While its parent company was warning investors and the market about a sharp decline in profits for the first half tied to a contracted manufacturing business, Pou Sheng International (Holdings) Limited, Yue Yuen’s retail subsidiary, was providing upbeat news for the half in a pre-announcement.
Pu Sheng reported late Friday that, based on its preliminary assessment of the unaudited consolidated management accounts of the Group for the six months ended June 30, 2023 and information available to its Board, the Group forecasts it will record revenue of approximately RMB10,960 million for the first half of 2022, an increase of roughly 11 percent compared with the corresponding period of 2022. But the good news came when Pou Sheng said that profit for the first half, attributable to company owners, increased by approximately 1,654 percent to about RMB305 million compared with the corresponding period of 2022.
The increase in profit, attributable to owners of the company, was said to be attributable to “a recovery in offline traffic and purchasing intent following the lifting of all pandemic controls and social distancing measures in mainland China, the robust sales growth of omni-channels, in particular its Pan-WeChat Ecosphere, as well as a low base effect.”
Pu Sheng’s Board reminded shareholders and potential investors that the external environment remained challenging. However, the Group was adapting to the changing environment swiftly, staying agile and flexible in its decision-making, progressing its retail refinement strategy and digital acceleration and strengthening its long-term financial performance and profitability.
As the company finalizes the unaudited consolidated results of the Group for the six months, the information in Friday’s announcement was based on “a preliminary assessment of the Board regarding the information available at the time and has not been reviewed or audited by the company’s audit committee or independent auditor and could be subject to adjustments as and when necessary.”
The announcement was made by Pou Sheng International (Holdings) Limited and, together with its subsidiaries, pursuant to Rule 13.09(2) of the rules governing the listing of securities on the Stock Exchange of Hong Kong Limited (the Listing Rules) and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance, Chapter 571 of the laws of Hong Kong.
Photo courtesy Pou Sheng
