China Resources said to mull retail assets revamp

April 15, 2015 11:39
A CR Care shop of China Resources group. The company aims to bring the retail business back to profit quickly. Photo:

China Resources Enterprise Ltd. (00291.HK) is said to be in discussions with its parent company regarding the restructuring of its retail business, the Hong Kong Economic Journal reported.

The move is aimed at turning around the group's overall loss-making retail business, of which the listed unit accounts for two-thirds, the report said, citing analysts.

The listed company halted trading of its shares last week due to an impending announcement.

There had been some speculation in the market earlier about a possible sale of the company's food and beverage wholesaler China Resources Ng Fung Co. Ltd.

And there was also talk that China Resources Care Co. Ltd., a pharmaceutical retailing unit, would be sold to sister company China Resources Pharmaceutical Group.

China Resources Enterprise slipped into the red last year, losing HK$161 million. It marked the first annual loss since the firm's listing in 1992.

The loss from retail business amounted to about HK$1.36 billion, partly due to a HK$800 million write-down on revaluation of retail assets and high costs involved in a consolidation exercise with British grocery and general merchandise retailer Tesco in mainland China.

China Resources Group chairman Fu Yuning has said that he aims to turn around the retailing business in one year, according to mainland media.

Translation by Vey Wong

[Chinese version中文版]

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