Some Shops Will Suspend Operation, And Net Profits Will Be Reduced By 50% In 2019.

In February 11th, an Li Fang holdings announced that in view of the outbreak of infectious coronavirus pneumonia, many provinces and cities in China have adopted various stringent measures to curb the spread of the epidemic. Since the local government has asked to close the shopping center of the group's sales point, he will suspend operations in several stores in China's affected provinces. In addition, the board of directors will continue to pay close attention to the development of the epidemic situation and relevant government policies, and resume the operation of the moratorium at an appropriate time.

It is understood that for the rapid response and disposal of unusual issues in the very special period, the group has set up an "love fund" for the employees, with the initial allocation of RMB 1 million yuan for special purposes.

Prior to that, in January 23rd, Fang Li Fang holdings issued a profit warning. It is estimated that by December 31, 2019, the net profit of the group will be reduced by 50% compared with the same period last year. The announcement shows that as of the end of December, the number of retail outlets decreased by 173 compared with last year. In the fourth quarter, the number of stores that had been operating for more than twenty-four months had a certain decrease compared with the same period last year. In order to enhance the overall operational efficiency, the company will continue to clean up low efficiency stores in 2020.

Affected by the epidemic, the apparel retailing industry is at a critical moment. Closing shops and suspending business are the choices that most garment companies have to make. For the traditional lingerie brands that suffered from market shock and profit decline, the low consumption in the past 2 months is also a big test.