Chow Tai Fook Jewellery Group: Sustained profitability with revenue up 1.1%, margin resilience, and strong brand transformation

HONG KONG, CHINA / ACCESS Newswire / November 25, 2025 / Results Highlights

• In the first half of FY2026 ("1HFY2026"), the Group demonstrated remarkable resilience and delivered solid results, supported by an improvement in consumer sentiment and a revival in jewellery spending across the Group's key markets.

• The Group made steady progress in brand transformation, as well as store and product optimisation during the period. These initiatives strengthened the Group's operational efficiency and financial resilience, reaffirming its commitment to quality growth. Same Store Sales ("SSS") turned positive in the Chinese Mainland (the "Mainland") as well as Hong Kong and Macau during the period, validating the Group's store optimisation strategy with a focus on store productivity.

• Revenue remained stable at HK$38,986 million during the period. Gross profit margin was maintained above 30%, at a relatively high level in history, underpinned by an improved mix of higher-margin fixed-price jewellery and gold price appreciation Operating profit remained resilient with a year-on-year growth of 0.7% and the operating profit margin achieving a five-year record high with 30 basis points expansion to 17.5%, thanks to a lower cost ratio amid effective store optimisation and disciplined cost management.

• Key fixed-price signature collections sustained strong sales momentum and achieved total sales of HK$3.4 billion during the period. The retail sales value ("RSV") contribution of fixed-price jewellery in the Mainland notably increased to 31.8% from 27.4% in the same period last year.In addition, the Group launched the first High Jewellery Collection "Timeless Harmony" in June, marking a pivotal milestone in brand transformation.

• The Group further unveiled more new image stores in the Mainland and Macau during the period, targeting sophisticated affluent consumers with differentiated merchandise and a redefined retail experience. These premium stores have consistently delivered higher monthly sales than average stores in the same districts since their debut.

Chow Tai Fook Jewellery Group Limited ("Chow Tai Fook Jewellery Group", the "Group" or the "Company"; SEHK stock code: 1929), today announces its interim results for the six months ended 30 September 2025 ("1HFY2026").

Solid Recovery Trajectory Underscored by Robust Margins and Strengthened Profitability

Despite a volatile macroeconomic environment and a gold price rise, consumer sentiment continued to improve in 1HFY2026, supporting jewellery spending revival across the Group's key markets and reflecting a solid trajectory of business recovery. The Group continued to make steady progress in its brand transformation, as well as product and store optimisation, supporting operational efficiency and financial resilience, reaffirming its commitment to delivering quality earnings.

The Group's total revenue remained stable at HK$38,986 million during the period (1HFY2025: HK$39,408 million). Gross profit margin maintained above 30% at a historically elevated level. Operating profit increased by 0.7% year-on-year to HK$6,823 million (1HFY2025:HK$6,776 million). The operating profit margin remained resilient and reached 17.5% in 1HFY2026, which marks a record five-year high level. These results affirm our ability to adapt swiftly to market dynamics and capitalise on emerging opportunities.

Profit attributable to shareholders stayed flat at HK$2,534 million in 1HFY2026. The Board has declared an interim dividend of HK$0.22 per share (1HFY2025: HK$0.20), representing a payout ratio of approximately 85.7%, reflecting the Group's commitment to sustainable value creation for all its stakeholders.

Dr Henry Cheng, Chow Tai Fook Jewellery Group Chairman, said, "Chow Tai Fook Jewellery's century-long legacy, deeply rooted in the profound values of Chinese culture, forms the crucial foundation for our brand. Unwavering in our commitment to driving sustainable high-quality growth, we strive to strengthen our bond with a new generation as we embrace our shared future."

Brand Transformation Progress Fuelled Recovery and Strengthens Same Stores Sales Growth

FY2026 marks a meaningful step in the Group's continuing brand transformation, bringing it closer to its centennial celebration in 2029.SSS returned to positive growth across both the Mainland and Hong Kong and Macau during the period, thanks to the brand transformation initiatives, store optimisation efforts, as well as the improving trend in weight-based gold jewellery.

In the Mainland, the Group is encouraged by the continued improvement in same store performance during 1HFY2026, reaffirming the effectiveness of store optimisation. SSS of self-operated Points of Sales ("POS") in the Mainland increased by 2.6% during the period. Separately, sales of franchised POS calculated on a same store basis rose by 4.8% in the period.

In Hong Kong and Macau, SSS rose by 4.4% in the period, driven by an improved retail sentiment and foot traffic. SSS in Hong Kong was up by 1.8%, while in Macau grew by 13.7% during the period.

