Chow Tai Fook has posted a drop in revenue for the six months ended September 30 as macro-economic externalities continued to impact industry-wide demand.

The group’s revenue plunged 20.4 per cent year-on-year to HK$39.4 billion (US$5 billion). Same-store sales were down 25.4 per cent in Mainland China and down 30.8 per cent in Hong Kong and Macau.

Operating profit rose 4 per cent to HK$6.7 billion, but earnings dipped more than 44 per cent.

The group ended the period with 6968 points of sales in Mainland China, 84 in Hong Kong and Macau, and 61 in other markets. It closed approximately 240 locations during the six months.

Management said macro-economic externalities, particularly record gold prices, continued to impact industry-wide demand during the period. 

In response, the group said it had optimised product and pricing strategy as well as launched product offerings with different value propositions. 

Performance remained strong in fixed-price gold jewellery, with the sales mix in gold jewellery and product retail sales value doubling year-on-year to 14.2 per cent in Mainland China.

“As we continue to navigate the complexities of an ever-evolving market environment, we remain committed to driving sustainable growth and long-term resilience,” said chairman Henry Cheng.

“By prioritising our brand transformation, we are enhancing our competitiveness to capitalise on emerging opportunities in China and beyond,” he added.

• Further reading: Chow Tai Fook posts double-digit revenue, profit growth