Esprit previously expected a loss of HK$714m ($91.52m) for the six-month period, but has managed to reduce this to HK$95m thanks to the restructure of its European subsidiaries.
The company said its restructuring and deconsolidation efforts were “partially offset” by a one-off impairment on trademarks, right-of-use assets and property, plant and equipment totalling HK$1,846m and provision for inventories and provision for impairment of trade debtors totalling HK$1,292m.
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Esprit said it is still in the process of finalising its consolidated results for the interim period and the actual results for the interim period may be subject to further
amendments and adjustments.
Earlier in August, Esprit announced plans to reestablish itself as an intellectual property management company and liquidate several of its subsidiary companies.
At the time, the company said: “With the right strategic partners in place, there is significant growth potential in this licensing-focused business model.”
The news came alongside the announcement of the liquidation of HKRP, a company incorporated in Hong Kong that is an indirect wholly-owned subsidiary of the company and is primarily engaged in wholesale and e-commerce distribution of apparel and accessories and provision of services.
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By GlobalDataEsprit said the recent financial situation of the subsidiaries was greatly impacted by the insolvency proceedings of the group’s companies, as well as the poor performance of the group. While it had engaged sourcing agents who are paid directly by HKRP which would then ordinarily recoup the costs from the German subsidiary, the insolvency proceedings the German arm is currently going through meant payment was unmet and HKRP was unable to recover the fees it had paid out.
In June 2024, the company announced it had ended discussions with a potential bidder for its China business due to the offer not being commercially viable. It confirmed it was looking at its other proposals.
