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.
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.
International News
Geopolitical Ceasefire and Fed Signals Shape Gold and Silver Outlook AUGMONT BULLION REPORT
- Safe-Haven Dynamics – Gold is consolidating around $4750 and Silver around $78, recouping some losses from the previous session after President Trump’s unilateral announcement extending the ceasefire with Iran. However, a second round of peace talks has broken down. It remains unclear whether Iran or U.S. ally Israel will formally accept the extended ceasefire, which entered its third week, introducing continued uncertainty into safe-haven demand.
- Geopolitical Developments – Trump indicated further military action would be paused pending a new Iranian proposal and the completion of negotiations. Separately, Vice President JD Vance scrapped a scheduled visit to Islamabad after Iran conveyed through Pakistan its refusal to participate in the proposed talks. Iran additionally maintained that the Strait of Hormuz would remain closed as long as the U.S. Navy continues intercepting vessels in the region, sustaining a key supply-chain risk factor.
- Macro-economic Signals – Precious metal price action continues to be driven primarily by ceasefire-related headlines and broader liquidity conditions. The ceasefire extension has led markets to interpret the situation as a partial de-escalation, reducing immediate crisis premiums. Additional downward pressure on metals emerged from the Senate confirmation hearing of Federal Reserve Chair nominee Kevin Warsh, whose commitment to institutional independence signaled a potentially hawkish policy posture going forward.
Technical Triggers
- Gold is trading in the range of $4650 (~ Rs 151,500) and $4850 (~Rs 155,000) over the past few days. Either a breakout or breakdown will give a 3-4% directional move.
- Silver is trading in the range of $76 (~ Rs 242,500) and $81 (~Rs 257,000) over the past few days. Either a breakout or breakdown from this band will give a 3-4% price swing.
Support and Resistance
| International Gold Support Level International Gold Resistance Level Domestic Gold Support Level Domestic Gold Resistance Level | : $4600/oz : $5000/oz : Rs 153,000/10 gm : Rs 160,000/10 gm |
| International Silver Support Level International Silver Resistance Level Domestic Silver Support Level Domestic Silver Resistance Level | : $75/oz : $82/oz : Rs 240,000/kg : Rs 260,000/kg |
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