H1 profit of HK jeweller Chow Tai Fook slumps by 42%

Hong Kong

CHOW Tai Fook Jewellery Group Ltd, the world's largest publicly traded jewellery chain, reported that first- half profit plunged 42 per cent amid weak demand in Hong Kong and Macau as China's economic slowdown hurt sales of luxury retailers.

Net income fell to HK$1.56 billion (S$284 million) for the six months ended September from HK$2.69 billion a year earlier, the jeweller said in a statement on Tuesday. The company warned on Nov 10 that its profit would plunge as much as 50 per cent, mainly due to weakness in the two cities, increased sales of lower-margin gold products and unrealised hedging losses.