Jiahua Stores Holdings (00602.HK) issued an announcement on August 22nd, forecasting that the group's net loss will decrease from approximately RMB 34 million (unaudited) for the six months ended June 30, 2023 to between approximately RMB 23 million and RMB 27 million for the six months ended June 30, 2024.
The announcement stated that the expected decrease in the group's net loss is mainly due to the impact of the opening of Jiayang Hui Shopping Center in Shajing, Shenzhen in July 2023. However, other factors, including but not limited to: i) ongoing competition from online e-commerce, ii) intense competition in physical retail, iii) the closure of factories and the rise in unemployment, which has led to a general decline in community consumer habits, and iv) the closure of factories due to foreign divestment resulting in a decrease in the resident population, continue to have a negative impact on the group's business.
