Chow Tai Fook profits decline amid economic slowdown, rising gold prices

Chow Tai Fook Jellewery’s (1929) net profit declined 9 percent to HK$5.9 billion for the year ended in March, blaming the economic slowdown and rising gold prices.

The turnover shrank about 17.5 percent year-on-year to HK$89.6 billion. The sales in Hong Kong, Macau and other markets dived 20.6 percent, citing increases in outbound Hongkongers and the shift in spending habits of mainland tourists.

During April and May, retail sales dipped 1.7 percent. While the turnover in mainland China lost 2.9 percent, Hong Kong, Macau and other markets climbed 6.3 percent.

In terms of same-store growth over the past two months, the mainland market posted a 2.7 percent slide, versus a 1.3 percent rise in Hong Kong and Macau.

The jeweler declared a final dividend of HK$0.32 per share.

STAFF REPORTER