周大福(01929) - 2024 - 中期业绩

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].