2023-06-08 08:30Revenue Performance - Revenue for FY2023 declined by 4.3% year-on-year to HK$94,684 million due to the impact of the pandemic in Mainland China, particularly in Q3 FY2023[10] - Revenue for the year ended March 31, 2023, was HK$66,661 million, an increase from HK$56,751 million in 2022, representing a growth of 19.5%[30] - The Group's revenue decreased by 4.3% to HK$94,684 million in FY2023, with Mainland China revenue down by 6.1% and accounting for 86.2% of total revenue[97] - Revenue in Mainland China decreased by 6.1% to HK$81,623 million, while on a constant exchange rate basis, revenue slightly declined by 0.6%[131] - Revenue from Hong Kong, Macau, and other markets increased by 8.8% for the financial year, benefiting from the reopening of borders and pent-up bridal demand[98] 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%[10] - Core operating profit for the year was HK$6,972 million, up from HK$5,687 million in the previous year, reflecting a growth of 22.6%[30] - Profit attributable to shareholders of the Company was HK$4,577 million, compared to HK$2,901 million in the previous year, representing an increase of 57.9%[30] - Profit attributable to shareholders decreased by 19.8% to HK$5,384 million, with earnings per share at HK$0.54[43] - The adjusted gross profit margin improved by 30 basis points to 23.7% in FY2023, driven by better margins on gold jewellery amid rising gold prices[121] Operational Efficiency - The Group's strategic priorities for FY2023 include targeted brand positioning, product optimization, operational efficiency, comprehensive talent cultivation, and accelerated digitalization[10] - The company plans to focus on attracting talent, promoting performance, and enhancing training and development programs in FY2024[76] - The company implemented a disciplined cost management strategy, with fixed expenses contributing approximately 50% to SG&A expenses in FY2023[128] - Operational efficiency will be enhanced through improved franchise management and streamlined raw material workflows[87] - The company advanced supply chain automation, enhancing efficiency and productivity through the latest technology in production lines, resulting in faster and more precise quality inspections[77] Market 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[10] - The number of retail points in Mainland China increased to 7,519 in 2023, up from 5,943 in 2022, indicating market expansion[33] - The total number of retail points across all markets reached 7,655 in 2023, up from 6,081 in 2022, showcasing growth in distribution[33] - Chow Tai Fook opened 1,631 net new stores in FY2023, reaching a total of 7,269 POS in Mainland China, two years ahead of schedule[68] - The number of retail points for Chow Tai Fook Jewellery increased to 7,269 as of March 31, 2023, up from 5,638 in the previous year[149] Consumer Behavior - The number of repeat purchases by members in Mainland China was 32.3%, while in Hong Kong and Macau, it was 48.8%[29] - Same-store sales growth (SSSG) in Mainland China for 2023 was (13.1)%, compared to 11.1% in 2022, reflecting a downturn in performance[33] - Same-store sales growth (SSSG) in Hong Kong and Macau reached 96.5% in 4QFY2023, resulting in an annual SSSG of 18.3%[106] - Same-store sales in Hong Kong increased by 36.6% in FY2023, while Macau experienced a decline of 17.8% for the full year, although it returned to positive growth in 4Q[106] - Bridal jewelry RSV growth exceeded 170% in Hong Kong and Macau in Q4 FY2023, reflecting pent-up demand[71] Financial Stability - The net gearing ratio as of March 31, 2023, was 27.6%, down from 28.5% in 2022, indicating improved financial stability[31] - The full year dividend payout ratio, excluding special dividends, was 76.5%, compared to 82.7% in the previous year[30] - The company reported a net cash decrease of HK$ (2,421) million in 2023, contrasting with a net increase of HK$ 8,688 million in 2022[32] - For the year ended 31 March 2023, operating cash flows before movements in working capital were HK$ 11,619 million, a slight decrease from HK$ 11,984 million in 2022[32] - Net cash from operating activities for 2023 was HK$ 10,066 million, down from HK$ 13,938 million in 2022, indicating a significant decline[32] Strategic Focus - The Group aims to strengthen competitiveness and enhance earnings quality through proactive and responsive operational approaches[42] - The company emphasizes preserving and passing on the art of Chinese jewellery-making through training opportunities and academic research initiatives[48] - Chow Tai Fook is committed to responsible business practices to generate long-term, sustainable value for communities and the environment[49] - The Group's strategic focus includes quality expansion and building long-term business resilience amid ongoing macroeconomic uncertainties[41] - A focus on data-driven culture and digital transformation is set to optimize business performance and enhance customer experience across channels[86] Awards and Recognition - The company received multiple awards, including Best CEO and Best CFO, highlighting strong governance and investor relations[34] - The Central Government of Mainland China set a GDP growth target of around 5% for 2023, which is expected to positively impact retail and economic activity[44] - The Central Government of China set a GDP growth target of around 5% for 2023, indicating a recovery in the economy[54]