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.