The Sincere Co expects its department store operation will turn around this year due to the retail boom after suffering seven consecutive years of losses.
Managing director Philip Ma King-huen said sales for three of its Sincere department stores have registered 20 per cent increases in the first five months compared with a year ago.
'Our department stores business will probably return to the black,' he said.
He was upbeat about the firm's second-half performance as it would be the peak season for retailers and soaring rents have limited impacts on the firm's operations.
'We have only one lease due for renewal this year while the remaining two will not expire until 2008,' he said after the company's annual general meeting.
Although the company recorded a net loss of $118.71 million for the year to February, its remuneration for directors rose 2.48 per cent to $21.06 million from 2004.