Hong Kong’s recovering retail market helped branded-watch seller Hengdeli Holdings narrow its losses last year.

Hengdeli is listed in Hong Kong and its shareholders include the Zhang family, Swatch Group and LVMH. Its retail network of 61 stores in Hong Kong, Macau and Taiwan includes Elegant stores, which sell luxury watches, Hengdeli, selling mid-market timepieces and mono-brand boutiques.

The company cut its losses by 40.1 per cent to RMB165 million on sales up a modest 1.3 per cent in the year to December 31.

“With the gradual improvement of the business environment and the enhancement of the management level, the group’s sales in Hong Kong recovered steadily, reversing the continuous decline in recent years. The retail sector in Taiwan remains stable,” the company said in its earnings statement.

During the year one an Elegant multi-brand shop was opened on Yun Ping Road in Hong Kong’s Causeway Bay, which contributed to an increase in sales for the territory. Another Elegant store opened at Section 5 on Chungshiao East Road in downtown Taipei last May.

“The group continued to progress well in the watch accessories business during the year.” The group’s export business showed steady growth and its new factories located in Suzhou and Guangzhou have commenced operations.