Good evening, ladies and gentlemen. Welcome to Chow Tai Fook Annual Results Analyst Presentation for the financial year 2014- 2015. Let me introduce the management on stage. They are Mr. Kent Wong, the Managing Director, Mr. Hamilton Cheng, the Finance Director, and Miss Danita On, the Director of Investor Relations. First, Mr. Hamilton Cheng will present the annual results highlights and financial performance. Second, Mr. Kent Wong will present our business development, latest progress, and e-commerce. At last, Miss Danita On will present our marketing and branding, as well as the group's strategies and progress. After that, we will have the floor Q&A session. Now, may I invite Hamilton to deliver the presentation. Hamilton, please.
Thank you. Good afternoon, everyone. I first bring to you our financial highlights. Our revenue recorded HKD 64.3 billion for the fiscal year 2015, which was down 17% year-on-year. Same-store sales declined 24%, while versus last year, the increase same-store sales growth was 18.6%. Profit attributable to shareholders, HKD 5.5 billion, a decrease of 25%. EPS, HKD 0.546. And dividend per share, including the proposed final dividend of HKD 0.15, HKD 0.28 for the full year, representing a more than 50% payout ratio. Our major developments in the year. We have a net opening of 180 stores in the year. For the e-commerce, the performance was still strong and recorded a yearly 30% year-on-year growth. We have completed the acquisition of Hearts On Fire in the year, and we have opened two stores in Mainland China, in Shanghai and Nanjing.
We continue our cooperation with international companies, including De Beers, Rio Tinto, and Disney. This year, we launched exclusive collections with Korean celebrities, including G-Dragon and Lee Min-ho. Our CRM work has also performing well, and we have steady increase of the repeat purchase from our VIP members over the past three years. We are also continue to invest in the technology and infrastructure. This year, we have the RFID-enabled devices that enhance our efficiency in logistics and distribution. More important, it allow us to collect customer behavior data for data analytics. A summary of income statement. Although our revenue decreased 17% this year, the decrease was mainly on gold products, while our gems and jewelry still recorded a stable growth. That is why our promix has improved, and the gems and jewelry has increased from 21% of the revenue to 27% this year.
Accordingly, our GP margin has improved from 27.3% to 29.7% this year. However, due to the operating deleverage, our EBIT margin has decreased to 10.7%, and our EBIT and also the profit to shareholders decreased about 25% this year. Revenue breakdown. The contribution from our Mainland China jewelry segment has increased stably over the past three years and contributed nearly 56% of the total revenue this year. Relatively, the contribution from our mainland tourists in the Hong Kong and Macau markets was weak, which contributed nearly 60% last year of the total Hong Kong and Macau revenue, and this year it was only 56%. By operation model, our wholesale business has increased steadily, and the share has increased from 13.2% last year to 15% this year because of the additional contribution from the newly opened franchise stores.
By product, the increase of about 6 percentage point contribution from gems and jewelry was at the same time a corresponding decrease of the gold products from 61% to 53%. An analysis of retail sales value in our Mainland China jewelry segment. In this year, the tier three and lower tier cities has again shown their resilience and performed relatively better than the tier one and tier two cities. By region, our Eastern China performed relatively stable, followed by Central and Southern region. By model, again, the franchisees, because they are situated more in the lower tier cities and there are more additions in the year, the relative performance was better than our self-operated stores. This chart illustrate the store ramp-up progress of our self-operated stores. In this year, the average annual sales of our same store was about HKD 27 million.
This is the 100% Red line here. Our stores open in the past two years has got a productivity of around 65% of the average same-store level. The stores would ramp up steadily and reached that 100% level in around six to seven years of operation. Next will be the quarterly performance. In Mainland China, our quarter four, that is January to March, is the peak season. Because of the Chinese New Year, Valentine's Day, and also this is also the most popular season for wedding in Mainland China. We turn to Hong Kong, Macau, and other markets. The contribution from Macau has decreased in this year, meaning that the decline was even bigger than Hong Kong.
