BRIEF: Fairwood’s profit plummets on ‘consumption downgrade’
0052.HK
Fast-food chain Fairwood Holdings Ltd. (0052.HK) warned on Monday that its net profit in the first half of its fiscal year through September fell 50% to 60% from HK$36.3 million ($4.65 million) in the same period last year.
The company blamed the drop on the continuation of a trend for Hong Kong residents to travel to the adjacent Mainland Chinese city of Shenzhen to eat. It also cited growing consumer caution, locally referred to as a “consumption downgrade,” in both Hong Kong and Mainland China. Shares of Fairwood fell 2.3% to HK$6.84 in early Tuesday trade.
By A. Au
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