Chow Tai Fook reported a significant boost in revenue, driven primarily by strong festive demand across its key markets. For the financial year ending 31st March, 2024, the group’s revenue increased by 14.8% to HK$108,713 million, with a constant exchange rate growth of 18.5%.
Mainland China, a critical market for Chow Tai Fook, saw a revenue growth of 9.9% during the financial year. This growth was underpinned by a robust festive season and the steady ramp-up of new stores opened over the past two to four years. On a constant exchange rate basis, the underlying growth would be 14.1%, contributing to 82.5% of the group’s total revenue.
Chow Tai Fook experienced a remarkable revenue climb of 45.6% in Hong Kong, Macau, and other markets, largely thanks to the continued recovery in inbound tourism. Retail revenue in these regions surged by 40.4%, supported by the return of Mainland tourists, while wholesale revenue soared by 85.6%, driven by the rebound of the duty-free business in Hainan Province.
In addition, other international markets saw a robust recovery, with retail sales value (RSV) growth of 118.9%, particularly in Singapore, Malaysia, Canada, and Hainan’s duty-free shops. This growth was significantly aided by local demand and the increase in tourism.
Chow Tai Fook’s strategic initiatives, including the expansion in popular tourist destinations and regions with significant Chinese communities, are expected to further drive growth. The Group’s focus on aligning its business model with local market conditions ensures that investments yield maximum returns, especially in the fast-recovering Southeast Asian markets.
The continued positive momentum in Mainland China’s retail sector, particularly in the jewellery market, indicates a steady economic recovery. The National Bureau of Statistics of China reported a 7.2% year-on-year increase in total retail sales of consumer goods in 2023, with jewellery sales rising by 13.3%.