Financial News
Written by: Lin Leqian
2020-08-11 17:24
Last update date: 2020-08-11 17:26The new crown pneumonia epidemic has impacted the retail industry. Giordano (0709) Chairman and Chief Executive Liu Guoquan said at the performance announcement that the local market conditions have not improved in recent months, but "good returns and less less" than when the situation was at its worst. He is pessimistic about the market conditions in the second half of the year. , Believes that the future business environment is difficult and it is difficult to see the prospects for the next one to two years. If the rent reduction is not satisfactory, it will reduce the scale of local business and invest in Taiwan, Singapore and Thailand markets, but emphasizes that it will not completely spill out of the Hong Kong market.
Liu Guoquan said that at present, shops in Hong Kong have received lease reductions ranging from 10% to 50%, but shop rents are still higher than other markets. Among the 60 branches, the number of shops whose leases expire in the second half of the year is about one-third. He hopes that rents can be reduced for renewals. About 50 to 60%, whether the group will consider closing stores and maintain a prudent and conservative store strategy.
Invest in Taiwan, Singapore and Thailand markets
He added that after the epidemic eased in the Taiwan, Singapore and Thailand markets, business has rebounded well. In the future, resources will be invested to develop related markets, and third-party platforms will also cooperate with local third-party platforms to attack online sales, invest in logistics departments to speed up shipments, and focus on research and development. More styles of products are attracting local customers, including masks and face masks. It is hoped that after the epidemic, "a few steps faster than the pedestrians".
Recently, a number of local brands have been negotiated by Chinese investors. He believes that the acquisition is a commercial decision. The group currently has no Chinese companies approached. However, if the acquisition conditions are beneficial to shareholders, they will not have any opinions on the acquisition. Earlier, the group's senior executives voluntarily reduced their salaries by 30%, and it is unknown whether they will reduce their salaries again. However, the group has adopted the "three nos" policy for grassroots employees, that is, no salary cuts, no layoffs, and no cutting corners.
The United States recently stated that products produced in Hong Kong must be marked as "China" when they are exported to the United States. Liu Guoquan said that the group does not invest in the United States and does not produce in Hong Kong, so the impact of relevant measures is not significant. Seventy percent of the products are produced in China, while the rest are relocated to Vietnam, Malaysia, and Taiwan for manufacturing due to preferential tariffs and closer proximity to the sales market.
In terms of dividends, he said that he would carefully monitor the group's cash flow and choose to pay dividends if there is excess cash.
Giordano turns around 175 million yuan in half a year
[Retail Winter] Giordano expected to lose more than 170 million in the first half of the year, with nearly 1 billion in net cash on hand
Giordano expects a sharp drop in mid-term profit, revealed that it is negotiating with the landlord for rent reduction and will make good use of government assistance measures
GIORDANO