Chow Tai Fook Jewellery Group said revenue grew 6.4 percent to HKD 49.5 billion (USD 6.35 billion) during the first half of fiscal 2024, citing a return of mainland China tourists to Hong Kong and Macau, as well as growth in Southeast Asia.
The Hong Kong-based firm touted the return of mainland tourists as “significantly” boosting store traffic and contributing to the recovery of businesses in various regions.
In Greater China, Hong Kong and Macau experienced a “rapid acceleration,” proving popular destinations for Chinese tourists. The company also said that business recovery in ASEAN (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam) is also gaining strong traction, supported by both domestic consumption and tourist expenditure.
In mainland China, total retail sales of consumer goods grew by 7.3 percent in the April-September period, driven by demand for gold jewellery and products, thanks to a heightened appreciation among younger customers for Chinese culture and craftsmanship, as well as the gold price surge on the mainland.
As a result of the sales uptick, profit attributable to shareholders of the company grew by 36.4 percent to HKD 4.6 billion, while earnings per share was HKD 0.46.
“China’s economy continues to demonstrate steady recovery in 2023, thanks to an effective policy support, such as National Development and Reform Commission’s consumption stimulus to encourage spending in rural areas and boost consumer sentiment,” said the company in a press release.
“In the mid-to long-term, the Central Government’s strong commitment to fostering growth in middle-income group, coupled with goals for urbanisation, further bolsters the country’s economic outlook. We have confidence in the Mainland China jewellery market. Aligning our efforts in the five strategic priorities, we are committed to building an even stronger brand that resonates with the next generation customers.”
In a bid to enhance its brand equity and appeal to a new generation of shoppers, Chow Tai Fook announced in June plans to relaunch its brand identity, with a gradual roll-out of redesigned stores, displays, and packaging, and a revamped loyalty programme.
The first refreshed store is set to be unveiled in Hong Kong next summer, said the company.