Chow Tai Fook (01929) announced annual results. Profit attributable to shareholders of HK$5.916 billion decreased by 8.97% year-on-year

According to the Zhitong Finance App, Chow Tai Fook (01929) announced the annual results for the year ended March 31, 2025. The collective achieved turnover of HK$89.656 billion, a year-on-year decrease of 17.53%; profit attributable to the company's shareholders was HK$5.916 billion, a year-on-year decrease of 8.97%; profit per share was HK$0.59, and a final dividend of HK$0.32 per share was paid.

In fiscal year 2025, external macroeconomic factors and high gold prices affected consumer appetite. The Group's turnover fell 17.5% year-on-year to HK$89.656 billion. Despite this, operating profit remained resilient, increasing 9.8% year over year to HK$14.746 billion. High-margin products brought about an improvement in the product portfolio. Coupled with high gold prices and strict cost and capital controls, the operating profit margin increased by 400 pips to 16.4%. The Group's return on equity reached 21.9%, continuing to improve from the historical average of 18.4% over the past five years.

As we continue to advance our five strategic policies and respond positively to evolving market trends, the performance of our mainland stores continued to improve quarterly in fiscal year 2025, while the performance of our stores in Hong Kong and Macau stabilized at the end of this fiscal year.

We have made significant progress in brand transformation this fiscal year, opening five new image stores in the Mainland and Hong Kong. This high-standard store showcased a renewed brand image and a redefined retail experience, enhanced our brand appeal, improved our product portfolio, and achieved higher productivity than an average store in the first few months after opening.

We continuously optimize our product portfolio to provide products with different positions to meet the preferences and emotional resonance of the customer base. Our priced-price gold products continue to be favored by customers due to their iconic design and exquisite craftsmanship, and their turnover soared by 105.5% year over year. Meanwhile, its share of retail value in the mainland's gold jewellery and product categories also increased sharply from 7.1% last year to 19.2%.

Our new iconic pricing product lines, the Chow Tai Fook Chuen Fu series and the Chow Tai Fook Palace series, have been selling well since their launch. Both reached approximately HK$4 billion in sales this fiscal year, exceeding the annual target. We are also responding to the younger generation's pursuit of emotional value and selected IP partnerships. This initiative not only helps nurture the next generation of gold jewellery consumers, but also enhances brand appeal.

We respond flexibly to market uncertainty and fluctuations, and firmly implement the five major strategic policies to maintain business resilience and market leadership. Our strategic initiatives have effectively increased store productivity and had a positive impact on financial performance in fiscal year 2025.