Chow Tai Fook Profits Surge Despite Fall in Revenue
November 26, 20
(IDEX Online) - Chow Tai Fook saw pre-tax profits up by almost half from April to September, despite a 16 per cent fall in revenue.
The Chinese jewelry giant, with more than 4,000 points of sale, attributed its performance to a surge in the price of gold and improvements to its gross profit margins on sales of gold products.
Business had steadily recovered from COVID-19 at its Mainland China outlets, the company said in its FY2021 Interim Results, but Hong Kong, Macau and other markets remained lackluster.
Pre-tax profits were up 49.3 per cent to $423m. Profit attributable to shareholders rose 45.6 per cent to £288m. Chow Tai Fook said this was largely because of like-for-like gross profit margin improvement, one-off government subsidies and rent concession, foreign exchange gain, and netting off impairment on assets.
"The Group will continue to adapt to the ever-changing business environment, allowing us to mitigate risks and overcome challenges through innovations," said chairman Dr Henry Cheng.