Financial News
Written by: Zhang Weilun
2020-04-27 19:15
Date of last update: 2020-04-27 19:17Esprit Global (0330) released operating data for the nine months ended March this year. During the period, revenue was 8.131 billion yuan, a year-on-year decrease of 18.1%. In local currency terms, the decline was 15.1%.
Esprit also pointed out that the company decided to close all 56 retail stores in Asia outside the Mainland, especially Singapore, Malaysia, Taiwan, Hong Kong and Macau as part of the restructuring. The company pointed out that in the nine months to the end of March this year, the 56 stores brought 267 million yuan in revenue to the company, accounting for 4% of the company's total revenue during the period.
The company expects the closing of the store to impair the production assets and inventory, as well as the one-time special cost of employee severance payments, involving amounts ranging from 150 to 200 million yuan.
Esprit revealed that for the nine months to the end of March this year, revenue from Europe was 7.578 billion yuan, a year-on-year decrease of 15.2% and a decrease of 11.9% in local currency; revenue from Asia was 553 million yuan, a year-on-year decline of 44.2% It fell 43.5% year-on-year.
In the third quarter as of the end of March alone, revenue was 2.368 billion yuan, a year-on-year decrease of 25%. In local currency terms, the decrease was 22.2%. In local currency terms, retail business fell 39.8% to 654 million yuan, wholesale business fell 20.1% year-on-year to 881 million yuan, and electronic store revenue was 808 million yuan, down 2.6% year-on-year.
Among them, revenue from Europe was 2.228 billion yuan, a year-on-year decrease of 22.2%, and a decrease of 19.2% in local currency terms. Revenue from Asia was 140 million yuan, down 52.2% year-on-year and 51.6% in local currency terms.
No remuneration for executive chairman during reorganization period
Esprit pointed out that in order to protect the company's solvency and liquidity, as well as the continued operation of the business, six German subsidiaries have applied for the start of property protection proceedings under Article 270b of the German Bankruptcy Law. The property protection litigation process allows the company to take restructuring measures and simultaneously implement the transformation plan that has been carried out in the past 2 years.
The company pointed out that the relevant measures can effectively reorganize related debts and long-term lease contracts, use relevant local new coronary pneumonia regulations to strengthen liquidity, obtain subsidies for the payment of German employees' salaries and social security payments, and discuss with the labor committee for more flexible solutions and staff reductions . Management is working on a reorganization plan that will be submitted to the recently established creditors committee for approval at the end of June this year.
The company also pointed out that it is negotiating with all market owners to seek rent waivers, lower rents and better terms, and closing stores where these lease terms do not result in a viable business performance. . The company's executive chairman and chief executive officer stopped receiving remuneration during the reorganization period. At the same time, the executive management has accepted a 35% salary reduction, the senior vice president and vice president have accepted a 25% salary reduction, and non-executive directors have accepted their respective director's gowns. Gold 20%.
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