Vitasoy's half-year profit plummeted by 95%, and its mainland business recorded an operating loss of nearly 33 million

Vitasoy (0345), which has issued a profit warning earlier, announced its interim results as of the end of September this year. The profit attributable to shareholders is 32.804 million yuan, a 95% drop in earnings of 671 million yuan from the same period last year, and earnings per share are 3.1 HK cents; The group does not pay interim dividends due to unsatisfactory performance and the need to prioritize the restoration of the performance of the mainland China business.

During the period, revenue fell by 18% to 3.604 billion yuan.

Among them, Hong Kong revenue rose 2.68% year-on-year to 1.024 billion yuan, recording an operating profit of 124 million yuan, down 41.6% year-on-year; revenue from the Mainland fell 28.23% year-on-year to 2.274 billion yuan, recording an operating loss of 32.587 million yuan, which was a profit in the same period last year. 743 million yuan.

The gross profit margin fell to 48%, mainly due to the decrease in sales volume, higher promotion expenses, and reduced government subsidies; operating profit fell by 95%, mainly due to the decline in sales in Mainland China; and the gradual impact of the 2019 coronavirus disease epidemic The government reduced subsidies related to the epidemic, and the group resumed the advertising and promotion expenditures that were reduced during the epidemic last year.

Vitasoy said that despite the aforementioned major adversities and difficulties, the group has launched a detailed plan to accelerate sales recovery in Mainland China while continuing to promote other growing markets.

By launching new products and strengthening sales execution, it is expected that the Mainland China business will regain its growth momentum and resume profit growth in the next financial year.