Pou Sheng International (Holdings) Limited warned that it expects to record a 20 percent decline in revenues to approximately RMB18.6 billion for the year ended December 31. The resulting profit is attributable to owners of the Chinese mega-retailer and is forecasted to fall approximately 75 percent to approximately RMB89 million for the year compared to the 2021 financial year.
The company said the year-over-year decline in profit was mostly attributed to a decrease in revenue caused by weak foot traffic and soft consumer sentiment as a result of escalating pandemic control measures across mainland China throughout 2022, which dampened its overall operating efficiency and performance. Nevertheless, the company maintained a solid cash flow and financial position following the implementation of effective cost control and working capital management measures.
Despite the likelihood of short-term volatility in consumer confidence following the easing of pandemic control measures in mainland China, the prospect of the sports industry remains positive. The company said it would continue to refine its growth strategies, including developing a more strategic relationship with its business partners, further accelerating its digital transformation and resources integration across its various channels, and adapt to the progress of recovery in the business environment.
