JIAHUA STORES H expects a reduction in mid-term net loss
JIAHUA STORES H expects its interim net loss for the period ending June 30, 2024, to decrease to approximately RMB 2 million to 6 million, a significant reduction from the previous RMB 25.5 million. The reasons for the decrease in loss include increased self-operated sales incentives, reduced discounts, improved sales gross margin, and the recognition of approximately RMB 13.9 million in lease termination income, while continuing to implement cost-cutting measures
According to the Zhitong Finance APP, JIAHUA STORES H (00602) announced that it expects the group's net loss to decrease from approximately RMB 25.5 million (unaudited) for the six months ending June 30, 2024, to approximately RMB 2 million to RMB 6 million for the six months ending June 30, 2025.
The expected reduction in the group's net loss is mainly due to measures such as increasing self-operated sales incentives, reducing discounts, and focusing on high-gross-margin products, which have led to an increase in gross profit, recognizing a benefit of approximately RMB 13.9 million from an early termination of a lease agreement, as well as ongoing cost-cutting efforts
