Dickson Concepts, a luxury retailer based in Hong Kong, said its net profits in the first half advanced 2.1 percent, due to the tight controls on sale and discount policies.

The company's net earnings amounted to HK$77.2 million for the six months ended Sept 30, while its turnover soared 8.2 percent to HK$1.86 billion. The retailer's gross profit margins also increased 1.9 percentage points to 58.2 percent.

An interim dividend of HK$0.11 will be distributed to the company's shareholders.

Group Executive Chairman Dickson Poon said the global financial crisis, which has depressed the consumers, will take a toll on the company's turnover and profit performance in the second half.

"Sales in October and November have already recorded a decline and we believe the operating environment in the second half will become more difficult. We will carefully control our inventory position and cost structure to achieve a better result in turnover and gross profits," Poon said in a press conference yesterday.

Talking about the impact of the financial turmoil on the company, Poon said the board of directors will accept a pay cut by 20 percent at the most, while the salary of Raymond Lee, deputy chairman and chief executive officer, and his own will be reduced by 20 percent.

"We don't recommend a job cut or a trim in staff number at the moment and we will continue to offer the thirteen-month salary to our employees," Poon said.

He added that the company will adopt a very cautious approach to its further expansion and development strategies amid the financial crisis.

"We will carefully analyze the investment opportunity and make suitable investment accordingly," Poon said, stressing that the company has been carefully maintaining its cash and has not participated in any stocks or leverage investment.

"With a net cash of HK$356 million and strong balance sheet, the company is in a very strong position to weather this global credit crisis," Poon said.

Dickson Concepts currently operates 495 retail shops, of which 70 are in Hong Kong, 268 on the mainland, 3 in Macao, 116 in Taiwan and 38 in Singapore, Malaysia and the Philippines.

The company has opened six new stores in Hong Kong and 50 on the mainland this year.

"As the economy on the mainland is expected to grow at about 8 percent a year and the market has the most growth potential in the longer term, we will cautiously continue the expansion on the mainland," Poon added.

Shares of Dickson Concepts finished yesterday's trading at HK$1.42, dropping 1.39 percent, or HK$0.02.

(HK Edition 12/05/2008 page2)