• PERFORMANCE SUMMARY
  • KEY RATIOS
  • PROFIT OR LOSS
  • FINANCIAL POSITION
  • CASH FLOWS
  • REVENUE/ RSV BREAKDOWN
  • SAME STORE SALES GROWTH
  • POS NETWORK
Full Year
Half Year
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Summary of Profit or Loss (HK$ million)
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FY2009
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FY2010
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FY2011
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FY2012
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FY2013
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FY2014
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FY2015
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FY2016
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FY2017
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FY2018
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FY2019
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Revenue 18,411 22,934 35,043 56,571 57,434 77,407 64,277 56,592 51,246 59,156 66,661
Gross profit 5,326 6,555 9,928 16,448 16,283 21,152 19,072 15,641 14,963 16,213 18,602
Core operating profit1 2,578 2,644 5,153 8,136 7,106 9,500 6,691 5,050 4,649 5,606 6,972
Profit for the year 1,914 2,207 3,673 6,571 5,678 7,449 5,536 2,979 3,151 4,203 4,684
Profit attributable to shareholders of the Company 1,897 2,139 3,538 6,341 5,505 7,272 5,456 2,941 3,055 4,095 4,577
Earnings per share (HK$) 0.21 0.24 0.40 0.69 0.55 0.73 0.55 0.29 0.31 0.41 0.46
Full year dividend per share (HK$) n/a n/a n/a 0.104 0.22 0.36 0.28 0.16 0.16 0.27 0.35
Special dividend per share (HK$) n/a n/a n/a n/a n/a n/a n/a 0.64 0.35 0.30 0.30
Gross profit margin 28.9% 28.6% 28.3% 29.1% 28.4% 27.3% 29.7% 27.6% 29.2% 27.4% 27.9%
Adjusted gross profit margin2 29.1% 27.9% 29.5% 28.4% 28.1% 27.7% 29.2% 28.9% 28.5% 27.2% 27.9%
Core operating profit margin1 14.0% 11.5% 14.7% 14.4% 12.4% 12.3% 10.4% 8.9% 9.1% 9.5% 10.5%
Net profit margin 10.4% 9.6% 10.5% 11.6% 9.9% 9.6% 8.6% 5.3% 6.1% 7.1% 7.0%
Full year dividend payout ratio3 n/a n/a n/a 27.4%4 40.0% 49.5% 51.3% 54.4% 52.3% 66.0% 76.5%
Revenue Overview FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019
By reportable segment
Mainland China 54.3% 55.1% 55.6% 56.6% 52.8% 54.5% 58.9% 59.5% 60.5% 62.2% 63.7%
Hong Kong, Macau and other markets 45.7% 44.9% 44.4% 43.4% 47.2% 45.5% 41.1% 40.5% 39.5% 37.8% 36.3%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
By operation model
Wholesale 18.9% 14.9% 14.3% 16.5% 12.4% 13.2% 15.0% 14.6% 14.9% 17.6% 19.8%
Retail 81.1% 85.1% 85.7% 83.5% 87.6% 86.8% 85.0% 85.4% 85.1% 82.4% 80.2%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
By product5
Gem-set jewellery 29.8% 28.8% 25.5% 26.5% 21.5% 20.9% 26.9% 26.8% 25.3% 23.7% 22.8%
Gold products 49.3% 48.6% 53.5% 53.1% 58.4% 61.4% 53.4% 55.8% 57.4% 59.4% 61.1%
Platinum/Karat gold products 14.6% 15.6% 13.9% 13.9% 14.8% 13.4% 14.4% 12.4% 11.5% 10.9% 10.6%
Watches 6.3% 7.0% 7.1% 6.5% 5.3% 4.3% 5.3% 5.0% 5.7% 6.0% 5.5%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Summary of Financial Position (As at 31 MAR)(HK$ million) FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019
Non-current assets 905 1,049 1,546 2,156 3,442 4,263 7,038 6,670 7,113 8,258 8,459
Current assets 13,504 15,962 27,503 45,258 39,777 57,554 54,083 49,005 42,269 49,312 53,778
Current liabilities 7,784 8,511 17,213 14,218 8,413 22,507 19,880 18,764 15,788 20,719 27,471
Net current assets 5,721 7,451 10,290 31,040 31,364 35,047 34,203 30,241 26,480 28,593 26,307
Net assets 6,442 8,335 11,673 29,573 33,861 38,452 40,541 35,750 32,502 34,098 31,403
Total assets 14,410 17,010 29,049 47,414 43,219 61,817 61,121 55,675 49,402 57,570 62,237
Inventories 8,094 9,275 17,101 29,694 27,315 42,544 39,798 31,377 29,259 34,929 39,486
Cash and cash equivalents6 1,758 2,333 5,761 10,005 8,331 9,972 8,478 13,001 7,943 7,944 7,641
Bank borrowings 114 160 2,881 9,001 1,000 6,300 6,751 7,920 6,793 7,923 10,057
