Chow Tai Fook Jewellery Group Limited (“Chow Tai Fook Jewellery Group”, the “Group” or the “Company”; SEHK stock code: 1929), today announces certain unaudited key operational data of the Group for the three months ended 31 March 2024 (the “Fourth Quarter”, or the “Quarter” or “4QFY2024”).

Steady RSV Growth Supported by Strong Festive Demand

The Mainland and Hong Kong and Macau were benefitted from strong festive demand during 4QFY2024. Despite macro challenges, the Group’s RSV registered steady growth of 12.4% during the Quarter.

In the Mainland, SSS moderated 2.7% year-on-year during the Quarter given the high base last year following the relaxation of pandemic-related restrictions. RSV of franchised CHOW TAI FOOK JEWELLERY stores remained resilient, increasing 18.3% during the Quarter, supported by the ramp up in store productivity, quality store opening over the past 12 months and an optimised portfolio of strong-performing stores.

In Hong Kong, Macau and other markets, the continued recovery of inbound tourism has been supportive to the business.  RSV of Hong Kong, Macau and other markets grew 12.8% during the Quarter, despite a very high base in the same period of last year. In Hong Kong and Macau, SSS increased by 4.5%. Same Store Sales Growth (“SSSG”) grew by 8.9% for Hong Kong while Macau dropped by 7.1%.

We continued to enhance digital customer engagement and stay agile in our product planning when targeting online consumers. E-commerce in Mainland China contributed to 3.9% in RSV and 10.4% in volume in the Quarter.

Resilient Demand for Gold Jewellery and Products

Demand for gold jewellery and products remained resilient in the Quarter due to the growing interest in gold jewellery among young consumers. Our successful launch of dragon-themed products, including a new design of HUÁ Collection, captured positive consumption momentum for the Lunar New Year celebration. With the Dragon’s auspicious meaning in Chinese culture, zodiac-themed gold jewellery and ornaments gained overwhelming response.

In the Mainland, SSS of this product category was up by 3.4% during the Quarter. Average Selling Price (“ASP”) was resilient at HK$5,700 (4QFY2023: HK$5,200). In Hong Kong and Macau, SSS of the product category surged by 16.6%, thanks to inbound tourism from the Mainland and strong festive demand. Its ASP also rose to HK$7,500 (4QFY2023: HK$7,000).

Amid the current macro environment, the consumption of gem-set jewellery, which is more discretionary in nature, was more cyclical and muted. Against this backdrop, SSS of the gem-set, platinum and k-gold jewellery category declined during the Quarter in the Mainland and Hong Kong and Macau. Encouragingly, however, we are seeing a stabilising trend in our gem-set sales, by both value and volume since last October. Our gem-set sales in Mainland China grew by 27.6% in this Quarter compared to 3QFY2024. In the Mainland, the Same Store ASP of gem-set jewellery was steady at HK$8,200 (4QFY2023: HK$8,400), while that of Hong Kong and Macau was HK$15,800 (4QFY2023: HK$17,900).

On Track in Transition to Higher Value Growth

Despite macro headwinds beyond our control, we are firmly focused on a bottom-up approach in diligently executing the planned initiatives under our five strategic priorities to sustain our growth trajectory. We continue to stay nimble and prepared with our financial and operational resources, paying close attention to consumers’ spending to calibrate our growth strategy accordingly.