Hong Kong-based sourcing and distribution company Li & Fung has ruled out any big acquisitions over the next three years.

With consumer sentiment sluggish, Li & Fung has decided to focus on its existing assets for the time being.

“The plan we will be sharing in March with people will basically be saying that it is really without any huge thinking about acquisitions,” chairman William Fung Kwok-lun told the South China Morning Post.

Li & Fung has depended heavily on acquisitions to enhance growth, however, luck was not on its side the previous years. In 2012, its core operating profit dropped 42 per cent due to the slowing economies in the US, Europe, China and Japan which hurt spending. However, it promised to increase profits.

“We don’t have the final, final numbers, nor do we have the audited numbers, but we are pretty sure (it will be) strong compared to 2012,” Fung said.

The company recently created a new business unit called Vendor Support Services to focus more intensely on factory and worker safety following recent tragedies in the garment industry, as well as the ongoing needs of its global vendor base.

Li & Fung Limited CEO Bruce Rockowitz said the new unit is part of a three-year restructuring plan.