Mei Ri Jing Ji Xin Wen·2025-11-26 16:11Core Viewpoint - The performance of Chow Tai Fook Jewelry Group has been under pressure due to significant fluctuations in the international gold market since 2025, with a reported revenue decline and challenges in maintaining store numbers amid changing consumer preferences [2][6]. Financial Performance - For the first half of the 2026 fiscal year, Chow Tai Fook reported a revenue of HK$38.986 billion, a year-on-year decrease of 1.1%, marking the lowest level in five years [2][3]. - The net profit attributable to shareholders remained stable at HK$2.534 billion, with earnings per share at HK$0.26 [3]. - The overall gross profit margin for the reporting period was 30.5%, down 0.9 percentage points year-on-year, with a notable decline in the mainland China business gross margin [4]. Market Trends - The high gold prices have led consumers to shift towards lighter and smaller products, with sales of priced jewelry in mainland China increasing by 9.3%, contributing 29.6% to total revenue [5]. - The retail value of priced jewelry in mainland China grew by 16.1%, while the retail value of weight-priced gold jewelry decreased by 5.8%, indicating a shift in consumer purchasing behavior [5]. Store Operations - The number of stores in mainland China decreased by 606 to 5,895, returning to 2022 levels, while the company opened 57 new retail points during the reporting period [6]. - Chow Tai Fook is focusing on optimizing its channel structure and enhancing store efficiency through the opening of new image stores in high-end locations [6]. Online Business Growth - Chow Tai Fook's online retail value in mainland China increased by 27.6%, accounting for 7.1% of total regional retail value, with significant growth in its official mall and Douyin platform [7]. - Despite the rapid growth in online sales, the overall scale remains relatively limited, and the sustainability of this growth amid high competition and costs is yet to be validated [7].