Gold loans 2,061 2,189 3,932 5,807 4,836 10,787 8,338 6,513 3,216 5,335 8,012
Net debt (cash)7 3,009 2,874 7,607 4,802 -2,495 7,115 6,611 1,432 2,066 5,314 10,428
Net assets per share (HK$) n/a n/a n/a 3.0 3.4 3.8 4.1 3.6 3.3 3.4 3.1
Net gearing ratio8 46.7% 34.5% 65.2% 16.2% n/a9 18.5% 16.3% 4.0% 6.4% 15.6% 33.2%
Inventory turnover period (day)10 226 206 248 271 242 276 320 279 294 296 299
Return on equity11 29.7% 26.5% 31.5% 22.2% 16.8% 19.4% 13.7% 8.3% 9.7% 12.3% 14.9%
Major Movements in Cash Flows
(HK$ million)
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019
Operating cash flows before movements in working capital 2,506 3,394 5,631 9,190 7,663 9,465 7,288 5,787 5,702 6,879 7,774
Net cash from (used in) operating activities 1,103 1,224 -2,612 -6,654 10,030 -5,420 7,568 13,897 6,252 2,851 8,431
Net cash from (used in) investing activities -2,851 308 -76 477 -1,113 -1,727 -3,093 -1,045 -1,147 -1,577 -1,222
Net cash from (used in) financing activities 1,217 -716 6,107 10,497 -10,623 8,221 -5,472 -8,008 -9,771 -1,753 -7,212
Net increase (decrease) in cash and cash equivalents -530 816 3,419 4,320 -1,705 1,074 -996 4,845 -4,667 -479 -3
Capital expenditure 485 272 824 867 1,174 1,368 2,768 1,046 862 1,084 1,392
Pro forma free cash flows12 942 596 -2,452 -6,058 8,151 -412 2,764 10,690 1,989 3,019 4,100
POS Network13 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019
Mainland China14 895 1,094 1,274 1,532 1,731 1,965 2,124 2,179 2,246 2,449 2,988
Hong Kong 57 66 65 73 80 86 93 89 83 80 82
Macau 5 9 10 14 15 16 19 20 19 19 19
Taiwan 7 9 7 6 8 8 16 23 22 22 22
Cambodia n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 1
Japan n/a n/a n/a n/a n/a n/a n/a n/a n/a 2 3
Korea n/a n/a n/a n/a n/a n/a 1 4 5 7 9
Malaysia 1 1 1 1 1 1 1 1 2 2 4
Singapore n/a n/a 1 1 1 1 1 1 1 1 2
United States n/a n/a n/a n/a n/a n/a 2 2 3 3 3
Vietnam n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 1
Total POS 965 1,179 1,358 1,627 1,836 2,077 2,257 2,319 2,381 2,585 3,134
Hearts On Fire retailer locations n/a n/a n/a n/a n/a n/a 524 544 509 517 495
Same Store Sales Growth FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019
Mainland China
Same Store Sales Growth n/a 15.1% 35.2% 32.0% -3.0% 17.2% -15.6% -9.6% -5.2% 8.0% 3.4%
Same Store Sales Volume Growth n/a 5.3% 8.4% 13.4% -5.2% 33.1% -15.8% -8.4% -15.8% 1.2% -3.3%
Hong Kong and Macau
Same Store Sales Growth n/a 16.0% 32.4% 48.5% -3.8% 20.2% -32.8% -21.7% -12.4% 10.2% 8.7%
Same Store Sales Volume Growth n/a 5.9% 17.0% 29.5% 2.5% 40.3% -27.7% -23.9% -18.8% 6.1% 1.3%
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  • 1 Core operating profit and the corresponding margin, a non-IFRS measure, being the aggregate of adjusted gross profit and other income, less selling and distribution costs and general and administrative expenses, which the Company believes is useful in gaining a more complete understanding of its operational performance and the underlying trend of its core businesses
  • 2 Adjusted gross profit margin, a non-IFRS measure, eliminates the effect of unrealised hedging loss (gain) on gold loans and bullion forward contracts, which the Company believes is useful in gaining a more complete understanding of its operational performance and the underlying trend of its businesses
  • 3 Special dividend excluded
  • 4 Dividend per share and dividend payout ratio derived from the profit in the second half of FY2012 after the Global Offering
  • 5 Revenue from jewellery trading and service income from franchisees excluded since FY2010
  • 6 Bank balances and cash, pledged bank deposits and short-term bank deposits included
  • 7 Aggregate of bank borrowings, gold loans, net amounts due to related companies, net of Cash and cash equivalents
  • 8 Aggregate of bank borrowings, gold loans, net amounts due to related companies, net of Cash and cash equivalents, divided by total equity
