LUK FOOK ANNOUNCES INTERIM RESULTS TURNOVER AMOUNTED TO ABOUT HK$690,754,000 * * * * NET PROFIT R
17 Dec 2001
- (Hong Kong, 17 December 2001) ── Hong Kong’s renowned gold and jewellery retailer and wholesaler, Luk Fook Holdings (International) Limited (SEHK Code: 0590) (“Luk Fook”/ “the Group”) today announces its unaudited consolidated interim results for the 6 month period ended 30 September 2001. Turnover for the period under review was approximately HK$690,754,000, representing a slight decrease of 7.6% when compared to the corresponding period in 2000. Profit attributable to shareholders amounted to about HK$28,761,000, down 2.3% from that of the previous year. Earnings per share were 6.18 HK cents (2000: 6.45 HK cents). Cash on hand reached approximately HK$113,000,000 as at 30 September 2001.
The Board has declared an interim dividend of 2.5 HK cents (2000: 2.5 HK cents) per share for 6 months ended 30 September 2001. The interim dividend will be payable on 10 January 2002 to shareholders whose names appear on the Registrar of Members of the Company on 4 January 2002.
Chairman of Luk Fook, Mr. Wong Wai Sheung commented on the result, “During the period under review, the local retail industry in Hong Kong was hampered by the weak economic conditions and the unstable political conditions in the U.S., consumer confidence remained stagnant, the jewellery industry has thus been heavily influenced.”
“Amid the discouraging market condition, the Group has actively participated in the Jewellery Fair and other promotional events to further reinforce our brand name locally as well as in China.” Mr. Wong added.
In the review period, the Group has attended the 2001 Shenzhen International Jewellery Fair and has received overwhelming responses. And to celebrate Luk Fook’s 10th anniversary, the Group has launched a lucky draw campaign called “六福10週年擦出卡裝美鑽旅遊獎上獎” as a token of appreciation to its customers.
Luk Fook’s creative designs won applauses from various design competitions during the period under review. To name, the Group has won a Gold Award in the Necklace Section of “The Third International South Sea Pearl Jewellery Design Competition” with the design “Cinderella”; and in “The Fourth Buyers’ Favorite Diamond Jewelry Design Competition 2001”, the Group has been awarded a Silver Prize in the ‘Set Group’ Section and an Award of Merit in the ‘Brooch Group’ Section.
Luk Fook has also extended its business areas to securities and jewellery portal operations. Its securities arm, Luk Fook Securities, has been working closely with OSK Asia Securities Limited in the period under review. Services provided to customers include periodical seminars and regular reports distribution.
Luk Fook’s jewellery portal, jewellworld.com, currently has about 100 business members. “We believe that jewellers will use jewellery portal more frequently to view product samples and to order jewellery in order to streamline their operation procedures. It would undoubtedly become a trend in Hong Kong as well as the China jewellery industry,” said Mr. Wong.
Planning for the future, the Group would open a series of retail chains to launch its new Ice g. collection in the coming year. This is to cater for the growing younger generation market and a retail shop situated in West Kowloon with about 690 sq. feet is targeted to open in mid-December.
“The new young line specializes in innovative European style quality products, providing caring and professional image styling.” Mr. Wong added.
Eyeing on the China market with the successful accession to the World Trade Organization (WTO), the Group has been exploring further into the vast China market. Luk Fook expanded its licensees’ network in China over the review period, by providing technical support to a number of jewellery shops.
“At present, there are about 60 licensee shops in China receiving technical support from the Group” Mr. Wong revealed, “The exposure to the jewellery industry of China brought to us insights on consumer behaviour and market trends of this lucrative market.”
As the quota system which restricts the daily number of mainland visitors would be abolished in January 2002, it was believed that the measure would draw a substantial number of visitors in Hong Kong. “In view of this encouraging factor, in addition to the golden opportunities arising from the China’s entrance to the WTO, we hold an optimistic view on the jewellery industry and hence a satisfactory result would be expected in the future.” Mr. Wong anticipated.
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 through its 19 retail outlets in Hong Kong. It has also diversified its business in other areas such as the portal trading platform and securities business.
