New World Department Store China Limited published its semi-annual performance report and said its and profit both increased.
By December 31, 2013, the group's revenue increased by 4.8% year-on-year from HKD2.029 billion to HKD2.125 billion; and it realized a profit increase of 14.5% to HKD345 million.
New World Department Store said that to meet the changing consumer trends, the company will adjust its operating strategy, enhance product operation, and continue to accelerate expansion. The company predicted that by 2016 financial year, its total floor area will reach about two million square meters.
The company's revenue increase was mainly contributed by commission of specialty counters, management and consulting fees, and rental revenues. During the six months ended December 31, 2013, the company's total specialty counter sales increased by 1.8% to HKD7.622 billion, which promoted the commission fee to increase by 1.5% to HKD1.351 billion. Meanwhile, its own products contributed HKD410 million to the company.
During the reporting period, New World Department Store launched its own brand named Love Original Life, which procures and sells high-quality lifestyle products. This new brand aims to improve the uniqueness of products and enhance the advantage of differentiation in retail products to improve the gross margin of its self-operating products. At present, LOL specialty stores are opened in New World Department Stores and Shanghai's K11. The company said they will accelerate related development and the number of LOL specialty stores will top 20 by 2015 financial year.
The report also stated that New World Department Store currently has 43 outlets, including 39 self-owned stores. These stores cover 21 major cities in China, with total floor areas of 1.631 million square meters.