I.T Was Converted From Surplus To HK $71 Million 200 Thousand In The Medium Term And Less Than 3 Billion In Market Value.

I.T released its interim results for the 6 months ended August 31, 2019. The group's total turnover decreased by 1.2% to HK $4 billion 15 million 400 thousand over the same period. Gross profit decreased by 4.1% to HK $2 billion 495 million, and gross margin was 62.1%. The net loss in the period was HK $71 million 200 thousand, compared with HK $113 million 400 thousand in the same period last year. The basic loss per share is 6 Hong Kong cents, no dividends.

The announcement shows that the total retail revenue in China's Hongkong and Macao markets is reduced by 6.2% to HK $1 billion 463 million. The growth rate of comparable store sales is -5.8% (18 / 19 fiscal year: +8.0%). The total sales area increased by 3.5%.

The total retail revenue in mainland China increased by 1.3% to HK $1 billion 856 million. The growth rate of comparable store sales is +5.9% (18 / 19 fiscal year: -2.5%). The total sales area increased by 5.9%.

The gross profit margin also declined during the period, mainly due to the early discounts offered by the company in a number of operating areas (such as Hongkong). It is worth noting that the wholesale business has contributed to HK $46 million 800 thousand in recognition of impairment of goodwill related to wholesale business in China, as its contribution to sales in mainland China has continued to decline. If the non cash items related to goodwill impairment and deferred tax assets are excluded, the group shall obtain a net profit of HK $12 million 700 thousand.