Hong Kong jeweller Chow Tai Fook reported double-digit gains during its fiscal year 2024, on the back of robust consumption in key markets alongside improved tourism.

Group revenues for the year ending March 31, 2024 were up 14.8 per cent to HK$108.71 billion (around US$14 billion) while profit attributable to shareholders rose 20.7 per cent to HK$6.5 billion (approximately US$832.3 million).

Core operating profit reached HK$12.16 billion (about US$1.6 billion), up 28.9 per cent from fiscal year 2023.

“During FY2024, mobility and retail activity continued to improve in China, Hong Kong and Macau,” the group said. 

Retail sales value (RSV) saw an overall growth of 20.4 per cent. RSV in Hong Kong and Macau were up 32 per cent and 53.2 per cent, respectively, supported by sustained recovery in inbound tourism, largely from China.

RSV in China, meanwhile, was up 17.3 per cent, led by progressive ramp-up of CTF stores that were opened over the past four years as well as steady sales of gold products during festivals.

“Robust domestic demand and the rise of the middle class continued to support economic recovery across Southeast Asia while the resurgence of tourist arrivals from the mainland further bolstered the region’s retail recovery,” noted Chow Tai Fook.

Business was likewise aglow in other markets such as Singapore, Malaysia, Canada and duty-free shops in Hainan, China, with an RSV growth of 118.9 per cent.

The retailer also cited heightened appreciation for Chinese gold jewellery as demonstrated by resilient jewellery consumption during holidays.

Similarly, effective management of points-of-sale (POS) networks was instrumental to Chow Tai Fook’s growth. As of March 31 this year, the retailer has a total of 7,403 POS in China. Over 50 per cent of its total stores in China were opened in the last two to four years, so the company expects progressive ramp-up and maturity of these stores to boost its profitability in the medium term.