Zhou Dafu'S Latest News, Net Interest Rate Fall Will Take Measures!

Zhou Dafu Jewelry Group Co., Ltd., a leading jeweler in mainland China and Hong Kong and Macao, was listed on the main board of the stock exchange of Hongkong in 2011. The group focuses on mainstream jewelry and precious jewellery products, including jewelry, jewelry, gold, platinum, gold and clocks. With over 80 years of history, it is China's most famous and large-scale jewellery brand.

Zhou Dafu jewelry and Gold Trading Co., Ltd. occupies the first place in the Chinese jewelry industry. Zhou Dafu jewelry has more than 2000 chain stores in China, Malaysia and South Korea, and has further expanded to complete the goal of expanding the number of chain stores to over 2000 in 2016.

But due to the outbreak of the new crown virus and the surge in international gold prices, the retail demand of gold products was depressed, and Hongkong's performance was weak. Zhou Dafu was the worst annual performance in ten years.

The decline of the Hongkong market has made the importance of mainland business more and more important. Thanks to the strong growth of the mainland, the 20% decline in the Hong Kong and Macao market has been offset, and the turnover of Zhou Dafu in the first half of the fiscal year is not going to regress.

The 2020 fiscal year results released by Zhou Dafu jewelry group show that as of March 31st this year, group turnover decreased by 14.9% to HK $56 billion 751 million, and net profit fell 36.6% to HK $2 billion 900 million. Zheng Zhigang, executive director of the group, said that the company is cautious about the short-term operation of the Hong Kong and Macao market and is more optimistic about the mainland market.

The same store sales in mainland China decreased by 15.1% compared with the same period last year, while the same store sales in Hongkong and Macao dropped by 38.7%. In Hongkong and Macao, the proportion of sales paid by China UnionPay, Alipay, WeChat or RMB settlement fell to 36.9% from 46.5% in the previous fiscal year. These payment agents reflect the sales volume contributed by Chinese tourists.

Under this great pressure, Zhou Dafu met the challenge. As of the end of March, the number of stores in the Zhou Dafu group increased by 711 to 3699 over the previous year. Among them, the flagship brand Chow Tai Fook Jewellery occupied 623 new stores. In the group's sales network, there are 1936 sales outlets operated by franchisees.

Zhou Dafu management said that although the market is weak, he is cautiously optimistic about the recovery of China's mainland. In the foreseeable future, Hongkong may still face challenges due to social unrest. The group said it would adopt a two pronged approach to focus on expansion in mainland China.