China’s leading jeweller Chow Tai Fook registered a 3.9% growth in net profit for the financial year ended March 31, 2017, marking a return to profit after a couple of years. The turnaround was on the back of a stronger second half, though the Company was reported to have told the media that a full fledged recovery was still some time away.

The jeweller reported profits of HK$3.06 billion as against HK$2.94 billion profit a year ago. It said that revenue for the year decreased by 9.4% to HK$51,246 million when compared to HK$56,592 million in FY2016, though revenue grew by 4.4% year-on-year in 2HFY2017, which was “a remarkable improvement” compared to a 23.5% year-on-year decline in 1HFY2017.

Revenue dropped more sharply (by 11.8%) in HK and Macau, than in Mainland China which registered a fall of 7.9%. While Hong Kong, Macau and other markets returned to a revenue growth of 0.8% during 2HFY2017, Mainland China recorded an even stronger rebound of 6.8% year-on-year, the jeweller stated. Mainland China accounts for over 60% of the total revenue.

Gold products contributed more to revenue in FY2017, especially during 2HFY2017 as gold prices weakened, reaching a share of 60.1% in 2HFY2017. Contribution of gem-set jewellery to overall revenue in 2HFY2017 declined to 24%, the jeweller said.

Same Store Sales (SSS) in Mainland China and in Hong Kong and Macau recorded a decline of 5.2% and 12.4%, respectively. Significantly, SSS growth in both markets returned to positive in 4QFY2017; it being the first time Hong Kong and Macau recorded a positive quarterly SSSG after 12 consecutive quarters of decline, while SSS of Mainland China rebounded to a 8.2% growth in 2HFY2017, versus a 19.2% decline in 1HFY2017.

During the year, Chow Tai Fook saw its retail network expanding to 2,381 POS, with a net addition of 62 POS in FY2017.