Evergreen International warns of looming loss

Evergreen International has warned it will post a loss in the six months to June 30.
The company’s board has blamed a decrease in revenue as a result of the continued sluggish retail environment in China, increased selling and administrative expenses and the recognition of non-cash share-based payment expenses relating to the granting of share options.
On the cost front, Evergreen said it had incurred significant expenses in connection with the expansion and development of its new business in retailing and trading high-end children’s wear and accessories products.
Evergreen is one of the leading menswear retailers in China, owning and managing two brands –  VE Delure and Testantin – targeting the middle-upper to high-end segments of the menswear market. In early 2008, the company also became an authorised dealer of Cartier’s accessories in designated Cartier stores in China.
During the same period last year, the company made a profit.
“Notwithstanding the impact of the above mentioned factors, the board is of the view that the group has achieved steady progress in improving its operating results as compared with the second half of 2014, as demonstrated by an increase in its gross profit margin which is a result of its improved sales performance and the continued successful implementation of cost control measures,” the company said in a statement.

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