Zhou Dafu Has Seen The Smallest Increase In Turnover In 5 Years, And Hongkong Business Has Risen.

< p > Zhou Dafu released the annual report of fiscal year 2013 as of March 31st, showing that the total revenue of the whole year was a slight increase of HK $57 billion 434 million (about 45 billion 534 million yuan) compared with the same period last year. The profit attributable to the shareholders of the company was HK $5 billion 505 million (about 4 billion 364 million yuan), down 13.6% compared to the same period last year, and the net profit margin was 9.9%, lower than that of 11.6% in 2012.

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< p > Zhou Dafu said that this fiscal year is full of uncertainties and challenges, especially the global economic downturn, which has slowed the growth of the mainland economy and the retail market in Greater China, while the rise in administrative expenses, marketing costs and rental costs has led to its poor performance.

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< p > < strong > 5 years, the smallest increase in turnover is < /strong > < /p >

< p > looking at Zhou Dafu's financial statements for nearly 5 years, the turnover growth in 2013 was the smallest.

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< p > in 2009, Zhou Dafu's turnover amounted to HK $18 billion 411 million, which was HK $22 billion 934 million in 2010, HK $35 billion 43 million in 2011, HK $56 billion 571 million in 2012, and HK $57 billion 434 million in 2013.

Compared to the growth rate of more than ten points in the past few years, Zhou Dafu said that in 2013, "a moderate increase of 1.5% over the same period last year".

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< p > in the five years since the company's shareholders' profits, Zhou Dafu has seen a negative year-on-year growth.

In 2009, Zhou Dafu shareholders accounted for HK $1 billion 897 million in profits, HK $2 billion 139 million in 2010, HK $3 billion 538 million in 2011, and HK $6 billion 341 million in 2012.

In contrast to the rising profits of shareholders in the past four years, the profit attributable to Zhou Dafu shareholders in 2013 was only HK $5 billion 505 million, down 13.6% from the same period last year.

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< p > in addition, sales in the same store decreased by 3.3% in 2013 compared with the same period last year.

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The same is true in the financial statements of 00590.HK listed on the Hong Kong Stock Exchange (P).

As of March 31, 2013, the total revenue of Lufu group was HK $13 billion 412 million (about 10 billion 633 million yuan), an increase of 12.5% over the same period last year, but the profit attributable to shareholders of the company was HK $1 billion 266 million (about 1 billion 4 million yuan), down 5.1% compared to the same period last year, and the gross profit also decreased by 2.1% compared to the same period last year.

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< p > < strong > Hongkong business rises < /strong > /p >

< p > the weakness of the economic environment last year frustrated the growth of jewellery companies.

Zhou Dafu said that the global economic downturn has slowed the growth of the mainland economy and the retail market in the Greater China region.

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Under the depressed economic environment, sales of precious jewellery slowed down, and the retail atmosphere in the mainland of China became lighter, especially during the National Day holiday last October.

A series of reasons led to the year-on-year decrease in sales of Zhou Dafu and Lufu group in 2013.

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< p > however, thanks to the increase in the number of passengers arriving in the mainland, Zhou Dafu and Lufu group's business in Hongkong continued to rise, coupled with the continued appreciation of the renminbi and the stimulation of the value-added tax policy, which helped boost the retail sales of high jewellery enterprises.

But rents in Hongkong and Macao continue to soar, which has led to an increase in rental costs of stores and reduced profits for shareholders of Chow Tai Fook and Lufu group.

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< p > by the end of March 2013, Zhou Dafu had 1836 retail outlets, 94.3% of which were located in the mainland of China.

Although most of the stores are located in the mainland, Hongkong has contributed a lot to Zhou Dafu and Liu Fu group.

In the 2013 fiscal year, sales of Zhou Dafu, Hongkong, Macao and other regions amounted to HK $27 billion 126 million (about 21 billion 505 million yuan), accounting for 47.2% of total sales, while the sales volume of Hongkong group in 2013 was HK $8 billion 716 million (about 6 billion 910 million yuan), accounting for 65% of total sales.

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< p > data show that in 2013, Zhou Dafu added 209 new stores, and in 2013, 211 new retail outlets were opened.

The increase in spending and marketing costs of new retail outlets brought about by rapid expansion is also one of the reasons for the decline in profits of the two enterprises.

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< p > compared with gold and platinum products, diamond jewelry products enjoy a higher gross profit margin. In terms of sales structure, the sales ratio of Zhou Dafu gold products increased from 53% in 2012 to 57% in 2013.

Compared with previous years, changes in the structure of sales products led to its gross margin being pulled down.

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< p > < strong > seize the domestic three line market < /strong > < /p >.

In the middle of April 2013, international gold prices fell sharply, pushing up the demand for gold products in the mainland and Hong Kong and Macao in the off peak season. P

Compared with the same period last year, Zhou Dafu's sales performance in April 2013 was very outstanding. The proportion of gold products sales increased compared with that in April 2013 and May, but also led to a sharp rise in the growth of its same store sales.

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< p > therefore, we can expect that, thanks to the sales of gold jewelry, Zhou Dafu's overall sales revenue and same store sales growth will recover in the 2014 fiscal year, but due to the low gross margin of gold jewelry, its profit margin will not rise significantly.

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In order to support the long-term development of the business, Zhou Dafu continued to develop in the three and second tier markets in the mainland of China, and strengthened cooperation with department stores to expand the retail network. P

At the same time, through different distribution channels, such as independent shops and online platforms, sales and turnover growth will be promoted.

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In 2014, Zhou Dafu will strengthen the promotion of e-commerce market and continue to invest in various electronic commerce tools and platforms. P

According to the financial report, in the 2013 fiscal year, Zhou Dafu's e-commerce business increased by nearly 3 times compared with the 2012 fiscal year.

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< p > in addition, in the 2014 fiscal year, Zhou Dafu will slow down the expansion of stores, and expect 164 new outlets and 2000 retail outlets.

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