Leafeng Group'S Performance Is Lower Than Market Expectations Reflecting The Weakness Of Us Demand

Li (Fung & amp; P) has no doubt that it is a question mark for the prospect of global economic recovery.

Li Feng is a supplier of Asian made goods to large retailers such as Marks and Spencer and WAL-MART (Walmart), Martha.

The Hongkong based middleman is regarded as a weathervane of the retail industry as a whole.

The group's failure to meet analysts' expectations is due to weak demand in the US.

The group reported an increase of 3% in the 6 months to June 30th, up to $8 billion 710 million, which is lower than the $8 billion 730 million forecast given by analysts surveyed by Peng Bo (Bloomberg).

Profits fell by 9% to $227 million, which is also below analysts' forecasts.

The interim dividend decreased from HK $0.15 per share to HK $0.13.

Feng Yujun, a recent chief executive, said: "the performance of the United States is not very good, and we expect to be in a difficult position in the second half of the year", said Spencer Fung.

In March this year, Li Fung carried out the whole stock divestiture operation and divided itself into two enterprises: a company responsible for purchasing and logistics, and a company responsible for brand management and authorization, called Global Brands Group.

Feng Yujun said: "we have returned to the past Li Feng, that is, the world's largest purchasing enterprise and supply chain management.

In this field, we fully dominate the market.

The stripping

The end of the acquisition boom began in 2006.

In the takeover boom, Li Feng bought more than 40 companies, including 18 in 2011.

The total cost paid by Li Feng (including pre paid price and phased payment linked to performance) reached US $7 billion.