CHOW TAI FOOK-周大福(01929) - 2025 - 中期业绩

Revenue Performance - The Group's revenue decreased by 20.4% year-on-year to HK $39,408 million in 1HFY2025[19] - Revenue for the six months ended September 30, 2024, was HK$ 39,408 million, a decrease of 20.4% year-over-year[44] - Revenue in Mainland China decreased 18.8%, while the share of Mainland business to the Group's revenue grew slightly to 83.8%[139][140] - Revenue from gold jewellery and products fell 21.6%, contributing 79.4% to the Group's revenue, a decrease of 70 basis points[146][149] - Revenue from gem-set, platinum, and k-gold jewellery and watches declined by 20.0% and 12.5% respectively during the period[148][150] Profitability Metrics - Operating profit for the same period was HK $6,776 million, reflecting a year-over-year increase of 4.0%[25] - Operating profit margin expanded by 400 basis points to 17.2% due to disciplined cost management[19] - Profit attributable to shareholders decreased 44.4% in 1HFY2025, primarily due to losses from the revaluation of gold loan contracts amid high gold price volatility[136] - The gross profit margin improved by 650 basis points to 31.4% during the period, driven by better retail like-for-like margin amid rising gold prices[19] - The average London gold price increased by 18.8% year-on-year in 1HFY2025, contributing to improved margins[180] Sales Performance - Same-store sales growth (SSSG) in Mainland China decreased by 25.4% in 2024, following a decline of 3.5% in 2023[48] - In 1HFY2025, same-store sales (SSS) for self-operated stores in Mainland China decreased by 25.4%, while franchised stores saw a decline of 19.6% due to a higher proportion of newer stores[156][157][158] - In Hong Kong and Macau, SSS dropped by 30.8%, with Hong Kong experiencing a decline of 27.6% and Macau a significant drop of 40.7%[159] - The sales mix in gold jewellery and product Retail Sales Value doubled year-on-year to 14.2% in Mainland China during the period[18] Strategic Initiatives - The Group is focused on brand transformation to elevate brand desirability, showing positive momentum in 1HFY2025[16] - The Group is implementing targeted online-to-offline strategies to strengthen competitiveness in the omni-channel retail environment[7] - The company is focused on five strategic priorities: brand transformation, product optimisation, accelerated digitalisation, operational efficiency, and talent cultivation to enhance long-term competitiveness[72] - The company plans to progressively roll out refreshed stores over the next five years, aligned with market conditions[74] - The Group is actively prospecting new growth opportunities in travel retail and overseas markets, particularly in Southeast Asia[58] Cost Management - The company implemented effective cost management strategies to closely manage SG&A expenses during the financial period[187] - Selling, general, and administrative expenses (SG&A) as a percentage of revenue were reported at 15.2%[182] - SG&A expenses decreased by 2.8% to HK$ 5,978 million, while the SG&A ratio increased by 280 basis points to 15.2% due to a larger decline in revenue compared to cost savings[187] Market Conditions - The Central Government's economic stimulus policies are expected to support market recovery and growth opportunities[20] - Easing policies from China's regulators since late September have reinforced confidence in the long-term growth potential of China's economy and jewellery industry[57] - The decline in revenue in Mainland China was attributed to macro-economic uncertainties affecting overall demand in the industry[192] Inventory and Cash Flow - The inventory turnover period increased to 457 days, indicating a longer time to sell inventory compared to previous periods[46] - Operating cash flows before movements in working capital increased from HK $5,421 million in 2021 to HK$ 7,526 million in 2023, representing a growth of 38.8%[48] - Net cash from operating activities increased significantly to HK $7,919 million in 2023 from HK$ 3,253 million in 2021[48] New Product Launches - The signature CTF Rouge Collection achieved over HK$1.5 billion in Retail Sales Value since its launch in April 2024[17] - The Chow Tai Fook Palace Museum Collection, launched in August, reflects the company's commitment to innovation and differentiation, inspired by the Museum's imperial artifacts[83] - The introduction of the CTF Bond Collection in September features innovative designs, including the 2-Prong Bond Ring, which enhances the brilliance of diamonds[84] - The new CTF Dare to Love Collection, featuring a two-claw diamond ring, was introduced in September, symbolizing eternity and showcasing innovative design techniques[88] Retail Expansion - The Group opened its first new concept store in Central, Hong Kong, in September 2024, enhancing customer experience[17] - The total number of retail points increased to 7,586 in 2024, up from 7,458 in 2023, reflecting market expansion efforts[48] - The company closed a net of 239 retail points in Mainland China during the period, with plans to open a new five-story flagship store in Shanghai by 2025[106] E-commerce and Digital Initiatives - E-commerce contributed 5.6% to the company's Mainland performance in retail sales value (RSV) and 13.4% in volume during the first half of FY2025[105] - The online flagship store has integrated an AI recommendation engine to provide personalized product suggestions based on customer shopping behavior[108] - An augmented reality (AR) try-on service was introduced in the CTFMall mini-program to improve customer satisfaction and confidence in purchases[104]