Consumer China

Xinyu Hengdeli (3389:HKG)

  • Published 10 Dec 2009

The luxury watch retailer still has some way to run as sales at its new mainland sales outlets take time to ramp up.

Recent financials:The luxury watch retailer, which distributes over 50 famous brands across Greater China, realised revenues of Rmb 2.7bn ($394m, €266m, £241m) in 1H, down 1.12% year on year, while net profits attributable to shareholders hit Rmb 212.2m, down 10.69%. However, the group's mainland China sales hit Rmb 1.27bn, up 6.75% year on year, while Hong Kong sales were up only 0.23% to Rmb 681.9m. Hengdeli's retail business accounted for 72.4% of total sales in 1H, up 4.4% year on year and compared with the 25.3% commanded by its wholesale business, which helped drive up gross margins 7.1 percentage points year on year to 24.1%.