by winston » Thu Aug 23, 2012 3:49 pm
not vested
AJISEN (CHINA) (00538.HK): Pork fine impact getting milder
AJISEN (CHINA) (00538.HK)'s China and HK's same-store sales growth were -24.7% and -2.4%, respectively, in the first half of the year.
Chief operating officer and executive director Yin Yibing said at the press conference for interim results that the decline was mainly due to the slowdown of growth in the restaurant industry in the Mainland and the pork fine event. The impact of the latter is expected get milder, but the Company currently has no intention to raise the sales target.
In the first half of the year, the number of restaurants reached 672, and the target this year is a net increase of 30-40 to a total of 700 during the year, and 1000 in 2013-14.
Yin mentioned that the new stores are mainly small economy shops, with an area of about 150-180 square meters. The new shop opening rate slowed from last year 160-170 to 30-40, due to the impact of the economic environment. It will focus more on renovation of existing shops.
In addition, the Group is establishing production base. The one in Shanghai has completed, while the one in Chengdu has put into trial production stage, and can be put into operation in the second half of the year; while the ones in Shandong and Dongguan are expected to commence production next year.
Yin said such will enhance the automation and production capacity, and make the production process more concentrated to help reduce costs.
He added that the turnover in the second half of a year is traditionally higher than the first half, and therefore he has confidence in lowering the cost to turnover ratio.
Source: AAStocks Financial News
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