Zhou Dafu'S Net Profit Fell Sharply In The First Half Of The Year, And The Market Value Evaporated.

The latest news from Hongkong, Zhou Dafu (Chow Tai Fook Enterprises) performance slump, the group released the first half of the report shows net profit compared to the same period last year dropped 42.2%, to 1 billion 560 million Hong Kong dollars (200 million 900 thousand U.S. dollars).

In the first six months ended September 30th, the income decreased by 4.1% compared with the same period last year, reaching HK $28 billion 120 million (US $3 billion 630 million).

The group's share price has fallen by nearly 45% since this year, and its market value has evaporated to more than HK $48 billion, and its market value is HK $59 billion.

This bad performance is expected.

The company issued a profit warning earlier this month, while retail outlets in Hongkong, which rely on mainland Chinese shopping tourists, have also reported that their performance has been sluggish.

Zheng Jiachun, chairman of the group, emphasized that the future group will clear the unwelcome inventory through many channels and special stores, enhance the display in the shop, and upgrade the product line, and will sell the products with fast turnover.

There are industry reviews which mean that the group products will be pformed into a younger one.

Barclays said earlier this month that even if Zhou Dafu's Hongkong renewal contract is reduced by 15% to 20%, the lease will not be expected until the 2017 fiscal year.

It can benefit from this.

Like most other retailers struggling in Hongkong, Zhou Dafu has slowed its pace of expansion. As of September 30th, there were only 29 new outlets, and now there are 2286 stores.

Zhou Dafu group is controlled by Zheng Yutong (Cheng Yu-tung) family.

According to Forbes, Zheng Yutong's Hotel, shopping center and construction business ranked him fifth in the Asian rich list.

Chow Tai Fook Jewellery, the only listed entity of its investment group, is the largest jewelry company in the world based on market value.

Last month, the negative news of a Chinese mainland consumer dying in a jewelry store quickly became the focus.

A 54 year old man was killed after quarrelling with a tour guide.

Although the relevant persons have been arrested, the incident will further affect Hongkong's image as a shopping tourist city.

Zhou Dafu Group Chairman Zheng Jiachun pointed out that the retail industry in Hongkong will take a year to recover.

In addition, the trend of mainland tourists moving to Korea is obvious. Zhou Dafu Group expects to open more branches in the locals.

At the beginning of this year, Zhou Dafu group plans to invest $2 billion 600 million in an entertainment project in Inchon, Korea, which aims to attract Chinese tourists.

According to the British report on February 13th, the Inchon municipal government expects that Chow Tai Fook Group will start a holiday resort including hotels, shopping centers and conference facilities this year.

In the first half of this year, Zheng Jiachun, chairman of the group, said that in the first half of this year, there were 3 outlets in Hongkong. The Group expects that there will be 7 to 8 branches in the second half of this year to be adjusted or other branches to undertake business.

He stressed that some of them were not in line with the level of operation or too many shops in some areas, and some shops should be closed to focus on the development of existing stores.

Zhou Dafu said he closed down poorly performing stores but did not plan to lay off workers.

Zhou Dafu is the most influential Chinese native.

Group.

In the second half of this year, DDT, an international consultancy, released the 2015 global luxury report and ranked the 100 luxury companies in the world according to its revenue. Zhou Dafu ranked fourth in annual sales of $9 billion 979 million, ahead of the LVMH group, the peak group and Estee Lauder group.

Even Swatch group and Kai Yun group are ranked behind Zhou Dafu.

However, this luxury giant seemed to have a bad time in 2015.

Some analysts pointed out that Chow Tai Fook was too dependent on a single product line to meet performance bottlenecks.

Another two negative factor is the weak consumption in Hongkong and Macao, resulting in a year-on-year decline in turnover and a decline in gross margin.

The reason for the decline in gross margins is the increase in the proportion of gold products, and the record of gold hedging.

According to the farba report, Zhou Dafu is still in the most difficult period, will speed up closing the poor profit shop, this year's shop plan is difficult to meet the standards.

The bank estimates that the number of open stores in fiscal year 2016 is 112, compared with 150-160 before the company's management level.

The bank lowered sales growth in mainland, Hong Kong, Macao and other regions, and the small gold rush from July to August has ended. It is expected that the same store sales will turn negative from September to September.

Although gold prices were weak in November, demand was no longer strong.