Retailer CP Lotus Corporation is expecting to turn around a RMB63.9 million (US$9.2 million) loss to record a profit for the six months to the end of June.

The Hong Kong-listed company with Thai majority control released the information to the stock exchange after a preliminary review of unaudited figures.

It attributes the change mainly to a “significant” reduction in store operating and administrative expenses through reducing staff numbers at both store and head-office levels. Other factors include improved productivity, the termination of third-party cleaning and security services in certain regions, and better management of utilities.

“These are the tangible results of a strategic turnaround plan developed by the board,” says director Umroong Sanphasitvong.

The group expects to announce its interim results for the half-year by the end of August 2017.

Lotus owns and runs 60 retail stores in China and one shopping mall under the Lotus brand.

Its controlling shareholder is Thailand’s Charoen Pokphand Group Company, which has more than 90 years of experience in various industries including agriculture and food, retail and telecom.