Convenience
Retail Asia's Half Year Results Hong Kong, 27 July 2001 - Convenience Retail Asia Limited ("CRA" or "the Group") [SEHK code: 8052], operator of Circle K convenience stores in Hong Kong and China, announced healthy growth in both turnover and profit for the second quarter ended 30 June 2001. For the period, the Group reported turnover of HK$326.5 million, a 14 percent increase over the same period last year. Of this increase, 3 percent was generated by an increase in sales contributed by existing stores, and 11 percent was generated by an increase in Circle K outlets. As of the end of the second quarter, CRA operated a total of 132 Circle K stores in the SAR, compared to 114 stores at the end of the second quarter 2000. The Group also recorded a net profit of HK$18.1 million in the second quarter, which represents a 33 percent increase over the HK$13.5 million achieved in the same period last year. Earnings per share increased by a moderate 4 percent, from 2.7 cents reported last year to 2.8 cents this year. For the six months ended 30 June 2001, the Group recorded turnover of HK$628.4 million and net profit of HK$29.3 million, which represents increases of 17 percent and 60 percent, respectively, when compared to the results for the six months ended 30 June 2000. Dr. Victor K. Fung, Chairman of CRA, said: "We are encouraged by the healthy increase in store sales and our ability to maintain margins and control expenses, despite a very challenging period, both economically and environmentally. Namely, our market is confronting very conservative retail spending by consumers, and the unusually wet weather this year has placed added pressure on our business. The fact that we have again recorded a satisfactory net profit growth helps underscore the validity of this business model."
Hong Kong Business Outlook For the Hong Kong market, the Group will continue building customer preference for the Circle K brand, and maintaining steady growth in store outlets, sales and profitability. To achieve these goals, the Group has aggressive promotions in place and will also launch the quickest Octopus Reloading Service in the second half of the year. These efforts will help CRA maintain growth in the coming months. Richard Yeung, Chief Executive Officer of CRA, said: "We will continue to add convenience store outlets in Hong Kong in high-pedestrian traffic areas, and support all of our outlets with aggressive in-store promotions, quality customer service, and value pricing to capture customer preference. In addition, new initiatives, such as the Octopus Reloading Service, are expected to further drive traffic into our outlets and thus support our continued growth in Hong Kong." China Business Outlook With the imminent entry of China into the WTO and the expected strong growth in consumer spending, the outlook for the retail market is favourable. In keeping with its initial business plan, the Group recently submitted its application to obtain a business licence for the Pearl River Delta Area. The approval process, however, will be quite complicated and time consuming. During this period, CRA will continue building its organization and supply chain infrastructure on the Mainland so that it is in a position to commence store operations in Guangzhou within one to two months from day of obtaining the business licence. About CRA About Li &
Fung Retailing
CRA corporate Web site: www.cr-asia.com
Convenience
Retail Asia Limited
Convenience Retail Asia Limited Unaudited
Profit & Loss Account
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
© Copyright Convenience Retail Asia Limited. All rights reserved. Disclaimer and Privacy Statement.
|