Apparel firm Hembly International has posted a 30.4% rise in first half profit to HKD$45.6m (US$5.85m).

The group recorded sales of HK$367.4m, up 39.9% over the same period last year.

While the company's supply chain business continued strong organic growth, its distribution and retailing arm benefited from the fast-growing retail market in China, particularly in the mid- to high-income segment, and the rapid expansion of its distribution platform.

Revenue for its supply chain services reached HKD$337.1m, up 42.5% from the same period last year, and accounted for about 91.8% of the group's revenue in the first half.

Revenue from the group's distribution and retailing business was HKD$30.3m, recording growth of 15.9% over the same period last year and accounting for about 8.2% of total revenue.

Hembly began distributing Lotto products in the PRC through its wholly-owned subsidiary, Scienward (Nanjing) Garment Co in December 2005. The Lotto joint venture now has 80 points-of-sale throughout PRC's first and second tier cities - with 15 new points-of-sale added during the first half.

Furthermore, on 1 August 2007, 45 Sisley shops directly managed by Benetton Group transferred to its new Sisley joint venture. The group believes these Sisley shops will make a significant contribution to revenues in its distribution and retailing unit.