Post-tax profit is expected to drop between 29 and 34 per cent for Yangtze river delta chain-store retailer Springland International Holdings for the first six months this year.
Hong Kong-listed Springland says this is mainly because of same-store sales for both its department store and supermarket business dropped by about 9 per cent, buffeted by continuing weak consumer sentiment and “fierce” competition in China.
There was also a one-off expense of about RMB36 million (US$5.44 million) on the closing of its Nanjing Yaohan store.
Its profit warning announcement is based on a preliminary assessment, and further details will be disclosed at a later date.
Springland International’s main brands are Springland Store, Yaohan and T&T Supermarket.