Zhou Dafu'S Same Store Sales Plunged 32% In The Two Quarter

Zhou Dafu is the largest jewelry company in Hongkong, which is listed on the market capitalization. It specializes in the Zhou Dafu brand jewellery and gold ornaments business. It is a comprehensive enterprise that integrates raw material procurement, production design and retail service.

The two quarter data released by 1929.HK today show that sales in mainland China and Hong Kong and Macao have deteriorated further than in the first quarter.

As of the two quarter of September 30th, Zhou Dafu's mainland retail value fell from 17% in the first quarter to 17%, of which the same store sales fell from 17% in the first quarter to 22%, while the same store sales plunged 32%, and this figure was 20% in the first quarter.

The retail value of Hong Kong and Macao decreased by 33% compared with the same period last year, while the first quarter decreased by 22%. The same store sales and same store sales fell by 10 percentage points and 15 percentage points, respectively, to 30% and 39% in the first quarter.

The group pointed out that the retail value of Hong Kong and Macao through the China UnionPay or RMB settlement fell to 43% from 57% in the same period. This means that the sales contribution of the mainland tourists has been significantly reduced. The Group believes that this is due to the change in their consumption habits.

Hongkong official data show that since 2016

Watches and clocks and precious gifts are still the worst performing local retail products. They recorded a 22.5% year-on-year decline in 1-8, with 7 and August falling to 26.2% and 26.6%, the highest since February.

A spokesman for the Hongkong government pointed out that the poor performance of the retail industry reflected the decline in the number of visitors to Hong Kong (mainly the mainland tourists) and the desire of local citizens to maintain prudence in the face of uncertain economic prospects.

Although mainland visitors in July reversed the first half of the year's decline by 2.2%, there was another 11% decline in August.

Even without considering the reduction in the number of people, the changes in the economic background of the mainland visitors, the decline in consumption and the weakening of the purchasing power of the Chinese economy will affect the retail industry in Hongkong.

And the sale of high value commodities such as precious gifts.

Retail and passenger figures for Hongkong in September have not yet been released.

In addition, Zhou Dafu said that the sharp decline in the price of gold products during the same period last year caused a sharp contrast in the sales of gold products, which also affected the group's performance in the two quarter.

During the period, the sales of gold products in the mainland and Hong Kong and Macao were reduced by 27% and 36% respectively, and the reduction of jewellery and jewelry was 17% and 23% respectively.

In the two quarter, Zhou Dafu opened 12 jewelry retail outlets and 1 watch retail outlets in mainland China, while Hong Kong and Macau closed 2 retailers. As of September 31st, the total retail sales of the group stood at 2326.

Zhou Dafu (1929.HK) fell 1.09% on Monday, 17, at HK $5.45, which has risen 9.2% in 2016 and has outperformed the Hang Seng Index 5.3%.