Chow Tai Fook Reported Retail Sales Value Growth of 31.1% in 4QFY2021

On January 11, the Hong Kong-based Chow Tai Fook Jewelry Group Ltd. released unaudited key operational data for the three months ended December 31, 2021.

For the three months, the Group’s retail sales value had increased by 31.1% year-on-year. The growth was narrowing down, compared with 55.8% in Q3 and 69.8% in Q2.

Specifically, retail sales value in Mainland China had grown by 38.8% year-on-year and accounted for 88.8% of the total RSV of the Group. The retail sales value in Hong Kong, Macau and other markets had dropped by 8.7% year-on-year and accounted for 11.2% of the total.

In Q3, same store sales steadily increased by 10.7% in Mainland China and by 9.9% in Hong Kong and Macau.

Compared with the previous quarter, settlement by paying agencies like China UnionPay, Alipay, WeChat Pay as well as CNY settlement had accounted for 33.8% of the total retail sales value in Hong Kong and Macau, up from 27.2% of last quarter, which is roughly equivalent to the sales value contributed by tourists from Mainland China.

As the Group leveraged the franchise model to advance its retail expansion strategy, the retail sales value growth of its franchised stores had outdone that of its same store sales of self-operated stores. The retail sales value of Chow Tai Fook’s franchised stores had grown markedly by 65.2% in this quarter compared with the same period of FY2020.

The Group opened a net of 432 POS in Mainland China during the quarter. The Group’s retail network expanded to 5646 POS as 31 December 2021. 76.5% of the group’s POS in Mainland China were in franchised format.

Retail sales value and sales volume of Smart Retail had grown drastically by 74.1% and 87.7% respectively year-on-year in mainland China, accounting for 10.4% of the retail sales value in mainland China in this quarter.

The Group unfolded the Dual-Force Strategy in Sep. 2021, which sets out two major growth drivers - retail expansion and smart retail. The group will continue to expand its retail network in mainland China while stepping up the application of advanced retail technologies and smart manufacturing.

| Photo Credit: Chow Tai Fook