Financial Performance - Revenue for the first half of FY2024 increased by 6.4% year-on-year to HK$49,526 million, with a growth of 11.3% on a constant exchange rate basis[13]. - Core operating profit rose by 37.7% to HK$5,989 million, exceeding revenue growth, driven by optimized pricing strategies and operational efficiency[13]. - Adjusted gross profit margin improved by 140 basis points year-on-year to 23.8%, while core operating profit margin expanded by 280 basis points to 12.1%[13]. - Profit attributable to shareholders for the period was HK$4,551 million, with earnings per share of HK$0.46[25]. - The Group's profit attributable to shareholders increased by 36.4%, primarily due to the surge in gold prices and effective pricing strategy optimization[112]. - The Group's major operating profit increased by 37.7% year-on-year to HK$5,989 million, with a corresponding profit margin of 12.1%[113]. - The SG&A expenses decreased by 4.5% to HK$6,150 million, with the SG&A ratio improving by 140 basis points to 12.4%[126]. - The overall retail value growth was 10.8% in 1HFY2024, with gold jewellery and products growing by 15.1%[155]. Store Operations and Expansion - As of September 30, 2023, there were 7,458 CHOW TAI FOOK JEWELLERY points of sale in Mainland China, focusing on enhancing store productivity and customer experience[13]. - The total number of Chow Tai Fook Jewellery stores increased to 7,458 as of September 30, 2023, with a net addition of 189 stores during the period[153]. - A total of 189 new Chow Tai Fook Jewellery points of sale (POS) were opened in Mainland China during 1HFY2024, with a gross opening of 333 stores and 144 closures[169]. - The company is reviewing its store segmentation strategy to enhance store productivity and customer experience[62]. - The number of retail points in Mainland China increased to 7,699, while Hong Kong saw a slight decrease to 67[28]. Market Trends and Consumer Behavior - Same-store sales growth (SSSG) in Mainland China was reported at (3.5)% for the latest period, while Hong Kong and Macau experienced a significant decline of (27.5)%[28]. - The return of Mainland tourists has significantly boosted store traffic, particularly in Hong Kong and Macau, contributing to business recovery[36]. - Retail sales volume in Mainland China reached 10,724,000 units, while Hong Kong and Macau recorded 925,000 units[28]. - Retail sales value (RSV) in Hong Kong, Macau, and other markets surged by 58.5% during 1HFY2024, with average daily customer traffic increasing by 51.1% year-on-year[75][76]. Product Development and Marketing - The brand revamp is progressing with the launch of new designs for the HUÁ Collection and the first-ever 360-degree global marketing campaign in 1HFY2024[13]. - The Group made notable progress in rationalizing its product portfolio and optimizing the product planning process, successfully launching new designs of the HUÁ Collection and the HEARTS ON FIRE brand's VELA Collection[47]. - A centralized marketing strategy was implemented in 1HFY2024 to promote consistent brand recognition, maximizing the impact of global marketing efforts[50]. - The HEARTS ON FIRE brand launched the VELA Collection during 1HFY2024, featuring signature cut diamonds[55]. Economic and Industry Context - China's economy is showing steady recovery, supported by government policies aimed at boosting consumer spending and urbanisation[32]. - The government’s focus on domestic consumption is expected to support retail and economic activity in Mainland China, Hong Kong, and Macau[82][84]. - The jewellery market in ASEAN countries is expected to benefit from increased tourism spending and robust local demand due to regional economic recovery[85]. Strategic Initiatives - The company is focusing on five strategic priorities: brand revamp, product optimisation, accelerated digitalisation, operational efficiency, and talent cultivation to enhance competitiveness[30]. - The Group aims to enhance earnings quality and returns to equity and capital while focusing on five strategic priorities to sustain growth[43]. - The Group is focused on nurturing a people-first workplace culture and strengthening talent development as part of its strategic growth roadmap[46]. Inventory and Cash Management - The inventory turnover period was 312 days as of September 30, 2023[26]. - The company reported a net cash from operating activities of HK$7,919 million for the six months ended September 30, 2023[27]. - The net assets per share as of September 30, 2023, were HK$2.7, with a net gearing ratio of 75.3%[26]. E-commerce and Digital Sales - E-commerce contributed 4.6% to the RSV and about 11% in volume during the first half of FY2024[67]. - The e-commerce business accounted for approximately 4.6% of retail sales value (RSV) in Mainland China, with an average selling price (ASP) increasing to HK$2,100 in 1HFY2024 from HK$1,800 in 1HFY2023[159].

