Chow Tai Fook net dives 44pc

June Chen and Bloomberg

Chow Tai Fook Jewellery (1929) saw its net profit plunged by more than 44 percent year-on-year to HK$2.5 billion in the first-half as fluctuating gold prices dampened demand.

The drop in net profit came as the company's revenue fell by over 20 percent for the period year-on-year to HK$39.4 billion.

The company declared an interim dividend of HK$0.2 per share.

It said retail sales during the period from October 1 to November 18 - which included the Golden Week holiday - dropped 15 percent year-on-year, with retail sales on the mainland dropping by more than 14 percent.

Chow Tai Fook announced yesterday it would commit up to HK$2 billion from its internal resources to a share buy-back.

Meanwhile, its rival Luk Fook Holdings (0590) announced a net profit of HK$434 million for the half-year ended September, down 53.9 percent year-on-year, due to lower gold products sales caused by the surge in gold prices.

Luk Fook's revenue fell 27 percent to HK$5.4 billion versus a year ago.

It proposed an interim dividend of HK$0.55 apiece.

These came as rising gold prices also lifted the company's gross profit margin by 4.9 percentage points to 32.7 percent.

Gold price has surged more than 25 percent this year, fueled by central bank purchases and the US Federal Reserve's pivot to rate cuts.

Most banks remain positive about the outlook, with Goldman Sachs and UBS eyeing further gains in 2025.

In other news, fashion company Moiselle International (0130) said its deficit in the first-half expanded by 54 percent to HK$23.6 million due to weak demand in China because of the economic slowdown.