Daphne International Holdings Limited Reports Unaudited Revenue Results for the Second Quarter of 2013; Provides Earnings Guidance for the Six Months Ended June 30, 2013 and Second Half of 2013
Based on a preliminary review of the unaudited consolidated management accounts and the information currently available, the Board announced that, profit attributable to owners of the company for the six months ended 30 June 2013 is expected to have a meaningful decline as compared to that of the same period last year and resulted in a mid-single digit net margin. The decline in profit is mainly due to: Deceleration in sales growth, lower gross profit margin and negative operating leverage resulted from the high fixed-cost structure of retail operation.
While the performance of the first half of 2013 is below expectation, the Group looks to revive growth and improve performance in the second half of the year.