Good evening, ladies and gentlemen. I'm Haidi, MC of today's event. Welcome to the investor and analyst presentation of Chow Tai Fook Jewellery Group Limited to discuss our annual results for the financial year 2024. Let me introduce the management team who will conduct the presentation today. They are Mr. Conroy Cheng, Vice-Chairman. Ms. Sonia Cheng, Vice-Chairman. Mr. Kent Wong, Managing Director. Mr. Hamilton Cheng, Executive Director and Chief Financial Officer. Firstly, Ms. Sonia Cheng will present the annual results highlights and group strategies.
Then, Mr. Kent Wong will give business updates. Mr. Hamilton Cheng will then talk about financial review. Finally, Mr. Conroy Cheng will conclude the presentation with market outlook. After that, we will have a Q&A session. This event will be conducted primarily in English. We will provide simultaneous interpretation services for any content or questions answered in Mandarin. If you request translation assistance from Mandarin to English, please raise your hand, and we will provide you with a headset accordingly. Okay, now I would like to hand the time over to the first presenter, Ms. Sonia Cheng.
Thank you. Good evening, ladies and gentlemen. Thank you for joining us as we share highlights of our annual results for the financial year 2024. FY 2024 marks a year of record revenue and profit as we celebrate the momentous milestone of our 95th anniversary. Despite the macro challenges, which impacted all businesses, our revenue grew 15% to over HKD 108 billion, or up 19% on a constant currency basis. Our core operating profit increased 29% to over HKD 12 billion, and we achieved an ROE improvement of 820 basis points to 24.7%. Profit attributable to shareholders increased by 21% to HKD 6.5 billion.
Accordingly, our earnings per share increased to HKD 0.65 from HKD 0.54. To reward our shareholders for the journey with us, the board has proposed a final dividend of HKD 0.30 per share, bringing the total dividend for the financial year to HKD 0.55 per share. This represents a payout ratio of 84.6%. This clearly validates our strategic focus towards quality expansion and higher value growth, and the efficiency of our five strategic priorities, making a positive impact. Now, I would like to share some of our key achievements in FY 2024.
In FY 2024, we embarked on a progressive brand transformation journey to elevate our brand desire abilities and our end-to-end customer experience. I will share more in relation to this transformation journey in the coming slides. Earlier, we discussed the delivery of a record high revenue and core operating profit for FY 2024. We aim to enhance our financial performance going forward, led by our brand transformative initiatives. Building on the positive impact of our disciplined cost management and operational efficiency improvements diligently executed over the past quarters, we are pleased to report that it contributed to overall enhancement to our profitability.
Our SG&A ratio improved by 230 basis points, while our core operating profit margin increased by 120 basis points, reaching 11.2% in FY 2024. In December, we were also included as a member of the Dow Jones Sustainability Asia-Pacific Index. This recognition underscores our ongoing sustainability journey and our commitment to making a positive impact for the community. We are pleased to share that our outstanding FY 2024 performance is attributed to our diligent and consistent execution of our five strategic priorities, namely the brand transformation, the product optimization, accelerated digitalization, operational efficiency, and talent cultivation.
I will now spend a few moments on the details of our brand transformation, the implementation of which, of course, also relies on our product offerings, as well as support from our talented team. During the financial year, the progressive rollout of our brand transformation starts from our product design that tells a unique story, impactful marketing campaigns that resonate with our target audience, and engaging exhibitions to enhance brand awareness and desirability. In terms of product optimization, we launched a series of new designs for our HUÁ Collection, including the Chinese Zodiac Theme products and another collection inspired by Tang Dynasty artifacts.
The collection continued to receive positive responses from our customers, and its RSV experienced a year-on-year growth of approximately 20% in FY 2024. Also, in FY 2024, we launched the Beyond Time diamond exhibition, aimed at raising consumer awareness of natural diamonds and enhancing the desirability of gem-set jewelry. Following its successful debut in Hong Kong last year, we brought the exhibition to Beijing in December, as well as Shanghai in March. Our brand transformation journey is critical and is a timely evolution of our identity, yet it respects our established legacy and heritage as a brand. It's not a revolution.
