Feb. 28, 2007 (China Knowledge) – Retail operator Lifestyle International Holdings <1212> intends to invest HK$2.8 billion to expand its Mainland presence in the next two years to tap on the strong consumer spending.

Lifestyle, which operates two upscale Sogo department stores in Hong Kong, is developing department store and retail complexes in Suzhou and Shenyang with capital expenditures of HK$1.8 billion this year and HK$1 billion next year. Phase one is scheduled to open by the end of next year or early 2009.

The projects will be funded by internal resources and bank borrowings.

As of the end of December, the company had cash on hand of HK$2.6 billion.

Lifestyle posted net profit of HK$740 million for the year to December, up 37% from 2005, surpassing market expectations of HK$699 million. Sales rose 21% to HK$2.5 billion.