Results for the Half Year Ended June 30, 2015 of Li & Fung, Hong Kong

Results for the Half Year Ended June 30, 2015 of Li & Fung, Hong Kong

Summary of the major developments: Macro environment and global retail disruption present a mix of challenges and opportunities; Turnover resilient despite deflationary environment and European currencies depreciation; Core customers continue to grow and business foundation is solid with strong pipeline for new business; Core operating profit impacted by annualisation of operating costs associated with investments; Strong growth in logistics business and Vendor Support Services (VSS) ahead of plan

 

 Li-&-Fung-20-08-_2015_11-59-20

 

The Board announced that on 20 August 2015, the Company entered into the  Master  Agreement with FH 1937 to provide a framework of the terms for the provision of logistics related services by the Group to the FH 1937 Group for a term of three years commencing from 1 January 2015 and ending on 31 December 2017 subject to the Annual Caps.

Since  FH  1937 is  a  substantial  shareholder  of  the  Company,  FH  1937  and  members  of  the  FH  1937  Group  are  connected  persons of the Company.  Accordingly, the transactions constitute continuing connected transactions of the Company under the Listing Rules.  As the relevant applicable percentage ratios are more than 0.1% but less than 5%, the Transactions are subject to the reporting, annual review and announcement requirements, but are exempt from the independent shareholders’ approval requirement, under Chapter 14A of the Listing Rules.

www.lifung.com


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