斐然业绩傲视同侪.pdfVIP

Management Discussion and Analysis Market Overview The Hong Kong retail sector enjoyed a robust first half of 2005 on the heels of growth momentum which was carried forward from 2004. The positive market conditions were further fuelled by several catalysts, including a healthy labor market, growing inbound tourism, as well as buoyant property and stock markets. Strength in consumer sentiment, however, waned half way into the third quarter amid prolonged interest rate increases, a softening property market and higher oil prices. The majority of retailers were also confronted with profit margin squeeze as a result of higher OUTPERFORMING rental, energy, and labor costs. The IN THE SECTOR change in consumer sentiment and 23,000,000 economic pressure in the second half was 7.1% offset by a successful Christmas season which delivered a resurgence of consumer traffic and spending. Inbound tourism was on the rise and according to the Hong Kong Tourism Board, 2005 was another record year 9.9% with a total of more than 23 million visitor arrivals, representing a 7.1% increase from the previous year. The Hong Kong Tourism Board is expecting tourism arrivals to further grow in 2006 that will fuel the strength of the Hong Kong retail market. Chi