Chow Tai Fook Jewellery is built on nearly a century of trust and innovation. As we evolve towards creating a unified and seamless brand experience, we remain committed to preserving our 95-year legacy and the high-quality craftsmanship, which are hallmarks of our financial success. Our primary focus is on product design and how we differentiate our design aesthetics and refining our products to meet the evolving tastes of the next generation of customers. This will be key to sustaining our growth trajectory.
First, in April, we launched our refreshed visual identity. We introduced our new consumer-facing logos. You may notice that the Chow Tai Fook iconic red is used extensively across our marketing materials and packaging, reflecting the group's rich heritage and embrace of Chinese culture in a modern and fresh perspective. Secondly, we also refreshed our omni-channels to elevate our customer experience with high-touch engagements. A new brand website was recently launched to provide a seamless shopping experience and better connect with our customers globally, 24 hours a day, seven days a week.
We are also currently developing a new customer loyalty program. We are confident that the launch of this program will further strengthen our ability to acquire new customers, as well as retain our loyal customers, and also increase our repeat purchases. This year, we will also unveil our first refurbished store in Queen's Road Central in the third quarter of calendar year 2024. So please stay tuned, as you will expect a revitalized space and really embody the essence of our brand transformation.
To celebrate our 95th anniversary, we also introduced our signature collection, the CTF Rouge Collection in April, which was inspired by our red iconic color, as well as the Chinese auspicious symbol of good fortune, Fuk. We are also the first international brand to use a Chinese cultural symbol, Fuk, and put it in our design and modernize it. It was very well received in the market since its launch in April. The collection is a clear embodiment of Chinese culture, our innovation, and our craftsmanship, with timeless design featuring natural diamonds, pearl, enamel, and gold.
And let me use this opportunity to show you a video about this collection. In April, we kicked off a global marketing campaign involving omni-channel tactics that has been activated to promote the Rouge Collection. Since the launch on April 18, we're delighted to share that the collection has received very positive market response. In a very short time frame, we've achieved a retail sales value of over HKD 500 million since its launch. We are very committed to continuously optimizing our product portfolio to meet the appetite of our diverse customer base.
Finally, I would like to take the opportunity to introduce to you the brilliant designer and creative director behind this collection, Nicholas Lieou. Nicholas has been appointed as the creative director of High Jewellery to drive brand elevation and design new product collections. Nicholas's appointment exemplifies our focus on bringing the highest caliber creative and business talent into Chow Tai Fook Jewellery to help differentiate our brand and product offerings, which translates into long-term competitiveness and revenue resilience.
The appointment of Nicholas also symbolizes our commitment to amplify the beauty of Chinese modern jewelry to wider audiences. He will also lead the creation of modernized High Jewellery pieces that cater to the desires of Chow Tai Fook Jewellery's exclusive clientele. Nicholas will continue to curate more iconic and signature collections, elevating our offerings to drive future sales growth. As such, Nicholas's appointment also represents a significant milestone in our ongoing brand transformation and talent cultivation.
While we acknowledge that there are fluid market conditions, I am confident that with the unwavering support of our professional team, our diligent execution of our five strategic priorities, they will enable us to attain higher value growth throughout our transformative journey. Now, may I turn over to Kent to present our business highlights?
Thank you, Sonia. As of March this year, we had 7,403 stores in the mainland, among which 77% were franchise stores, and the rest were self-operated stores. Franchise stores delivered robust RSV growth of 23.4%, supported by the steady and progressive store run-up and new store additions. As business and consumer ourselves, we observed that consumer spending patterns have evolved significantly a year on from the relaxation of pandemic-related measures. China registered a relatively modest economic growth.
Consumers have been turning more cautious and selective in their spending. The priority is on value for money, seen with strong sales for gold products due to its value preservation and defensive nature. Our objective is to grow and advance our position as market leader with prudent capital management to provide for a sustainable return to our shareholders. We need to stay vigilant and agile amidst a fast-evolving business environment, taking externality into consideration to effectively calibrate resources and manage our point-of-sale network.
