Half Year 2026 Luk Fook Holdings (International) Ltd Earnings Call Transcript
Key Points
- Luk Fook Holdings (International) Ltd reported a 25.6% increase in revenue to HKD6.8 billion, driven by effective product differentiation and sales strategies.
- The operating profit margin improved by 1.6 percentage points to 11.4%, boosting operating profit by 45.4% to HKD780 million.
- The group's gross margin reached a record high of 34.7%, with gross profit increasing by 33.2% to HKD2.37 billion.
- Revenue from the Mainland market increased by 54.2%, with segment profit rising by 118.2%, indicating strong performance in this region.
- The company plans to expand its global footprint, aiming to enter at least three additional countries and add 50 new overseas shops within three years.
- There was a net decrease of 174 shops globally, including a net decrease of 173 Luk Fook shops.
- The surge in gold prices resulted in widening gold hedging losses of HKD409 million during the period.
- Inventory turnover days increased significantly, reaching over 490 days by the end of September 2025.
- Net borrowings increased by 282% to around HKD1.1 billion, primarily due to the increase in gold loans.
- The retailing business in Mainland China recorded a segment loss of HKD14 million due to gold hedging losses.
Ladies and gentlemen, thank you for standing by, and welcome to the Luk Fook FY 2025, 2026 Interim Results Presentation. Please also note today's event is being recorded. At this time, I would like to turn the conference call over to Ms. Joanne Ho. Please go ahead, Joanne.
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Good morning, everyone. I'm Joanne from Luk Fook IR team. Thanks for taking the time to join us today for our financial year 2026 interim results. It's great to have you all here with us. Joining me today is Dr Kathy Chan, our Executive Director and Group's CFO. Kathy will take you through the interim results. After that, we will move straight into the Q&A session. The call will be conducted in English, and the presentation deck is already available for download on our website.
With that, let me hand over to Kathy for the detailed presentation.
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