6 December 2018
Hong Kong jeweller Luk Fook Holdings (International) Ltd reported a 27.9 percent increase in net profit for the six months ended September 30, on the back of positive market sentiment and lower gold prices.
Profit attributable to equity holders reached HK$665.42 million (around US$85 million), according to the company.
Wong Wai Sheung, chairman and chief executive of Lukfook Group commented, “Visitor arrivals in Hong Kong and Macau increased due to an improved overall economic environment. However, the market sentiment was adversely impacted by the recent US-China trade war as well as the depreciation of renminbi.”
The company official added that the group “remains prudent about its business development in the second half of the financial year. Nevertheless, with the anticipated considerable growth of the middle-class population in China, the group remains optimistic about mid- to long-term business prospects.”
During the period in review, overall same store sales grew 17.7 percent, with sales of gold and platinum products rising 22.3 percent and 11.3 percent for gem-set jewellery items.
“In the coming year, the group will focus on product offering enrichment, market coverage enlargement in China and market-oriented strategies to penetrate into the mass market, covering the middle-class, wedding couples as well as kids,” added Wong.