In Mainland China, we opened a net of 143 Chow Tai Fook Jewellery stores during the year. Our current priorities are to maximize overall financial health of our POS portfolio with a focus on store productivity and profitability. We continuously optimize existing network strategy through a combination of selective store openings and closures to enhance operational efficiency and profitability. Our approach to store management is aligned with our capital management strategy and our emphasis on quality earnings. Our delivery of COP growth, margin, and ROE expansion is a strong testament to our approach yielding positive impact.
Going forward, we might close smaller stores and those with low productivity, replacing them with larger and higher-performing stores focused on same-store growth per store per sq ft to maximize capital efficiency. In the midterm, we see further growth opportunities, particularly in lower-tier cities and street-level stores as industry consolidates. This chart shows that the run-up of our self-operated stores and franchise stores in the mainland, and their RSV has a proportion of same-store RSV. The progressive run-up of our Yang stores in the mainland strengthened the resilience and stability of our store network during the year.
Run-up of our stores was satisfactory and generally similar to previously. As over 50% of our total stores in the mainland were opened in the last 2-4 years, we expect the gradual maturity of these stores will continue to boost our RSV and store profitability in midterm. Meanwhile, as we transition to a new phase of higher value growth, we focus on enhancing store productivity and consumer experience. Optimizing our franchise store management is beneficial to sustain and optimize our growth in the mainland. We shall continue to support quality franchisees.
For instance, while top-down with headquarters, we'll empower franchise stores with more data insights and guidance to drive business performance. Further, we will strengthen our franchise management and take necessary steps or actions to enforce our pricing strategy and protect our brand. Let's look at our mainland e-commerce business. With our initiatives to enhance digital customer engagement, retail sales value of our mainland e-commerce business grew steadily at around 20%. Its ASP increased by over 10% to HKD 2,080, while its share to our mainland retail value volume amounted to more than 10%.
Content marketing on social media is also critical to enhance customers. We harness various third-party e-commerce and social platforms such as Tmall, JD.com, Douyin, and Xiaohongshu. Through these platforms, we gain valuable insights into consumer behavior, which in turn enables us to make well-informed decisions regarding product selection and live broadcast training to maximize visibility and outreach to target customers. Now, let's turn to Hong Kong, Macau, and other overseas markets. These reports' segments continue to benefit from the recovery of inbound tourists.
During the year, RSV growth in Hong Kong and Macau was 32% and 53%. The average daily consumer traffic at our stores in Hong Kong and Macau experienced a substantial increase year-over-year, especially during the National Day and Lunar New Year holidays. In Hong Kong and Macau, we net opened two stores during the year. We continue to closely observe shifting consumer trends in this market, such as relatively low spending by inbound mainland tourists and local consumers heading north to travel and consumption.
However, this has had a relatively moderate impact on jewelry consumption, given Hong Kong's pricing advantage and the role of gold jewelry in Chinese culture, ensuring solid demand for jewelry. Coupled with the government's measures to drive tourism and relatively manageable rental levels, we remain optimistic about the profitability of Hong Kong and Macau segments. We shall continue to closely analyze data on store performance and leasing terms and reassess market opportunities for potential new additions.
More importantly, we shall stay competitive by innovating our product offering and customer service. In other overseas markets, RSV jumped 119%, driven by new store additions and demand at our Duty Free stores in Hainan, as well as stores in key Southeast Asia market during the year. We opened eight stores in overseas markets, including four Duty Free stores in the mainland, one store in Canada, and three stores in key Southeast Asia market. Looking ahead, we will strategically expand our retail network in popular tourist destinations and areas with a significant number of Chinese residents who understand and appreciate the rich Chinese culture and heritage.
We are actively reviewing our successful expansion playbook in mainland and exploring opportunities in existing overseas markets and new markets with strong retail demand. Now, I will turn to Hamilton. Thank you.
Thank you, Kent, and good evening, everyone. I'm going to start with some major P&L items and key financial ratios. As mentioned by Sonia earlier, despite challenging market conditions, the group achieved a solid set of results during the year. Thanks to our diligent execution of five strategic priorities and resilient demand for gold jewelry, revenue increased 14.8% to an all-time high of over HK$108 billion for the FY 2024. On a constant currency basis, revenue growth would reach over 18%, reinforcing our market leadership position.
