Hong Kong jeweller Chow Tai Fook Jewellery Group said profits rose in the first half of its fiscal year ending September 30, 2021 on the back of resilient demand for gold jewellery alongside rapid business expansion in mainland China. 

Profit attributable to shareholders jumped 60.4 per cent to HK$3.58 billion (around US$460 million) while revenues were up 79.1 per cent to HK$44.18 billion (around US$5.67 billion).

Demand for gold jewellery remained strong during the period in review, buoyed by the continued popularity of product offerings aimed at a younger clientele such as the CTF • HUÁ Collection as well as a relatively soft international gold price. 

Data from the World Gold Council showed that gold prices reached US$1,742.80 per ounce by end-September compared to US$1,767.65 per ounce in April and around US$1,900 per ounce in the beginning of January 2021.

Business in China benefitted from a more stable Covid-19 situation coupled with generally favourable economic conditions and improved consumer sentiment. Revenues from the mainland rose sharply by 81.7 per cent, thanks to steady demand and opening of new stores. 

Hong Kong, Macau and other markets meanwhile saw a 63 per cent year-on-year spike in revenues largely due to increased local consumer spending.

While growth is expected to slow in 2HFY2022 due to a more sluggish retail market in China, prospects remain bright, according to the group. Chow Tai Fook is counting on continued macroeconomic improvements, solid retail expansion strategies and digital initiatives to support the business.

“We expect that the retail market will gradually recover upon reopening of the border crossings,” the jeweller said. “Going forward, the mainland China market remains the core part of the group’s retail expansion strategy and we shall push forward to capture more market share. Apart from this, digital transformation will be one of the key drivers of sustainable development.”