When we look at our touristic area, although it still contribute a vast majority of our revenue, the contribution of revenue from the touristic area has decreased from 79.9% to 77.3%. Seasonality. A bit different from Mainland China. The peak season for Hong Kong, Macau market was the quarter three, October to December, because we have the Christmas and also our annual Mega Sale. Same-store sales by product. Compared to the gold products, gem-set jewelry was always performing much more stable. Even for the decrease in same-store sales in Hong Kong, Macau, it was mainly because the ASP declined from around HKD 14,000 level to HKD 12,000. Other than this, in volume terms, the decline was just minimal. Our SG&A. In actual term, we have maintained basically flat against last year.
I would have further analysis for the major items, namely staff cost, rental, and concessionaire fees. These three together contribute nearly 70% of the total expenses. We have A&P depreciation and also other SG&A. These other expenses represent mainly the packing materials, certification fees of our gem-set and diamond products, the royalty fees payable to the licensing companies, and also postage and transportation and the other expenses. I would like to highlight that most of our expenses are mostly incurred for our POS operation and also for product handling and production support. That is why rather than a simple function of revenue, when we look back for longer term, our total expenses has a higher correlation with the underlying factors such as sales volume and POS and also the average productivity of our POS.
The other expenses I just mentioned may be even more sensitive to the number of products that we sold, so that they can be even growing faster when we are selling a higher volume of lower-priced items, when we are selling more gem-set and more licensed products. We turn to the major items. In Mainland China, the fixed cost of our staff cost is relatively stable because of amount increase in headcounts, while the variable portion of the staff cost has decreased 26% because of the weak performance. While for the concessionaire fees, we have maintained a stable level, although that we are selling much more gem-set which normally incurred a higher concessionaire rate.
In Hong Kong and Macau, staff cost got a similar situation that the fixed portion has increased slightly because of the headcount, while the variable portion has decreased by more than 30% year-on-year, related to the performance. Rental, the major expense for Hong Kong and Macau market. Year-on-year, the number has increased by nearly 20%, while the ratio to revenue has increased from 3.8% to 6.1%. In the year, the average renewal rental was approximately 25%. We are now seeing gradually softening rental market, and we believe that the pressure from rental expenses will be easing in the coming 12- 14 months. Operating profit. This is the first year that we see that contribution of profit from Mainland China surpassed our Hong Kong and Macau segment.
This is a result of our effort in the past decade for continuing developing in Mainland China. Another good sign is that the EBIT margin in Mainland China has actually improved from 10.1% last year to 10.5% this year. While for Hong Kong and Macau, the situation's mainly affected by the deleveraging effect and we expect that situation will be getting better gradually when we are now entering into a downward renewal cycle of the rental market. Hearts On Fire. These figures has been included in the Hong Kong, Macau, and other markets. After the acquisition in August last year, Hearts On Fire recorded about HKD 400 million revenue, representing 22% from retail and 78% from wholesale. There was a net loss of around HKD 30 million during the period. The loss was mainly attributable to a weakened U.S. and, actually, the global consumer sentiment in the second half.
Also, we have additional expenses related to integration of our business and also marketing. We are still optimistic in medium to long term on the brand and also on the company. So we will continue to invest in product design, brand building, and also market development. Inventories. The level of inventory has decreased, but turnover days has increased by 45 days. The increase was mainly because of a mix shift, because we are selling more gem set and also in the inventory, there are more gem set in the inventory mix. Well, when we compare on a like-for-like basis, we have maintained quite a stable turnover for each product category.
In the coming year, we will target to enhance the inventory turnover back to last year's level by further concentrating in the fast-moving items and also by enhancing the efficiency in logistics and distribution, and also by taking care of the slow-moving items. CapEx. In the year, we have a total of around HKD 2.7 billion CapEx, of which about HKD 1 billion was spending on the recurring maintenance CapEx, mostly for the POS refurbishment. Another HKD 1.7 billion for the infrastructure projects. This figure was lower than what we planned at the beginning of the year. It is mainly because we have deferred the progress of construction of our Wuhan jewelry park temporarily. In the coming year, we are planning about HKD 1 billion- HKD 1.2 billion maintenance CapEx and another HKD 600 million- HKD 800 million on the infrastructure projects.
