Chow Tai Fook’s profit up by 107% in FY2021

Chow Tai Fook Jewellery Group’s annual results for the fiscal year 2021 showed the company’s profit grew by 107.7 per cent to $775.83 mn. This was a considerable improvement from a loss of 36.6 per cent in FY2020.
The turnaround is attributed to robust market fundamentals in China coupled with solid online sales and effective retail expansion strategies during the year ending March 31, 2021. The group also attributes its positive performance to recovery in the China market amid a challenging business environment.
Chow Tai Fook’s retail network expanded to 4,591 points of sale (POS) as of March 31, 2021, with a net addition of 741 POS. The group opened 746 POS during the year in review, 669 of which were Chow Tai Fook Jewellery shops. Chow Tai Fook’s e-commerce and O2O-related retail business meanwhile recorded 91.8 per cent growth in FY2021.
Henry Cheng, chairman of Chow Tai Fook Jewellery Group said: “Market volatilities in the past year presented opportunities for innovators to maintain competitive advantage. In pursuit of long-term and steady business development, the group accelerated digital transformation efforts in the smart retail arena and expanded its retail network across online and offline channels.”
The company also claims that it is optimistic about the mid-to-long-term growth in the mainland China market, and so will focus on China’s business development in the future. It will continue its retail expansion strategy and push forward its smart retail strategy by focusing on O2O channel integrations to take advantage of digital transformation.

Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished