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RAPAPORT... Chow Tai Fook reported that revenue surged 48.5 percent year on year to $4.87 billion (HKD 37.78 billion), while cost of goods jumped 48.4 percent to $3.6 billion (HKD 27.79 billion) for the six months that ended on September 30. Same-store sales grew 33.2 percent. Group profit increased 90.4 percent to $464 million (HKD 3.6 billion) and net profit margin rose to 9.5 percent from 7.4 percent one year ago. Sales of gem-set jewelry increased 14.9 percent to $664 million (HKD 6.64 billion), while gold product sales skyrocketed 74.4 percent to $3.2 billion (HKD 24.6 billion). Platinum product sales jumped 23.9 percent to $645 million (HKD 5 billion) and watch sales were flat at $193 million (HKD 1.5 billion). Chow Tai Fook noted that revenue improved primarily from an increase in gold product and wholesale business sales. Mainland China business grew 38.3 percent year on year to $2.5 billion (HKD 19.42 billion), while revenue from Hong Kong and Macau and other regional markets increased 61 percent to $2.4 billion (HKD 18.35 billion). The price of gold experienced a sharp decline in the second quarter of 2013, which the company stated provided a great incentive to sell gold products. The jewelry business remained particularly sensitive to changes in China's economy; however, the group capitalized on growth opportunities with gem-set jewelry, its reputation for delivering high-quality and authentic jewelry products and it tailored collections to a younger generation that was eager to spend. Chow Tai Fook stated that the wedding jewelry business contributed a significant share of growth. Among some of the marketing initiatives this year, it launched the ''Disney Princess'' and Rio Tinto fashion jewelry ''Caprice'' collections for the mid-range market and unveiled the ''Ombre di Milano'' high-end jewelry line to capture the affluent market.
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