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Chow Tai Fook profit drops 44%

Chow Tai Fook Jewellery Group reported a 20.4% revenue drop for the half-year ending in September, with revenue falling to HK$39.4 billion ($5.03 billion), while profit dropped 44.4% to HK$2.6 billion ($332 million), primarily due to losses from gold loan contract revaluations amid volatile prices. Despite a 4% increase in operating profit, the group faced challenges from weak consumer confidence in mainland China, high gold prices, and a sluggish tourism recovery in Hong Kong. Same-store sales plummeted by 25.4% in mainland China and 30.8% in Hong Kong and Macau, prompting the company to cut 239 stores to reduce costs. Chow Tai Fook also announced a HK$2 billion ($255 million) share buyback to signal confidence in its long-term prospects. Additionally, the group is under scrutiny amid the Cheng family’s succession issues, with Sonia Cheng’s leadership taking center stage following her brother Adrian’s recent departure from New World Development.

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