Chow Tai Fook Revenues Soar, +61.4% to $7.8 billion

(IDEX Online News) – A surge in revenue and profit for Chow Tai Fook Jewellery as business improves dramatically. The Hong Kong based retailer reported revenue for the fiscal year leaped 61.4 percent to HK$56.57 billion (US$7.79 billion).

Profit for the year ended March 31, 2012 mushroomed 79.2 percent to HK$6.34 billion (US$817.2 million).

The company, a DTC Sightholder, said the improved results were mainly fuelled by the expansion of its POS network and a 40.3 percent growth in same store sales.

Income from its retail operations in Mainland China represented 56.6 percent of the group's retail revenue, as income from the region increased 64.4 percent year-over-year.

Chow Tai Fook states that its market share grew from 12.6 percent in 2010 to 14.4 percent in 2011 in Mainland China and from 20.1 percent to 21.4 percent in Hong Kong and Macau in that same period.

The firm's gold products were the most popular, generating 52.6 percent of income by product category. Revenue of US$1.98 billion from gem-set jewelry represented 27.2 percent of income.

The growth drivers, according to the company, were fuelled by continued strong expansion of Mainland China’s overall economy and increasing demand for jewelry especially for event-driven and festive celebrations.

The company also noted that according to the Frost & Sullivan report, 80 percent of soon-to-be-wed couples in Hong Kong and 65 percent of their counterparts in Mainland China favor diamond rings as a mark for their matrimonial vows.

A DTC Sightholder and Rio Tinto Select Diamantaire, approximately 46 percent of Chow Tai Fook's polished diamonds were produced from rough diamonds polished at their three diamond polishing factories. Two of the factories are in South Africa and the third in Shunde, China.