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Dickson Concepts

Refund boosts Dickson's results

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Enoch Yiu

A HK$44 million write-back from a controversial transaction connected with its chairman helped upmarket retailer Dickson Concepts (International) post a sevenfold increase in interim net profit.

Profit for the six months to September 30 reached HK$55.14 million, up from HK$6.75 million last year.

In December 1999, the company's Internet shopping arm, Dickson Cyber.com, entered into a controversial HK$130 million consultancy contract with a firm owned by chairman Dickson Poon.

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The fixed fee was to be paid to Mr Poon's company to design six portals and provide technical support for a cyber-mall. The agreement also required the subsidiary to pay third-party suppliers HK$110 million for hardware and software.

A total expense of HK$240 million was incurred for the year to March 2000.

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Dickson Concepts yesterday said the deal expired on September 30. The total amount invoiced for Mr Poon's company stood at HK$90.6 million while the suppliers' fee was HK$105.4 million.

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