Hong Kong-based Chinese jewellery chain Chow Tai Fook Jewellery Group Ltd (CTF) reported record revenue for its fiscal year ended March 31, 2024.
According to the data, during FY2024, CTF increased revenue by 14.8% year-on-year to HK$108.7 million ($13.9 million), while core operating profit increased by 28.9% to HK$12.2 million ($1.5 million). Core Operating Profit margin enhanced by 120 basis points to 11.2%, the company noted.
As Chow Tai Fook Jewellery Group Chairman Henry Cheng said, the company approached its 95th anniversary with confidence in the future and aspiration to become "the world's leading jewelry brand and a trusted lifelong partner for every generation."
Mainland China, a critical market for Chow Tai Fook, posted revenue growth of 9.9% during the fiscal year. The growth was supported by a strong holiday season and a steady increase in the number of new stores opened over the past 2-4 years. At constant exchange rates, underlying growth would be 14.1%, representing 82.5% of the group's total revenue.
Chow Tai Fook experienced strong revenue growth of 45.6% in Hong Kong, Macau and other markets, mainly due to the continued recovery in inbound tourism. Retail revenue in these regions rose 40.4%, boosted by the return of tourists from mainland China, while wholesale revenue soared 85.6%, driven by a recovery in duty-free business in Hainan province.
In addition, other international markets saw a strong recovery, with retail sales up 118.9%, especially in duty free stores in Singapore, Malaysia, Canada and Hainan. This growth was largely driven by local demand and increased tourism, the company explained.
Chow Tai Fook's strategic initiatives, including expansion into popular tourist destinations and regions with significant Chinese communities, are expected to drive further growth. The Group's focus on aligning its business model with local market conditions ensures maximum return on investment, particularly in the rapidly recovering markets of Southeast Asia.
“We have refreshed our brand image with a series of new consumer-focused logos that reflect the brand's rich heritage in a modern and dynamic manner,” Cheng said. “Our new store in Hong Kong Central with a refreshed image will also be launched in the third quarter of 2024.”
According to the group's chairman, the company introduced the CTF Rouge collection, inspired by shades of red and the auspicious symbol of good luck. “This collection is a powerful embodiment of Chinese culture, our innovation and craftsmanship, and features timeless designs using natural diamonds, pearls, enamel and gold,” he said. The company also introduced new gold and dragon-themed jewelry designs such as Dragon of HUÁ Collection and Dragon of Fortune. “The products met holiday demand and were well received by the market,” Cheng said. “Our signature HUÁ gold jewelry collection, which combines traditional craftsmanship and contemporary designs, continued to receive positive feedback from consumers and saw sales growth of approximately 20% in fiscal 2024.”
The continued positive momentum in Mainland China's retail sector, particularly in the jewellery market, indicates a steady economic recovery. The National Bureau of Statistics of China reported a 7.2% year-on-year increase in total retail sales of consumer goods in 2023, with jewellery sales rising by 13.3%.
Hélène Tarin, Editor in Chief of the Asian Bureau, Rough&Polished
