Xie Ruilin earned more than 10%, and the final interest rate was 5.6 cents. The impact of the trade war emerged.

Xie Ruilin (00417) announced its annual results until the end of March. Profits increased by 9.6% to 54.16 million yuan, earnings per share were 21.9 cents, up 9.5% year-on-year, and a final dividend of 5.6 cents. Chairman Xie Ruilin and Chief Executive Officer Xie Qiu Anyi said that the Sino-US trade war continued to affect the retail market. From April to June this year, Hong Kong and Macau same-store sales were in line with the market, recording a slight decline to a flat level. The company is cautious about the retail market in Hong Kong. In the fiscal year, Hong Kong and Macau same-store sales can record a single-digit increase.

This quarter, Hong Kong and Macau same store sales synchronized the market

In view of the recent political instability in Hong Kong, she is estimated to have a short-term impact on the local and Mainland consumer markets. However, the Government has stabilized the economic situation of Hong Kong in various aspects. I believe that the impact of the incident will not last long. In the medium to long term, it is full of confidence in the local market.

As of the end of March this year, the Group’s turnover fell by 1.7% to 4.06 billion yuan, partly due to the Group’s change of fiscal year settlement date, from the end of February to the end of March, the last financial period is March 1, 2017 to 2018 At the end of March of the year, 13 and the current financial period is from April 1, 2018 to March 31, 2019. The company pointed out that thanks to effective cost control measures and diversified promotion for different consumption patterns, the average invoice amount increased by 5% during the period, and the average unit price of China, Hong Kong and Macau increased by 8.5% and 5.6% respectively. In addition, the overall gross profit margin of the group increased by 0.4 percentage points to 39.8%.

In Hong Kong and Macao, the turnover was 1.492 billion yuan, down by 2.5% year-on-year. She explained that since the middle of last year, it has been affected by the Sino-US trade war, which has caused the depreciation of the renminbi and consumer sentiment to be greatly reduced. In the first half of the last fiscal year, Hong Kong and Macao same-store sales have Double-digit growth, but in the second half of the year (from October last year to the end of March this year), only the number of units increased, the same-store sales increased by only 2.8%, and the impact of the Sino-US trade war on the retail market is expected to continue to emerge.

Mainland two-year target opening a hundred stores

Mr. Xie Qiu said that in the current fiscal year, it is planned to open two branches in Hong Kong, including Tung Chung and Tsim Sha Tsui. The Tsim Sha Tsui shop is under renovation. It emphasizes that the speed of opening shops in Hong Kong is more prudent and will continue to adopt the strategy of “shopping and shopping”. As of yesterday, the group had 32 stores in Hong Kong and Macau.

In China, the turnover during the period was 2.51 billion yuan, down 1.3% year-on-year, and same-store sales fell 12.2%. The group’s chief strategy and finance officer, Wu Yiqin, said that the decline was mainly due to the fact that 200 self-operated stores in the Mainland were gradually moved from department stores to shopping malls with a large number of people, but the effect has not yet emerged. At present, about 20% of the stores have been transferred to shopping malls. When the number of shopping malls gradually rises, it will help the same-store sales performance in this financial year. The Group maintains its goal of opening 100 in the next two years and is mainly based on franchise stores. As of yesterday, the Group operated 435 stores in the Mainland, of which 235 were franchise stores.