Financial news
Written by: Zhai Ziqian
2020-02-25 20:00
Last updated: 2020-02-25 20:00New World Department Store China (0825) announced its interim results. For the six months ended December 2019, the profit attributable to shareholders during the period was 142 million yuan, an increase of 58.8% year-on-year, and the earnings per share were 8 cents. No interim dividend was paid.
During the period, revenue was 1.36 billion yuan, a year-on-year decrease of approximately 24.8%; same-store sales recorded a decline of 12.4%, which was an increase from 8.3% in the same period in 2019. Divided by category, the period's revenue was mainly counter sales commission income, accounting for 44.2%; secondly, rental income accounted for 29.2%; self-operated goods sales accounted for 26.1%; and operating lease interest income as a lessee accounted for 0.5%.
New World Department Store pointed out that in the face of severe domestic and foreign economic environments, the Group's main theme is to consolidate its inventory and reduce costs to ensure stable business development. Regarding the year-on-year increase in net profit of more than 50%, the Group stated that it was mainly due to appropriate cost control, net exchange gains recorded during the period, and the adoption of new accounting standards to reduce rental expenses.
As of the end of last year, the Group operated 31 department stores and shopping malls with an approximate total floor area of 1.252 million square meters. The stores are located in three operating regions in the north, east and west, covering 17 major cities across the country.
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