Altogether, the CapEx would be less than HKD 2 billion in the coming year. ROE. Compared to last year, ROE decreased by 5.7 percentage point, mainly due to the operating deleverage and also a lengthened inventory turnover. In the coming year, we will target to bring this back to the mid-teens level by improving the inventory turnover and also by cost control measures. Capital structure and our balance sheet. The major changes would be on inventories. The decrease was, however, mainly on gold products. That is why the gold loans has some proportional decrease. While for the non-current assets, it is mainly for the CapEx I just reported and also for the intangible assets of Hearts On Fire. The CapEx and also acquisition of Hearts On Fire was primarily from our internally-generated funds. Lastly, movements in the cash flow.
In the year, we have HKD 7.3 billion cash flows before movements in working capital. This is a proxy of our EBITDA. The decrease of inventories are offset by the decrease of gold loans release another HKD 1 billion. The major items for other operating cash outflow will be mainly for tax payment and also additional working capital. After the CapEx, we have HKD 2.7 billion free cash flow. After that, the major items would be HKD 3.5 billion dividend payment and HKD 1.2 billion for the acquisition of Hearts On Fire. By end of the year, we are keeping about HKD 8.5 billion cash in bank. Here concludes my part, and I will pass to Kent for the business update.
Yes. Thank you. Thank you, Hamilton. I would like to share with you some of the business development in China. I think in terms of point-of-sale developments, last year we, excuse me, we opened 180 point of sales, net open, in this financial year. So the total number of point of sale has reached 2,257. In China, we have 164 net open stores in China. That figure we closed down at the same time, 141 point of sale, which is equivalent to 6%-7% of our total point of sales. In Hong Kong and Macau, we opened 10 stores. This year, because we acquired Hearts On Fire, so that we have another 10 point of sale and has been put into the growth. We have opened one new CTF point of sale in Jeju Island, Korea.
For those mainland new store open, 164 stores. Majority, the stores open in tier two and tier three city. Among these, about 60% of the store, which is invested by the franchise operator, especially in Eastern, Western, and Central District of China. In Mainland China, the total retail network has already scanned across over 480 cities. Franchisee contribution to the point of sale has been raised up to 37%, compared to four to five years ago, which is 30%. We would continue to leverage on the franchise operator, their local knowledge in order to open the new store, so that we will forecast the contribution by the franchise, might raise up to 40% in the long run. This year, this financial year, we would continue to expand our store. We will target to open about 150 and 160 stores in Mainland China.
At the same time, in the coming few year, we will target to upgrade around 10% of our total jewelry store in China to upgrade to elegant and high-end luxury style in order to cater the increasing high middle-class and wealthy customer. In Hong Kong, Macau, and overseas market. We can see in Hong Kong, recently has been show a weakened buying sentiment, especially the reduce of the traveler from Mainland China. I think Hong Kong in the coming years, we will be very cautious to open new store. At this moment, we don't have any specific numbers to open. However, we would close down some store, probably about two stores. We would confirmed to shut down in this financial year. Nevertheless, in the long run, we believe Hong Kong still benefit from the tax-free city.
We would optimistic to the long run development in Hong Kong. Especially, we can benefit from some individual visitor scheme that about 49 cities in China. In terms of product strategy, I think, as we can see in this financial year, our gold rush has already been passed. So that I can see this year, we can have a stable growth in gem set, especially Mainland China. This financial year 2015, we can see a double digit kind of growth in China. Even though Hong Kong has seen also another decline of double digits of gem set. However, I think that is a trend for China, especially for those young people, millennial and also those high middle class and wealthy customer. They are willing to spend in something gem set exclusive, which can show their personal character.
