2025-06-13 09:23Revenue Performance - Chow Tai Fook Jewellery Group reported a revenue increase of 15% year-over-year, reaching HKD 30 billion for the fiscal year[29]. - The Group's revenue decreased by 17.5% year-on-year to HK$89,656 million in FY2025, while operating profit grew by 9.8% to HK$14,746 million[31]. - Revenue for FY2025 decreased by 17.5% to HK$89,656 million due to macroeconomic factors and high gold prices affecting consumer sentiment[89]. - Revenue from Mainland China fell by 16.9%, while revenue from Hong Kong, Macau, and other markets declined by 20.6% during FY2025[164]. - Revenue in Mainland China fell 16.9% to HK$74,556 million in FY2025, with wholesale revenue declining by 17.5% due to weakened demand[192]. Sales Growth and Performance - The Group's same-store sales growth was 12% in mainland China, driven by strong demand for gold and diamond products[29]. - Same store performance in Mainland China improved quarter by quarter, while Hong Kong and Macau showed signs of stabilization towards the end of the financial year[31]. - Same-store sales growth (SSSG) in Mainland China was reported at -19.4%[43]. - Same-store sales growth (SSSG) in Mainland China for the year ended March 31, 2023, was -13.1%, a significant decline from 11.1% in 2022[49]. - Same-store sales (SSS) in Mainland China declined by 19.4% in FY2025, with franchised stores performing better than self-operated stores[172]. Profitability and Margins - The Group's gross profit margin improved to 30%, up from 28% in the previous year, indicating better cost management and pricing strategies[29]. - The operating profit margin expanded by 400 basis points to 16.4%, driven by an improved product mix and disciplined cost management[31]. - Gross profit margin expanded by 550 basis points to 29.5%, while operating profit margin increased by 400 basis points to 16.4%, attributed to an improved product mix and disciplined cost management[153]. - The return on equity for the year ended March 31, 2023, was 16.5%, down from 19.9% in 2022[46]. - The return on equity reached 21.9% in FY2025, showing sustained improvement against the 5-year historical average of 18.4%[154]. Strategic Initiatives and Future Plans - The company plans to open 100 new retail locations in the next fiscal year, expanding its footprint in both domestic and international markets[29]. - Future guidance estimates a revenue growth of 10-15% for the upcoming fiscal year, supported by ongoing market expansion and product innovation[29]. - The company aims to capture long-term growth potential through five strategic priorities: brand transformation, product optimisation, accelerated digitalisation, operational efficiency, and talent cultivation[88]. - The Group is committed to brand transformation, which is expected to enhance competitiveness and long-term growth prospects[148]. - The strategic initiatives have resulted in higher store productivity than the average during the initial months post-opening of the new image stores[114]. E-commerce and Digital Strategy - E-commerce sales grew by 25%, contributing to 20% of total revenue, reflecting the success of the omni-channel retail strategy[29]. - The company has allocated HKD 500 million for technology investments to enhance its e-commerce platform and customer experience[29]. - E-commerce contributed 5.8% in retail sales value (RSV) and 13.8% in volume to Mainland performance during FY2025, driven by the establishment of an in-house livestreaming studio and enhanced social media promotions[135]. - During FY2025, e-commerce sales in Hong Kong and Macau surged by approximately 91%, attributed to a revamped brand website and successful launches of key IP collections[140]. - Chow Tai Fook Jewellery's technology initiatives have automated production and logistics processes, improving operational efficiency through data-driven insights and AI tools[124]. Product Innovation and Collections - Chow Tai Fook introduced three new signature jewellery collections that combine traditional craftsmanship with modern designs, aiming to attract younger consumers[29]. - The CTF Rouge Collection and Chow Tai Fook Palace Museum Collection each achieved sales of approximately HK$4 billion, exceeding annual targets[31]. - The CTF Joie Collection was launched in April 2025, integrating culturally significant designs aimed at enhancing customer engagement[96]. - The Chow Tai Fook Jewellery Group launched two new iconic product lines, the CTF Chuan Fu and CTF Gu Gong series, which have exceeded sales expectations since their introduction[101]. - The launch of the exclusive CTF PET jewellery in March 2025 marks the company's entry into the pet jewellery market, tapping into the growing pet economy[116]. Market Conditions and Challenges - The average London gold price increased by 40.7% year-on-year for FY2025, significantly impacting the company's financial performance[182]. - The jewellery sales in Hong Kong experienced a year-on-year decline of approximately 15%, while Macau saw a 25.3% drop in sales value, impacted by economic uncertainty and high gold prices[140]. - The total retail sales of consumer goods in Mainland China grew by 3.3% year-on-year from April 2024 to March 2025, despite a double-digit decline in gold, silver, and jewellery retail sales[133]. - The Group will continue to monitor government policies and gold price movements to guide business decisions amid external volatility[148]. - Weight-based gold products experienced a revenue decline of 29.4% in FY2025, while fixed-price gold products surged by 105.5%[168].