Chow Tai Fook Jewellery Reports Resilient Operating Profit as it Grows to HK$6.8 billion in 1HFY2025 Amid Challenging Market Environment
Chow Tai Fook Jewellery Group reports mixed financial results for 1HFY2025. Despite a 20.4% revenue decrease to HK$39,408 million, the company achieved a 4.0% growth in operating profit to HK$6,776 million. The gross profit margin improved by 650 basis points to 31.4%, while operating profit margin expanded 400 basis points to 17.2%. The company proposed an interim dividend of HK$0.20 per share and announced a share buy-back program not exceeding HK$2 billion. The company's signature CTF Rouge Collection exceeded HK$1.5 billion in Retail Sales Value since its April launch. However, Same Store Sales declined in both Mainland China and Hong Kong/Macau markets, while other markets showed 8.5% RSV growth.
Chow Tai Fook Jewellery Group riporta risultati finanziari misti per il primo semestre dell'anno fiscale 2025. Nonostante una riduzione del fatturato del 20,4% a HK$39.408 milioni, l'azienda ha registrato una crescita del 4,0% nell'utile operativo a HK$6.776 milioni. Il margine di profitto lordo è migliorato di 650 punti base arrivando a 31,4%, mentre il margine di profitto operativo è aumentato di 400 punti base a 17,2%. L'azienda ha proposto un dividendo intermedio di HK$0,20 per azione e ha annunciato un programma di riacquisto di azioni non superiore a HK$2 miliardi. La linea CTF Rouge Collection ha superato HK$1,5 miliardi di valore delle vendite al dettaglio dal suo lancio ad aprile. Tuttavia, le vendite nei negozi comparabili sono diminuite sia nel mercato della Cina continentale che in quelli di Hong Kong/Macao, mentre altri mercati hanno mostrato una crescita del 8,5% nel valore delle vendite al dettaglio.
El Grupo de Joyería Chow Tai Fook informa sobre resultados financieros mixtos para el primer semestre del año fiscal 2025. A pesar de una disminución del 20,4% en los ingresos a HK$39,408 millones, la compañía logró un crecimiento del 4,0% en el beneficio operativo alcanzando HK$6,776 millones. El margen de beneficio bruto mejoró en 650 puntos básicos hasta 31,4%, mientras que el margen de beneficio operativo se expandió en 400 puntos básicos a 17,2%. La empresa propuso un dividendo intermedio de HK$0,20 por acción y anunció un programa de recompra de acciones que no superará los HK$2 mil millones. La colección CTF Rouge superó los HK$1,5 mil millones en valor de ventas al por menor desde su lanzamiento en abril. Sin embargo, las ventas en tiendas comparables cayeron tanto en China continental como en los mercados de Hong Kong/Macao, mientras que otros mercados mostraron un crecimiento del 8,5% en el valor de ventas al por menor.
차오타이푹 주얼리 그룹은 2025 회계연도 1분기 혼합 재무 결과를 보고했습니다. 수익이 20.4% 감소하여 HK$39,408백만에 달했음에도 불구하고, 회사는 운영 이익이 4.0% 성장하여 HK$6,776백만에 도달했습니다. 총 이익률은 650bp 개선되어 31.4%에 이르렀고, 운영 이익률은 400bp 증가하여 17.2%에 도달했습니다. 회사는 주당 HK$0.20의 중간 배당금을 제안하고, HK$2억을 초과하지 않는 주식 매입 프로그램을 발표했습니다. 회사의 인기 있는 CTF 루즈 컬렉션은 4월 출시 이후 소매 판매 가치에서 HK$1.5억을 초과했습니다. 그러나 동종 매장 매출은 중국 본토와 홍콩/마카오 시장 모두에서 감소했으며, 다른 시장은 8.5%의 RSV 성장을 보였습니다.
