Garment maker and retailer Glorious Sun Enterprises will continue to scale back its unprofitable export and manufacturing business to focus on the mainland's fast-growing retail market.
Chairman Charles Yeung Chun-kam said yesterday the company, which operates 1,071 stores in China under the Jeanswest brand, closed three of its four factories in Indonesia and one of its two plants in the Philippines last year because of fierce competition.
The contribution of its export business to turnover in the six months to June had fallen to 29.8 per cent from 33 per cent a year ago, while that of its retail business increased to 66.82 per cent from 62 per cent previously, he said.
Glorious Sun yesterday announced that its interim profit rose 10.95 per cent to $112.82 million on a turnover of $1.76 billion. It will pay a dividend of 2.9 cents, compared with 2.7 cents a year ago.
Mr Yeung said the company would concentrate its efforts and resources on enlarging its retail stores in the mainland or expanding franchising business.
With a cash reserve of $1.07 billion, Glorious Sun is also actively looking to acquire new brands in the mainland.