Hwa Kay Thai Holdings will have to rely on its Thai-listed property subsidiary, Tanayong Public Co to boost profits in the coming year following loss-making performances by its sports shoe and restaurant businesses in Hong Kong. The group's net profit of $12.5 million plunged 83 per cent for the year ending in March, but was boosted by a $55.4 million profit contribution from the Thai subsidiary. Managing director Ronald Yue said the loss stemmed from the retail slump in Hong Kong in the past year. He said the company's distribution and catering businesses were poised for a recovery following a change in its investment strategy. 'The retail market for casual wear in Hong Kong is saturated and we now plan to expand our presence in China to boost profits,' he said. Mr Yue said 11 local Puma stores already had been closed, saving $10 million. It is to franchise 20 Puma stores in northern China, in addition to 30 existing directly owned stores. The group also has gained sole distribution rights for European sportswear manufacturer Lotto in Hong Kong, China, Taiwan and Thailand. Managing director Stephen May Wai-kwan said the group was to invest $100 million in the Tin Tin Seafood Harbour Restaurant in Hong Kong and China.