The weak bottom line was largely due to decreased spending from parallel traders and mainland Chinese visitors in Hong Kong due to travel restrictions imposed by China, says the traditional health and wellness company.

 

The overall weakening of the ringgit and Australian dollar further exacerbated the group's financial performance, it adds.

 

Revenue fell 9% to $75.18 million from $83.03 million previously, mainly due to a decline in revenue from the wholesale segment.

 

Eu Yan Sang remains cautious on its business outlook as the macro environment is expected to be difficult.

 

The group says it has implemented cost reduction initiatives through rationalisation of weak performing retail outlets, while continuing to focus on improving efficiency at back office operations through the usage of technology.

 

Eu Yan Sang ended 2.3% lower at 42.5 cents on Wednesday.