Profit Net Profit Will Fall About 50% In The First Half Of The Year.

Following the release of surplus police in early July,

Group Limited (hereinafter referred to as Li Fu International) released its earnings warning on mid term results on Monday.

The group's net profit will plummet by 50% in the six months ending June 30, 2016.

The loss is mainly due to a decrease of HK $445 million in the group's financial assets and bank deposit investment in the first half of the year, while in the interim finance, the company said.

The unrealized loss of the fair value of group financial assets was HK $186 million (2015 HK $200 million 900 thousand in early July). On the contrary, in the same period of fiscal year 2015, the investment in financial assets and bank deposits of riff international was HK $259 million 100 thousand.

In addition, slower economic growth and weaker consumer confidence have led to a decline in both group sales and profits and an additional increase in financing costs.

In mid July, the listing of riff international and split LifestyleChinaGroupLimited rifle App China Group Ltd (also known as Li Fu China) also resulted in a one-time cost incurred, while the performance of group associates also weakened during the same period, resulting in a half decline in the medium-term profits.

Li Fu International signed a HK $8 billion financing in mid July, which also limited the Liu Luanhong family's cash in group.

The above financing also worried the international financial pressure of riff.

According to the data, Hongkong international Sogo and SOGO Department Store in Shenyang and mainland have increased their revenue by 3.4% in 2015, and net profit dropped by 10% over the same period.

RIFA international achieved sales revenue of HK $13 billion 800 million in the fiscal year ended December 31, 2015, up 1.6% compared to 2014. Hongkong sales revenue, which accounts for 73% of the total business, increased by 2.3% to HK $10 billion 134 million 100 thousand, partly depending on the relocation of Sogo SOGO Department Store in Tsim Sha Tsui in 2014.

Tongluowan's Sogo SOGO Department recorded a 4.5% decline in sales revenue due to the decline in mainland tourists and local consumption power. The annual volume of passenger traffic decreased by 2.4%, and the unit price of passengers declined by 3.1% to HK $850, while the same store sales decreased by 1.7% from the first half of the year to 4.7% over the whole year.

Liu Luanhong, chairman of Li Fu International, said earlier that the performance of Sogo SOGO Department in Tongluowan this year was disappointing, and sales in the same store in 1 and February expanded to double digits.

He hopes to hit the bottom in the two quarter or the second half, but does not expect a "V rebound". It is estimated that it will only develop horizontally. In the long run, he said he still has confidence in Hongkong.

He also said

With increased sales pressure, young brands and sports brands will be introduced to meet the changing consumer demand in the future.

Rifle international closed at HK $10.96 on Monday, an increase of 0.18% throughout the day.