CKH HOLDINGS(HK:00001) Nan Fang Du Shi Bao·2025-10-11 09:21Core Insights - Watsons Group announced significant management changes, with current Trade Director Donna Poon set to become the Managing Director of Watsons Hong Kong starting November 1, 2025, following the resignation of the current Managing Director, Li Jia Le, for personal reasons [1] - The frequent executive changes are interpreted as a response to challenges in the Chinese retail market, with the company facing declining performance in its beauty and health product segment [5] Management Changes - Watsons has undergone multiple executive adjustments since last year, including the appointment of Ni Wenling as CEO in April 2024, who has been with the parent company since 2000 [3] - In March 2024, Watsons China appointed Chen Zhihao and Nie Wei as Co-Managing Directors, with the former having played a key role in the company's O+O transformation [3][4] - Chen Zhihao retired in March 2024 after a significant tenure, while Nie Wei has been instrumental in developing the company's online business strategies [4] Financial Performance - In the first half of the year, Watsons China's revenue from health and beauty products totaled HKD 6.666 billion (approximately RMB 6.1 billion), a decline of 3%, marking it as the only segment with a decrease [5] - EBITDA for Watsons China was HKD 117 million (approximately RMB 110 million), down 53% year-on-year [5][6] - The overall retail performance showed a total revenue of HKD 98.84 billion, reflecting an 8% increase compared to the previous year [6] Strategic Adjustments - In response to growth challenges in China, Watsons is accelerating strategic adjustments, including the establishment of "back-end stores" designed for processing online orders to enhance delivery speed [7] - The number of online stores in Watsons China increased from 131 to 394 as of June 30, 2025, indicating a significant push towards online business capabilities [7] - The parent company, CK Hutchison Holdings, acknowledged ongoing challenges in the Chinese health and beauty market and emphasized the importance of optimizing store locations and enhancing online business capabilities [7]