Hong Kong-based jeweller Chow Tai Fook has reported a net profit increase of 79 per cent for the year to March 31, fuelled by growing Chinese demand.
The jeweller posted a net earnings of HK$6.34 billion (US$817 million) from HK$3.54 billion (US$456 million) from a year earlier. The mainland China, where it held 14.4 per cent market share last year, accounted 56.6 per cent of the company’s total revenue while Hong Kong, Macau and other Asian markets accounted for 43.3 per cent.
Currently, Chow Tai Fook has 1627 stores, 1532 of them in mainland China, with a leaning towards second-tier to fourth-tier cities, which it believes are more resilient to economic downturns. Its network in Hong Kong, Macau and other Asian markets numbers 95 stores.
Chow Tai Fook, with 80 years of heritage, aims to grow 2000 stores by 2014.
“We aim to open a net average of approximately 200 points of sale per year, by opening wholly-owned POS and collaborating with joint-venture partners and franchisees,” the company said.
Business research and consulting firm Frost & Sullivan predicted last year that China’s jewellery market will reach HK$1.5 trillion (US$198 billion) in three years time.
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