On adjusted GP margin, notwithstanding higher gold jewelry sales and wholesale mix, the margin benefited from our optimized pricing strategy and gold price increase. As a result, adjusted GP margin moderated by 90 basis points to 22.8%, maintaining a healthy level. Our effective and disciplined cost management has demonstrated sustained results. SG&A declined, and SG&A ratio improved significantly by 230 basis points to 12.2% in the year. Core operating profit was up by 28.9% to more than HKD 12 billion, and its margin expanded 120 basis points year-on-year to 11.2%, surpassing management's expectation.
Revenue breakdown by segment. In the mainland, we continue to see growth with revenue up by around 10% in the year, led by the progressive run-up of our stores opened over the past two to four years and the strength in gold products. As new stores opened in recent years were substantially in franchise format, this drove the share of wholesale revenue to 57% within the mainland segment versus 54% a year ago. While in Hong Kong, Macau, and other markets, revenue recorded strong growth of more than 45%, thanks to the continued recovery in inbound tourism last year.
And then revenue breakdown by product. Given the value preservation and defensiveness of gold and its increasing popularity among youngsters, attraction for gold products remained strong in the year. We continue to leverage our product innovation to capture the gold jewelry demand. For instance, we unveiled a new series of our signature HUÁ Collection inspired by Tang Dynasty and the auspicious dragon given the zodiac year. Revenue of gold products rose 22.5% in the year. Its contribution to the group's revenue increased to 82% from close to 77% last year.
Revenue of gem-set declined by 13%, as gem-set consumption is more discretionary in nature. Encouragingly, quality jewelry continued to be favoured by customers. With healthy sales, the performance of both Wonderful Life Collection and Chow Tai Fook Dancing Beauty Collection exceeded management's expectations in the year, underpinning our confidence on the long-term prospects of diamond jewelry. On same-store basis, average selling price in both mainland and Hong Kong, Macau stayed resilient in the year.
Franchise stores, which represented around 77% of POS in the mainland, delivered a same-store sales growth of 7.4% in the year, thanks to the steady run-up of younger stores. Same-store sales growth of our self-operated stores in the mainland was 1.8%. For April and May, as gold prices hover at high levels, we observed hiccups on recent gold demand, which is an industry phenomenon. Same-store sales growth of mainland self-operated stores declined 27.6%, and franchised stores dropped 19%. In Hong Kong and Macau, same-store sales growth was down 32% in April and May.
The adjusted GP margin decreased by 90 basis points to 22.8% in the year. One key movement was the higher gold sales mix that affected the blended GP margin by 150 basis points. We have progressively shifted the price setting of selective gold products from by weight to higher margin fixed price since November last year. We expect RSV contribution of fixed-price gold products within the gold category will double in the coming FY , from 7% in FY 2024, which will be favorable to our GP margin in the coming year.
We are also delighted to see a like-for-like margin improvement of 140 basis points in the year, driven mainly by our pricing strategy optimization efforts and a dominant benefit from gold price increase. SG&A analysis. SG&A declined by 2.9% despite the group's retail revenue growth. Thanks to our effective cost management, its ratio improved significantly by 230 basis points. The cost of packaging materials was trimmed by 44% as we have streamlined and standardized our packaging designs. We shall continue our disciplined approach in spending for the FY 2025.
Staff costs stayed flat in the mainland and increased by 9.4% in Hong Kong, Macau. Both markets registered cost ratio improvement. This significant improvement in Hong Kong, Macau was mainly attributable to a robust sales recovery. Moving over to concessionaire fees and leases. Mainland concessionaire fees ratio declined to 7.7% due to the sales mix shift towards gold products. In Hong Kong, Macau, the average increment on lease renewals was approximately 18%, leading to an increase of 15% for lease-related expenses during the year.
Yet lease-related cost expense ratio declined by 100 basis points, from 5.1% to 4.1% following the strong rebound of Hong Kong, Macau business. Profitability analysis. We achieved a record-high core operating profit of about HKD 12 billion in the year, with growth driven by both segments. COP in the mainland was up by nearly 20%, and Hong Kong, Macau and other markets up by more than 150% in the year. Both segments also demonstrated an uplift in core operating margin. The improvement in operating margin was especially significant in Hong Kong, Macau and other markets, and its margin reached 8.7%, as supported by favorable operating leverage.
