Chow Tai Fook Jewellery Group Limited recorded a 4.1-percent drop of revenue for the first half of the financial year of 2016 to HK$28,123.6 million from HK$29,319.5 million last year, reported group chairman Henry Cheng at the 2015-16 interim results announcement media conference yesterday. The slashed revenue was attributed to the weak luxury market sentiment in Hong Kong and Macau as due to a declining tourist visitation from mainland China and a drop in tourist purchasing power, the company said.
According to the report, revenue contributed from the jewellery business in Hong Kong, Macau and other markets continued to fall from 42 percent in 1H2015 to 40.8 percent this year. Nevertheless, in mainland China the figure rose to 56 percent from 54.5 percent in 2015.
During the period 144 POS were opened in the Mainland, mainly in Tier III and lower tier cities, while two were in South Korea. As 115 POS were closed, the net openings were only 29. Three shops were closed in Hong Kong in 1H2016. In order to enhance store productivity, five more POS may be closed in 2H2016, the company said.
For the business of the newly acquired Hearts On Fire, the group opened four new mono-brand stores in mainland China and Taiwan, making it a total of 16 stand-alone stores in the Greater China and the Unites States.
The group’s e-commerce business continued to maintain a steady growth of 44.3 percent year-on-year in RSV (retail sales value). E-commerce in mainland China contributed approximately 1.9 percent of the jewellery business in the Mainland in RSV.
Chow Tai Fook Jewellery Group Limited is the largest jeweller listed in Hong Kong by market capitalisation.
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