Sogo operator sinks into the red

Lifestyle International (1212), the operator of Sogo shopping malls, said it swung to a net loss of HK$475 million for the first half due to strict anti-pandemic measures as well as investment losses.

The company will not propose an interim dividend.

Lifestyle made a net profit of HK$220 million over the corresponding period in 2021.

The loss was mainly caused by a combination of a 12.8 percent decline in revenue as a result of a weakened consumer sentiment and drop in customer foot traffic at the stores of the company amid stringent containment measures to combat the fifth wave of the pandemic during the first quarter of the year.

Besides, an investment loss of HK$455.2 million was recorded on the company's financial investments compared to an investment gain of HK$87.5 million in the same period last year.

An exchange loss of HK$129.7 million compared to HK$12.3 million last year also led to the loss.

Executive director Kam Shim Lau said: "A full recovery of the retail industry back to the pre-pandemic level remains formidable, given that the pandemic has permanently altered the business landscape and drastically changed consumer behavior."

She said the company believes in the long-term future and Hong Kong's increasing integration within the Greater Bay Area will offer tremendous growth potential for the local economy.