Chinese Jeweler Chow Tai Fook Profit Jumps 108%, Eyes Expansion

Chinese Jeweler Chow Tai Fook Profit Jumps 108%, Eyes Expansion

People walk in front of a Chow Tai Fook jewellery store in Hong Kong June 17, 2014. (Reuters)

Hong Kong-listed Chow Tai Fook Jewelry Group Ltd reported a forecast-beating 108% jump in annual profit on Tuesday, thanks to one-off COVID-19 related rent concessions, an unrealized gain on gold loans and foreign exchange gains.

China's largest jeweler by market value said net profit surged to HK$6.03 billion ($777 million) from HK$2.9 billion in 2019. That compared to a forecast of HK$5.23 billion profit by 14 analysts, Refinitiv SmartEstimate data showed.

It was the highest annual profit since 2014.

A COVID-19 related rent concession amounted to HK$127.6 million as compared to HK$16.2 million in fiscal 2020, while net foreign exchange gain amounted to HK$336.4 million against HK$234 million loss in a year ago period.

Revenue for the year to March 31 rose 23.6% to HK$70.16 billion from HK$56.75 billion a year earlier, driven by retail expansion amid improving consumer sentiment in mainland China and a softer gold price in the second half of the fiscal year.

"As we are optimistic about the mid- to long-term growth in the mainland China market, we will focus on our mainland China's business development in the coming future," Chairman Henry Cheng said