HONG KONG, Jun 29, 2026 - (ACN Newswire) - Lung Fung Group Holdings Limited (2290), a leading beauty, health and pharmaceutical products retailer in Hong Kong, today announced its annual results for the year ended 31 March 2026.
During the Year, driven by the continued expansion of its retail network and solid same-store sales growth, the Group’s revenue and net profit both surged to record highs. The Group’s revenue increased substantially by 33.2% year-on-year to HK$3,277.2 million. More notably, over the past four years, the Group’s revenue growth has consistently outperformed the overall Hong Kong retail market. In 2025, for instance, the Group maintained a consistent growth trajectory throughout the period, despite the overall retail market remaining in a recovery phase. In addition, the Group’s gross profit rose by 30.6% year-on-year to HK$1,015.4 million, with a gross profit margin of 31.0%. Net profit soared by 57.9% year-on-year to HK$269.1 million, while core net profit1 amounted to HK$300.9 million. The strong results fully demonstrate the robust growth momentum of the Group’s core operations and validate the effectiveness of its development strategies. To share the fruits of its operations with shareholders, the Group plans to distribute not less than 60% of distributable profits for FY2027, being the first financial year after listing, and thereafter, for shareholders.
During the Year, the Group continued to expand its physical retail network, adding six retail stores and increasing its store count to 31, thereby further consolidating its market-leading position. Physical retail operations remained the Group’s primary growth engine, contributing HK$3,202.5 million in revenue, representing a substantial increase of 33.9% compared with the same period last year. In addition, the Group achieved satisfactory same-store sales performance. For the first quarter of 2026 alone, based on a comparison of the revenue from the 22 comparable stores that were in operation throughout both the first quarter of 2026 and the same period in 2025, same-store sales growth reached 14.8%, reflecting an increase in tourist arrivals, a gradual recovery in consumer sentiment, and the growth contribution from new stores opened in FY2024 and FY2025 as they gradually matured.
A well-established retail network, a diversified product portfolio and a wide network of suppliers form the core pillars supporting the Group’s growth. The Group’s retail footprint, strategically distributed across Hong Kong, covers major prime locations and communities, including Central, Tsim Sha Tsui, Mong Kok and Causeway Bay, achieving broad market coverage and customer reach. Furthermore, the Group offers more than 9,000 SKUs per retail store, covering 11 major product categories, including pharmaceuticals, health supplements, skincare products, cosmetics and personal care products, comprehensively meeting customers’ needs for a “one-stop shopping” experience. During the Year, beauty products, health products and other consumer products delivered particularly outstanding performances, with revenue increasing by 37.0%, 35.6% and 40.6% year-on-year, respectively, mainly driven by the Group’s continued introduction of new SKUs and brands. Meanwhile, the Group also continued to invest resources in developing more than 40 private-label brands, effectively optimising its product mix, meeting market needs and enhancing profitability.
In response to evolving consumer shopping trends, the Group has systematically enhanced its online sales capabilities, advancing its strategic objective of integrated online-offline omni-channel development. The Group has also strengthened sales through its official online store and major Chinese e-commerce platforms such as Tmall and JD.com, while proactively expanding into emerging social commerce channels such as Douyin to reach a broader customer base. At the same time, the Group will continue to optimise its online flagship store and mobile application and develop an intelligent membership system powered by big data analytics to deliver precise product recommendations and personalised marketing, thereby strengthening customer loyalty and encouraging repeat purchases.
Mr Tse Siu Hoi, Executive Director, Chairman and Chief Executive Officer of Lung Fung Group, said, “The successful listing on the Main Board of the Hong Kong Stock Exchange is an important milestone in the Group’s development, marking a new phase of growth and further enhancing our capital strength. Moving forward, we will continue to enrich our product portfolio, deepening our presence across the existing 11 core categories while actively exploring new categories, and upholding our brand promise of ‘More choices and More fun’. We will also increase investment in developing private-label products and driving upgrades to our warehouse management system and point of sale systems to boost operational efficiency. In addition, we plan to open six to seven new retail stores in FY2027, with locations spanning core shopping districts and residential areas that offer strong market potential. At the same time, we plan to expand the retail space of existing stores to further drive same-store sales growth. We will adhere to our customer-centric approach, respond flexibly to market changes, and actively seize every opportunity that aligns with the Group’s long-term development vision, so as to create greater value for our shareholders and customers.”