Tse Sui-lin (00417) is happy to see a medium-term profit of not less than HK$90 million, turning a year-on-year loss into profit

According to the Zhitong Finance App, Xie Ruilin (00417) announced that the Group expects to make a profit of not less than HK$90 million for the six months ending September 30, 2026 (this period), compared with a loss of HK$35.3 million for the six-month period ending September 30, 2025.

This year's forecast is to turn losses into profits, mainly due to the Group's successful implementation of business transformation strategies, including: improved same-store sales performance and increased profit contribution from the franchise business in mainland China; and

Since the second half of the fiscal year ending March 31, 2026, sales, distribution and administrative expenses have been reduced through effective cost optimization strategies, and the cost of restructuring has been reduced as the group nears completion of the restructuring plan.

together with an increase in fair value resulting from the settlement of trade accounts payable with gold commodities and inventory realisation gains driven by changes in the price of gold; and

As the operating performance and profitability of retail stores improved, provision for non-cash impairment of retail store-related assets and other assets was reduced. Along with other lesser favorable factors, the Group achieved significant improvements and successfully turned a loss into a profit.