On December 23, 2019, the “China's First Underwear“ city beauty listed on the Hong Kong Stock Exchange issued a profit warning and transformation plan. The announcement showed that the company is expected to lose no less than RMB 980 million in 2019.
Why do urban beauties suddenly lose nearly 1 billion? The announcement explained that due to the slowing economy and internal demand, the company's business activities are facing adversity. This negatively affected the consumer-oriented apparel industry and the group's operating performance. The announcement also stated that past rapid expansion has resulted in increased store inventory. On December 24, Urban Beauty closed at 1.010 Hong Kong dollars per share, a decrease of 2.88%. On December 25, the Hong Kong stock market was closed for one day.