Le groupe de bijouterie Chow Tai Fook annonce des résultats financiers mitigés pour le premier semestre de l'exercice 2025. Malgré une diminution de 20,4% de son chiffre d'affaires à HK$39.408 millions, l'entreprise a enregistré une croissance de 4,0% de son bénéfice opérationnel à HK$6.776 millions. La marge brute a augmenté de 650 points de base, atteignant 31,4%, tandis que la marge de bénéfice opérationnel a progressé de 400 points de base pour atteindre 17,2%. L'entreprise a proposé un dividende intérimaire de HK$0,20 par action et a annoncé un programme de rachat d'actions ne dépassant pas HK$2 milliards. La collection phare CTF Rouge a dépassé HK$1,5 milliard en valeur de ventes au détail depuis son lancement en avril. Cependant, les ventes dans les mêmes magasins ont diminué tant sur le marché de la Chine continentale que sur ceux de Hong Kong/Macao, tandis que d'autres marchés ont affiché une croissance de 8,5% de la valeur des ventes au détail.
Die Chow Tai Fook Jewelry Group berichtet über gemischte Finanzergebnisse für das erste Halbjahr des Geschäftsjahres 2025. Trotz eines Umsatzrückgangs von 20,4% auf HK$39.408 Millionen erzielte das Unternehmen ein Wachstum des operativen Gewinns von 4,0% auf HK$6.776 Millionen. Die Bruttogewinnmarge verbesserte sich um 650 Basispunkte auf 31,4%, während die operative Gewinnmarge um 400 Basispunkte auf 17,2% anstieg. Das Unternehmen schlug eine Zwischendividende von HK$0,20 pro Aktie vor und kündigte ein Aktienrückkaufprogramm von bis zu HK$2 Milliarden an. Die Signature CTF Rouge Collection überschritt seit ihrem Launch im April einen Einzelhandelsverkaufswert von HK$1,5 Milliarden. Allerdings fielen die Same Store Sales sowohl im chinesischen Festland als auch in den Märkten Hongkong/Macao, während andere Märkte ein Wachstum des Einzelhandelsverkaufswerts von 8,5% zeigten.
- Operating profit grew 4.0% to HK$6,776 million
- Gross profit margin improved by 650 basis points to 31.4%
- Operating profit margin expanded 400 basis points to 17.2%
- HK$2 billion share buy-back program announced
- CTF Rouge Collection exceeded HK$1.5 billion in Retail Sales Value
- 8.5% RSV growth in markets outside China
- Revenue decreased 20.4% to HK$39,408 million
- Profit attributable to shareholders declined 44.4% to HK$2,530 million
- Same Store Sales declined 25.4% in Mainland China
- Same Store Sales fell 31% in Hong Kong and Macau
- Net closure of 239 stores in Mainland China
- Interim dividend reduced to HK$0.20 from HK$0.25 previous year
HONG KONG, CHINA / ACCESSWIRE / November 26, 2024 / Chow Tai Fook Jewellery Group Limited ("Chow Tai Fook Jewellery Group", the "Group" or the "Company"; SEHK stock code: 1929), today announces its interim results for the six months ended 30 September 2024 ("1HFY2025").
