Nov 23, 2016

Chow Tai Fook Revenue for H1 FY 2017 Declines by 23.5% Y-o-Y

Chow Tai Fook Jewellery Group Limited  announcing  its interim results for the six months ended 30 September 2016 (H1 FY 2017)reported a revenue of HK$ 21,526 million for the Group for the period. This represents a fall of 23.5% when compared to a revenue of HK$ 28,124 million achieved in H1 FY 2016.

The Company said gross profit for the period under review amounted to HK$ 6,828 million as against HK$ 7,857 million  gross profit notched for  the same period of the previous year. Chow Tai Fook, however, reported that  adjusted gross profit margin saw an improvement of 160 basis points; which was “mainly due to an enhanced product mix and an uplift in gross profit margin of gem-set jewellery and gold products”.

While core operating profit was down by 29.5% to HK$ 1,708 million (H1 FY 2016: HK$ 2,422 million); core operating profit margin was 7.9% (1HFY2016: 8.6%).

Profit attributable to shareholders of the Company declined by 21.5% to HK$ 1,222 million (H1 FY2016: HK$ 1,557 million), while earnings per share were reported at HK 12.2 cents (H1 FY 2016: HK15.6 cents). “The Board has declared an interim dividend of HK 6.0 cents per share and a special dividend of HK15.0 cents per share,” Chow Tai Fook announced.   

The Company noted that the decline in revenue was “mainly attributable to the continual weak consumer sentiment in the Greater China region and a change in purchasing behaviour of Mainland tourists”.

In H1 FY 2017,  the Group opened a net of seven POS, bringing the total number of POS to 2,326 as at 30 September 2016.

“The Group’s e-commerce in the jewellery business of Mainland China recorded a year-on-year growth of 22.5% in Retail Sales Value (RSV), contributing to 2.8% of the respective RSV and 7.4% of the respective retail sales volume in 1HFY2017,” the Company reported.  

Chow Tai Fook Chairman Dr. Henry Cheng commented: “Following our signature 999.9 gold jewellery products launched in 1956 and the “Fixed Price Policy” implemented in 1990, we are proud to bring in another disruptive innovation, “Chow Tai Fook T MARK” diamond brand, as a continuation of our legacy in innovation.”

He added: “While we hold a cautiously optimistic stance in the near term, we remain confident in the long-term prospects of the Greater China jewellery market. With our solid fundamentals, vast industry knowledge and renowned brand name, we are fully equipped to capitalise on business opportunities and emerge stronger out of the current market conditions.”

Pic Cap:

Chow Tai Fook Jewellery Group Chairman Dr. Henry Cheng (2nd frm rt), Managing Director Kent Wong (2nd frm left), Finance Director Hamilton Cheng (ext rt) and Executive Director Adrian Cheng (ext left) announce the interim results for FY2017