It blames the worsening market conditions.
According to an HKEx release, the Board of directors announced that, based on the unaudited consolidated management accounts of the Group for the six months ended 31 December 2012, the Group is expected to record a loss for the six months ended 31 December 2012 as compared with a profit for the last financial period of six months ended 31 December 2011.
The loss of the Group for the six months ended 31 December 2012 was primarily attributable to worsening of the market conditions and business environment in the Mainland China during the period and reorganisation of the business and closure of the loss making self-operated stores in the Mainland China, which resulted in an increase in associated expenses.
The Group remains optimistic about the long term development of the economy in the Mainland China and will continue to focus its resources in capturing this expanding market.
The management has also undertaken cost control measures, as well as, hedging policy on the Group’s future gold positions which shall reduce the financial impact on gross profit margin, and accordingly, expects the result of the Group to improve.
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