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Goldlion results leap leads to bonus issue

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SCMP Reporter

A BOOMING mainland consumer market has pushed Goldlion Holdings' net profit up 63 per cent to $142.4 million in the year to March 31.

The company yesterday announced that turnover was $668.3 million, compared with $462 million in 1991-92.

Because of the outstanding performance, the directors have recommended a bonus share and bonus warrant on a one-for-one and a five-for-two basis, respectively.

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The clothing manufacturer, regarded as a likely victim of the yuan's fall and a tightened Chinese economy, remains confident of its consumers' spending power.

Chairman Tsang Hin-chi said China accounted for about 60 per cent of the group's total profit and was expected to make a much larger contribution in the years to come.

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''In the first half year, sales in China have amounted to more than 300 million yuan [about HK$404 million at the official rate], while they were only 263 million yuan for the whole of last year,'' he said.

In a bid to compensate for the depreciation of the yuan, in April Goldlion raised the prices of its products sold in China by 20 per cent, which is believed to be a factor in the big jump in turnover.

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