Good evening, ladies and gentlemen. Welcome to the Life Audio Webcast of Analysts And Investor Session on Child Tai's Interim Results for the financial year 2021. Let me introduce the management today. We are Mr. Kent Huang, the Managing Director Mr.
Hamilton Zheng, the Executive Director Hamilton is responsible for the Financial Management And Corporate Operations. Mr. Peter Soon, the Executive Director. Peter is responsible for the Hong Kong, Macau and overseas business. Mr.
Bobby Liu, Executive Director Bobby is responsible for the sustainable development and innovation. And Ms. Anita On, the Director of Investor Relations And Corporate Communications. Firstly, Mr. Hamilton Zhang will present the interim results operational highlights and financial review.
Chen will present business updates. Bobby will give an update on the group's individual brands e commerce and O2O related business and customer relationship management.
Finally, Cans will conclude the presentation with the group business outlook and strategies. After that, we will have Q And A session. Now may I invite Hamilton to present Hamilton, please? Thank you. Hi, good evening, everyone.
I'm pleased to announce our interim results for the first half fiscal year 2021. The group's revenue declined by 16.5 percent to RMB24.7000000000 in this period. This is in mainland China will have a steady recovery on backhaul, the easing COVID-nineteen situation, especially in the second quarter. Whereas performance in Hong Kong, Macau and other markets remained sluggish. Same store sales in Mainland China stayed flat and that's of Hong Kong Macau declined by more than 65%.
Core operating profit, excluding the impact of unrealized gaining our loans on go loans and foreign exchange, which better reflects the operational performance of our business grew strongly by 15.6 percent year on year to 4.1000000000. The increase in core operating profit was mainly boosted by the margin expansion as gold price rose. Profit attributable to shareholders searched 45.6 percent to 2,200,000,000 basic earnings per share amounted to 22 Hong Kong cents. The board has declared an interim dividend of 16 Hong Kong cents, representing a payout ratio of around 72 percent in this period. Operational highlights, we opened a net of 303 POS during the period bringing the total number of POS to 4153 at the end of September, which included 3847 Chautai Fook Jewelry POS.
Net openings in Mainland China reached 310 POS and we closed a net of 5 POS in Hong Kong Macau and 2 POS in other markets during the period. Retail sales value of our e commerce and O2O related business in Mainland China surged 21.8% in the period accounting for 5.6% in terms of RSV and 14.3% in terms of volume of our mainland China business. CTF Hua Collection continued to receive buoyant demand, its contribution to our go jewelry and product RSV in mainland China further expanded to 35.6% during period. For T Mark, each contribution to our diamond products RSV expanded to 22.3% in mainland China during the period. Well, that's of Hong Kong Macau State above 27%.
Here in the income statement summary, I'll walk you through the major financial ratio and first it is about adjusted GP margin that improved, notably by 4 40 bps to 35.1% in the period, benefiting mainly from the like for like margin improvement in both retail and wholesale businesses as gold price surged. SG and A expenses decreased by 14.3percentto4.9000000000 However, SG and A ratio increased slightly by 50 bps year on year to 20% due to operating deleverage. Core operating profit increased by 15.6 percent year on year and its margin widened by 460 bps to 16.5%. Our revenue breakdown first by reportable segment Revenue from mainland China increased by 4.9% during the period in light of the easing COVID-nineteen situation, Its contribution to the group's revenue reached 86% during the period. While in Hong Kong and Macau and other markets, revenue contracted the 63% year on year as business suffered due to challenging macros and the culture of major border crossings during the period.
Well, revenue by product. Revenue of gold jewelry and products shrank by 21.2% during the period as gold price surged deterred retail demand for the gold jewelry is contribution to the group's revenue reduced to 60.9% during the period. On contrary, Watches delivered a robust revenue growth of 17% during the period boosted by strong domestic demand in mainland China amidst international travel restrictions. Here is a same store sales growth trend for the past 6 quarters. In mainland China, same store sales stayed flat in the period Same sales rebounded to a positive growth of 11% in the 2nd quarter versus a double digit decline in the 1st quarter.
Business activities and consumer sentiment refi. While in Hong Kong Macau, same store sales was down by more than 65% during the period customer traffic remain stagnant, this decline narrowed to narrowed in the second quarter, thanks to a lower base of comparison. An update for the 1st 7 weeks in this quarter. So during the period for the quarter to date. Central sales growth in mainland China sustained a positive trend at 12% similar to the 2nd quarter.
