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2005-12-16
LUK FOOK HOLDINGS (INTERNATIONAL) LIMITED
ANNOUNCES INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2005
TURNOVER DECREASED 6% TO HK$816,355,000
NET PROFIT SLID 54.6% TO HK$29,441,000
Luk Fook Holdings (International) Limited (SEHK Code: 0590) (¡§Luk Fook¡¨/ ¡§The Group¡¨) today announced its interim results for the six months ended 30 September 2005. Turnover for the period under review has decreased 6% to HK$816 ,355,000(2004 ¡G HK$869,058,000). Profit attributable to shareholders amounted to approximately HK$ 29,441,000 (2004: HK$64 18,651 ,844,000), down 54.6% from that of the previous year. Earnings per share were 6.06 HK cents (2004: 13.48 HK cents). Cash on hand reached approximately HK$ 90,000,000 as at 30 September 2005.
The Board has declared an interim dividend of 3.0 HK cents (2004: 4.0 HK cents) per share for the year ending 31 March 2006.
Chief Executive of Luk Fook, Mr. Wong Wai Sheung said, ¡§It is reasonable and understandable that the interim results this year decreased from the same period of the previous year due to external factors. The Group believes that such decline is temporary. With more tourists visiting Hong Kong and our further business expansion to South-east Asia and US market, we remain conservative towards the outlook of our business in 2006.¡¨
Luk Fook currently operates 29 retail outlets under the brand name of Luk Fook and 2 under Ice g. in Hong Kong, Macau, the PRC and Canada.
While about 50% of the Group's turnover coming from mainland tourists, the floods in The PRC during the first half-year and the delayed visiting schedule of mainlander as a result of the opening of Disneyland attributed to the decrease in turnover. In addition, severe weather has adverse impact on consumers shopping appetite in Hong Kong. Moreover, the expected number of tourists visiting Hong Kong for the opening of Disneyland in September and for the Golden Week in early October was not as strong as expected. In addition, the proportion of rent in turnover has greatly increased by 46% during the year under review. This sharp increase in rent leads to the decrease of net profit compared to the same period of the previous year.
To strengthen Luk Fook's brand and image, the Group has partnered with renowned international retail shop designers to create new interior design for our shops. The retail shop in Sheung Shui Plaza is the first renovated one while shops in Tuen Mun and Jordan were also recently opened with a brand new look. The new interior design will gradually be adopted by other retail shops in the next three years. With this refreshing feeling, the group aims to bring a new shopping experience to customers with refurbishment in customer service.
Luk Fook was named as Asia and the Pacific's ¡§Best Under a Billion¡¨ by Forbes Magazine in November. Among the 22 Hong Kong enterprises on the list, Luk Fook is the only jewellery company being selected, which demonstrated Luk Fook's leading position in Asia and the Pacific region and its high standard of corporate governance. In addition, the Group has once again being awarded as the ¡§Superbrand¡¨ this year.
To strengthen the Group's corporate branding, Luk Fook has sponsored various beauty competitions during the period under review, including the sponsorship for the d iamond c rown and j ewe llery p ieces for the w inners of the ¡§ Miss Hong Kong Pageant 200 5¡¨ for the 8 th consecutive year as well as being the sole jewellery sponsor of ¡§Miss Asia Pageant 2005¡¨.
Luk Fook has also tapped into The PRC's market. Apart from sponsoring the City Beauties Pageant 2005 in Guangzhou , the number of licensee shop of the Group has now increased to more than 170. The Group provides technology support, product design and trainings to mainland retail shops, making our brand more and more popular in PRC.
The Group's jewellery manufacturing plant in Panyu, Guangdong has commenced operation in the fourth quarter 2004 and is in good operation condition. It is expected to reach its full capacity in two years time. The new plant produces some of the Group's jewellery products, reducing the operation cost and enhancing the Group's productivity.
In the first half of the financial year, the Group's finest product design has achieved outstanding results in various competitions. In particular, Platinum Guild International has selected ¡¥Jiang' as the masterpiece . This was also the first time for a Chinese designer to receive this award. Besides, the Group has also won 5 awards in Tahitian Pearl Trophy Asia, of which the ring designed by Ice g. design was granted second runner-up award, showing that the products targeting young adults are well received.
Going onward, Luk Fook will strive its best to provide the best service for its customer with effective marketing strategies and promotions. With cocktail ¡§Splendor of Creativity¡¨ launched in the end of November 2005, the Group aims at expanding its market segment, enhancing its brand image to attract consumers with higher disposal income.
In terms of overseas market, Luk Fook will continue its successful business model of issuing license. Leveraging on the established business network, the Group has accumulated extensive operation experience and has planed to open wholly-owned retail shops in major cities in The PRC. Meanwhile, the Group is also looking for suitable locations in US and South-east Asia for new shops to implement the Group's globalization strategy and in preparation to enter the international market.
About Luk Fook Holdings (International) Ltd. (0590)
Luk Fook is principally engaged in the sourcing, designing and retailing of a variety of gold jewellery , gold ornaments, gem-set jewellery , gemstones and other accessory items. Luk Fook has 29 retail outlets under the brand name of Luk Fook and 2 under Ice g. in Hong Kong, Macau , the PRC and Canada. At present, the number of licensee shop of the Group increased to more than 170. |
