Lifestyle International Holdings Ltd. (01212.HK) is speeding up the renovation of some of its shopping malls to lure more tenants with unique characteristics.
Chairman Thomas Lau Luen-hung said the firm, which operates the Sogo department stores in Hong Kong and several stores in the mainland, is adopting the strategy in the hope of attracting more customers.
Lifestyle posted 15.1 percent year-on-year growth in net profit for the first half of this year thanks to the revaluation of investment properties and gains in foreign exchange, the Hong Kong Economic Journal reported Tuesday.
Net profit came in at HK$1.17 billion (US$150 million).
Total revenue during the period rose 6.6 percent to HK$3.07 billion.
About 40 percent of the tenants at the main Sogo store, in Causeway Bay, recorded percentage sales growth in the low single digits because of renovations.
The new limit on the frequency of visits by individual travelers from the mainland to the city, which came into force in April, has not made much impact on the company’s revenue, Lau said.
Local customers now represent 56 percent of total sales at the Sogo department store in Causeway Bay, compared with 53 percent previously, he said.
Analysts at UBS are cautious about Lifestyle’s sales in Hong Kong given the reduction in visitors from the mainland.
However, they expect the firm’s business in the mainland to grow further in the second half of the year.
– Contact us at [email protected]