Jeweller - July 2022

News
China's largest jewellery retailer reports strong sales despite lockdown impact
Chow Tai Fook has reported impressive sales revenue
despite the impact of pandemic restrictions.
Chow Tai Fook Jewellery Group, the largest
jewellery retailer in China, has reported a
strong revenue improvement despite the
on-going COVID related lockdowns.
Chow Tai Fook is the world’s second largest
jewellery retailer by market value.
Based on the financial report for the fiscal year
ending 31 March, Chow Tai Fook posted total
revenue of $HK98.9 billion ($AU18.24 billion),
a 41 per cent increase compared with the same
period last year.
Gross profits rose by 11.3 per cent to $HK22.3
billion ($AU4.11 billion), driven by demand for gold
jewellery in mainland China, despite the volatile
market conditions generated by the government’s
response to the pandemic. The market in China is
responsible for approximately 88 per cent of Chow
Tai Fook’s earnings, a 46 per cent compared with
the same period last year.
"Amid an ever-changing business environment,
we are ready to take our business to the next level,
leveraging on the foundation we have built together
over time,” said Henry Cheng, chairman of Chow
Tai Fook.
Hamilton Cheng, Chow Tai Fook’s executive director
for finance and information, noted that the stellar
revenue figure is a good indicator that the market
“has exceeded the pre-COVID level remarkably and
the franchise business is clearly our major growth
driver in recent years.”
Cheng added: “sales in Macau have largely
returned to the pre-pandemic level, thanks to a
recovering tourist spending there.” Sales in Macau
and Hong Kong reportedly increased by 15 per cent.
Cheng also highlighted the company’s “dual-force
strategy” for business expansion, opening an
additional 1,361 stores in China. Chow Tai Fook
now has more than 5,900 stores worldwide.
Newly appointed vice chair Sonia Cheng Chi-Man
said the company will continue to utilise that
strategy throughout the coming year and “continue
to strengthen our collaborations with franchisees
and tap further into the lower tier markets in the
mainland [of China].”
She added that Chow Tai Fook aims to maintain
competitiveness throughout the fiscal year by
focusing on branding, corporate culture and
intellectual capital, as well as sustainability.
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MILLENNIUM_CHAIN
Australian leading wholesaler, specialising in manufacturing
9ct and 18ct yellow gold, rose gold and white gold.
Machine made and hand made, any kind, chains and bracelets,
bangles and findings. Suppliers to retailers and wholesalers.
MILLENNIUM CHAIN
P: 03 9650 5955 | E: sales@millenniumchain.com.au
www.millenniumchain.com.au