Differentiated Product Offerings Propelled Sales Growth

The Group continued to optimise the product portfolio in response to shifting consumer tastes and remained focused on strengthening its signature collections. These collections sustained strong sales momentum, which drove the growth of our higher-margin fixed-price jewellery. As a result, RSV contribution of fixed-price jewellery in the Mainland rose to 31.8%, up from 27.4% in the same period last year, lending support to gross profit margin.

The Chow Tai Fook Palace Museum Collection, alongside the CTF Rouge and CTF Joie collections, pay homage to historic traditions while reinterpreting them with a modern sensibility, creating exquisite pieces infused with cultural significance that bridge China's storied past with its vibrant present. These collections achieved total sales of HK$3.4 billion during 1HFY2026, representing an increase from HK$2.3 billion in the same period last year.

In June 2025, the Group launched its first High Jewellery Collection "Timeless Harmony," marking a pivotal milestone in its brand transformation. Designed by Nicholas Lieou, Creative Director of High Jewellery, and drawing inspiration from classical Chinese philosophy and architecture, the Collection strategically reinforced our position as a leading global jewellery brand with unrivalled capability. The Group is the first Chinese jewellery brand to appoint a Creative Director of High Jewellery, reflecting its commitment to elevating design and brand storytelling in its jewellery. At the launch event of High Jewellery Collection in Hangzhou, high net-worth clients demonstrated resilient demand, with nearly 200 jewellery pieces sold during the occasion.

During the period, the Group expanded its Fei Cui offerings with several new designs, including the unveiling of the Heaven and Earth Collection in September 2025 and the incorporation of Fei Cui into its IP collaborative collections with The Beijing Palace Museum and renowned streetwear brand CLOT as well as into CTF Joie and HUÁ collections. As a result, the Group's Fei Cui jewellery products maintained strong growth, with sales doubling year-on-year during 1HFY2026.

Effective Retail Network Management Elevating Brand Desirability and Store Productivity

With a clear priority on improving earnings quality and ensuring margin resilience, the Group's retail network management remained focused on sustaining market leadership and enhancing the overall financial health and resilience of its retail network by prioritising store productivity. In 1HFY2026, the Group continued to strategically expand into selected premium shopping malls and prime locations to accelerate its brand transformation and elevate brand desirability.

As an integral part of its brand transformation, the Group is actively reshaping the retail experience with the launch of new image stores. The Group unveiled three new image stores in Beijing, Shijiazhuang and Macau, targeting sophisticated affluent customers with differentiated merchandise and refined retail experience. As of 30 September 2025, the Group had a total of 8 new image stores. These premium stores have consistently delivered higher monthly sales than average stores in the same districts since their debut.

Accelerating Global Reach to Redefine Luxury Across Borders

International expansion is a key aspect of the Group's brand transformation, aligning with its direction to amplify brand desirability, drive product innovation, and showcase the beauty of China to the world through exquisite jewellery. The Group is entering a dynamic phase of international growth guided by a two-pronged expansion strategy. It revitalised key existing markets through optimising visual merchandising to enhance store productivity and product mix, while strengthening training for its storefront staff to elevate retail excellence. On the other hand, it proactively exploring new high potential territories for sustainable growth.

By June 2026, the Group will have unveiled 6 new stores in international markets, including new image stores. All these new stores are strategically located in prime retail areas known for high foot traffic, ensuring strong brand visibility and broad reach among both tourists and local shoppers. In Southeast Asia, the Group opened its first new image store at Jewel Changi Airport in Singapore in October, offering access to a rapidly growing affluent local middle class and a vibrant Chinese diaspora. In 2HFY2026, the Group plans to continue launching new image stores in international markets, focusing on select premium locations across Southeast Asia, Oceania and Canada. Over the next two years, the Group aims to further expand its presence into new markets, including the Middle East.

Well Positioned for Sustainable High-Quality Growth

The Group is encouraged by the continual improvement in consumer sentiment and reviving jewellery spending in 1HFY2026. SSS returned to positive in all key markets in which the Group operates.

Despite the recent short-term industry headwinds, the Group's quarter-to-date SSS performance remained solid. Together with its strategic transformation initiatives, the Group has strengthened operational and financial resilience, and remains confident in sustaining its recovery through 2HFY2026.

The Group shall remain agile, proactively refining its strategies to stay ahead in a dynamic environment. Rigorous financial discipline, coupled with prudent cost and capital management, will continue to underpin its pursuit of sustainable high-quality earnings and long-term shareholder value.

As the Group approaches its historic centenary, it remains resolutely committed to advancing its brand transformation agenda through strategic initiatives designed to deliver positive outcomes.

