Braised snack chain Zhou Hei Ya International Holdings Co. Ltd. (1458.HK) saidonWednesday that it expects to report its revenue last year reached between 2.52 billion yuan ($365 million) and 2.55 billion yuan, up 2.8% to 4% year-on-year. It said its net profit for the year ranged between 150 million yuan and 165 million yuan, up 52.7% to 68.0% from a year earlier.
The company said the strong profit growth was driven by improved operating efficiency at its stores and breakthroughs in its channel expansion. It continued to improve its store structure last year to enhance single-store performance, while also establishing a dedicated unit to diversify its sales channels and broaden its customer base.
Lower raw material costs, improved supply chain efficiency and tighter control over selling and administrative expenses also helped to lift the company’s profitability.
Zhou Hei Ya’s shares opened lower on Thursday and closed at HK$1.45 by the midday break, down 7.64%. The stock has fallen about 37.6% over the last six months.
By Lee Shih Ta
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