Watch retailers wave profit warning

2016 loss will be "significantly increased" from 2015 After major shareholders sold their shares one after another and the board of directors restructured, watch retailer Ernest Borel Holdings Limited released a profit warning on Friday saying the group's 2016 loss will be "significantly increased" from 2015. According to Polaroid Road, the Board of Directors, based on a preliminary review of the unaudited consolidated management accounts of the Group for the 10 months ended 31 October 2016, expects a larger loss for the financial year mainly due to a 34% drop in revenue in the first 10 months with gross profit and gross income The interest rate dropped year on year. According to Polaroid, the above performance was attributed to the weak retail market of luxury watches in the retail market in Hong Kong, resulting in a decrease of orders from the Group. As of June 30, 2016 first half of fiscal year, according to the wave from profit to loss, recorded a net loss of 64,619,000 Hong Kong dollars, while a net profit of HK $ 10,211,000 a year earlier. For a large reversal from profit to loss, according to Bo Road, said the luxury watch market in mainland China and Hong Kong recession, resulting in reduced orders for watch retailers. In the first half, according to wave income fell 37.0% to 130.3 million Hong Kong dollars, compared with 206.6 million Hong Kong dollars a year earlier. During the period, 77.1% of the Chinese mainland market lost HK $ 153.1 million, plunging 34.4%. Hong Kong, Macau and Southeast Asia plunged 47.3% to HK $ 48.4 million, accounting for 19.6% of the market. For the first half of June 30, 2016, according to Bo Lu recorded 52,844,000 Hong Kong dollar gross profit, plummeted 56.8% over the same period a year earlier to 122.2 million Hong Kong dollars, during the group gross profit margin plunged 1870 basis points to only 40.5% . According to Polaris, the plunge in gross profit margin was mainly due to the weak consumer sentiment. The Group's product mix was forced to shift to a lower gross profit margin model while the Group's inventory provision quadrupled to HK $ 4.6 million. Due to the sluggishness of the watch industry and the sluggish retail market in both Hong Kong and the Mainland, many controlling shareholders or major shareholders of Hong Kong retailers sold their products in 2016. Prior to this, Lin Bohua, a major shareholder of Wave Road, and the other shareholders of the Company, each sold out their shares. At the end of July, Su Da resigned as Chairman of the Group and was temporarily held by Huang Bangjun. At present, the principal shareholder Xue Youzhao officially became the chairman of the Group in early October. This article is reproduced, does not represent the world position of million table.