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Chow Tai Fook Jewellery Group Limited

Chow Tai Fook Jewellery Group Limited (the "Group"; SEHK stock code: 1929) was listed on the Main Board of The Stock Exchange of Hong Kong in December 2011. The Group firmly upholds the vision: "To be the leading global jewellery brand that is a trusted lifetime partner for every generation", drawing on nearly a century of legacy and success.

Founded in 1929, the Group's iconic brand "CHOW TAI FOOK" has become an emblem of tradition, celebrated for its bold designs and an unwavering attention to detail. Building upon a rich heritage and a foundation of trust, the Group is not only widely recognised for honouring traditions but also for fostering deep, meaningful connections with a diverse customer base through its exquisite jewellery. The Group's long-standing commitment to innovation and craftsmanship has been integral to its success over time and has become synonymous with excellence, value and authenticity.

As a leading Chinese jeweller, the Group believes in blending contemporary cutting-edge designs with traditional techniques to create jewellery that can be passed down from generation to generation. Every collection is thoughtfully conceived and crafted to reflect the stories of our customers, celebrating the special moments in their lives. Committed to growing alongside our customers, the Group embraces a spirit that aspires to inspire and captivate generations to come, weaving the story of CHOW TAI FOOK into the fabric of their lives.

Offering a wide variety of products, services and channels, the Group's brand portfolio comprises the CHOW TAI FOOK flagship brand with curated retail experiences, and other individual brands including HEARTS ON FIRE, ENZO and MONOLOGUE.

The Group is committed to delivering sustainable long-term value creation for its stakeholders by enhancing the quality of earnings and driving higher value growth. We operate an extensive omni-channel retail ecosystem, with a retail network across China and multiple locations globally, complemented by a growing e-commerce business that further enhances our competitive edge.

Media Enquiries:

Chow Tai Fook Jewellery Group Limited

Haide Ng

Associate Director, Corporate Communications

Tel: (852) 3115 4402

Email: haideng@chowtaifook.com

Acky Chan

Senior Manager, Corporate Communications

Tel: (852) 3115 4403

Email: ackychan@chowtaifook.com

SOURCE: Chow Tai Fook Jewellery Group Limited

View the original press release on ACCESS Newswire

Revenue was stable at HK$38,986 million with operating profit up 0.7% and SSS growth in all key markets. Gross margin remained strong, but net profit was flat due to gold loan revaluation losses. Convertible bonds raised HK$8.8 billion for expansion.

Original document: Chow Tai Fook Jewellery Group Limited [1929] Earnings Release — Nov. 25 2025

Revenue remained stable at HK$38,986 million in 1HFY2026, with operating profit up 0.7% and SSS growth in all key markets. Gross margin stayed above 30%, and a HK$8.8 billion convertible bond was issued to support expansion.

Original document: Chow Tai Fook Jewellery Group Limited [1929] Interim report — Nov. 25 2025

Chinese gold jewelers will likely raise prices to pass through cost pressures after Beijing's new tax policy, Citi analysts say in a research note, noting that China's Finance Ministry ended tax incentives on gold purchases on Saturday. The deduction rate for value-added tax are now lower for gold purchases for non-investment--falling to 6% from 13%. The change could increase gold procurement costs by 7%, the analysts note. If retail prices remain unchanged, Citi estimates 2026 net profits to be set back for gold jewelers: Laopu Gold by 15%, Chow Tai Fook Jewellery Group by 26% and Luk Fook Holdings by 6%. The analysts add that it's unclear if the policy's intentions are to only discourage gold investment by increasing transaction costs or to curb gold jewelry demand as well. (sherry.qin@wsj.com)

China's gold-jewelry companies are expected to report strong results following Chow Tai Fook Jewellery's sound quarterly performance, DBS Group Research's Mavis Hui says in a commentary. Chow Tai Fook's latest operational data exceeded expectations, driven by strong momentum in its high-margin, fixed-price products and resilient margins, she says. Chow Tai Fook's better-than-expected performance bodes well for peers such as Laopu Gold, Chow Sang Sang and Luk Fook, she adds. These companies' earnings are likely to benefit from resilient consumer demand amid market expectations for higher gold prices, she says. A consumption shift toward higher innovation and craftsmanship products, which have wider margins, could also help. (megan.cheah@wsj.com)

Revenue fell 17.5% to HK$89.7B due to macro headwinds and gold prices, but operating profit rose 9.8% to HK$14.7B with margin expansion. Net profit dropped 9% to HK$5.9B, while ROE improved to 21.9%. Brand transformation, digital initiatives, and fixed-price gold products drove resilience.

Original document: Chow Tai Fook Jewellery Group Limited [1929] Annual Report — Jun. 12 2025