Free fall for Ajisen Hong Kong
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Ajisen Hong Kong same-store sales plunged 10.8 per cent in the three months to June 30.
Sales on the mainland slipped by a more modest 1.8 per cent.
However, the company offered no explanation for the decline when it released basic operating data to the stock exchange yesterday.
The Hong Kong-listed restaurant operator has been reporting difficult trading conditions for several successive quarters. In April, it reported a 4.3 per cent decline in Hong Kong same-store sales, however overall sales were marginally up for its first quarter.
And in March, Ajisen announced it had ended the 2018 fiscal year with fewer restaurants, for the first time in recent years.
Back then, the company said the market in China was over-supplied by restaurants with catering stores reaching 5.81 million last year, a decrease of about 3.4 per cent (210,000 outlets) on the previous year.
Questions & Answers
Q.What was the latest sales performance for Ajisen Hong Kong in its home market?
What was the latest sales performance for Ajisen Hong Kong in its home market?
Same-store sales for Ajisen Hong Kong plunged by 10.8 per cent in the three months ending June 30. This continues a trend of difficult trading conditions for the restaurant operator in its home market.
Q.How did Ajisen's mainland China sales compare to its Hong Kong performance in the recent quarter?
How did Ajisen's mainland China sales compare to its Hong Kong performance in the recent quarter?
Sales on the mainland saw a more modest decline of 1.8 per cent in the three months to June 30. This was significantly less severe than the 10.8 per cent plunge experienced in Hong Kong during the same period.
Q.Did the company explain why its sales declined in the latest reporting period?
Did the company explain why its sales declined in the latest reporting period?
No, the company offered no explanation for the decline when it released its basic operating data to the stock exchange yesterday. It has been reporting difficult trading conditions for several quarters.
Q.What trend did Ajisen report regarding its restaurant numbers in the 2018 fiscal year?
What trend did Ajisen report regarding its restaurant numbers in the 2018 fiscal year?
Ajisen announced in March that it ended the 2018 fiscal year with fewer restaurants. This was the first time in recent years the company had reduced its total number of outlets.
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