Parkson Retail Group Ltd, a Beijing-based department store chain controlled by Malaysia's Lion Group, said on Friday that its first-quarter net profit increased 14.9% year on year to RMB 258.7 million, mainly boosted by aggressive sales and promotion strategies.

In the period from January to March, total revenues grew 10.8% year on year from RMB 225.2 million to RMB 946 million. Sales increased to RMB 3.42 billion from RMB 2.83 billion. Same store sales for outlets opened at least a year rose by 9%.

The company said in a statement filed with Hong Kong Stock Exchange that there are emerging signs of fundamental growth for non-basic consumer products.

The company also said that it expects to see improvement in the operating environment in China later this year, and it will seek to balance maintaining its operating margin against increasing market share.

China's retail sales grew 15% in the first quarter, as compared to 21.6% in the same period in 2008.