|
| Tuesday, 7 March 2017, 18:32 HKT/SGT | |
| |
|
|
|
HONG KONG, Mar 7, 2017 - (ACN Newswire) - According to statistics released by the Census and Statistics Department, the decline in the value of total retail sales in January 2017 has narrowed year-on-year. Provisionally estimated at Hong Kong dollar $43.1 billion, decreased by 0.9% compared with the same month in 2016, among which, the value of sales of jewellery, watches and clocks, and valuable gifts has dropped by 3.9%, which was better than the market's expectation. Recovery in visitor arrivals has improved the overall atmosphere in the retail industry. Renowned brand watches retailer, Hengdeli (03389), is getting ready to start a new journey by fine-tuning its business structure.
In recent years, Hengdeli has been nurturing its watch accessory industrial chain to be its new growth engine. The industrial chain has achieved better results due to a range of innovative revolutions. Production automation, management information system, continued innovations in products, increasing depth and breadth in of cooperation with brand suppliers, as well as the continued growth of clientele on both domestic and foreign fronts have all brought the overall sales of accessories to a whole new level. It is expected to be one of the highlights of the group's business growth.
Furthermore, at the end of December 2016, Hengdeli announced its will to sell its shares in Xinyu Fine Watch Service and Harvest Max Holdings to Chairman Zhang-Yuping in order to optimize the Company's financial structure. Xinyu Fine Watch Service's main business is the retail of mid to high-end internationally renowned watch brands in China, as well as the wholesale and post-sale servicing of mid-end internationally renowned watch brands in China. Meanwhile, the main business of Harvest Max Holdings is jewellery retail in Hong Kong, as well as mid-to-low-end watch brands and general miscellaneous goods retail at department stores (including, but not limited to, electrical appliances and cosmetic).
Said disposal aids the company's business development and protects the interest of its shareholders. It was understood that Hengdeli's retail business in China and wholesale business are capital intensive in nature, and the Company has devoted a lot of funds in support of the businesses since 2005. However, taking into account of the depreciation of Renminbi against United States dollars, the impact of austerity measures on China's economic and financing environment, and the recent deceleration of growth in certain businesses, the Company consider the risk and capital investment to be out of proportion. The proposal to sell the aforementioned businesses to its chairman is to shield shareholders from bearing too much risk.
Hengdeli expects the disposal to bring about a cash inflow of Renminbi 5.8 billion, of which Renminbi 3.2 billion will be used to repay debts. Afterwards the Company could enjoy almost debt-free status, and could enjoy a much healthier financial situation. Renminbi 0.8 billion from the disposal will be distributed to shareholders as special dividend (amounting to no less than Hong Kong dollar $0.2 per share) to show appreciation for the shareholders' continued support.
When the disposal is completed, Hengdeli will continue to operate its mid to high-end internationally renowned watch brands retail and watch accessory industrial business in Hong Kong and Taiwan. Intending to ride on the recovery of Hong Kong's retail market, Hengdeli is looking at a bright future for its business.
Topic: Press release summary
Sectors: Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
Copyright © 2025 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
|
|
|
|
|
|
|
| |
Latest Press Releases
Telangana Rising 2047 Vision Document to Be Released on Dec 8-9, 2025, at Global Summit in Bharat Future City
Dec 6, 2025 07:00 HKT/SGT
|
|
|
Wear the Speed, Live the Convenience: Tappy Technologies Powers the Launch of High Performance Payment Bands in Collaboration with First Abu Dhabi Bank and Mastercard
Dec 5, 2025 18:53 HKT/SGT
|
|
|
Leapfrog Acquisition Corp Announces Pricing of $125,000,000 Initial Public Offering
Dec 5, 2025 17:50 HKT/SGT
|
|
|
Bank Indonesia Unveils Five-Point Strategy to Boost Indonesia's Economic Resilience
Dec 5, 2025 16:00 HKT/SGT
|
|
|
Business of IP Asia (BIP Asia) Forum and Entrepreneur Day open today
Dec 5, 2025 15:41 HKT/SGT
|
|
|
Immortal Dragons Backs Etheros Pharmaceuticals: Targeting Aging-Related Disease with Breakthrough Catalytic Antioxidants
Dec 5, 2025 15:00 HKT/SGT
|
|
|
Doubleview Extends High-Grade Domains at Hat: H099 Returns 438m of 0.40% CuEq Including 52m of 1.02% CuEq, Expanding Mineralization Envelope Around Conceptual Pit Vertically and Laterally
Dec 4, 2025 21:59 HKT/SGT
|
|
|
CaoCao Unveils '100 Cities, 100 Billion in 10 Years' Robotaxi Strategy, Officially Launches World's First 'Green Intelligent Mobility Hub'
Dec 4, 2025 21:00 HKT/SGT
|
|
|
The Gourmet's Guide: Using Your TravelKon eSIM to Hunt for Japan's Best Ramen, Sushi, and Street Food
Dec 4, 2025 17:45 HKT/SGT
|
|
|
Spritzer Celebrates Global and Regional Brand Excellence 2025
Dec 4, 2025 12:45 HKT/SGT
|
|
|
|
|
More Press release >> |
|
|
|