While in Hong Kong, central sales growth demonstrated a continuous improvement and it's narrowed to a decline of around 24%. Analysis by major products for gold jewelry and products as mentioned, demand for gold jewelry in both mainland China and Hong Kong Macau was affected by a surge in average international gold price, especially during the first quarter. However, ASP of gold of these gold products was lifted by around 16% in mainland China. In Converse, ASP of these gold products in Hong Kong Macau dropped 13.6% due to a shift of sales mix towards lower ASP products. For genset platinum and Keragold products, Central sales of these products in mainland China declined by 1.9% in this period whereas genset ASP was lifted slightly to 6400 per piece during the period.
While in Hong Kong account, ASP of Jamset Jewelry recorded a notable increase to 13,400 from 11,000, in the same period last year. An update for the 1st 7 weeks in this quarter. Same to sales growth of gold jewelry and products in mainland China rebounded strongly to around 13% and outperform that soft gem set and keracol products as gold price stabilized But in Hong Kong Macau, same store sales growth of Jamset and Curacao products rebounded to a positive growth of 39% boosted by a favorable comparison base, our promotional efforts and improved traffic. An analysis of our operating profit and profitability. In Mainland China, our COP recorded a strong growth of 42.5 percent.
COP of Hong Kong and Macau, and other markets also turned around to a gain of $28,000,000 versus a loss of $94,000,000 in the second half last year, thanks to the margin improvement. Mainland China continued to be our major profit contributor and accounted for almost 100% of the group's operating profit in this period. And in terms of adjusted EBIT margin in mainland China, the margin expanded by 270 bps to 34.6 percent in the period as like for like GP margin improved. Well, SG and A ratio decreased by 190 bps to 16.5% in the period, thanks to relief received on major SG and A items cost saving and operating leverage. As a result, COP margin in mainland China was lifted by 500 bps to 19.1%.
For Hong Kong Macau and other markets, adjusted GP margin improved significantly by 10 percentage point to 38.1 percent, driven by both the surge in gold price and the like to like margin improvement in jewelry trading. SG and A ratio increased substantially from 21.8% to 41 point 6% due to operating deleverage. COP margin stayed positive at 0.8% in the period. Benefited from the government subsidies received, which were recorded as other income. SG and A expenses decreased by 14.3% to $4,900,000,000 in the period as we managed course cautiously while SG and A ratio increased slightly by 50 bps to 20%.
For the major SG and A components, what you flew in the following two slides. And first, it's about the staff costs and related expenses. In mainland China, the staff course was down by 4.7% and in Hong Kong Macau, is down by 32%. The expenses reduction in Mainland China was mainly driven by the decrease in fixed portion as there was government relief on social insurance contribution of 30,000,000 due to the COVID 19 situation. In addition, the calculation basis of employer's contribution on the social insurance was also adjusted down by the government as compared to the same period last year.
But in Hong Kong and Macau, a variable staff cost shrank by 51 percent year on year in the period, which was largely in line with the drop in revenue. Our fixed staff costs also declined by 17% due to attrition and reduction on some allowances during the period. We also received $107,000,000 from employment support scheme, which was recognized in other income. And then analysis of rent and concession therapies. In mainland China, concessionaire ratio edged down to 8.2% in the period, mainly due to the rate reduction from the shopping malls and department stores.
In Hong Kong account, lease related expenses reduced by 21.5% yet this corresponding ratio expanded by 740 bps to 13.6% during the period we renewed leases of around 27 POS and the average rental renewal reduction was around 45% relative to the last contract. Moreover, rent concession of 76,000,000 was granted from landlords in the period which was recognized as other gains in the P and L. For the full year, we believe that we shall achieve an average reduction of of around 40% to 45% appoint rental video and overall rental calls in Hokkamakau just see a reduction of around 20% to 25% for the full year. As mentioned before, you may heard of, I mean, quite some situations and quite some, figures that were specific to this period. For example, the improvement in margin of gold products due to the increase in gold price.
For example, the one off government subsidies and also the running concession and also the foreign exchange gains. There are also an impairment on the right of use of assets and also our fixed assets for the stores in our in Hong Kong. So, these items may or may not repeat in the future, which has which formed major components that's affecting the change of profits in the period. So this is an analysis for your easy understanding of the major drivers of the increase of 45% of the net profit during the period. And then we'll turn to inventory analysis The overall inventory, balance increased by about 2% to 43,000,000,000 as of end of September, mainly due to gold price increase.
By weight, our inventory balance of gold products was actually trend by more than 9% year on year. So together with the 2 or 3% reduction on the inventory of Jamset and Keragold on on a constant price basis, our inventory would have decreased by about 5%. Infantry turnover period was prolonged by 97 days compared to the last fiscal year due to a slow sales in Hong Kong Macau. However, as of end of September, approximately 17% of the inventory balances were actually a consigned inventories that will help for the franchised POS, which represent around 80 days in terms of turnover. While we are expanding our presence in mainland China under our stringent procurement policy, we believe that inventory balances show maintain at around $742,000,000,000 by, March next year.
