loader image
Connect with us

International News

Chow Tai Fook Boosts Profitability in FY2025 Despite Revenue Decline Amid Gold Price Pressures

Operating profit climbs nearly 10% on stronger margins and premium brand strategy, even as revenue falls 18%; fixed-price gold and digital retail channels drive resilience.

Published

on

1,779 views

Chow Tai Fook Jewellery Group Ltd. delivered a resilient performance in FY2025, with operating profit rising 9.8% year-on-year to HK$14.75 billion, even as revenue declined 17.5% to HK$89.66 billion due to high gold prices and a sluggish macroeconomic environment.

The company’s ongoing brand transformation helped offset the top-line pressure, with the launch of five new premium-format stores in Mainland China and Hong Kong contributing to a 400 basis point expansion in operating margin, which reached 16.4%. Gross profit margin also improved to 29.5%, driven by a stronger product mix and growing demand for fixed-price gold jewellery.

While net profit attributable to shareholders fell 9% to HK$5.92 billion—largely due to revaluation losses on gold loan contracts—the group maintained a generous dividend payout ratio of 87.8%, declaring a full-year dividend of HK$0.52 per share.

Chairman Dr. Henry Cheng commented, “We are making significant progress in our brand transformation journey. Despite external headwinds, we continue to adapt to shifting consumer preferences and see exciting opportunities for growth across China and beyond. Innovation, craftsmanship, and cultural pride remain central to our identity.”

A standout in FY2025 was the remarkable growth in fixed-price gold jewellery, with sales soaring 105.5% year-on-year. These products now account for 19.2% of Mainland China’s gold jewellery revenue. Signature collections such as CTF Rouge and the Palace Museum collaboration each recorded over HK$4 billion in sales.

The group also accelerated its digital retail strategy. Livestreaming and e-commerce accounted for 5.8% of retail sales value in Mainland China, while online sales in Hong Kong and Macau surged 91%, driven by a revamped website and successful IP-based product collaborations.

Looking ahead to FY2026, Chow Tai Fook expects to benefit from continued brand evolution, improving market sentiment, and disciplined cost management, positioning the company for sustainable, quality-led growth.

Continue Reading
Advertisement
Click to comment
Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

International News

Gold continues upward march;Bank of America forecasts  $5,000/oz for 2026

Published

on

1,977 views

Gold prices in India saw a modest rise on Wednesday today Oct 15, mirroring an uptick in international markets as renewed US-China trade tensions and expectations of further US interest rate cuts bolstered demand for safe-haven assets.24k gold traded at Rs.1,28,360/10gm after gaining ₹10 in early trade, while silver prices increased by Rs.100 to Rs.1,89,100 per kilogram.

Gold prices surged to a record high of $4,179.48 per ounce on October 14, 2025.  Investors flocked to safe-haven metals amid trade tensions and Fed rate-cut expectations. U.S. December gold futures jumped 57% year-to-date.  Bank of America raised its 2026 gold forecast to $5,000 per ounce, warning of possible near-term corrections.

Gold prices soared to an unprecedented $4,179.48 per ounce on October 14, 2025, marking a historic milestone for the yellow metal. The rally comes as investors worldwide seek safety in hard assets amid a turbulent global economic backdrop marked by escalating trade tensions, slowing growth, and expectations of further interest rate cuts by the U.S. Federal Reserve.

The sharp surge in bullion prices has been driven by a combination of macroeconomic uncertainty and aggressive monetary easing. As inflation pressures remain sticky and central banks pivot toward dovish policies, gold has reasserted its role as a hedge against both currency debasement and market volatility.

In futures trading, U.S. December gold contracts have skyrocketed nearly 57% so far this year, underscoring the strength of investor demand across both institutional and retail segments. Analysts note that central bank buying—particularly from emerging markets—has added further momentum to the rally, with several countries diversifying reserves away from the U.S. dollar.

Reflecting this bullish sentiment, Bank of America has raised its 2026 gold price forecast to $5,000 per ounce, citing continued monetary easing, geopolitical instability, and robust central bank accumulation. However, the bank also cautioned that short-term corrections are likely, given the rapid pace of the recent run-up and potential bouts of profit-taking.

Overall, gold’s meteoric rise underscores a broader shift toward safe-haven assets, as investors navigate a world increasingly defined by economic fragmentation, shifting interest rate cycles, and persistent geopolitical risks.

Continue Reading

Trending

JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.

We would like to hear from you...

GET WHATSAPP NEWS ALERTS

0
Would love your thoughts, please comment.x
()
x