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26-11-2021, 09:25 PM
https://www.scmp.com/business/companies/...land-china
Hong Kong drink maker Vitasoy’s profits sink after mainland China boycott sparked by leaked memo controversy
The beverage company’s net income plummeted 95 per cent, dented by a sharp fall in sales in mainland China
A memo expressing condolences to the family of an employee who had stabbed a Hong Kong policeman before killing himself surfaced in the summer.
Revenue slid 18 per cent to HK$3.6 billion (US$460 million) in the period, according to a filing to the stock exchange on Thursday. Net income plummeted 95 per cent to HK$32.8 million, dented by a fall in sales in mainland China, even as its operations in other markets including Hong Kong grew steadily.
In the same period of 2020, mainland China accounted for about three quarters of Vitasoy’s revenue. Its mainland unit recorded a net loss of 27 million yuan (US$4.23 million) in the first half of the financial year, an enormous decline from profit of 670 million yuan a year earlier. Lower sales volumes and fewer government subsidies were to blame for the weak earnings, the company said.
Hong Kong drink maker Vitasoy’s profits sink after mainland China boycott sparked by leaked memo controversy
The beverage company’s net income plummeted 95 per cent, dented by a sharp fall in sales in mainland China
A memo expressing condolences to the family of an employee who had stabbed a Hong Kong policeman before killing himself surfaced in the summer.
Revenue slid 18 per cent to HK$3.6 billion (US$460 million) in the period, according to a filing to the stock exchange on Thursday. Net income plummeted 95 per cent to HK$32.8 million, dented by a fall in sales in mainland China, even as its operations in other markets including Hong Kong grew steadily.
In the same period of 2020, mainland China accounted for about three quarters of Vitasoy’s revenue. Its mainland unit recorded a net loss of 27 million yuan (US$4.23 million) in the first half of the financial year, an enormous decline from profit of 670 million yuan a year earlier. Lower sales volumes and fewer government subsidies were to blame for the weak earnings, the company said.
