周大福(01929) - 2023 - 中期财报

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].