BRIEF: Fairwood’s profit plummets on ‘consumption downgrade’

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

To subscribe to Bamboo Works free weekly newsletter, click here