Export trading firm Li & Fung revealed a substantial increase in net profit on Monday. Last year's profit stood at HK870.39m ($73.67m), up 51 per cent from the year before.

Turnover grew 53 per cent to HK$24.99bn ($3.2bn).

Strong growth in Li & Fung's US retail sales had boosted profits while group managing director William Fung said the company's recent acquisitions made up about 21 per cent of the growth in turnover.

The company's fortunes are closely linked with US retail sales and around 75 per cent of its business is in the apparel and textile sector.

But Fung said a slowdown in the US should not affect Li & Fung because, being relatively small, it will have room to grow.

"We do not believe the apparent slowdown of the US economy will have a serious adverse impact on our business," he said.