2021-06-15 22:04Financial Performance - For the year ended March 31, 2021, the Group reported a revenue of HK$70,164 million, representing a year-on-year increase of 23.6%[11] - The core operating profit for the same period was HK$8,630 million, reflecting a significant year-on-year growth of 51.7%[11] - The earnings per share increased to HK$0.60, marking a year-on-year rise of 107.7%[11] - The gross profit for the same period was HK$20,075 million, resulting in a gross profit margin of 28.6%, up from 28.4% in 2020[22] - Profit attributable to shareholders increased to HK$6,026 million, reflecting a significant rise from HK$2,901 million in 2020[22] - The adjusted gross profit margin decreased year-on-year, but core operating profit rose by 51.7% in FY2021[132] - The Group's profit attributable to shareholders increased by 107.7% compared to FY2020, and rose by 31.3% on a two-year basis compared to FY2019[132] Dividend and Shareholder Returns - The full year dividend payout ratio was 66.4%, with a proposed final dividend of HK$0.24 per share[13] - The company declared a full year dividend of HK$0.40 per share, with a dividend payout ratio of 66.4%[22] - Earnings per share for FY2021 was HK$0.60, with a proposed final dividend of HK$0.24 per share, resulting in a full-year payout ratio of approximately 66.4%[39] Market Performance and Sales Growth - For the year ended 31 March 2021, same-store sales growth (SSSG) in Mainland China was 31.9% compared to (15.1)% in the previous year[25] - Same-store sales growth (SSSG) in Hong Kong and Macau was (41.3)% for the year ended 31 March 2021, compared to (38.7)% in the previous year[25] - Retail sales volume in Mainland China reached 15,893,000 units for the year ended 31 March 2021, an increase from 12,699,000 units in 2020[25] - Retail sales volume in Hong Kong, Macau, and other markets dropped to 1,189,000 units for the year ended 31 March 2021, down from 2,392,000 units in 2020[25] Operational Efficiency and Cost Management - The Group's SG&A expenses were HK$6,921 million in 2HFY2021, representing 15.2% of revenue, a decrease from 21.3% in 2HFY2020[153] - SG&A expenses increased by 2.5% to HK$11,849 million, with the SG&A ratio contracting by 350 basis points to 16.9% due to effective cost control[171] - Advertising and promotion expenses decreased by 15.4% during the year, reflecting effective cost management strategies[171] Retail Expansion and Market Strategy - The Group's extensive retail network spans Greater China, Japan, Korea, Southeast Asia, and the United States, supported by a fast-growing e-commerce business[4] - The Dual-Force Strategy focuses on retail expansion and smart retail as key drivers for future growth[46] - The company continues to deepen collaborations with major e-commerce platforms in Mainland China, enhancing its reach to a broader customer base[84] - Chow Tai Fook Jewellery continues to implement a retail expansion strategy focusing on Tier I and II cities, enhancing store experiences to cater to sophisticated customers[75] E-commerce and Digital Transformation - The company is leveraging e-commerce platforms like Tmall and JD.com to enhance customer engagement and access, with a focus on livestreaming sales models[81] - CloudSales 365, a smart mobile tool, was used by over 40,000 staff to reach more than 3.7 million customers, achieving an ASP and sales conversion rate significantly higher than e-commerce platforms[83] - The COVID-19 pandemic accelerated the company's digital transformation efforts, making it a top priority during the fiscal year 2021[115] Customer Engagement and Loyalty - The membership program showed that repeat purchases accounted for 29.4% of retail sales value in Mainland China and 44.1% in Hong Kong and Macau[21] - The company initiated partnerships with social media influencers to attract target customers, integrating CloudSales 365 with its CRM system for improved customer service[93] Awards and Recognition - The company received multiple awards in 2020, including Asia's Best CEO and Asia's Best CFO at the 10th Asian Excellence Award[26] - The company was recognized with a Gold Award for its traditional annual report in the ARC Awards 2020[28] - Chow Tai Fook was awarded the Lifetime Achievement Award at the JNA Awards 2020 for Kent Wong[30] Future Outlook and Market Trends - The Group is optimistic about the mid-to-long-term growth of the Mainland China market, driven by domestic consumption and rising disposable income[42] - The company expects rapid growth in the consumer market in Mainland China in the coming years, supported by the "dual circulation" strategy and the 14th Five-Year Plan[54] - The domestic market in Hong Kong and Macau is expected to recover gradually as the pandemic situation stabilizes and major border crossings reopen[125]