Which would be similar to the level of last financial year and inventory turnover period should also improve, to around 3 80 days. Again, similar to the level of last year. And then CapEx which totaled around $350,000,000 in this period. We mainly spent on our POS covering renovation of existing stores and also the new openings in mainland China. The total CapEx for the year would be around 900,000,000 to $1,000,000,000 similar to last year's level.
For the balance sheet item, we actually I don't have a lot of changes. The major change were from the a reduction of bank borrowings and go loans, which were down by 2,100,000,000 and 700,000,000, respectively. Gold hedging ratio was around 50 6% as end of September. While net gearing ratio including go loans, was 43.7% as of end of September. When excluding the go loans, net gearing ratio would be around 7%.
And now for operating our movement in the cash flows, operating cash flows before movements in working capital and network leases paid was around RMB5.6 billion, which is similar to the amount for the same for the same period last year. After cash used mainly for industries and CapEx. Pro form a cash flows was around $3,400,000,000 for this period. Other major cash flow items included $2,100,000,000 reduction in bank borrowings and $1,200,000,000 used for payment of final dividends last year. And as of end of September, we maintained a strong cash and bank balance of around RMB7.3 billion.
So, here I conclude my presentation today and then we'll turn over to Ken for the business development and our an update for our business ecosystem. Thank you.
Thank you, Hamilton. In Mainland China, we opened a net of 310 POs during the period. Among which 2 86 were Taltai for jewelry POS. As of September this year, we had 4 1009 POS in mainland China. Causticel Jewelrypot POS contribute approximately 90% of our retail sales value in mainland China.
This slide further analysis on its RSV and POS network. By tier of cities, we continue our expansion strategy in many China by leveraging franchisee. Approximately 51% of the net openings during the period were located in Tia Free, T4, and other cities. RSV growth in Tia Free, 4, and other cities outpaced T1 and T2 cities during the period, largely attributable to the new openings By operation model, owner openings during the period were in franchise format better as we closed a net of 45 cell operating point of sales. As of September 2020, 61% of our partner sales in Mainland China were in franchise format, 38% out of these and French response cells were under the cell in model.
By store format, stand alone stores and upon ourselves as shopping mall, deliver a more resilient RSV growth during the period. While polysilicon stores were under pressure. We continue to execute our 2 pronged strategy for the retail network in Mainland China. In Tier 1 and 2 cities, we offer curate a retail experience to fulfill the needs of more sophisticated customers, while in lower TCD and county level cities, we expand present and market share through the franchise model. A net of 286 Todafil Jewelry Polycell were opened in the first half of FY 2021.
We are confident that full year net openings reached 450 to 500. Over 90% were in franchise format. In terms of RSV and product sales by geography, in Hong Kong, Macau and other markets, RSV recorded a steep decline during the period as pandemic continue to wait on international travel and tourist related consumption. Share of others we settled in China during pay, AliPay, WeChat Pay or Remindy in Hong Kong and Macau dropped to 12.1% from 39.7 percent in the last year period. Digital Network Management In Hong Kong Macau, we closed a net of 5 point of sale in first half FY 2021, mainly in two basic areas.
Such as Tim Sartre and Causeway Bay. We found lease that we renewed or expect to renew at a shortened duration to take advantage of a more favorable trend. We expect the net closing this year will be around 5 yet improving store productivity and recognizing retail networks and store related calls shall remain our priority in the midterm. Other market and Countries We closed a net of 2 child types of jewelry console in Japan and Korea during the period. Grew self explore opportunities to own store in Southeast Asia when international travel resume With a solid foundation, build through our SmartPass 2020 strategic framework, we are pleased to move forward with our dual force strategy.
We shall expand our footprint in an agile way while we should also focus on digital empowerment In order to deliver exceptional customer experience that create long term brand differentiation and loyalty. This shall be achieved under our ecosystem. The retail prison sector refers to the diversified product offerings and experience from our physical retail networks. The Digital Empowerment Sector is the only channel and smart tools that we could compliment our physical retail network and achieve quick synergies as well as building up both profit and private domain. The cooperation sectors refers to our initiative to be defined the jewelry industry ecosystem.
