Chow Tai Fook Jewellery Group Ltd’s retail business in China, Hong Kong and Macau recorded steady improvements during the period ended June 30, 2017, the company’s unaudited key operational data showed.
The Hong Kong-based retailer said retail sales value (RSV) during the first three months of fiscal year 2018 was 17 percent higher in mainland China, while a 7 percent increase in RSV was recorded in Hong Kong and Macau.
It also reported year-on-year improvements in same store sales for mainland China, and Hong Kong and Macau, of 11 percent and 5 percent, respectively.
In product terms, same store sales of gold products in mainland China, and in Hong Kong and Macau, were up 16 percent and 9 percent, respectively, mainly due to an increase in the average selling price (ASP). Gem-set jewellery sales rose 3 percent in mainland China but dropped 4 percent in Hong Kong and Macau.
According to Chow Tai Fook, ASP of gold products in mainland China increased to HK$3,600 (around US$461) from HK$3,000 (around US$384) a year ago. Hong Kong and Macau figures also rose to HK$7,100 (around US$909) from HK$6,800 (around US$871).
“The increase in ASP was primarily attributable to the gain in the average weight per gold product sold. The average international gold price stayed flat when compared to the same period last year,” noted the jeweller.
Chow Tai Fook’s e-commerce business in mainland China also contributed significantly to RSV growth, registering a 140 percent year-on-year increase during the period in review. The company also said online sales of low ASP gold products partially supported an improvement in same store ASP of gold products in self-operated stores.
As of June 30, 2017, Chow Tai Fook has a total of 2,409 points of sales.
In another development, Chow Tai Fook brought home four awards from the 7th Asian Excellence Award 2017, which recognised the company’s frontrunners for advocating best practices in corporate governance and investor relations.
Organised by Corporate Governance Asia, this year’s Asian Excellence Awards named Chow Tai Fook’s Kent Wong as Asiaʼs Best CEO (Investor Relations); Hamilton Cheng as Asiaʼs Best CFO (Investor Relations); and Danita On as Best Investor Relations Professional.
The company was also recognised as Best Investor Relations Company (Hong Kong).
Wong, Chow Tai Fook’s managing director, commented, “We are proud that Chow Tai Fook has achieved remarkable results in the 7th Asian Excellence Award 2017. These accolades are strong testimonials to our unwavering efforts in upholding best practices in corporate governance and investor relations. We are committed to enhancing transparency and interactive engagements with a wide spectrum of stakeholders.”