(17 December 2009)── Luk Fook Holdings (International) Limited (SEHK Code: 590) (“Luk Fook”/ “The Group”) today announced its interim results for the six months ended 30 September 2009. During the period under review, revenue increased by 15% to HK$2,087,637,000 (2008: HK$1,814,692,000). Profit attributable to shareholders amounted to HK$188,449,000 (2008: HK$123,033,000), up 53.2% from that of the previous year. Earnings per share were HK$38.26 cents (2008: HK$ 24.98 cents). The Board recommends an interim dividend of HK$15.0 cents (2008: HK$5.0 cents) per share for the period ended 30 September 2009.
Mr. Wong Wai Sheung, Chief Executive of Luk Fook, said, “Despite the prospects for global recovery remain uncertain, China maintains a strong GDP growth. The purchasing power of PRC customers is increasingly high, and their demand for luxury goods increases substantially as well. The performance of our retail stores remains strong. Revenue from the retail business in China recorded a growth of 45.9% from HK$69,719,000 to HK$101,711,000. The Group is confident in the China market and endeavors to raise its share.”
During the period, Luk Fook operates a total of 508 retail stores in China (2008: 421 stores), Hong Kong, Macau, Canada and the United States, with 31 stores in Hong Kong, 4 in Macau, 2 in the United States and 2 in Canada and a total of 469 retail stores in China. For the period ended 30 September 2009, total revenue from retail business amounted to HK$1,584,308,000(2008: HK$1,393,697,000), up 13.7% from the same period of last year.
Two new shops were opened at Tsim Sha Tsui including a flagship store in Hong Kong during the period, further enhancing its brand image. Moreover, the Group acquired the whole block of a commercial building in Jordon mainly for the purpose of the Group’s head office building in August.
Regarding the business in China, the Group established 37 brand stores during the period, accumulating its total number to 437 (2008: 367 shops). Apart from expanding the Group’s brand stores network, the Group set-up operated stores as well. As at 30th September 2009, the Group had 32 self-operated stores in China (2008: 17 shops), of which 13 are newly established. The first self-operated stores in Shanxi and Jiangsu provinces were also opened during the period.
Motivated by the opening of gambling licenses and individual visit scheme, visitor arrivals to Macau increased 3.28 times from 7,440,000 in 1999 to 22,900,000 last year and the number is on the rise. The flourishing tourism in Macau brings considerable profit to the Group. During the period under review, revenue from Macau stores increased over 80% from the same period last year.
Mr. Wong Wai Sheung, Chief Executive of Luk Fook said, “Looking ahead, with the strong economic growth, PRC consumers are increasingly affluent. Our Group’s future development will be focused on China. We are planning to open more retail stores in the first-tier cities and expand the sales network to the second and third-tier cities in China the coming years. While opening self-operated stores in China, the Group also establishes brand stores actively so that Luk Fook’s brand image can be enhanced among PRC consumers. ”
In recognition of the Group’s outstanding product quality, the Group won the “PRC Consumers’ Most Favorable Hong Kong Brands 2009 – Gold Prize” for 4 consecutive years, it also attained “My Favourite Jewellery Brand of Hong Kong” in “My Best Favourite Brand in Hong Kong 2009”, demonstrating the credible brand image of Luk Fook among the consumers in Great China Region.
As for marketing campaigns, the Group promotes and publicizes Luk Fook brand through a series of sponsorships and advertisements. It sponsored Jewellery pieces in several key dramas, beauty contests in China, Hong Kong as well as overseas and placed advertisements on the main TV channels in Hong Kong and China. During the period, the Group continued to sponsor beauty contests such as “Miss Hong Kong Pageant” for the 12th consecutive years.
About Luk Fook Holdings (International) Ltd. (Stock Code: 590)
Luk Fook principally engages in the sourcing, designing, wholesaling and retailing of a variety of gold Jewellery, gold ornaments, gem-set Jewellery, gemstones and other accessory items. Luk Fook Group currently has more than a total of 510 retail stores in China, Hong Kong, Macau, Canada and the United States.