SINGAPORE (Nov 13): Zhongmin Baihui has announced profit after taxation of RMB9.8 million ($2 million) for the 3Q ended Sept, representing a 20% decline from RMB12.3 million in earnings in the previous year on higher expenses and lower margins.
Revenue for the quarter grew 17% to RMB241.8 million from RMB206.8 million previously on higher contributions from additional stores which opened at the end of 3Q16 and the following quarter.
In spite of this, gross profit remained relatively unchanged at RMB65.6 million compared to RMB64.2million in the previous year on lower revenue from its rental & managed rental segments.
Meanwhile, gross profit margin for direct sales activities fell to 11.7% compared to 13.2% a year ago due to higher sales promotions in the current financial year.
Other income rose by 9% to RMB19.8 million as a result of higher advertisement and promotion income recognised in 3Q. To support the growth in sales activities, selling and distribution expenses increased by 7% to RMB50.8 million from RMB47.4 million a year ago.
Additionally, administrative expenses increased by 19% to RMB19.5 million in 3Q17, mainly due to additional administrative expenses for the operation of the additional stores and depreciation of Quanzhou Chengnan Store’s premises.
Zhongmin Baihui says it continues to seek suitable sites to expand its stores at, and expects the group’s performance to remain satisfactory in the near future.
Shares in Zhongmin Baihui closed flat at 95 cents on Monday.
