Lifestyle International Holdings Ltd. has published its 2008 interim report, which says that by June 30, 2008, the company had realized net profits of HKD606 million, a year-on-year increase of 41.9%.
The growth of the company's profit was attributed to the increase of its same-store sales and its real estate investments in mainland China, which brought HKD130 million profit to the company.
Lifestyle International said that after considering the current economic climate, the management of the company has a cautious attitude towards the retail market of Hong Kong and mainland China in the second half of 2008. Because of the large base number in the second half of 2007, the sales increase in the second half of 2008 is expected to be moderate.
Although the retail industries in Hong Kong and the mainland will be influenced by global economic uncertainties, the company decided to enhance the profitability and cash flow of its existing businesses in Causeway Bay Sogo, Tsim Sha Tsui Sogo, and Shanghai Jiu Guang Department Store. In addition, the company will invest resources in its new stores in mainland China. According to the company's schedule, in the fourth quarter of 2008, two new stores will be opened in Suzhou and Dalian, respectively; one store will be opened in Tianjin in the first quarter of 2009, and one store will be opened in Shenyang in the second half of 2010.