Chow Tai Fook Jewellery Group Limited (01929.HK) presented its interim financial performance report for 2025, covering the six-month period ending on September 30, 2024, on the 26th of this month. The data disclosed in the report indicates a 20.4% year-on-year reduction in revenue to HK$39.408 billion during the period from April 1, 2024, to September 30, 2024. Simultaneously, there was a 4.0% year-on-year upsurge in operating profit, amounting to HK$6.77 billion. Notably, the operating profit margin showed a 4-percentage-point increase year-on-year. The gross margin saw a significant enhancement, rising by 6.5 percentage points to 31.4% during this reporting period.

Amidst the 2025 interim financial year, Chow Tai Fook Jewellery Group Limited (hereinafter referred to as "Chow Tai Fook") unveiled the resilience and transformative impacts of its business operations. Despite facing macroeconomic challenges and substantial gold price fluctuations, Chow Tai Fook experienced a 20.4% year-on-year decline in revenue to HK$39.408 billion. However, amidst these circumstances, the company managed to surpass expectations with a 4.0% growth in operating profit, reaching HK$6.776 billion, showcasing commendable advancements in cost management and operational efficiency enhancements.

Of particular interest is the noteworthy 6.5 percentage point year-on-year increase in Chow Tai Fook's gross margin, reaching 31.4% in the reporting period. This improvement is predominantly attributed to the surge in gold prices and the amplified contribution from priced gold products. Leveraging the escalating gold prices throughout the year, Chow Tai Fook adeptly capitalized on market opportunities by optimizing product offerings and pricing strategies, particularly in the domain of priced gold jewelry, where the retail value contribution of gold jewelry and related product categories doubled year-on-year to 14.2%. Furthermore, since the introduction of the iconic Chow Tai Fook Blessing Series in April, retail value has surpassed HK$1.5 billion, surpassing initial forecasts.

Regarding adjustments in offline store layout, Chow Tai Fook closed a net total of 239 jewelry retail points in mainland China and 3 in the Hong Kong and Macau regions. The company has expressed its commitment to continue utilizing a data-driven approach, selectively opening new stores in accordance with industry trends, and strategically establishing outlets in promising locations such as upscale shopping malls to drive increased revenues and profits. Additionally, Chow Tai Fook is planning to inaugurate its first flagship store in mainland China, located in Shanghai, while advancing brand transformation and digitalization initiatives to strengthen brand appeal and competitive positioning in the market.

Chow Tai Fook emphasized its ongoing endeavors to refine pricing strategies and introduce diverse product combinations tailored to cater to the preferences of various customer segments. Despite subdued overall demand, the group's priced gold jewelry, characterized by intricate craftsmanship and meticulous selection of diverse gemstone materials, has garnered significant customer favor and maintained robust sales performance in the first half of the 2025 financial year.

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