Lukfook profit sparkles
Jewellery giant Lukfook has reported net profit growth of 54 per cent to HK$1. 33 billion (US$171.91 million) for the year to March 31.
Retail business surged by 50.1 per cent to HK$9.67 billion (US$1.25 billion), accounting 81.2 per cent of total revenue worth HK$11.91 billion (US$1.53 billion) while wholesale business grew by 31.8 per cent to HK$1.81 billion (US$233.27 million), representing 15.2 per cent of total revenue.
According to CEO Wong Wai Sheung, mainland China’s rising demand for luxury products, Hong Kong peoples’ aspiration to purchase high quality gold and jewellery items and an increasing number of visitors to Hong Kong accounted for the huge surge in performance.
Mainland visitors continued to be the major source of customers, contributing over 50 per cent to the retail sales. According to the figures released by the Hong Kong Tourism Board, the mainland arrivals hit a historical high of approximately 28.1 million in 2011, demonstrating a sharp annual increase of 23.9 per cent.
While experiencing stellar growth, Lukfook sees weaker demand ahead due to Europe’s economic downturn.
“Year 2012 is a challenging year as the global economic conditions are now becoming more and more complex and volatile due to the debt deterioration crisis in Euro zone,” said Sheung.
However, Lukfook will continue to expand its local footprints subject to economic environment and opportunities targeting cities with lower brand penetration.
As at June 27, Lukfook’s total number of retail outlets has broken through 900, which included 35 in Hong Kong, 858 in the mainland China, eight in Macau, one in Singapore, two in the US and two in Canada.