Ge Long Hui·2025-11-29 20:14Core Viewpoint - The company reported a slight decline in revenue for the first half of FY2026, but a marginal increase in net profit, indicating resilience amid challenges. The board declared an interim dividend, reflecting confidence in future performance [1]. Financial Performance - FY2026H1 revenue reached HKD 38.986 billion, a year-on-year decrease of 1.1% - Net profit attributable to shareholders was HKD 2.534 billion, showing a slight increase of 0.1% - The board declared an interim dividend of HKD 0.22 per share [1]. Sales and Profitability - Same-store sales in mainland China increased by 2.6% in FY2026H1, with Q1 and Q2 showing contrasting trends of -3.3% and +7.6% respectively - Gross margin for FY2026H1 was 30.5%, down by 0.9 percentage points, benefiting from rising gold prices and a higher proportion of high-margin priced jewelry [1]. - Revenue from priced jewelry, gold jewelry, and watches showed year-on-year changes of +9.3%, -3.8%, and -10.6% respectively, with priced jewelry performing well [1]. Regional Performance - Revenue from mainland China decreased by 2.5%, while revenue from markets outside mainland China increased by 6.5% - Mainland China accounted for 82.6% of total revenue, a decrease of 1.2 percentage points [1]. Brand Transformation and Product Optimization - The company is actively optimizing store quality and efficiency, closing 611 stores in mainland China, resulting in a total of 5,663 stores at the end of FY2026H1, with 27.3% being direct-operated and 72.7% franchised [1]. - The company opened 8 new image stores in FY2026H1, enhancing brand appeal [2]. - Sales of signature priced products, including the Chao Fu, Chuan Xi, and Palace Museum series, reached HKD 3.4 billion in FY2026H1, with the proportion of priced gold products in mainland China increasing to 31.8%, up by 4.4 percentage points [2].