Management Discussion and Analysis
MANAGEMENT DISCUSSION AND ANALYSIS BUSINESS AND OPERATIONS The Group is principally engaged in the operation of the “Parkson” and “Centro” brands department stores. Its stores offer a wide range of internationally renowned brands of fashion and lifestyle related merchandise in 4 main categories namely, Fashion & Apparel, Cosmetics & Accessories, Household & Electrical, and Groceries & Perishables, essentially targeting the young and contemporary market segment. In addition, the Group is also involved in the retailing of fashionable goods, operation of gourmet supermarkets and food and beverage (“F&B”) outlets, and consumer financing business. The businesses of the Group are spearheaded by Parkson Retail Group Limited (“PRGL”), listed on The Stock Exchange of Hong Kong Limited, which operates and manages 47 retail stores in China; and Parkson Retail Asia Limited, listed on the Singapore Exchange Securities Trading Limited, that houses 66 retail stores in Southeast Asia. The number of owned and managed stores in each location is as follows: Number of Stores As at 30 June 2018 2017 Malaysia 44 45 China 47 49 Vietnam and Myanmar 7 8 Indonesia 15 17 113 119 OVERVIEW 2018 2017 Change Consolidated Statement of Profit or Loss RM Million RM Million Gross sales proceeds 11,092 11,629 -5% Revenue 3,982 3,964 0.5% Operating profit/(loss) 3 (142) >100% (Loss)/profit before tax (83) 224 (#) - >100% Consolidated Statement of Financial Position Total assets 8,948 9,757 -8% Deposits, cash and bank balances 2,594 3,143 -17% Total liabilities 5,340 5,908 -10% Total borrowings 2,499 2,697 -7% Net assets 2,234 2,391 -7% (#): Included (i) gain on disposal of a subsidiary in China of RM828 million; and (ii) impairment losses on assets amounting to a total of RM428 million.
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