double-digit decline in the company's revenue will be eased, believing that the decline in the low unit number will be close to 10%. During the year, the gross profit rate of the company was 50.3%, which was about 1.1 percentage points down in local currency. The gross profit margin of Anders Kristiansen has improved slightly this year. It is expected that the gross profit margin will be improved by 3 to 5 percentage points in the next three years. He also pointed out that the company will reduce the intensity of discount in the future, and promote the sale of positive products more frequently. During the two-and-a-half years and two years, the company will return to profitability on the premise of maintaining brand and quality.

Recently, social movements in Hongkong have been frequent. Anders Kristiansen said that a series of social movements did not affect the company's shop closing plan. However, a sharp decrease of 40% of the flow of people did have a great impact on store sales.

Company chairman Ke Qinghui also pointed out that although the impact of sales, but also brought about rental adjustment opportunities. "We have a good location. We have closed a lot of shops in the past few years, and some of them are too high to afford. This social movement may lead to a substantial adjustment in rent. We will consider whether there is a suitable location for new shops," Mr Ke said. He also said that if social problems did not come up with solutions, it would be difficult to remain optimistic about the future retail market in Hongkong. However, Hongkong's business accounts for a smaller share of the company's sales and has little impact on the company's business.

The company opened a new concept store in Beijing by the end of August this year. Anders Kristiansen said its stores were doing well and there will be plans to continue opening new stores in the mainland.