Pou Sheng International Holdings Limited will begin presenting its financial results in the remnimbi (RMB) rather than the dollar in a bid to eliminate distortions caused by currency translation.
The company, which is one of the largest distributors and retailers of global athletic and increasingly outdoor footwear brands in greater China, has been presenting its results in the dollar because it was more commonly accepted among international investors. But on Monday, the company noted that its principal operations are conducted in the People’s Republic of China (PRC).
“Since most of the Group’s transactions are denominated and settled in RMB and RMB trade and transactions between the PRC and overseas have been further relaxed in recent years, the Board believes that it is now more appropriate to use RMB for presenting the Group’s operating results and financial position,” the company said. “Internally, the Board bases its performance evaluation and many investment decisions on RMB financial information. In addition, the change should reduce the impact of movements in exchange rates on reported results and provide the shareholders of the company with a more accurate reflection of the Group’s underlying performance.”
Pou Sheng expects to report its results for the six months ended June 30 in RMB. To assist Shareholders during the transition, financial information at December 31, 2015, and for the six months ended June 30, 2015, restated in RMB, will be provided in the interim results.
