SINGAPORE - Mainboard-listed Eu Yan Sang International saw a 38 per cent decline in second quarter net profit, mainly on the back of weaker economic conditions in Hong Kong and China.
Revenue for the three months to Dec 31 fell 8 per cent over the same period in the preceding year, due to the impact of Occupy Central movement, a slowdown in Chinese consumer spending, closure of key stores in Hong Kong and lower sales of major products.
This was partially offset by a 25 per cent increase in sales from Australia due to the group's wider network of operations.
A slower pace of growth in Hong Kong following measures to end Occupy Central movement, coupled with the protracted economic slowdown in China, is expected to dampen revenue growth, the company said in a statement today.
"Despite this, our business is operating as usual and we have taken necessary steps to manage these challenges. We are working towards bright spots that we have identified - the rising affluence in our target markets which leads to increased demand, new product development and the extension of our wholesale business," said group chief executive Richard Eu.