Hong Kong-based jewellery giant Chow Tai Fook is banking on better sales performance in Hong Kong and Macau to revive its fortunes, after a 9 per cent drop in same-store sales in the two cities in the first quarter. Chairman Henry Cheng yesterday said the management was optimistic about a growth rate in annual sales of over 20 per cent. "Without the high base effect that dragged down sales in the latest quarter, we are confident same-store sales growth for this year will be positive as mainland tourists continue to flock to Hong Kong," Cheng said. But in a recent report, Jefferies said it expects the company's same-store sales to fall 3 per cent this year even as it expects its revenue to grow 5 per cent. Cheng expressed disappointment at the recent protests against mainland tourists. "The wider economy always impacts us heavily," he said. "Recent protests against mainland tourists and the hostile environment it has created have therefore affected some of our stores' sales as such tensions affect Hong Kong's economy significantly." He also announced the company planned to add 2,000 new stores in the next 10 years. Managing director Kent Wong said 60 per cent of the new stores would be set up in the relatively backward regions on the mainland. The jeweller, he said, would soon cover 700 cities across the border. Currently it has a presence in 400. Chow Tai Fook also said it was keen to develop e-commerce. The company last year registered 1.3 million online members. Shares in the company fell 1.4 per cent to HK$11.3 yesterday, on a day the Hang Seng Index edged up 0.15 per cent.