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RAPAPORT... Chow Tai Fook's profit slumped 25.7 percent year on year to $714 million (HKD 5.536 billion) for the fiscal year that ended March 31. As reported earlier, company revenue fell 17 percent to $8.3 billion (HKD 64.277 billion). However, gross profit margin as a percentage of sales rose to 29.7 percent compared with 27.3 percent one year earlier. The company attributed weaker sales to an "exceptionally high base effect" following consumers' rush to buy gold in early 2014, along with weaker consumer sentiment this year in Hong Kong and Macau. Margins improved, however, this year as a result of growth in gem-set jewelry, which carries a higher margin. Chow Tai Fook's chairman, Henry Cheng, said, “In spite of the headwinds in fiscal year 2015, continuous urbanization and a growing middle class have us convinced that growth opportunities still abound in Mainland China and the group will continue to focus on Greater China, while maintaining our leadership position throughout the region. We will continue with our efforts in different areas of our business to further the distinctive strengths of the Chow Tai Fook brand. Integrating our online and offline channels, leveraging technology to introduce brand new experiences for our customers, rewarding our most loyal customers and, last but not least, maximizing our operational efficiency are our guiding principles.” Ecommerce revenue during the period rose 29.3 percent year on year due to strong social media and mobile platform engagement. Chow Tai Food partnered with WeChat to deploy a Bluetooth-based iBeacon for location-based marketing that resulted in "resounding success" in generating sales. In celebration of the firm's 85th anniversary, the retailer partnered with Forevermark, Platinum Guild International, Rio Tinto and the World Gold Council to create 14 sets of "Reflections of Siem" jewelry, which resulted in an "overwhelming response" at auction. Wedding jewelry remained a core part of the mass luxury segment, contributing 40 percent of sales value during the period compared with 30 percent in previous years.
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