Retail conglomerate China Resources Enterprise Ltd (CRE) swung sharply to a loss in the second quarter as its retail and food divisions took blows from online competition and high operating costs in a slowing economy.
CRE had a loss of HK$3.96 billion ($510.88 million) in April-to-June compared with a profit of HK$573 million a year earlier, according to calculations based on six-month earnings data released on Friday. CRE posted a HK$363 million profit in the first quarter.
But all is not gloom for the owner of China's top beer brand Snow.
Profit from CRE's beer business jumped 30 percent to HK$544 million for the first half of 2015 from a year earlier.
In a filing to the Hong Kong bourse, the company's Chairman Chen Lang said its independent shareholders had on August 3 approved its sale of all its non-beer assets to controlling shareholder China Resources (Holdings) Co for the sum of HK$30 billion.
"We strongly believe our transformation into a beer-focused company is in the best interests of the shareholders and gives the group greater flexibility to execute its business plan for the beer business."
The deal, part of an internal strategy and ownership shake-up, came two months after CRE posted its first annual loss in more than two decades, hurt by start-up costs for a venture with Tesco Plc.
CRE posted a HK$4.33 billion loss for the first half of 2015, compared with a HK$929 million profit a year earlier.
