Risk of lower store sales due to political demonstrations and deteriorating social conditions in Hong Kong
First written in FY2020-Q1. 3 of 4 entries say "Materialised", first in FY2020-Q2. Latest entry: FY2020.
Asmo moved to the "Worse" side of this theme in 2019.
The whole theme swung hardest in 2020: 5 of 6 companies on the "Worse" side.
1 other company's latest entry also says "Materialised".
- FY2020MaterialisedAnnual report
「In the ASMO CATERING (HK) business, the repeated large-scale demonstrations in Hong Kong since March 2019, followed by the spread of the novel coronavirus infection in mainland China from January, severely affected the earnings model by substantially restricting commercial activity.」
Following the large-scale demonstrations in Hong Kong, the spread of the novel coronavirus infection from January 2020 restricted commercial activity and had a severe impact on the earnings model. - FY2020-Q3MaterialisedAnnual report
「In the ASMO CATERING (HK) business, repeated large-scale demonstrations in Hong Kong forced stores to suspend operations or reduce hours because major roads were occupied and subway stations were closed, while sales also declined. The business environment remained difficult. Consequently, revenue for the cumulative third-quarter period of the current consolidated fiscal year was ¥1,420 million, down 14.4% year on year, and the segment loss (operating loss) was ¥76 million, compared with a segment loss of ¥61 million in the same period of the previous year, resulting in lower revenue and a wider loss.」
Large-scale demonstrations in Hong Kong led to store closures, reduced operating hours and lower sales, while the segment loss widened from ¥61 million to ¥76 million. - FY2020-Q2MaterialisedAnnual report
「In the ASMO CATERING (HK) business, demonstrations that began in May intensified rather than subsiding during the second quarter, significantly affecting the company's overall performance. [Omitted] Consequently, revenue for the cumulative second-quarter period of the current consolidated fiscal year was ¥976 million, down 16.1% year on year, and the segment loss (operating loss) was ¥51 million, compared with a segment loss of ¥37 million in the same period of the previous year.」
Demonstrations in Hong Kong intensified further in the second quarter, resulting in lower store sales and a wider segment loss. Stores on Hong Kong Island and inbound sales from mainland China were particularly affected. - FY2020-Q1First statedAnnual report
「Demonstrations against the government's extradition bill, which began across Hong Kong in May, continued for an extended period, particularly on Hong Kong Island. As a result, sales at stores, mainly on Hong Kong Island, remained sluggish, and the business environment continued to be exceptionally difficult. Consequently, revenue for the cumulative first-quarter period of the current consolidated fiscal year was ¥512 million, down 12.4% year on year, and the segment loss (operating loss) was ¥28 million, compared with a segment loss of ¥18 million in the same period of the previous year, resulting in lower revenue and a wider loss.」
The company reported that prolonged demonstrations against the extradition bill in Hong Kong actually resulted in sluggish sales at stores, particularly on Hong Kong Island, and a wider segment loss.