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Luk Fook Holdings (International) Ltd said revenues were down 47 per cent to HK$3.34 billion (around US$425.76 million) for the six months ended September 30 mainly due to the continuing impact of the Covid-19 pandemic and high gold prices.
Operating profit was down 41.4 per cent while profit attributable to equity holders shrank by 41.3 per cent.
With soaring gold prices coupled with macroeconomic uncertainties, sales of gold and platinum products decreased by 52.5 per cent. Average gold prices rose by around 30 per cent during the period in review, according to Lukfook.
The dwindling number of tourists and weak consumer sentiment heavily affected retail sales in Hong Kong and Macau, with retail revenues from these cities and overseas markets falling by 70.7 per cent.
The decrease was less severe in China, with retail revenues dipping by 26.9 per cent.
Lukfook is continuously implementing a multi-brand strategy alongside branding and digital initiatives to sustain the business, the company said.
“The group strives to develop more new brands in the future, apart from ‘Goldstyle’ and ‘Dear Q’. In addition, the group will adopt a holistic approach to penetrate the middle-class, bridal and younger markets by understanding customers’ spending habits,” noted Lukfook.
It also aims to attract customers and encourage local consumption by enhancing visual merchandising, cross-selling and VIP promotional activities. As part of its social media strategy, Lukfook will continue to showcase and promote its products on mobile applications and social media platforms such as Facebook, Weibo and WeChat, among others.
Lukfook is likewise looking at further developing its online business and strengthening cooperation with various e-commerce platforms in China as it eyes a 15 per cent growth in e-commerce revenues. It is also banking on mid- to long-term growth prospects in China, with the aim of opening around 250 Lukfook shops there during the financial year, mainly focusing on licensed stores in fourth- and fifth-tier cities.