I think that is why we are strategically to acquire Hearts On Fire in order to bring in a global brand into China so that we can capture the up-living wealthy customer growth. We are steeped to enhance our operation efficiency through different kind of system, especially we invest in innovation and technology in order to facilitate our customer relationship. In the long run, we would like to develop our Smart+ strategy in order to- In use of the most updated technology, Internet, and so that we can capture customer demand. Here, I would like to show you a TV on how we can use of the RFID technology, which we have planned several awards in the IoT Internet of Things competition. Please.
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Okay, this is some video that we have already shared with all my group. This is one of our midterm three-year to five-year strategy, how we can upgrade our company, become a smart company, how we can use a smartphone, smart place. Next, I would like to pass it to Danita On to share some marketing. Thank you.
Thank you, Kent. E-commerce is strategically important for us in reaching and winning support from this young generation. During the year, our e-commerce business delivered 29.3% year-on-year growth in retail sales value. Average daily online traffic surged to over 202,000 unique visitors, up by 65.6% over the same period last year. We have also accumulated over 1.7 million followers on our Sina, Tencent Weibo, and WeChat accounts. As an ongoing effort, we will further integrate the interface of our distribution channels and client-facing windows, such as CRM and marketing campaigns, with the Internet and a broader application of innovative tools in providing a seamless shopping experience. One recent example, where you can see on the slide, is our use of the iBeacon technology in the proximity marketing campaign.
Once customer enter a beacon-based cover area, they are invited to turn on the Bluetooth function and WeChat application in their smartphones to receive targeted product features, QR code coupons, or lucky draw gifts by shaking their iPhone. Here, then, is an update on our customer loyalty program, which is fundamental to our business stability. In fiscal year 2015, we had over 200,000 and 1.5 million members in Hong Kong, Macau, and Mainland China respectively. We are delighted to see a steady increase in the percentage of members' repeat purchase in both Hong Kong, Macau, and China region. For instance, China repeat purchase ratio surged to close to 30% to our China's RSV versus 22% three years ago. We are proactive in promoting the high-end jewelry collections to enhance our brand equity over time.
April this year, we hosted the annual auction event showcasing 14 sets of unique jewelry of the feature Reflections of Siam collection, and over 300 selective VIPs and privileged guests were invited. Apart from the bridal collection, which is a core part of our mass luxury segment, where we devote tremendous marketing and promotional effort, now we are stepping up our resources in the thriving fashion jewelry segment. Fashion newsletter, blogs, and style tips were engaged in creating a stylish appeal to our customers. Relating to the youth line, we collaborated with Korean famous artist Lee Min-ho in second half of our fiscal year 2015 to launch the exclusive collection leveraging different social media platforms. Going into business outlook and strategies, we have a long-term positive view on the secular growth of jewelry consumption in Greater China.
Yet, in fiscal year 2016, macro headwinds in Hong Kong and Macau may still weigh on business momentum. However, we think that the easing rate should help to support the operational matrix in the next 12 months. Mainland China operations is expected to see a faster recovery than Hong Kong and Macau, benefiting from the wealth effect induced by the buoyant capital market. For long-term strategies, we will continue to further penetrate into lower tier cities and optimize our POS network. Selection of new POS locations will be backed by comprehensive analysis at both macro and micro levels. We will also continue to partner strategically with leading retail enterprises and leverage on franchisees' knowledge to expand our geographical footprint. Omni-channel retailing is our future, so we will focus on providing a similar shopping experience to our customers.
Recent initiatives, including the unification of inventory ownership, enhancement in logistics support, and inventory replenishment system, should help us to set a strong foundation to the wave of true omni-channel retailing. Also, the use of the innovative tools and device such as the RFID-enabled Smart Tray should also help us to enhance our understandings on our customers. Last but not least, we are committed to investing in training and human resources so that our staff are equipped with the crucial skills and mindset to cope with the changing retail landscape. The CTF Academy will be opened in late June, which echoes our commitment for human capital investment. Here concludes our presentation.