China-HK Photo reaps 18pc increase in profit

Mainland expansion paid off for China-Hongkong Photo Products Holdings in the year to March, helping the Fuji film distributor boost attributable profit 18 per cent to $242.4 million.

Turnover also increased by the same rate, to $1.9 billion from $1.6 billion, while earnings per share rose from 23 cents to 24 cents on an enlarged share capital. Final dividend proposed was 6.8 cents a share - up from 6.28 cents - taking the annual payout to 11.8 cents.

The company, which made its debut on the stock exchange in September 1994, said sales in China, which accounted for 79 per cent of total sales, rose 27 per cent, while sales in the territory dropped 8 per cent.

Chairman Dennis Sun Tai-lun forecast the China market would continue to grow steadily.

'The China photographic market is still in infancy and the market is big enough to be shared by 'a few' brands,' he said.

A total of 1,328 franchised Fuji outlets had been recruited in China by March, he said. That number is expected to reach 2,200 by March next year with an average monthly target of 70 extra outlets.