  • 9 The Group had a net cash position as at 31 March 2013, and therefore the net gearing ratio was not applicable
  • 10 Being inventory balance, excluding packing materials, at the end of the year divided by cost of goods sold for the year, multiplied by 365/366
  • 11 Being profit for the year divided by total equity at the end of the year
  • 12 Net cash from (used in) operating activities less purchase of jewellery collectibles, capital expenditures and net movements for gold loans
  • 13 Shop-in-shop and counter-in-shop excluded
  • 14 POS in Mainland China were reclassified in FY2014 and FY2017 according to the revised classification of city tier, data in previous financial years may not be fully comparable

Notes:

  • Above figures are subject to minor rounding differences
  • Our Financial Year ("FY") covers 1 APR to 31 MAR of the following year
Full Year
Half Year
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Summary of Profit or Loss (HK$ million)
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1HFY2012
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1HFY2013
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1HFY2014
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1HFY2015
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1HFY2016
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1HFY2017
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1HFY2018
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1HFY2019
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Revenue 23,875 25,436 37,768 29,320 28,124 21,526 24,754 29,703
Gross profit 7,141 6,706 9,978 9,328 7,857 6,828 7,166 8,529
Core operating profit1 3,359 3,338 4,610 3,156 2,422 1,708 2,396 2,989
Profit for the period 2,821 1,893 3,603 2,736 1,561 1,268 1,829 1,994
Profit attributable to shareholders of the Company 2,692 1,825 3,509 2,693 1,557 1,222 1,779 1,936
Earnings per share (HK$) 0.30 0.18 0.35 0.27 0.16 0.12 0.18 0.19
Interim dividend per share (HK$) n/a 0.06 0.17 0.13 0.08 0.06 0.12 0.15
Special dividend per share (HK$) n/a n/a n/a n/a 0.42 0.15 n/a n/a
Gross profit margin 29.9% 26.4% 26.4% 31.8% 27.9% 31.7% 28.9% 28.7%
Adjusted gross profit margin2 28.7% 29.1% 26.8% 30.1% 28.5% 30.1% 28.7% 28.1%
Core operating profit margin1 14.1% 13.1% 12.2% 10.8% 8.6% 7.9% 9.7% 10.1%
Net profit margin 11.8% 7.4% 9.5% 9.3% 5.6% 5.9% 7.4% 6.7%
Interim dividend payout ratio3 n/a 32.9% 48.4% 48.3% 51.3% 49.2% 67.4% 77.5%
Revenue Overview 1HFY2012 1HFY2013 1HFY2014 1HFY2015 1HFY2016 1HFY2017 1HFY2018 1HFY2019
By reportable segment
Mainland China 56.0% 55.2% 51.4% 58.0% 59.2% 59.7% 60.4% 60.7%
Hong Kong, Macau and other markets 44.0% 44.8% 48.6% 42.0% 40.8% 40.3% 39.6% 39.3%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
By operation model
Retail 82.1% 86.5% 86.9% 84.6% 85.4% 85.3% 82.6% 81.4%
Wholesale 17.9% 13.5% 13.1% 15.4% 14.6% 14.7% 17.4% 18.6%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
By product4
Gem-set jewellery 23.4% 22.0% 17.4% 28.1% 26.6% 27.2% 24.2% 23.4%
Gold products 53.3% 56.0% 65.4% 49.6% 55.7% 53.6% 57.8% 60.5%
Platinum/Karat gold products 15.6% 16.0% 13.2% 16.2% 12.7% 12.9% 11.3% 10.5%
Watches 7.7% 6.0% 4.0% 6.1% 5.0% 6.3% 6.7% 5.6%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Summary of Financial Position (As at 30 SEP) (HK$ million) 1HFY2012 1HFY2013 1HFY2014 1HFY2015 1HFY2016 1HFY2017 1HFY2018 1HFY2019
Non-current assets 1,996 2,505 4,012 6,359 6,637 6,362 7,807 7,963
Current assets 36,187 42,305 49,310 52,851 53,152 46,862 47,415 49,977
Current liabilities 26,575 14,331 16,090 19,189 19,462 18,889 20,579 26,023
Net current assets 9,612 27,974 33,219 33,662 33,690 27,973 26,836 23,955
Net assets 11,417 30,286 36,223 39,072 39,677 33,243 32,007 29,823
Total assets 38,183 44,810 53,322 59,210 59,789 53,224 55,222 57,940
Inventories 28,878 31,706 35,615 39,051 37,417 32,820 35,838 38,484
Cash and cash equivalent5 3,392 5,391 9,862 8,693 10,420 8,364 5,079 4,831
