Fujifilm distributor announces profit warning

China-HongKong Photo Products Holdings Limited, the sole authorised distributor of Fujifilm products in Hong Kong and Macau, announced a profit warning yesterday in a filing with the Hong Kong Stock Exchange.
According to the filing, the company, which has had the monopoly on Fujifilm products since 1968, notes that ‘the Group will continue to record a consolidated loss for the year.’ In addition, the filing states that ‘Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.’
The reasons given for the profit warning and expected loss include the ‘downturn of the macro economy in the last year,’ which ‘weakened consumer sentiment on spending’ – leading to ‘the revenue and gross profit of the Group’ to be ‘decreased persistently,’ as well as the ‘impairment of goodwill and trademarks of AV Life, Life Electric and Life Digital,’ notes the filing. Regardless, the group ‘considers that the overall financial position and operations […] remain solid’.
The group’s interim report for the 2015/2016 fiscal year, published in December, posted a loss of HK$8 million for the six months finishing end-September last year, with a consolidated turnover of HK$436 million, a 16.3 per cent year-on-year drop. The filings did not provide a breakdown of the group’s local operations.