Chow Tai Fook Jewellery : PRESENTATION (pre241126 en)

2024/2025

INTERIM RESULTS

INVESTOR PRESENTATION

2024.11.26

1H2025 HIGHLIGHTS

Resilient operating profitability against macro headwinds

RevenueGross profit margin 1

HK$39,408	million	On constant fx	31.4%
20.4%		20.0%

1H2024

24.9%

Operating profit 2Operating profit margin

HK$6,776		4.0%	17.2%	13.2%
	million				1H2024
Profit attributable to shareholders		44.4%	Dividend per share	78.9%
HK$2,530 million		HK$0.20
					Payout ratio

1 Gold loan impact was reclassified from cost of goods sold ("COGS") to "other gains and losses" for 1HFY2024 and before

2 Aggregate of gross profit and other income, less selling and distribution costs and general and administrative expenses

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1H2025 HIGHLIGHTS

Diligently executing five strategic priorities with a focus on brand transformation

Brand transformation gains

positive momentum

• First new concept store in HK
• Signature CTF Rouge Collection

RSV > HK$ 1.5 billion since

launch

	Ongoing product and		Improved margins and	Preserve and perpetuate rich
	pricing optimisation		disciplined spending	Chinese cultural heritage
•	Product offerings with	•	GPM +650 bps YoY	• Launched a five-year Chinese
	varying value propositions	• OPM +400 bps YoY	Gold Craftsmanship Heritage
•	Fixed-price mix in gold	• SG&A down by 2.8% YoY	Education Programme
• Committed HK$10 million
	product RSV: Doubled	•	Disciplined capex spending
	sponsorship in advancing social
	YoY to 14.2%			purpose

3

BRAND TRANSFORMATION

Progressive rollout of refreshed stores to elevate customer experience

Launch new concept store at 42-46 Queen's Road Central, Hong Kong

4

OPTIMISATION OF PRODUCT OFFERINGS

Exquisite design and craftsmanship to enhance brand desirability

		Chow Tai Fook
CTF Rouge Collection	CTF Bond Collection	Palace Museum Collection

5

CHINESE GOLD CRAFTSMANSHIP HERITAGE EDUCATION PROGRAMME Enhance appreciation of Chinese gold craftsmanship among younger generation

⚫

⚫

Foster the understanding and appreciation of the Chinese gold artistry among younger generation, leading them to contribute to the preservation of Chinese culture and nurture a sense of national pride

Partner with Hong Kong Palace Museum to provide diverse activities
and learning resources, such as masterclasses and workshops, with a
focus on Chinese goldsmithing, gold artefact design and related
cultural exchange initiatives	Filigree	Granulation	Inlaying

				Minutely ring -
Carving		Enamel		punched ground

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MAINLAND CHINA - CHOW TAI FOOK JEWELLERY POS

Prioritise financial health of POS network and sustain market leadership

RSV and POS by tier of cities 1

17.5%15.8%

12.0%

24.0%

22.0% 42.0%

RSV and POS by operating model

28.9%

23.3%

RSV and POS by store format

20.1%

49.5%

26.4%

43.3%

19.0%

Tier I cities

47.7%

% of % of

POS RSV

76.7%

71.1%

% of % of

30.3%

30.4%

% of % of

POS RSV

Tier II cities Tier III cities

Tier IV cities and others

POS RSV

Self-operated

Franchised

Shopping mall Department store Others

	RSV YoY	Net POS			RSV YoY	Net POS			RSV YoY	Net POS
	movement			movement			movement
Tier I cities	-18.4%	-36		Self-operated	-25.6%	-7		Shopping mall	-17.0%	-25
Tier II cities	-20.1%	-73		Franchised	-17.7%	-232		Department store	-22.8%	-85
Tier III cities	-20.4%	-52						Others	-23.4%	-129
Tier IV cities and others	-21.7%	-78

1 Adoption of the city-tier ranking released by Yicai Global on 30 May 2024

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MAINLAND CHINA

Enhance omni-channel experience with high touch engagement

POS Network

• Net closed 239 CHOW TAI FOOK JEWELLERY POS in 1H2025. Expect net store closure to moderate in 2H2025 based on current observations of the trajectory and market conditions
• Stay agile and optimise store network by streamlining underperforming stores while focusing on maximising store productivity
• Continue to open new stores in promising locations on a selective basis, informed by a data-driven approach

E-commerce Channel

RSV

0.6%

Contribution to	Contribution to respective
respective RSV	retail sales volume
5.6%	13.4%

Average selling price

1H2024

HK$2,400 HK$2,100

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HONG KONG & MACAU OF CHINA AND OTHER MARKETS Stay agile in managing the evolving business dynamics

RSV and POS by geography

13.5%

		43.2%	68.8%
17.7%	45.8%
		11.0%			% of	% of
					POS	RSV
					Hong Kong, China
					Macau, China
					Other markets
				RSV YoY	Net POS movement
Hong Kong, China			-25.6%	-1
Macau, China				-42.0%	-2
Other markets				-31.7%	+3

Retail Network Management

Hong Kong and Macau of China

• Launched the first new concept store in Central, Hong Kong
• Net closure of 3 POS in 1H2025
• Continue to reassess business conditions and evaluate individual store location, scale and productivity to ensure margin resilience

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