Chow Tai Fook Jewellery Group Announces FY2023 Interim Results - Seite 4

During the period, we launched the Wonderful Life Collection, which combines gold and T MARK diamonds.Since launch in July 2022, Wonderful Life Collection has received an overwhelming response that has supported new sales growth in the gem-set product category.

During the period, HEARTS ON FIRE achieved an outstanding result, both versus last financial year and pre-pandemic levels, with RSV up 62.6% in the Mainland and 50.2% in the Hong Kong and Macau market on a year-on-year comparable basis. The brand's strong top-line growth reflects the excellent reception of new designs launched under our ever-green Aerial and Illa Collections, and ongoing regional events and promotions to build desirability with local customers.

Business Outlook and Strategies

Against the backdrop of a challenging business environment characterised by macro-economic externalities, the Group remains cautiously optimistic about the opportunities ahead and is committed to growing sustainably. With resolve, experience and agility, our management team will stay vigilant while executing our growth strategies.

Meanwhile, the Group has joined the ranks of other blue-chip companies as a constituent stock of the HSI in September 2022, and will be included in the MSCI China Index from close of 30 November 2022. This marks a major milestone for the Group since listing in 2011. Inclusion in the HSI and MSCI China index diversifies and institutionalises the Group's existing shareholder base and enhances its trading liquidity.

We remain positive on the mid- to long-term growth prospects of the Mainland‘s economy and jewellery market. Based on this, we have declared an interim dividend of HK$0.22 per share, implying a 66.0% payout ratio.

While we maintain prudent cost control strategies to mitigate short-term challenges, the Group's mid-term growth is expected to be driven by a gradual improvement of the economy and consumption. We are equipped to realise the opportunities in the underserved bridal jewellery in lower tier Mainland cities, and enhance our offerings to appeal to the millennials who have a penchant for self-expression.

Leveraging on the strong support from our franchisees, store opening momentum in the Mainland remains favourable. We continue to adopt a disciplined approach in expanding our retail network strategically by taking into consideration market share growth, health of store economics and productivity. Our retail network in the Mainland is expected to reach 7,000 POS by the end of FY2023.