$745m loss for I.T as jewelry makers hitBusiness | Winnie Lee 28 May 2020
Fashion retailer I.T (0999) suffered an annual net loss of HK$745 million for the financial year 2019-2020, after recording a net profit of HK$444.1 million in the previous year.
As of the financial year's end in February, only revenue in Japan and the United States grew 1.1 percent, while turnover in Hong Kong and Macau fell 23.3 percent with China dropping 9.4 percent. With the exclusion of a non-cash impairment provision of around HK$613.4 million, the group's net loss would total HK$132.4 million. No final dividend was declared.
In other news, at least 30 percent of jewelry manufacturers are likely to close due to a break in capital flows, the Hong Kong Jewelry Manufacturer's Association said.
Referring to the small and medium enterprises financing guarantee scheme as a guide, the association is seeking full government backing to allow Hong Kong-based producers to tap into credit lines for their receivables and against the value of inventories. This comes as many jewelers face cash flow problems as they are unable to sell much of their inventories.
Most revenues had fallen to 10 percent of normal operations during the past few months, they added.