HKRH posts 97% fourth quarter sales growth

Sales of HKRH’s franchisees to their end customers up by 90%.

Hong Kong Resources Holdings Company Limited (“HKRH”) Wednesday provided a quarterly update on the total sales of the Group’s gold and jewellery products in the fourth quarter (October to December, “Q4”) of 2011.

Continuous growth in sales

During the fourth quarter of 2011, riding on the growing popularity of the 3D-GOLD brand, total sales of the Group’s retail and franchising operations for gold and jewellery products were up by 97% over the same period last year, reaching approximately HK$1.16 billion (2010 Q4: HK$588,166,000). In particular, sales in Mainland China surged 110% to HK$1.05 billion (2010 Q4: HK$501,644,000). Sales in the Hong Kong and Macau markets also rose by 19% to HK$103,304,000 over the corresponding period last year (2010 Q4: HK$86,522,000).

Dr Kennedy Wong, Chairman of HKRH and 3D-GOLD, said, “I am very pleased with the continued strong growth of the Group’s business. During the Christmas period, our sales rose by 68% while transactions increased by 42% when compared with the corresponding period last year, according to an HKRH report.

In particular, sales of our franchisees to their end customers surged even more by 90%. While encouraged by the sales performance, the management has noted that the gold price has become more volatile since September 2011 which may affect the profitability of the gold and jewellery industry. Thus we will closely monitor the price trend and adopt appropriate strategies to address the situation.”