Aoxinwu's parent company CEC International turned from profit to loss, with a half-year loss of 28.65 million, stating that "it could not predict when the market would recover."

Aoxinwu's parent company CEC International (759) announced its interim results for the period ending at the end of October, reporting a loss of HKD 28.648 million, compared to a profit of HKD 330,000 in the same period last year, and will not declare an interim dividend.

During the period, CEC International's revenue for the half-year was HKD 702 million, a decrease of 6.5% year-on-year, with the retail business segment generating revenue of HKD 680 million, down 7.1% year-on-year; revenue from electronic component manufacturing increased by 13.7% to HKD 26.956 million. CEC International stated that the decline in revenue from the retail business segment generally followed the overall retail market in Hong Kong, without showing a significant "underperformance against the market."

Looking ahead, CEC International indicated that the current retail market in Hong Kong is shrouded in many uncertainties, and the retail industry is experiencing unprecedented difficulties. Management candidly stated that they cannot predict when the market will recover and expect the current market conditions to persist for a considerable time. Management will continue to adopt a prudent and pragmatic strategy, implementing measures to increase revenue and reduce costs.

CEC International also noted that, according to the group's operational data, the decline in sales during holidays was significantly more pronounced compared to regular days. Analyzing by time period, consumption after 8 PM has decreased even more sharply. Management believes that citizens' travel activities during holidays remain very active, and the consumption patterns of citizens have changed, with Hong Kong's nightlife still far from recovering to previous levels, leading to a noticeable reduction in evening consumption activities.

As of October 31, CEC International operated a total of 169 stores, an increase of 4 from 165 at the end of April. The company stated that 5 stores were closed during the period, while 9 new stores were opened in new locations; the total building area of the operating stores was 324,000 square feet, a decrease of 3% year-on-year.

CEC International stated that due to the current downturn in the retail market, shop rents have indeed adjusted, and there are more vacant shops. Management will review the stores with expiring leases and negotiate renewal arrangements with landlords, aiming to adjust the new rent levels in line with market conditions. At the same time, management will close several underperforming stores to improve the overall profitability of the retail business. (Reporter Lin Defen)