Fashion
Chow Tai Fook Jewellery Group Limited, a Hong Kong Main Board listed company with over 90 years of heritage, today announces its interim results for the six months ended 30 September 2020.
The Group’s revenue declined by 16.5% to HK$24,673 million in 1HFY2021. Gross profit remained stable at HK$8,143 million. The adjusted gross profit margin was lifted to 35.1% in 1HFY2021, thanks to the improvement in the like-for-like gross profit margin of gold products resulted from the surge of international gold price. Core operating profit benefitted from the adjusted gross profit margin improvement with core operating profit margin widened to 16.5% in 1HFY2021. The Group’s profit before taxation increased by 49.3% to HK$3,284 million.
Profit attributable to shareholders of the Company increased by 45.6% to HK$2,232 million mainly benefitted from our like-for-like gross profit margin improvement, one-off government subsidies and rent concession, plus foreign exchange gain, netting off impairment on assets. Basic earnings per share were reported at HK$0.22. The Board has declared an interim dividend of HK$0.16 per share. The payout ratio approximates 71.7% in 1HFY2021.
While business in Mainland China witnessed a steady recovery on the back of the easing COVID-19 situation in 2QFY2021, performance in Hong Kong, Macau and other markets remained lackluster. Thus, Same Store Sales (“SSS”) in Mainland China stayed flat in 1HFY2021 supported by a positive Same Store Sales Growth (“SSSG”) in 2QFY2021 as business activities and consumer sentiment revived. In Hong Kong and Macau, SSS was down by 65.7% during the period as customer traffic remained stagnant.
