Lung Fung Group Holdings Limited (2290)a leading appeal, health and pharmaceutical items seller in Hong Kong, today revealed its yearly outcomes for the year ended 31 March 2026.
Throughout the Year, driven by the ongoing growth of its retail network and strong same-store sales development, the Group’s income and net earnings both rose to tape highs. The Group’s profits increased considerably by 33.2% year-on-year to HK$ 3,277.2 million. More significantly, over the previous 4 years, the Group’s profits development has actually regularly outshined the general Hong Kong retail market. In 2025, for example, the Group preserved a constant development trajectory throughout the duration, regardless of the total retail market staying in a healing stage. In addition, the Group’s gross revenue increased by 30.6% year-on-year to HK$ 1,015.4 million, with a gross earnings margin of 31.0%. Net earnings skyrocketed by 57.9% year-on-year to HK$ 269.1 million, while core web profit1 totaled up to HK$ 300.9 million. The strong outcomes totally show the robust development momentum of the Group’s core operations and verify the efficiency of its advancement techniques. To share the fruits of its operations with investors, the Group prepares to disperse not less than 60% of distributable earnings for FY2027, being the very first fiscal year after listing, and afterwards, for investors.
Throughout the Year, the Group continued to broaden its physical retail network, including 6 retailers and increasing its shop count to 31, therefore additional combining its market-leading position. Physical retail operations stayed the Group’s main development engine, contributing HK$ 3,202.5 million in profits, representing a significant boost of 33.9% compared to the exact same duration in 2015. In addition, the Group attained satisfying same-store sales efficiency. For the very first quarter of 2026 alone, based upon a contrast of the earnings from the 22 equivalent shops that functioned throughout both the very first quarter of 2026 and the exact same duration in 2025, same-store sales development reached 14.8%, showing a boost in traveler arrivals, a progressive healing in customer belief, and the development contribution from brand-new shops opened in FY2024 and FY2025 as they slowly developed.
A reputable retail network, a varied item portfolio and a broad network of providers form the core pillars supporting the Group’s development. The Group’s retail footprint, tactically dispersed throughout Hong Kong, covers significant prime places and neighborhoods, consisting of Central, Tsim Sha Tsui, Mong Kok and Causeway Bay, attaining broad market protection and consumer reach. The Group uses more than 9,000 SKUs per retail shop, covering 11 significant item classifications, consisting of pharmaceuticals, health supplements, skin care items, cosmetics and individual care items, adequately fulfilling consumers’ requirements for a “one-stop shopping” experience. Throughout the Year, appeal items, health items and other customer items provided especially impressive efficiencies, with profits increasing by 37.0%, 35.6% and 40.6% year-on-year, respectively, generally driven by the Group’s ongoing intro of brand-new SKUs and brand names. The Group likewise continued to invest resources in establishing more than 40 private-label brand names, efficiently optimising its item mix, fulfilling market requirements and boosting success.
In reaction to progressing customer shopping patterns, the Group has actually methodically improved its online sales abilities, advancing its tactical goal of incorporated online-offline omni-channel advancement. The Group has actually likewise enhanced sales through its main online shop and significant Chinese e-commerce platforms such as Tmall and JD.com, while proactively broadening into emerging social commerce channels such as Douyin to reach a wider consumer base. At the exact same time, the Group will continue to optimise its online flagship shop and mobile application and establish a smart subscription system powered by huge information analytics to provide exact item suggestions and customised marketing, thus reinforcing client commitment and motivating repeat purchases.
Mr Tse Siu Hoi, Executive Director, Chairman and Chief Executive Officer of Lung Fung Groupstated, “The effective listing on the Main Board of the Hong Kong Stock Exchange is an essential turning point in the Group’s advancement, marking a brand-new stage of development and additional boosting our capital strength. Progressing, we will continue to improve our item portfolio, deepening our existence throughout the existing 11 core classifications while actively checking out brand-new classifications, and promoting our brand name pledge of ‘More options and More enjoyable’. We will likewise increase financial investment in establishing private-label items and driving upgrades to our storage facility management system and point of sale systems to improve functional performance. In addition, we prepare to open 6 to 7 brand-new stores in FY2027, with areas covering core shopping districts and houses that provide strong market capacity. At the very same time, we prepare to broaden the retail area of existing shops to more drive same-store sales development. We will comply with our customer-centric method, react flexibly to market modifications, and actively take every chance that lines up with the Group’s long-lasting advancement vision, so regarding produce higher worth for our investors and clients.”
Subject: Press release summary