Results Highlights
Our brand transformation journey, aimed at elevating brand desirability, gained strong momentum during the first half of FY2025 ("1HFY2025"). The Group's operating profit grew
4.0% to HK$6,776 million with a 400-basis-point expansion in operating profit margin to17.2% . Coupled with the benefits from the gold price increase, gross profit margin improved considerably by 650 basis points to31.4% during the period. Yet, in face of the challenging market environment, our revenue decreased20.4% to HK$39,408 million in 1HFY2025The use of exquisite craftsmanship with a meticulous blend of different precious materials in our fixed-price gold jewellery sustained good sales momentum and traction with customers in 1HFY2025. During the period, we launched various product offerings of different value propositions to meet customer preferences
Our signature CTF Rouge Collection continued to receive a strong response from customers, exceeding HK
$1.5 billion Retail Sales Value ("RSV") during this period since its launch in AprilOur first new concept store in Central, Hong Kong has received positive feedback since its grand opening in September
As part of the Group's commitment to enhancing total shareholder returns, the Board has proposed an interim dividend of HK
$0.20 per share (payout ratio of approximately78.9% ) for 1HFY2025 and announced a proposed share buy-back with a total amount of not exceeding HK$2 billion We stay confident in the long-term prospects of the industry and will diligently execute our five strategic priorities to further reinforce our market leadership, positioning for sustainable growth in the future and creating long-term value for our stakeholders
Financial Summary For the six months ended 30 September | 2024 | 2023 | YoY Change |
Revenue | 39,408 | 49,526 | - |
Gross profit (1) | 12,378 | 12,311 |
|
Gross profit margin |
| ||
Operating profit (2) | 6,776 | 6,514 | + |
Operating profit margin |
| ||
Profit attributable to shareholders of the Company (3) | 2,530 | 4,551 | - |
Earnings per share (HK$) | 0.25 | 0.46 | - |
Interim dividend per share (4) (HK$) | 0.20 | 0.25 | N/A |
| |||
(1) | Gold loan impact was reclassified from cost of goods sold ("COGS") to "other gains and losses" for 1HFY2024 and before |
(2) | Aggregate of gross profit and other income, less selling and distribution costs and general and administrative expenses |
(3) | The decreased was mainly due to the loss arising from the revaluation of gold loan contracts amid considerable volatility in international gold prices during the period, while there was a gain from the revaluation of gold loans for the same period last year |
(4) | The payout ratio for 1HFY2025 approximated |
Focus on Higher Earnings Quality with Improved Operating Profitability
Although the macro-economic externalities and high gold price volatility weighed on consumer demand in our key markets in the first half of the financial year, the diligent execution of our five strategic priorities sustained the Group's momentum towards quality earnings and enhanced efficiency, positively impacting our performance.
Despite a
The Board has proposed an interim dividend of HK
Dr. Henry Cheng, Chow Tai Fook Jewellery Group Chairman, said, "As we continue to navigate the complexities of an ever-evolving market environment, we remain committed to driving the sustainable growth and long-term resilience of Chow Tai Fook Jewellery.By prioritising our brand transformation, we are enhancing our competitiveness to capitalise on emerging opportunities in China and beyond."
Differentiated Product Offerings to Suit Customer Preferences
The Group remains agile, proactively adapting product and pricing strategy to align with customer demand. The use of exquisite craftsmanship with a meticulous blend of precious materials, and designs that embrace Chinese culture in our fixed-price gold jewellery generated good sales momentum and traction with customers in 1HFY2025. With product offerings featuring diverse value propositions, we delivered strong sales performance in fixed-price gold products, with the sales mix in gold jewellery and products RSV doubling year-on-year to
During the period, we also released the Chow Tai Fook Palace Museum Collection and CTF Bond Collection. The former is a unique representation of Chinese heritage and craftsmanship while the latter is inspired by the olive tree as a symbol of eternity with the highlight being the elegant 2-Prong Bond Ring. These new collections validate the Group's pivot in product and pricing strategy in response to market dynamics, providing a differentiated offering to customers.
Same Store Sales Declined Narrowed Sequentially
In 1HFY2025, both Mainland and Hong Kong and Macau registered Same Store Sales ("SSS") declined. Yet, in Mainland China, the magnitude of the SSS decline narrowed sequentially from the first quarter to the second quarter.
SSS of our self-operated points of sales ("POS") in the Mainland fell
Other markets continued to grow, with a
Effective POS management to Maximise Capital Efficiency and Productivity
With an emphasis on improving earnings quality, our current priorities are to sustain our market leadership and maximise the overall financial health of our retail network. We have been optimising our POS network and streamlining underperforming POS with a focus on store productivity.
