周大福(01929) - 2023 - 年度财报

Revenue Performance - Revenue for FY2023 declined by 4.3% year-on-year to HK$94,684 million, impacted by the pandemic in Mainland China, particularly in 3QFY2023[9] - Revenue for the year ended 31 March 2023 was HK$94,684 million, a decrease of 4.3% compared to HK$98,938 million in the previous year[29] - For FY2023, Chow Tai Fook's revenue decreased by 4.3$94,684 million, and core operating profit fell by 5.6% to HK$9,439 million[42] - Revenue in Mainland China decreased by 6.1$81,623 million in FY2023, with a slight decline of 0.6% on a constant exchange rate basis[130] - Retail revenue in Hong Kong, Macau, and other markets increased by 14.3% in FY2023, driven by the recovery of business in Hong Kong[168] Profitability Metrics - Adjusted gross profit margin improved by 30 basis points to 23.7% during FY2023, while core operating profit margin remained stable at 10.0%[9] - Gross profit for the same period was HK$21,172 million, resulting in a gross profit margin of 22.4$9,439 million, with a core operating profit margin of 10.0%[29] - Profit attributable to shareholders was HK$5,384 million, with earnings per share of HK$0.54[29] - Profit attributable to shareholders decreased by 19.8% in FY2023, primarily due to a decline in core operating profit and increased unrealised losses on gold loans[90] Retail Network Expansion - As of March 31, 2023, the total number of CHOW TAI FOOK JEWELLERY POS in Mainland China reached 7,269, surpassing the target of 7,000 for FY2025[9] - The total number of retail points across all markets reached 7,655 as of March 31, 2023, an increase from 6,081 in the previous year[32] - The Group opened a net of 1,631 Chow Tai Fook Jewellery points of sale in Mainland China during FY2023, supported by franchisees[89] - Approximately 90% of the new retail points opened during the financial year were franchised, primarily located in shopping malls and street shops[159] Customer Engagement and Sales Growth - Same-store sales growth (SSSG) in Mainland China decreased by 13.1% for the year ended March 2023, compared to an increase of 11.1% in the previous year[32] - Same-store sales growth (SSSG) in Hong Kong & Macau was 18.3% for the year ended March 2023, compared to a decrease of 41.3% in the previous year[32] - The company aims to enhance store productivity of the existing retail network and deliver exceptional customer experience as part of its future growth plan[9] - Bridal jewellery demand surged with RSV growth exceeding 170% in Hong Kong and Macau in Q4 FY2023, reflecting pent-up consumer demand[68][70] Strategic Initiatives - The Group's strategic priorities include targeted brand positioning, product optimization, operational efficiency, talent cultivation, and accelerated digitalization[9] - The Group aims to enhance brand positioning and customer loyalty through a revamped loyalty program and centralised marketing strategies[84] - The Group is committed to optimising operational efficiency by strengthening franchise management and improving production efficiency[85] - A data-driven culture and digital transformation initiatives are being promoted to enhance business performance and customer experience[85] Market Conditions and Economic Outlook - Mainland China's GDP growth target for 2023 is around 5%, with signs of economic recovery supported by government investment and consumption stimulus measures[53] - The government’s supportive policies in Mainland China are expected to drive retail and economic activity, with a GDP growth target of around 5%[81] - The return of Mainland Chinese tourist spending is anticipated to further recover business in Hong Kong and Macau, benefiting from increased foot traffic[81] Awards and Recognition - The company received the "Best CEO" and "Best CFO" awards, ranking 1st in the Institutional Investor 2022 All-Asia Executive Team Rankings for Consumer/Discretionary category[33] - The company was recognized as the "Most Honored Company" in the same rankings, indicating strong investor relations performance[33] - The company won the "Best Annual Report" award at the HKIRA 8th Investor Relations Awards, highlighting its commitment to transparency and communication[33] - The company achieved a Silver Award for Overall Presentation in the International Annual Report Design Awards 2022, showcasing its excellence in reporting[34] Financial Position - The net gearing ratio as of March 31, 2023, was 27.6%, compared to 28.5% in the previous year[12] - Non-current assets as of 31 March 2023 totaled HK$10,074 million, while total assets were HK$87,341 million[30] - The net current assets were HK$26,245 million, with current liabilities of HK$51,022 million[30] - Operating cash flows before movements in working capital were HK$11,619 million for the year[31]