Long Fung (2290) Achieves Record High in Full-Year Revenue and Net Profit, Plans to Open 6 to 7 New Stores This Fiscal Year

Hong Kong's leading beauty, health, and pharmaceutical retailer, Long Fung Group Holdings Limited (2290), today announced its full-year results for the year ended March 31, 2026.

During the year, driven by the continuous expansion of its retail network and robust growth in same-store sales, the Group's revenue and net profit both surged to record highs. The Group's revenue increased significantly by 33.2% year-on-year to HK$3,277.2 million. Notably, over the past four years, the Group's revenue growth has consistently outperformed the overall retail market in Hong Kong. For example, in 2025, while the overall retail market was still in a recovery phase, the Group maintained a steady growth trend during this period. Furthermore, 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, and core net profit 1 was HK$300.9 million. The impressive performance fully demonstrates the strong growth momentum of the Group's core business and validates the effectiveness of its development strategy. To share the operating results with shareholders, the Group plans to distribute no less than 60% of its distributable profits to shareholders for the 2027 fiscal year (i.e., the first fiscal year after listing) and thereafter.

The Group continued to expand its physical retail network during the year, adding 6 new retail stores, bringing the total number of stores to 31, further consolidating its market-leading position. The physical retail business remained the Group's primary growth engine, contributing revenue of HK$3,202.5 million, a significant increase of 33.9% compared to the same period last year. Additionally, the Group's same-store sales performance was strong. For the first quarter of 2026 alone, based on a comparison of revenue from 22 comparable stores that were in continuous operation during the first quarter of 2026 and the first quarter of 2025, same-store sales growth reached 14.8%, reflecting the increase in tourist numbers, the gradual recovery of consumer sentiment, and the growth contribution from new stores opened in the 2024 and 2025 fiscal years as they gradually mature.

A well-established retail network, a diversified product portfolio, and an extensive supplier network are the core pillars supporting the Group's growth. The Group's retail outlets are strategically located across Hong Kong, covering major prime locations and communities, including Central, Tsim Sha Tsui, Mong Kok, and Causeway Bay, achieving broad market coverage and customer reach. At the same time, each store offers over 9,000 SKUs, covering 11 major product categories such as pharmaceuticals, health products, skincare, cosmetics, and personal care items, comprehensively meeting customers' 'one-stop shopping' needs. During the year, beauty products, health products, and other consumer products performed particularly well, with revenue increasing by 37.0%, 35.6%, and 40.6% year-on-year, respectively, mainly benefiting from the Group's continuous introduction of new SKUs and brands. The Group also continued to invest resources in developing over 40 private labels, effectively optimizing the product structure, meeting market demand, and enhancing profitability.

To align with consumer shopping trends, the Group systematically enhanced its online sales capabilities to better achieve integrated online-to-offline omnichannel development. The Group strengthened sales through its official online store and major Chinese e-commerce platforms such as Tmall and JD.com, and also actively expanded into emerging social commerce channels like Douyin to reach a broader customer base. At the same time, the Group will continue to optimize its official mall and mobile applications, building an intelligent membership system based on big data analysis, and improving customer stickiness and repurchase rates through precise product recommendations and personalized marketing.

Mr. Tse Siu Hoi, Executive Director, Chairman and Chief Executive Officer of Long Fung Group, said: "The successful listing on the Main Board of The Stock Exchange of Hong Kong is a significant milestone in the Group's development, marking a new step forward and further enhancing our capital strength. In the future, we will continue to enrich our product portfolio, deepen existing 11 core categories while actively exploring new categories, adhering to the brand promise of 'More Choices, More Joy'. We will also increase investment in the development of private label products and promote the upgrade of warehouse management systems and point-of-sale systems to improve operational efficiency. Furthermore, we plan to open 6 to 7 new retail stores in the 2027 fiscal year, covering core shopping districts and residential areas with strong market potential; at the same time, we also plan to expand the retail space of existing stores to further drive same-store sales growth. We will always remain customer-centric, flexibly respond to market changes, actively seize every opportunity that aligns with the Group's long-term development vision, and create greater value for shareholders and customers.