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RAPAPORT... Chow Tai Fook's revenue jumped 34.8 percent year on year to $10 billion (HKD 77.4 billion), while cost of goods sold soared 36.7 percent to $7.3 billion (HKD 56.3 billion) for the fiscal year the ended on March 31. Same-store sales increased 18.6 percent, with the strongest improvement out of the Hong Kong, Macau and Taiwan business region where comparable-store sales jumped 20.1 percent, while comparable-store sales rose 17.2 percent for Mainland China. Ecommerce sales were up by 90.7 percent, according to the company's statement. Profit increased 31.2 percent to $970 million (HKD 7.5 billion). By operating segment, retail sales totaled $8.7 billion (HKD 67.2 billion) and wholesale revenue contributed $1.3 billion (HKD 10.2 billion) during the fiscal year. The average unit selling price for gem-set jewelry in Mainland China fell 5.8 percent to $870 (HKD 6,743), while gold unit prices dropped 16.5 percent to $452 (HKD 3,503). Similar declines were reported for Hong Kong, Macau and Taiwan with the average gem-set jewelry unit sale down 8.4 percent to $1,814 (HKD 14,062) and gold product units down 16 percent to $699 (HKD 5,417). Revenue across product group was driven by strong gold sales, which surged 43.9 percent year on year to $6.1 billion (HKD 47.4 billion). Gem-set jewelry sales increased 24 percent to $2.1 billion (HKD 16.3 billion), while platinum product sales rose 23.8 percent to $1.3 billion (HKD 10.4 billion). Watch sales improved 12.7 percent to $439 million (HKD 3.4 billion). Chow Tai Fook's inventory level rose 55.8 percent to $5.5 billion (HKD 42.5 billion) at the close of its financial year. The company cut and polished 198,000 carats of diamonds during the period, which was up from 189,000 carats in the previous year. Chow Tai Fook operates four diamond cutting and polishing sites, including a new facility in Botswana. The company also licensed the "Magic Square" diamond collection through Crossworks Manufacturing of Canada. Chow Tai Fook added 241 points-of-sale in the fiscal year, bringing the total to 2,077 across more than 470 cities. Additionally, products are sold through ecommerce platforms such as Tmall and JD.com in addition to its own domain. The company expects to open 200 new points-of-sale this year, mainly in tier III and lower tier cities in Mainland China leveraging franchisees’ deep local knowledge of local consumer behavior.
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