Zhuo Yue Holdings: Weak Sales Performance, Expected Interim Results From Profit To Loss

The group announced a net loss for the 6 months ended June 30, 2019, while unaudited consolidated net profit of HK $7 million 400 thousand was recorded during the same period last year.

The Board believes that the loss from profit to loss is mainly due to the recent global and local economic conditions, resulting in weak sales performance. In addition, the e-commerce law implemented at the beginning of the year severely hit the "purchasing agent" (agent shopping), which has a short-term adverse effect on the turnover of the group to a certain extent.

In the same period last year, Zhuo Yue holdings achieved a turnover of HK $932 million, with a profit of HK $7 million 418 thousand. Benefiting from the rebound in Hongkong's retail market in the first half of 2018, the group's turnover increased by 1.7%, while the same store sales increased by 14.9%.

Cheuk's holdings narrowed to HK $39 million 613 thousand in the year 2018. According to the 2018 annual report released by Zhuo Yue holdings in March this year, the turnover was HK $1 billion 793 million in 2018, a decrease of 7.31% compared with the same period last year. The company's owners should account for a loss of HK $39 million 613 thousand, compared with a net loss of HK $202 million in the same period last year. In December 31, 2018, the group opened 39 branches in Hongkong, Macao and Guangzhou.