Japanese retailer Aeon remains bullish despite an unsatisfactory performance in Hong Kong and China.

Aeon says net profit in Hong Kong and China dipped 55.2 per cent to HK$107 million (US$13.8 million) in 2013.

Its profit in Hong Kong increased 33.6 per cent to HK$182.5 million (US$23.5 million), however, it was offset by poor performance in mainland, where it lost HK$158 million (US$20.4 million), triggered by the current slowdown.

Despite that, Aeon says its outlook is positive and its strategy is on track.

“We still think the Pearl River Delta is the number one growth area in China. But in Foshan and the Dongguan area, we still don’t have enough stores. So we will put our focus on those two areas,” said Aeon Stores chairman Yoshinori Okuno.

It is also investing in store renovations as boosting revenue from existing stores is still its top priority.