A few days ago, with the official disclosure of Xie Ruilin's 20 19/2020 annual report, the performance reports of the four major jewelers in Hong Kong in fiscal year 2020 were all collected. In terms of performance, the revenue and net profit of the four major jewelers showed a downward trend during the reporting period, while Xie Ruilin fell into a quagmire of losses.
For the reasons for the decline in performance, the explanations given by four Hong Kong jewelers are mostly related to the decline in purchasing power caused by the decrease in mainland consumers.
You can't sell jewelry either?
In recent years, the four major jewelers in Hong Kong have adopted active marketing strategies, accelerated the opening of stores in succession, seized market share, and the number of stores has increased steadily. From March 3, 2065438 to March 3, 2020, Chow Tai Fook, Lukfook Group and Xie Ruilin respectively added 7 13 stores, 286 stores and 10 stores in China. In 20 19, Zhou Shengsheng added 100 stores in China.
According to the annual financial reports disclosed by the four major jewelers this year, Chow Tai Fook has the largest number of stores in China, with 37,065,438+0; Followed by Liu Fu Group, with 2046 stores; There are 606 stores in Zhou Shengsheng and 445 in Xie Ruilin.
(Note: 1, the number of stores only refers to Chinese mainland, excluding Hong Kong, Macao and Taiwan and other countries; 2, using the latest annual report data)
The expansion of the number of stores has not accelerated the increase in income. In FY 2020, Chow Tai Fook, Zhou Shengsheng, Luk Fook Jewelry and Xie Ruilin achieved operating income of HK$ 5675 1 000, HK$1736 million, HK$123.4 million and HK$ 2.91400 million respectively, with a year-on-year growth rate of-. This change has made the four major jewelers in Hong Kong reproduce the overall decline in operating income in 20 16.
(Note: Use the latest published annual report data)
At the same time, the net profit trend of the four major jewelers in Hong Kong is not optimistic. According to the financial report data, the performance of the four major jewelers in Hong Kong has been rising in fiscal years 20 17 and 20 18. However, due to the persistent impact of the luxury retail market environment and the economic downturn in China, the jewelry industry is facing major challenges in FY 2020. In that year, the net profits of the four major jewelers all declined, and Xie Ruilin even fell directly into the quagmire of losses.
According to the data of fiscal year 2020, Chow Tai Fook, Zhou Shengsheng and Luk Fook Jewellery achieved net profit of HK$ 2,906,543.80 billion, HK$ 644 million and HK$ 866 million respectively during the reporting period, with year-on-year growth rates of -36.62%, -36.36% and -42% respectively. Xie Ruilin's net profit in the reporting period changed from a profit of HK$ 54 million in the previous period to a loss of HK$ 90 million, with a year-on-year growth rate of -266.67%.
(Note: Use the latest published annual report data)
For the decline in performance, the explanations given by the four major jewelers in Hong Kong are mostly influenced by the Sino-US trade war, social events in Hong Kong and the coronavirus epidemic in 20 19 novels. As far as Xie Ruilin is concerned, Qiu Anyi, chairman of its board of directors, even admitted directly in a letter to shareholders that Xie Ruilin's business was affected by social events and epidemics in Hong Kong, resulting in a sharp drop in business, which was unprecedented in the past.
Hong Kong's jewelry industry may still face a severe situation.
According to a research report disclosed by CICC this year, the growth of Hong Kong's jewelry industry is mainly due to the contribution of mainland tourists to Hong Kong. In 20 19, the scale of jewelry industry in China Mainland and Hongkong was HK$ 46.2 billion, down 25% year-on-year.
Affected by epidemic factors, the number of mainland tourists visiting Hong Kong has dropped sharply this year. According to the data of the Hong Kong Tourism Board, the preliminary statistics of visitors to Hong Kong in June were about 654.38+0.46 million, down nearly 654.38+0.000% year-on-year. Among them, there were 6,633 mainland tourists, a year-on-year decrease of about 99.8%.
With the decrease of mainland tourists to Hong Kong, the sales of Hong Kong jewelry industry may still face severe challenges.
Not only that, the decline in retail sales in Hong Kong also proves the grim industry environment. According to data recently released by the Hong Kong SAR Government, retail sales in Hong Kong fell by 32.8% in May this year, falling for the first consecutive month 16.
In the case that the development situation of jewelry industry and even the whole retail industry is not optimistic, jewelers have taken measures to deal with market changes.
Xie Ruilin pointed out in the latest financial report that even if the epidemic is eased and controlled, it may reshape the lifestyle and consumption habits of human beings all over the world. While getting out of the current predicament, we are also preparing for future market changes, reorganizing the retail store network (including closing stores) and further developing online retailing.
On the other hand, before reviewing the fiscal year 2020, Lukfook Group formulated a brand-new three-year corporate strategy, focusing on "supply chain management", "mainland market expansion" and "strategic growth" to boost future business growth.