Mainland China Recovery Drives Chow Tai Fook H1 Revenue +15% To $3.2B
Hong Kong-listed Chow Tai Fook Jewellery Group, which has a major retail footprint in mainland China, announced its interim results for the six months ended September 30, reporting revenue of HK$24.75 billion ($3.17 billion), a 15 percent rise in a year-on-year comparison with the same period last year.
The company said that thanks to the improving sales momentum and operating leverage, core operating profit surged by 40.3 percent to HK$2.4 billion ($307 million). It attributed this to the fact that the early signs of recovery in the jewellery industry which began in the second half of last year, have extended into the first half of this year.
Same store sales growth in both reportable segments continued to rebound. Same store sales in mainland China increased by 10.3 percent, mainly driven by a rise in average selling price, while the growth in Hong Kong and Macau of 9.5 percent was primarily driven by volume.
The e-commerce business in the jewellery segment in mainland China further accelerated, registering an impressive retail sales value growth of 120.4 percent, mainly thanks to a strengthened co-operation with major online platform partners. It contributed to 5.4 percent of retail sales value and 13.4 percent of retail sales volume in the jewellery business in mainland China.
The company opened a net of 107 points of sale, bringing the total number to 2,488 as at September 30. In mainland China, on the back of a general resumption of growth in the jewellery market and an easing trend of consolidation in conventional department stores, net openings amounted to 112 points of sale.
In Hong Kong and Macau, the consolidation of network continued. Closures were focused in touristic area while there were openings in residential neighbourhoods, resulting in a net closure of 7 points of sale. The Group also opened one point of sale in the United States and two in Japan to capture the opportunities arising from the demand of local customers and travellers in these regions.
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