16/6/2017-5

Salsa earn 15% less in the past two months

Salsa International (00178) Chairman Guo Shaoming that Hong Kong’s retail market has bottomed out, but signs of slowing in mid-May, so that nearly two and a half months of same-store sales also fell slightly, expected in mid-June due to return to the introduction of travel offers Can stimulate consumption.

The company reported earnings of more than $ 326 million, down nearly 15% year-on-year. This year, only the final dividend of 8 cents was distributed. For the first time in 15 years, there was no special dividend, plus the final dividend of 11.1%. The dividend payout ratio therefore dropped by 21 percentage points to 155% last year.

The end of interest rate by 11% share price fell more than 8%

The company announced the results at noon yesterday, the stock fell to 8.29% decline in the afternoon to close at 3.32 yuan, turnover of 56.68 million yuan.

Mr Kwok stressed that the dividend payout ratio was still “very high". He explained that the company needed to spend $ 50 million on the relocation of the warehouse and hoped that the funds would be stabilized.

He said that from April to June 11 this year, its Hong Kong and Macao sales rose 3.6% year on year, same-store sales also decreased by 1.4%. Compared to January to March this year, Hong Kong and Macao sales recorded an increase of 5.8%, same-store sales also increased by 1.3%.

For the first quarter of the slowdown in growth, Guo Shao-ming that is due to the return is approaching, clearance check tightened, the mainland visitors to Hong Kong visa difficulty, the customer’s consumption and thus reduced.

Although the annual net profit retrogression, but sales fell only 0.6%. Chief Financial Officer Lu Kai that Hong Kong and Macao sales performance in the second half stabilized, sales rose 3.4% year on year, but the overall decline is still dragged down by the first half.

Hong Kong retail bottomed out gradually open shop

In addition, the number of transactions in Hong Kong and Macao markets increased during the period, but the average amount decreased by 2.8%. Guo Shaoming that is due to changes in consumer spending patterns, prefer the cheaper prices of Korean products. At the same time, the “gift tide" of Mainland consumers has passed, and now the majority of the purpose of self-use, so that the average price of each transaction fell.

Guo Shao Ming said the group is still adjusting the branch strategy. He said that there are 4 to 5 shops in Hong Kong have been signed, ready to open a new store. He also said that the previous high rent, part of the ground store will be moved to the floor shop, but will gradually re-open shop shop.

Reorganization of online shopping can not do a single eclipse a single

During the period, the loss of the group’s sub-commerce business expanded by 1.1 times to RMB67.14 million. Guo Shao-ming said that this year, it planned to offer 35 million yuan of background technology in online shopping and improve its competitiveness. At the same time, he said the company has raised some of the product prices and free shipping threshold, that can no longer “do a single eclipse a single."