Lifestyle International Holdings, which operates Sogo stores in Hong Kong, will continue to expand aggressively in the mainland after earnings from its Shanghai shop helped boost first-half profit 40 per cent.
Net income reached HK$427.12 million in the first six months of the year from HK$305.38 million a year ago. That beat BNP Paribas' estimate of earnings of HK$396 million.
The Jiuguang store in Shanghai, which opened at the end of 2004, recorded an operating profit of HK$37 million in the first half compared with a HK$4.1 million loss a year earlier.
The store is jointly owned by the company and the city government.
The group's sales rose 19 per cent to HK$1.4 billion, with a 15 per cent increase in same-store sales at its Sogo stores in Causeway Bay and Tsim Sha Tsui and a 46 per cent jump in Jiuguang store sales.
Sogo in Causeway Bay accounted for 76.5 per cent of group sales, the Tsim Sha Tsui store 6.5 per cent and Jiuguang 17 per cent.
Lifestyle managing director Thomas Lau Luen-hung yesterday said the company was looking at new projects in key mainland cities, including Beijing and Shanghai.