As of September this year, we had almost 7,000 CHOW TAI FOOK JEWELLERY POS in the Mainland, a net closing of 239 stores during the period. Meanwhile, we are preparing for the launch of a new five-storey store in Shanghai in 2025, which will be the Group's first flagship store in Mainland China. We will also continue to open new stores on a selective basis, adopting a data-driven approach that also takes into consideration industry trend.In Hong Kong and Macau, we closed a net of 3 POS in 1HFY2025. In other markets, we opened 3 stores, including 1 duty-free shop in the Mainland and 2 POS in Japan to capitalise the emerging opportunities from retail demand in these markets.
During the period, Chow Tai Fook Jewellery opened our first new concept store in Central, Hong Kong, representing a significant milestone in the brand's transformation journey. Showcasing jewellery collections in a gallery-like setting, this reimagined store embodies refreshed standard operating procedures and enhanced store ambience that resonates with the brand essence. Moving forward, we will efficiently deploy resources for a progressive rollout of refreshed stores over the next five years, calibrated and aligned with market conditions.
Business Outlook
We stay nimble and vigilantly monitor market dynamics and consumption trends which will inform the ongoing calibration of our growth strategy amidst market uncertainty. This also sees us prioritising financial and operational resources in strengthening business resilience and competitiveness.
Based on our current observations and expectation of a narrowing Same Store Sales decline and moderated POS closure rate for 2HFY2025, business fundamentals should improve sequentially from 1HFY2025, barring market externalities and unforeseen circumstances.
We will continue to focus on the overall financial health of our retail network to ensure margin resilience and maintain financial discipline in cost management and capital expenditure to deliver high earnings quality.
Going forward, we stay confident in the long-term prospects of the industry. We will diligently execute our five strategic priorities to further reinforce our market leadership, positioning for sustainable growth in the future and creating long-term value for our stakeholders.
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Chow Tai Fook Jewellery Group Limited
Chow Tai Fook Jewellery Group Limited (the "Group"; SEHK stock code: 1929) was listed on the Main Board of The Stock Exchange of Hong Kong in December 2011. The Group celebrates its 95th anniversary this year and forges ahead into a new chapter of success, guided by a vision: "To be the leading global jewellery brand that is a trusted lifetime partner for every generation".
Founded in 1929, the Group's iconic brand "CHOW TAI FOOK" has become an emblem of tradition, celebrated for its bold designs and an unwavering attention to detail. Building upon a rich heritage and a foundation of trust, the Group is not only widely recognised for honouring traditions but also for fostering deep, meaningful connections with a diverse customer base through its exquisite jewellery. The Group's long-standing commitment to innovation and craftsmanship has been integral to its success over time and has become synonymous with excellence, value and authenticity.
As a leading Chinese jeweller, the Group believes in blending contemporary cutting-edge designs with traditional techniques to create jewellery that can be passed down from generation to generation. Every collection is thoughtfully conceived and crafted to reflect the stories of our customers, celebrating the special moments in their lives. Committed to growing alongside our customers, the Group embraces a spirit that aspires to inspire and captivate generations to come, weaving the story of CHOW TAI FOOK into the fabric of their lives.
Offering a wide variety of products, services and channels, the Group's brand portfolio comprises the CHOW TAI FOOK flagship brand with curated retail experiences, and other individual brands including HEARTS ON FIRE, ENZO, SOINLOVE and MONOLOGUE.
The Group is committed to delivering sustainable long-term value creation for its stakeholders by enhancing the quality of earnings and driving higher value growth. With an extensive retail network of around 7,500 stores across China as well as multiple locations globally, and a growing e-commerce business, the Group is implementing targeted online-to-offline ("O2O") strategies to strengthen its competitiveness in today's omni-channel retail environment.
Media Enquiries:
Chow Tai Fook Jewellery Group Limited
Haide Ng
Associate Director, Investor Relations and Corporate Communications
Tel: (852) 3115 4402
Email: haideng@chowtaifook.com
Acky Chan
Senior Manager, Investor Relations and Corporate Communications
Tel: (852) 3115 4403
Email: ackychan@chowtaifook.com
SOURCE: Chow Tai Fook Jewellery Group Limited
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