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RAPAPORT... Chow Tai Fook reported that revenue rose 61 percent year on year to $7.3 billion (HKD 56.57 billion), while cost of sales jumped 60 percent to $5.2 billion (HKD 40.12 billion) for the year that that ended on March 31. Same-store sales increased 40.3 percent. Gross profit margin increased to 29.1 percent from 28.3 percent one year earlier. Retail sales accounted for about 83 percent of total revenue with wholesale sales representing 17 percent. Net income surged 79 percent to $847 million (HKD 6.57 billion). Chow Tai Fook had 1,627 points of sale at the close of its financial year, up from 1,358 one year earlier. Gold product sales represented the bulk of revenue during the year at $3.8 billion (HKD 29.7 billion) and gem-set jewelry was the second-strongest category at $2 billion (HKD 15.4 billion). The diamond jewelry firm, which is a Diamond Trading Company (DTC) and Rio Tinto sightholder, launched its initial public offering in December 2011. Profit attributable to shareholders amounted to $829 million (HKD 6.34 billion), or HKD 68.5 cents per share, a 79 percent year-on-year increase. Revenue growth was mainly driven by the expansion of the company's point of sale network, continued strong expansion of Mainland China’s overall economy and increasing demand for jewelry especially for event-driven and festive celebrations, according to the firm. Chow Tai Fook observed that its business growth in Mainland China rose 64 percent, while Hong Kong, Macau and other Asian markets recorded a 58 percent rate of growth.
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