Chow Tai Fook Publishes Annual Results For FY2013

Chinese jewelry chain Chow Tai Fook has published its annual report for the 2013 financial year ended March 31, 2013, stating that its total operating revenue saw slight growth to HKD57.434 billion; and its profit attributable to shareholders decreased by 13.6% year-on-year to HKD5.505 billion.

According to the company's statistics over the past five years, its operating revenue only increased by 1.5%. For net profit, the company saw a decrease for the first time over the past five years. In 2009, its net profit was HKD1.897 billion; in 2010, it was HKD2.139 billion; in 2011, HKD3.538 billion; and in 2012, HKD6.341 billion.

The report showed that the 2013 financial year was full of uncertainties and challenges, especially the global economic depression and the retail growth slowdown in Chinese mainland and Greater China. In addition, its administrative costs, marketing expense, and rents all increased, leading to the unsatisfied net profit.

By the end of March 2013, Chow Tai Fook had 1,836 retail sites, an increase of 209 sites compared with the last financial year. Of these 1,836 retail sites, 94.3% are located in mainland China. The report said that the company's overall same-store sales decreased by 3.3% compared with 2012 financial year.

In regards to retail site expansion, Chow Tai Fook will continue to focus on the development in third-tier and below cities in mainland China. Meanwhile, they will keep on establishing strategic partnerships with department stores and fully play the popularity advantage of the department stores as the first choices of shopping, especially in the first- and second-tier cities. In addition, based on macroeconomic changes and trend of specific markets, they will frequently review their retail expansion plan.

Chow Tai Fook also showed interest in online business and said they will enhance investment in various e-commerce tools and platforms while reinforcing e-marketing.