Through cooperation and co create. We continue to innovate and invest in products and experience of our flagship brand. In terms of product, Charter Football Collection state popular among the young customer in mainland China is contribution to the gold jewelry and product RSV further expand to 35.6 percent during period, outperforming our generic gold products. In regard to Tima Diamond, it shared the diamond product RSV in China was also lived to 22.3% in first half of FY twenty twenty one. We just made an announcement that our AI diamond grading certificate for TMA will be introduced in the first half of twenty twenty one and powered by AI and big data.
The process of diamond color and carotid grading will take only firmness. Offering customer a high consistency diamond appreciation experience plus an extra assurance I will turn over to Bobby to walk you through other individual brands and digital empowerment sector.
Okay. Thank you, Kent. Anna, for Hassane Fire, we have launched a law rely rapidly collection, and I'm looking in July 2020 to broaden the reach of Laurie's eye collection. Going forward, the presence of Hafslund Fire will focus on shopping shop and content in shop under the flagship brand, Chautai Fulk. In order to penetrate into the high end market in mainland China, our natural carrot gemstone specialist and so has integrated with the growth resources to promote its brand and products in all channels.
As of September 2020, it had 65 point of sale in Mainland China. Anner to young segment, we are talking the brands so enough at monologue into over innovative products and experience to younger customers. And strive to enhance digital presence in first half of FY 2021. Online sales accounted for around 45% to 50% of both soy enough and monologue RSV in the mainland China. We also collaborated with different brands such as a Japanese comics character, the detentive Colon and Barbie to add newness to our product portfolio, a list of 5 saw in the point of sale and 16 monologue point of sale were opened in first half of FY 2021.
Mainly in higher tier cities in mainland China. We shall continue our expansion in higher tier cities in order to connect more customers with our brand's personalities. In the digital empowerment sector, We aim to stay close to our customer by striking an optimal balance between technology and human touch. Cargo Sales 365 is a mini program that protects our e shop and the customers. Allows both of our staff and our franchisee salespeople to proactively engage the customer by sending product promotions and information to build a close connection and web parts with customers.
We are delighted to see that the private domain traffic generally lead to higher sales conversion rates than the e commerce platform. In the first half of FY 2021, we reached over 2,000,000 customer through this tool. The car kiosk is an old to old hubs, which allow customer to enjoy shorter chance transaction time and wider product selection at the storefront. As of September 2020, cow kiosks were installed at over a 1000 spots, primarily in mainland China. We shall continue to expand its coverage to 1400 by the end of the financial year.
Our e commerce and the O2O we related RSV in 1,000,000 trailer, surged by 21.8% during the period trends to our F in O2O retailing. We also enhanced our customer engagement via live streaming and soft videos in third party marketplaces. Its contribution to the RSV in mainland China edged up to 5.6% and is amounted to falling from 40.3% in terms of volume. The average selling price on our e commerce and auto related business increased to Hong Kong dollar 71700 dollars in the first half of twenty twenty one instead of the 1300 in the last year. But here's an update on our customer relationship management.
As of September 2020, we had approximately 2 point 7,000,000 members in our membership program in Mainland China. The repeated territories was lifted to about 28% in the first half of twenty twenty one financial year. And in Hong Kong and Macau, The number of members was about $1,200,000, which is encouraging with the purchasing vessel of around 45% instead of 36% on last year. And now I will turn to Kent for the business outlook and strategies. Thank you.
Okay. Thank you, Bobby. To conclude, our first half FY21 was a challenging period, but the COVID-nineteen pandemic is expect to be under control in the market where we operate. Our business performance for second half FY 2021 would improve steadily. As we expect, Mainland China will continue to focus on domestic consumption growth.
We are optimistic about the mid to long term prospect of the jewelry market in Mainland China. In Hong Kong, with a more stable pandemic situation, we believe that the domestic market has bottomed out. When the major border causing the open, the visitation and retail market would recover gradually. In Mainland China, we shall continue our market expansion strategy full franchise model and onlineoffline channel integration to advantage of digital trends. And to implement our differentiation strategy to better serve each unique customer segments.
For Hong Kong Macau, we shall continue to enhance our operational efficiency and refine our business strategies. We would leverage our retail networks and talents as well as our omni channel capacities. Capability that we have developed in order to offer customer a stimulus shopping experience at any time, anywhere with optimal balance between technology and human touch. We are delighted to see that we are steadily moving towards our 4 long term goals: 1, strengthen our market leader position through further market penetration. 2nd, develop a comprehensive jewelry ecosystem.
3rd, be a tech server jewelry company who harvesting innovation and technology. Lastly, improved operational efficiency for digital transformation. Going forward, we would implement our deal 4 strategy to see us do a continuous expansion of footprint and digital empowerment which would enable our customers to experience a graceful fulfillment through jewelry. This concludes our presentation today. Thank you.