Financial Highlights

The Board has proposed a final dividend of HK 42 cents per share (2010:  year ended 31 March 2011. In addition to the interim dividend of HK 26 cents per share already paid, the dividend for the full year amounted to HK 68 cents per share (2010: HK 43 cents per share).(29 June 2011) ── Luk Fook Holdings (International) Limited (“Luk Fook” / “the Group”) (Stock Code: 00590.HK) today announces its annual results for the year ended 31 March 2011 (the “Review Period”). During the Review Period, the Group recorded a total revenue of approximately HK$8,091,121,000, up 50% from HK$5,386,432,000 in the previous year. Profit Attributable to Shareholders grew by 63% to HK$866,216,000 from HK$531,484,000 over last year. Basic earnings per share were HK$1.71 (2010: HK$1.08).

Commenting on the Group’s annual results, Mr. Wong Wai Sheung, Chief Executive of the Group, said, “Year 2010/11 was another flourishing year for the Group. I am delighted that we have obtained such excellent results. Thanks to the robust economic growth in the PRC and the strengthening of Renminbi against Hong Kong dollar, the revenue increase was mainly driven by the huge spending of our PRC customers in Hong Kong. With the expanded scope of Individual Visit Scheme for non-Guangdong residents in Shenzhen, we believe the firm support from the PRC tourists will continue to be a strong growth momentum for the Group’s retail sales.”

As at 31 March 2011, the Group operated a network of 700 retail stores (2010: 557) across various regions: 33 in Hong Kong (2010: 31), 657 in the PRC (2010: 519), 5 in Macau (2010: 4), 1 in Singapore (2010: Nil), 2 in the United States (2010: 1) and 2 in Canada (2010: 2). For the year ended 31 March 2011, the Group’s revenue from retail business, which accounted for 79.6% of total revenue, amounted to HK$6,440,107,000 (2010: HK$4,090,804,000), up 57.4% from last year. The Group’s revenue from wholesale business also increased by 22.6% to HK$1,375,456,000 from last year (2010: HK$1,122,098,000). 

Revenue from the Hong Kong market rose by 47.0% to HK$5,886,770,000 (2010: HK$4,003,289,000) and it remained the key contributor in terms of revenue. In April 2010, the Group’! best medications for real at Haiphong Mansion, Tsim Sha Tsui was opened and has achieved satisfactory performance. To facilitate further growth, the Group expanded its business scope by collaborating with different prestigious watch brands. As at 31 March 2011, 7 brands of watches were sold in the Group’s watch counter, including LONGINE, TISSOT, Philip Stein, MIDO, HAMILTON, BALL and OMEGA.

With the Group’: free shipping. quality generic and brand products cheap. +discounts and bonuses. further expansion in the PRC, revenue from the PRC market recorded a growth of 63.9% to HK$1,401,780,000 (2010: HK$855,496,000). During the Review Period, the Group established 135 new licensee shops. While adopting a strategy of rapid expansion in our licensee shop network, the Group also set up 3 new self-operated shops in the PRC, bringing the total to 39 as at 31 March 2011.

Regarding the Macau market, the Group opened its fifth outlet at Rua de S. Domingos in April 2010. Favored by a 20%%, amounting to HK$760,864,000 (2010: HK$504,957,000). With a positive outlook on Macau’s tourism, the Group is optimistic to sustain the growing momentum.

Mr. Wong Wai Sheung, Chief Executive of the Group, continued, “Looking ahead, the Group will continue to develop the vast PRC market and maintain steady revenue growth in the core Hong Kong and Macau markets. Given the vibrant PRC economy and the huge purchasing power of PRC customers, we are optimistic towards the sales growth and further network expansion in the PRC. Our next step is to extend our geographical reach to the third and fourth tier cities on top of the well-penetrated first and second tier cities. The Group will also seize great opportunities in time to enlarge its network to more overseas markets, deepening Luk Fook’s brand awareness all over the world.”

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Reference:

http://www.hkexnews.hk/listedco/listconews/sehk/20110629/LTN20110629047.pdf