Such levels also exceeded the pre-pandemic levels. Core operating profit margin in the mainland also improved to 11.7%, reaching a three-year high. This is the reconciliation between core operating profit and profit before tax. Here, I would like to elaborate on the unrealized loss of gold loans, which amounted to approximately HKD 2.5 billion in the year. This was a mark-to-market loss for the outstanding gold loan contracts, arising mainly due to the gold price shoot-up near the year-end. Gold price reached over HKD 2,200 per ounce at the end of March, which was about 10% higher than the preceding six-month average.
With respect to the unrealized loss of gold loans, I would like to reiterate there is a timing difference in the mark-to-market revaluation and sale of gold inventories. Such mark-to-market loss should be recovered through a corresponding gain on gold inventories when they are subsequently sold. Assuming the gold price remains at year-end elevated levels, as gold inventory are booked at weighted average cost basis, the gain will be realized in favor of gross profits when the inventories are subsequently sold with reference to this gold price.
Here we come to inventory and CapEx. Inventory balances rose by 9% to HKD 65 billion, attributable to the increase in gold inventory. The inventory turnover period improved to 274 days, on track to the medium-term target of our initiative. With the continuous execution of our five strategic priorities, we are confident on the sustained enhancement on product optimization and operational efficiency, with the inventory turnover period to further improve by 15-20 days in the FY 2025. This will support and sustain our strong cash flow generation.
CapEx amounted to HKD 963 million amid less store openings and our prudent capital management. We shall continue our disciplined approach in CapEx deployment going forward and expect the amount to be around HKD 1 billion-HKD 1.2 billion in the coming year. This will cover the expected CapEx associated with progressive brand transformation and store renovation. Now, let's turn to our cash flows. Our business has a proven track record of consistently generating strong cash flows across economic up-and-down cycles.
Operating cash flows net with leases paid in the year was around HKD 14.6 billion, approximately 37% higher than last year. Proforma free cash flows amounted to HKD 11.1 billion, which supported our continued investment into growing business and a sustained shareholders' return. Capital structure highlights. To make efficient use of our financial resources, we further repaid some of our bank loans in a high-interest rate environment and leveraged the lower-interest rate gold loans to meet our inventory needs. Thus, bank borrowings decreased by HKD 1.7 billion in the year.
Net gearing ratio was around 7%-8%, yet excluding gold loans, we remained in a net cash position of around HKD 3.6 billion. Lastly, return on equity, which is important given our focus on enhancing earnings quality. The return ratio increased to 24.7% from 16.5% in the year before, which underpins our higher value growth. This improvement was driven by the overall enhancement in net margin, inventory efficiency, and working capital efficiency. Given the measures we've put in place, we expect the improvement in ROE to be sustainable and will stay at a similar level in the coming FY . Now, I would like to turn over to Conroy for the market outlook and conclusion.
Thank you. Thank you, Hamilton. In light of the dynamic and uncertain market conditions, we stay cautiously optimistic for FY 2025. Nevertheless, we are encouraged by the steady ramp-up and maturity of performing franchise POS, together with the positive momentum and new perspective brought by our brand transformation, which will continue to support our sales and core operating profit. We shall continue to enhance store productivity and maintain our disciplined cost management to ensure margin resilience in reaching a higher value growth.
Meanwhile, we shall also stay vigilant in calibrating our financial and operational resources effectively, a strategy that has been successful in navigating through the challenging operating landscape. Notwithstanding the near-term uncertainties, we remain confident in the mid- to long-term growth prospects of the mainland jewelry market and economy, with supportive government policies prioritizing economic stabilization and reviving domestic consumption. As we embark on our mid-term transformation journey towards the 100th anniversary, our commitment remains unwavering in uplifting brand desirability and broadening business horizons.
While staying focused in executing the five strategic priorities to strengthen long-term competitiveness and industry leadership, supporting us to deliver sustainable growth to our stakeholders. This concludes our presentation for today. Thank you.
Thank you.