Chow Tai Fook reports 20.4% drop in revenue amidst demand decline

Macroeconomic externalities and high gold price volatility drove down the demand.

Chow Tai Fook Jewellery Group Limited reported a 20.4% decrease in revenue to $39.4b in the first half of the financial year.

The group attributed the loss to a decrease in consumer demand influenced by macroeconomic externalities and high gold price volatility.

Operating profit grew 4% to $6.7b whilst the operating profit margin improved 400 basis points to 17.2% during the period. Gross profit margin improved by 650 basis points to 31.4% during the period, thanks to the improved retail like-for-like margin amidst the gold price surge and a higher contribution from fixed-price gold products.

Chow Tai Fook board has proposed an interim dividend of HK$0.20 per share.