Trading company Li & Fung Ltd on Wednesday (22 March) reported a 20% rise in net profit for 2005 and said it is on track to achieve revenues of US$10bn by 2007.

The Hong Kong-listed company, which sources products including garments from low-cost factories in China, said growing orders from US retailers pushed its full-year profit to HK$1.79bn (US$230m), up from HK$1.49bn in 2004.

Managing director William Fung told a news conference the company is confident of achieving double-digit revenue growth for the rest of its three-year plan, which extends from 2005 to 2007.

Sales rose 18% to HK$55.62bn, from HK$47.2 billion in 2004.

There have been concerns that Li & Fung, which derives 69% of its revenue from the US and 19% from Europe, would be adversely affected by US and EU safeguard measures on Chinese-made products.

But Li & Fung executive director Bruce Rockowitz said the company only sources 25% of its apparel from China.

William Fung added the company has set aside US$100m for acquisitions.