Royale Furniture back on track with profit

Manufacturer and wholesaler Royale Furniture Holdings had a 10.3 per cent rise in revenue last year to reach HK$727.6 million (US$93.6  million).

It credits the increase to the expansion of its network of distributors.

Profit attributable to the owners for the year was $43.2 million, following a $97.5million loss the previous year.

This was mainly because of the increase in revenue, better gross profit contribution and stringent control over expenditures despite the Chinese economy still being a challenge.

Products with higher margin were launched by the group during the year, resulting in an 11.5-point increase in the group’s overall gross profit margin to 28.2 per cent.

Actress/model Lin Chi Ling continues as the group’s spokesperson and will feature in its advertising and marketing activities. The group also implemented its “Royal Furniture Train” advertising strategy on high-speed trains running on the Beijing-Guangzhou route. As well as its commercials constantly playing on LED screens in the carriages, there were “Royal Furniture” exclusive lounges at 16 rail stations along the route.

The group also sponsored the 2016 Chinese Film Festival and the Fourth Shenzhen Top Ten Chinese Films commendation ceremony.

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