Bank borrowings 9,022 2,831 3,270 7,344 6,880 6,000 8,108 9,783
Gold loans 4,961 8,372 8,690 6,828 8,111 7,904 6,265 7,006
Net debt (cash)6 18,961 5,813 2,097 5,480 4,571 5,540 9,294 11,958
Net assets per share (HK$) n/a 3.0 3.6 3.9 4.0 3.3 3.2 3.0
Net gearing ratio7 166.1% 19.2% 5.8% 14.0% 11.5% 16.7% 29.0% 40.1%
Inventory turnover period (day)8 316 310 234 357 336 407 372 331
Major Movements in Cash Flows
(HK$ million)
1HFY2012 1HFY2013 1HFY2014 1HFY2015 1HFY2016 1HFY2017 1HFY2018 1HFY2019
Operating cash flows before movements in working capital 4,070 3,592 4,390 3,553 2,696 2,525 2,869 3,124
Net cash from (used in) operating activities -7,019 1,165 -2,614 6,130 4,299 -282 -3,183 2,910
Net cash from (used in) investing activities 812 -449 -793 -2,061 -494 -443 -915 -450
Net cash from (used in) financing activities 3,753 -5,307 4,865 -4,859 -1,669 -3,637 1,078 -5,286
Net increase (decrease) in cash and cash equivalents -2,454 -4,591 1,458 -790 2,136 -4,362 -3,020 -2,826
Capital expenditure 410 525 835 1,697 489 398 410 528
Pro forma free cash flows9 -6,788 2,733 828 850 3,760 798 -1,229 -79
POS Network10(HK$ million) 1HFY2012 1HFY2013 1HFY2014 1HFY2015 1HFY2016 1HFY2017 1HFY2018 1HFY2019
Mainland China11 1,417 1,633 1,844 2,062 2,150 2,190 2,358 2,682
Hong Kong 69 76 85 90 90 84 75 80
Macau 12 13 15 18 20 19 20 19
Taiwan 6 8 8 16 19 23 21 22
Japan n/a n/a n/a n/a n/a n/a 2 3
Korea n/a n/a n/a 1 3 5 5 8
Malaysia 1 1 1 1 1 2 2 3
Singapore 1 1 1 1 1 1 1 2
United States n/a n/a n/a 2 2 2 4 3
Total POS 1,506 1,732 1,954 2,191 2,286 2,326 2,488 2,822
Hearts On Fire retailer locations Hearts on Fire n/a n/a n/a 523 537 541 513 516
Same Store Sales Growth 1HFY2012 1HFY2013 1HFY2014 1HFY2015 1HFY2016 1HFY2017 1HFY2018 1HFY2019
Mainland China
Same Store Sales Growth 45.2% 3.4% 21.0% -20.4% -0.3% -19.2% 10.3% 4.9%
Same Store Sales Volume Growth 14.1% 0.1% 33.3% -18.6% 2.1% -26.7% 1.7% -0.8%
Hong Kong and Macau
Same Store Sales Growth 78.7% -6.3% 47.0% -41.0% -18.2% -25.7% 9.5% 24.4%
Same Store Sales Volume Growth 45.3% 1.1% 65.0% -34.4% -23.3% -32.7% 9.6% 13.1%
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  • 1 Core operating profit and the corresponding margin, a non-IFRS measure, being the aggregate of adjusted gross profit and other income, less selling and distribution costs and general and administrative expenses, which the Company believes is useful in gaining a more complete understanding of its operational performance and the underlying trend of its core businesses
  • 2 Adjusted gross profit margin, a non-IFRS measure, eliminates the effect of unrealised loss (gain) on gold loans and bullion forward contracts, which the Company believes is useful in gaining a more complete understanding of its operational performance and the underlying trend of its businesses
  • 3 Special dividend excluded
  • 4 Revenue from jewellery trading and service income from franchisees excluded
  • 5 Bank balances and cash, pledged bank deposits and short-term bank deposits included
  • 6 Aggregate of bank borrowings, gold loans, net amounts due to related companies, net of Cash and cash equivalents
  • 7 Aggregate of bank borrowings, gold loans, net amounts due to related companies, net of Cash and cash equivalents, divided by total equity
  • 8 Being inventory balances, excluding packing materials, at the end of the reporting period divided by cost of goods sold for the period, multiplied by 183
  • 9 Net cash from (used in) operating activities less purchase of jewellery collectibles, capital expenditures and net movements for gold loans
  • 10 Shop-in-shop and counter-in-shop excluded
  • 11 POS in Mainland China were reclassified in 1HFY2015 and 1HFY2018 according to the revised classification of city tier, data in previous financial years may not be fully comparable

Notes:

  • Above figures are subject to minor rounding differences
  • Our Financial Year ("FY") covers 1 APR to 31 MAR of the following year
Full Year
Half Year