Tuesday, August 25, 2015

Future Bright - H1 2015 (1 of 2)

The company has upgraded the detail with which it reports results so that we can now substitute management provided information for some of the informed guesstimates that I attempted in a prior post.

For the moment, I am particularly interested in the question: How much did the company earn before its investments in the Huafa mall and in the food souvenir business?

This is what the answer appears to be:



One or two seemingly reasonable assumptions (50% gross margin for the food court; pro rata share of mall operating expenses by floor area) and we can surmise further that the Huafa restaurants are operating at or above breakeven:

The food court will be closed at the end of August.

Disclosure: I own shares in this company