Chow Tai Fook Jewellery Group Limited (CTF) announced FY2016 annual results (for the year ended 31 March 2016) on 7 June 2016. During FY2016, CTF recorded a revenue of HK$56,591.5 million (FY2015: HK$64,277 million), with a decline of 12 percent year-on-year. Gross profit dropped 18 percent to HK$15,641.4 million (FY2015: HK$19,072.4 million). Excluding the unrealised hedging loss on gold loans, net foreign exchange loss and amortisation of other intangible assets, core operating profit was down by 24.5 percent to HK$5,050 million (FY2015: HK$6,690.8 million). Profit attributable to shareholders decreased by 46.1 percent to HK$2,941 million (FY2015: HK$5,456 million).
CTF said the decline in revenue is mainly attributable to the continual weak consumer sentiment and the diversion of Mainland tourists to other overseas’ travel destinations as US dollar strengthened. Revenue contribution from the jewellery business in mainland China increased steadily to 56.3 percent of the CTF’s revenue in FY2016, while revenue contribution from Hong Kong, Macau and other markets went further down to 39.2 percent. Revenue mix from gem-set jewellery showed a gradual increase to 27.4 percent during the year, while that from gold products also increased to 55.3 percent due to a surge of demand for gold products as gold price tumbled in July and August last year.
In FY2016, CTF opened a net of 62 points-of-sale, bringing a total of 2,319 points-of-sale as at 31 March 2016. CTF’s e-commerce business in mainland China recorded a remarkable year-on-year growth of 51.7 percent in retail sales value (RSV) measured at constant exchange rates and contributed 2.3 percent of the respective RSV in FY2016. Average daily traffic of CTF’s major e-commerce channels including Chow Tai Fook e-Shop, Tmall and JD.com accounts reported an increase of unique daily visitors to 268,000, while the number of followers on Sina Weibo, Tencent Weibo and WeChat accounts reached more than 2.3 million followers.
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