New World Department Store Publishes Annual Report

Hong Kong-based New World Department Store has published its annual report for its 2008-2009 fiscal year, showing that its net profit was HKD547 million, a year-on-year increase of 14.8%.

According to the report New World Department Store's, total revenue increased by 15.6% year-on-year from HKD1.489 billion to 1.721 billion during the fiscal year; its operating profit increased by 17.9% year-on-year to HKD695 million; and its net profit increased by 14.8% year-on-year to HKD547 million. In addition, sales in individual stores increased by 9% while the sales in its owned individual stores increased by 5%.

Zheng Zhigang, the executive director of New World Department Store, said that the company plans to open five new outlets over the next two years: one in Shenyang, one in Beijing, one owned department store in Zhengzhou, and two stores in Shanghai. These new stores are expected to add 184,000 square meters to the company's total sales area.

Zheng further revealed that the new outlets in Beijing and Shanghai will be opened in 2010 and those in Shenyang and Zhengzhou will be opened in 2011. To meet the funds needed for the development of the five new stores and for the expansion of its two existing stores in Harbin and Wuhan, the company will double its budget for the 2009-2010 fiscal year to over CNY1 billion.