Silk textile and garment manufacturer High Fashion International saw its revenue decline 5.4 per cent to HK$1.27 billion (US$163.7 million) for its first six months this year, returning a net profit of HK$15.38 million.
Releasing its interim results, the group says gross margin was unfavourably distorted by a reduction in gain from RMB par forward contracts.
Chairman/MD Lam Foo Wah says global uncertainty has greatly impacted the market.
“Industry pressure, the slowdown of mainland growth, the Brexit reality and rising signs of softness in the US economy have further cast doubt over the macroeconomic outlook, which will remain very challenging in the near term.
“In these turbulent times, our export businesses were further exposed to heightened currency-exchange rate volatility, particular to the UK and Eurozone regions.
“Thanks to our diversified business model and geographic customer profile, the group has weathered this period with little effect and continued to deliver a decent set of interim results despite profit being dragged down by one-off expenses.”
He says the group is restructuring and reshaping the multi-brand, multi-channel brand business in different geographic areas with positive results, and the full potential of the brand business has yet to be unlocked.
A new eCommerce model is leveraging the group’s smart technologies as well as strong value chain capabilities.