Hung Fook Tong may double first-half profit
In this article (4)
Chinese herbal products retailer Hung Fook Tong Group Holdings has issued a positive profit alert, saying it expects to more than double the profit attributable to the owners of the company.
Based on a review of its unaudited management accounts for the six months to the end of June, the profit is expected to be about HK$3 million (US$380,000), compared to the $1.4 million for its first half last year.
Chairman/executive director Tse Po Tat says the increase is mainly attributable to:
(i) an approximate 2 per cent increase in net sales, mainly in the wholesale segment through closer co-operation with key accounts in Hong Kong as well as more stringent control in rebates and discounts granted in Mainland China; and
(ii) slight improvement in gross profit margin mainly because of continuous enhancement in procurement procedures.
Hung Fook Tong expects to announce its interim results before the end of this month.
Questions & Answers
Q.What is the expected profit for Hung Fook Tong in the first half of the year?
What is the expected profit for Hung Fook Tong in the first half of the year?
Hung Fook Tong expects its first-half profit to be around HK$3 million (US$380,000). This figure represents a significant increase compared to the HK$1.4 million recorded in the same period last year.
Q.What are the main reasons for the expected profit increase?
What are the main reasons for the expected profit increase?
The main reasons are a 2 per cent increase in net sales, driven by wholesale co-operation in Hong Kong and stricter control of rebates in Mainland China, and a slight improvement in gross profit margin due to better procurement.
Q.When does Hung Fook Tong plan to announce its official interim results?
When does Hung Fook Tong plan to announce its official interim results?
Hung Fook Tong plans to announce its official interim results before the end of the current month. The positive profit alert is based on a review of unaudited management accounts.
Reader pulse
What's the main takeaway?
17,325 votes so far