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% year-on-year to HK$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% to HK$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%[29] - Core operating profit was HK$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]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生 或因依賴該等內容而引致的任何損失承擔任何責任。 CHOW TAI FOOK JEWELLERY GROUP LIMITED 周 大 福 珠 寶 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） 股份代號：1929 截 至2023年3月31日 止 年 度 全 年 業 績 公 告 及 由2023年4月1日 至5月31日 未 經 審 核 之 主 要 經 營 數 據 周大福珠寶集團有限公司董事會，欣然宣佈本公司及其附屬公司截至2023年 3月31日 止 年 度 的 經 審 核 業 績。本 公 告 列 載 本 公 司 的2023年 報 全 文，並 符 合 香港聯合交易所有限公司證券上市規則中有關業績初步公告的相關規定。 2023 CORPORATE PROFILE 企 業 簡 介 Chow Tai Fook Jewellery Group Limited (the “Group”; SEHK stock code: 1929) was listed o ...

Revenue and Profitability - Revenue for the first half of FY2023 reached HK$46,535 million, an increase of 5.3% year-on-year[9]. - Core operating profit decreased by 2.7% year-on-year to HK$4,349 million[11]. - Profit attributable to shareholders for the period was HK$3,336 million, with earnings per share of HK$0.33[23]. - Earnings per share for the period increased by 6.8% year-on-year to HK$0.33[11]. - Profit attributable to shareholders decreased by 6.8% to HK$3,336 million, primarily due to a net foreign exchange loss from the weakening of RMB[31]. - The Group's adjusted gross profit margin decreased by 110 basis points year-on-year to 22.4%, primarily due to a higher share of lower-margin wholesale business and gold products[78]. - The Group's core operating profit decreased by 2.7% year-on-year to HK$4,349 million, with a corresponding margin of 9.3% in 1HFY2023[96]. Retail Network Expansion - The retail network expanded to 6,948 points of sale (POS) as of September 30, 2022, with a net addition of 933 CHOW TAI FOOK JEWELLERY POS in Mainland China during the period[9]. - As of September 30, 2022, Chow Tai Fook had 6,547 retail points of sale (POS) in Mainland China, with a net movement of 933 and a same-store sales growth (SSSG) of 7.8% for the first half of FY2023[17]. - The Group aims to reach 7,000 POS in Mainland China by the end of FY2023, supported by franchise partners[69]. - The Group opened a net of 933 retail points in Mainland China during the period, demonstrating resilience despite macroeconomic challenges[76]. Market Performance - HEARTS ON FIRE achieved a retail sales value (RSV) increase of 62.6% in Mainland China and 50.2% in Hong Kong and Macau on a year-on-year comparable basis[9]. - Same-store sales growth (SSSG) in Mainland China was 4.9%, while Hong Kong and Macau saw a significant increase of 24.4%[27]. - Total retail sales in Mainland China for the first nine months of 2022 increased by 0.7% year-on-year, with gold, silver, and jewellery retail sales rising by 2.2%[45]. - Retail sales volume in Mainland China reached 6,258,000 units, while Hong Kong and Macau recorded 1,543,000 units[27]. Financial Position - The interim dividend per share is HK$0.22, with a net gearing ratio of 50.1% as of September 30, 2022[15]. - The company reported a net current asset of HK$27,438 million as of September 30, 2022[24]. - Total assets increased to HK$91,048 million, while total liabilities were HK$58,470 million[24]. - The net gearing ratio was reported at 50.1%, indicating a significant increase compared to previous periods[24]. Cost Management and Expenses - SG&A expenses increased by 4.0% to HK$6,440 million, mainly due to a low base from a one-off writeback of approximately HK$190 million in doubtful debts during the first half of FY2022; excluding this writeback, SG&A expenses increased by 0.9%[114]. - The company implemented a disciplined cost management strategy to control SG&A expenses during the period[114]. - The selling, general and administrative (SG&A) ratio increased by 60 basis points to 23.7%, with fixed expenses contributing approximately 70% of SG&A in 1HFY2023[172]. Strategic Initiatives - The Group established a