Tungtex (Holdings) Company posts dip in H1 sales

16 Dec '13

2 min read

Dragged down by lower sales from its major market, North America, Hong Kong’s Tungtex (Holdings) Company Ltd witnessed a dip in sales revenue in the first half of the current financial year.

The manufacturer of fine ladies’ fashion posted a dip of 5 per cent in consolidated revenue at HK$ 696 million in the six months ended September 30, 2013 from HK$ 732 million in the same period a year ago.

Lower export demand and continuously tough retail business environment in mainland China was attributed to the decline in sales performance in the first half of FY 2013-14.

Sales in North America, which account for nearly 75 per cent of the company’s total turnover, fell by 7.9 per cent to HK$ 520 million in H1 FY 2013-14 from the same period year ago amid subdued consumer sentiment.

The company’s sales in Europe and other markets fell 11.7 per cent to HK$ 52 million in the six months ended September 30, 2013 from the year ago period amidst a tepid economic recovery in the Euro area which only overcame a record long recession earlier this year.

However, sales in Asia rose 13.6 per cent to HK$ 124 million in the first half of 2013-14.

Retail sales in mainland China rose 22.4 per cent in H1 2013-14, year on year, and accounted for nearly 15 per cent of total sales.

While the company continues to face a severe retail business environment amid tough competition between local and international brands, Tungtex (Holdings) Company is banking on robust retail expansion as its long-term growth driver.

Amidst the weak retail sales performance, the company witnessed a net loss of HK$ 207 million in H1 FY 2013-14.

Fibre2fashion News Desk - India