Strategy and Transformation Committee to align business with five key priorities, including targeted brand positioning and accelerated digitalization[30]. - The Group aims to develop potential markets and differentiated products to expand its customer base in Mainland China, anticipating a gradual economic recovery[36]. - The Group plans to focus on elevating brand positioning, optimizing product portfolio, enhancing operational efficiency, nurturing talent, and building a data-driven culture for future growth[73]. Customer Engagement and Marketing - The company has implemented a range of themed campaigns linked to festivals to deepen customer relationships and enhance consumption during peak periods[52]. - The Group's marketing activities resonated well with young consumers, particularly during festive celebrations, leading to year-on-year sales growth[58]. - Distribution of coupons via CloudSales 365 effectively increased sales at physical stores during various campaigns[161]. E-commerce and Digital Growth - E-commerce RSV recorded double-digit growth in the first half of FY2023, driven by intensified omni-channel marketing and digital customer engagement[57]. - The e-commerce channel in Mainland China achieved an RSV growth of 15.1% in 1HFY2023, maintaining a share of about 5.0% of total RSV[163]. Economic and Market Conditions - The Mainland's GDP grew by 3.0% year-on-year in the first nine months of 2022, supported by government initiatives to boost consumer demand, although consumer sentiment remained cautious[45]. - Macau's visitor arrivals increased by 68% month-on-month in September 2022 as pandemic restrictions eased, which is crucial for the region's economic recovery[48]. - The overall sales performance in the Mainland was significantly impacted by the pandemic in the first quarter, while improvements were noted in Hong Kong and Macau[93].

Revenue Growth - Revenue increased by 41.0% to HK$98,938 million in FY2022, driven by strong demand for gold jewellery and retail network expansion in Mainland China [10] - For the fiscal year ended March 31, 2022, Chow Tai Fook Jewellery Group reported revenue of HK$98,938 million, a significant increase from HK$70,164 million in the previous year, representing a year-on-year growth of 40.2% [21] - Revenue from Mainland China increased significantly by 45.6%, contributing 87.9% to the Group's total revenue [132] - In Hong Kong, Macau, and other markets, revenue grew by 63.0% year-on-year in 1HFY2022, but full-year growth was moderated to 14.7% due to pandemic impacts [132] - The Group's revenue surged 41.0% to HK$98,938 million in FY2022, driven by strong demand for gold jewellery and products, as well as wholesale business in Mainland China [133] Profitability - Gross profit rose by 11.3% to HK$22,340 million, but adjusted gross profit margin declined by 480 basis points to 23.4% due to higher sales contribution from wholesale business and gold products [10] - The gross profit margin decreased to 22.6% in FY2022 from 28.6% in FY2021, indicating a decline in profitability despite increased revenue [21] - Core operating profit increased by 15.9% to HK$10,002 million, with a core operating profit margin of 10.1% benefiting from favorable operating leverage [10] - Profit attributable to shareholders grew by 11.4% to HK$6,712 million, with earnings per share at HK$0.67 and a proposed final dividend of HK$0.28 per share, totaling a full-year dividend of HK$0.50 [37] - The adjusted gross profit margin declined by 480 basis points in FY2022, primarily due to increased sales from the wholesale business and gold jewellery, which collectively impacted the margin by 300 basis points [165] Retail Network Expansion - Retail network expanded to 5,902 points of sale (POS) as of 31 March 2022, with a net addition of 1,311 POS during the financial year [10] - The total number of retail points in Mainland China increased to 5,764 in 2022, up from 4,452 in 2021, indicating market expansion [25] - The Group opened 1,361 new retail points in Mainland China during the fiscal year, enhancing its retail network [127] - A net of 1,361 CHOW TAI FOOK JEWELLERY POS were opened in Mainland China during FY2022, with over half located in Tier III, IV, and other cities [197] E-commerce and Digital Transformation - E-commerce and smart retail applications contributed 5.2% and 3.4% respectively to the retail sales value (RSV) in Mainland China, totaling 8.6% and expanding by 140 basis points during FY2022 [10] - E-commerce sales accounted for 8.6% of the total retail sales volume, highlighting the growing importance of online channels [19] - E-commerce displayed outstanding RSV growth of 63.0% in FY2022, attributed to strong performance in public domains and increased consumer sentiment on both third-party marketplaces and the Group's self-operated platform [74] - The Group's CloudSales 365 connected with over 8 million customers by March 31, 2022, recording double-digit RSV growth during the fourth quarter despite a slowdown in offline sales [76] - The Group is enhancing its technological and digital transformation to support its Dual-Force Strategy, aiming to solidify its market leadership [112] Market Performance - Same-store sales growth (SSSG) in Mainland China was 11.1% for FY2022, while Hong Kong and Macau experienced a much higher SSSG of 24.7% [18] - Same-store sales growth (SSSG) in Mainland China was 11.1% for the year 2022, recovering from a decline of 15.1% in 2020 [25] - In Hong Kong and Macau, same-store sales growth was 24.7% in 2022, recovering from a decline of 41.3% in 2021 [25] - Same-store sales in Mainland China decreased by 11.3% in Q4 FY2022, but recorded a significant annual growth of 11.1% [148] - Same-store sales in Hong Kong and Macau increased by 24.7% for FY2022, with Macau achieving a remarkable growth of 96.9% due to recovering tourist consumption [148] Financial Health - Net gearing ratio increased to 28.5% as of 31 March 2022, compared to 19.4% in the previous year [14] - Net assets per share rose to HK$3.5 as of 31 March 2022, up from HK$3.2 in 2021 [14] - The net current assets increased to HK$28,496 million, up from HK$26,101 million in the previous year, indicating improved liquidity [22] - Chow Tai Fook's return on equity (ROE) for FY2022 was 19.9%, reflecting strong profitability relative to equity [22] - The company achieved a net increase in cash and cash equivalents of HK$8,688 million in 2022, a significant turnaround from a decrease of HK$1,404 million in 2021 [24] Strategic Initiatives - The company continues to focus on expanding its business territory through regional distributors and franchisees, particularly in Tier III and below cities in Mainland China [10] - Chow Tai Fook is enhancing its market development strategies and driving innovation in product design and craftsmanship to meet changing consumer needs in the Mainland [38] - The company is optimizing smart retail applications and utilizing data analysis to make timely business decisions and enhance operational efficiency [43] - Chow Tai Fook plans to continue expanding its presence in lower-tier cities to capture untapped demand for jewellery products [61] - The company is committed to sustainable development guided by the principles of Craftsmanship, Obligation, Delight, and the Environment [56] Operational Efficiency - The inventory turnover period improved to 272 days, down from 312 days in FY2021, suggesting better inventory management [22] - The automation rate of production lines rose from about 14% in FY2020 to 35% in FY2022, significantly enhancing production efficiency [96] - Approximately 40% of the total product distribution volume in FY2022 was managed by the automated logistics center [96] - The production capacity per craftsman increased by approximately 40% year-on-year in FY2022 [96] - The D-ONE platform offers a 24-hour customization service, with some products completed in 10 days, which is half the previous production time [96]