香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 承董事會命 周大福珠寶集團有限公司 聯席公司秘書 鄭炳熙 香港，2025 年 11 月 10 日 於本公告日期，執行董事為鄭家純博士、鄭志恒先生、鄭志雯女士、黃紹基先生、 鄭 錦 標 先 生 、 鄭 炳 熙 先 生 及 孫 志 強 先 生 ； 及 獨 立 非 執 行 董 事 為 鄺 志 強 先 生 、 林健鋒先生、柯清輝博士、鄭嘉麗女士、車品覺先生、馮詠儀女士、鄧迎章先生 及黃靜瑛女士。 董事會會議日期 周大福珠寶集團有限公司（「本公司」）董事會（「董事會」）謹此宣佈，本公司 將於 2025 年 11 月 25 日（星期二）舉行董事會會議，藉以考慮和批准本公司及其 附屬公司截至 2025 年 9 月 30 日止六個月的中期業績、宣派中期股息（如有）， 以及處理其他事項。 ...

Core Insights - The surge in gold prices has led to increased investment demand, particularly in gold ETFs, while retail gold jewelry demand has significantly declined, indicating a shift in consumer behavior from jewelry to investment [2][12] - Major jewelry retailers, such as Chow Tai Fook and Chow Sang Sang, are experiencing a wave of store closures, particularly in lower-tier cities, as high gold prices deter consumers and impact sales [5][7] Retail Performance - Chow Tai Fook reported a net closure of 905 stores in 2025, reducing its total to 6,501, marking an end to years of expansion [5] - Chow Sang Sang also faced a decline, with 74 stores closed in the first half of 2025, including 62 from its main brand [5] - The closures are concentrated in franchise stores in lower-tier cities, while self-operated stores have seen slight growth [7] Consumer Behavior - High gold prices have led franchisees to adopt conservative inventory strategies, resulting in a reluctance to stock large amounts of gold due to financial risks associated with price fluctuations [9] - The rise of live e-commerce has diverted customers from physical stores, exacerbating the challenges faced by brick-and-mortar retailers [9] - Retail sales of gold jewelry have been negatively impacted, with consumers becoming more cautious and delaying purchases due to high prices [11][12] Market Dynamics - The World Gold Council noted a significant drop in gold jewelry demand in China, attributed to unprecedented price increases outpacing income growth, which has weakened consumer purchasing power [12] - Investors are drawn to gold for its potential appreciation, while consumers view it as a product, leading to decreased demand as prices rise [12]

Core Insights - Despite the surge in gold prices, retail business for gold stores, particularly in lower-tier cities, is struggling, leading to significant store closures [1] Company Summary - Chow Tai Fook's retail points in mainland China increased from 4,452 in 2021 to 7,407 in 2024, but the company closed 905 stores in 2025, reducing the total to 6,501 [1] - The average daily store closure rate is 2.5, marking the end of a multi-year expansion phase for the company [1] Industry Summary - The trend of rising gold prices has not translated into increased sales for gold retailers, particularly affecting franchise stores in smaller cities [1] - The ongoing price increase has led to a more challenging business environment rather than a sales boom [1]

Core Insights - The surge in gold prices has not translated into increased business for gold retailers, particularly in lower-tier cities, where the reality is more challenging than the headlines suggest [1] Company Summary - Chow Tai Fook's retail points in mainland China increased from 4,452 in 2021 to 7,407 in 2024, but the company plans to close 905 stores in 2025, reducing the total to 6,501 [1] - The average number of store closures is 2.5 per day, marking the end of a period of continuous expansion for the company [1]

Core Viewpoint - Leading gold brands are shifting their focus from physical store expansion to enhancing e-commerce channels due to declining terminal sales and changing consumer behavior [2][3]. Group 1: Store Network and Performance - Chow Tai Fook reported a reduction in its retail network, with over 70% of its retail points being franchise stores, totaling 6,041 locations, down from 6,644 as of March 31, representing a decrease of 603 stores [2]. - The most significant decline occurred in the mainland market, where retail points fell to 5,663, a reduction of 611 stores since March [2]. - The company continues to close underperforming stores while selectively opening new ones with higher productivity [2]. Group 2: Market Challenges and Strategic Adjustments - The shift from expansion to quality improvement poses challenges, including short-term revenue fluctuations, employee placement costs, and restructuring relationships with franchisees [3]. - The closure of stores primarily involves franchise locations, indicating a strategic adjustment to optimize channel structure and enhance overall operational efficiency [3]. Group 3: E-commerce Growth and Consumer Behavior - High gold prices, weak consumer demand, and intensified competition have pressured the profitability of inefficient stores, leading franchisees to consider exiting the market [4]. - Major brands like Chow Tai Fook and Lao Feng Xiang have adopted "high-quality growth" strategies, focusing on single-store efficiency rather than quantity expansion [4]. - E-commerce channels are experiencing significant growth, reflecting a shift in consumer trust from physical stores to brand official flagship stores, particularly for standardized products and IP collaborations [4]. - While e-commerce growth is promising, there remain essential in-store experiences such as trying on products, value retention, and after-sales service that cannot be replaced, leading brands to pursue an "online drive + offline experience" integrated approach rather than large-scale store closures [4].

Core Insights - The paradox of rising gold prices leading to store closures highlights the harsh survival rules in the gold industry [3][10] - Major players like Chow Tai Fook and Chow Sang Sang are closing numerous stores while simultaneously reporting profit increases, indicating a strategic shift rather than a collapse [3][6] Group 1: Store Closures and Financial Performance - Chow Tai Fook reported a net decrease of 611 stores by the end of September, yet its gross profit margin increased to 29.7% [3] - Chow Sang Sang closed 560 stores in the first three quarters but saw a net profit growth of 3.1% [3] - The closures are part of a calculated strategy to survive in a challenging market environment [3] Group 2: Pricing Dynamics and Consumer Behavior - The surge in gold prices by 51% has led to a significant increase in processing fees, which have risen to 200 yuan per gram, affecting consumer purchasing decisions [4][6] - Jewelry sales dropped by 24% in the first three quarters, while bank gold bar sales surged by 25%, indicating a shift in consumer preference towards investment products [6] Group 3: Strategic Adjustments in the Industry - The closure of stores is revealing a new industry logic, where companies are focusing on high-value flagship stores while closing lower-performing franchise locations [7][9] - Companies like Luk Fook are aggressively expanding overseas, opening new stores in Vietnam while closing domestic locations, capitalizing on higher price points in Southeast Asia [9] Group 4: Impact of Tax Reforms - The new tax policy implemented on November 1 requires non-investment gold enterprises to pay a 13% value-added tax, further straining already vulnerable stores [10] - The increased costs from the tax reform are particularly burdensome for small stores that rely on quick turnover for survival [10] Group 5: Future Directions and Market Adaptation - Surviving companies are transforming their stores into "gold experience centers" or positioning jewelry as "wearable financial products" to adapt to changing consumer needs [12] - The focus is shifting from selling gold as a decorative item to providing a sense of security against uncertainty [12]

Core Viewpoint - Starting from November 3, Chow Tai Fook has raised prices on some gold jewelry, with the price of pure gold reaching 1265 RMB per gram, indicating a strategic adjustment in response to tax reforms and market fluctuations [2] Company Summary - Chow Tai Fook, a leading player in the gold and jewelry industry, is adjusting its pricing strategy to cope with external economic factors [2] - The increase in gold price reflects the company's response to market volatility and changes in taxation policies [2] Industry Summary - The gold jewelry sector is experiencing price adjustments as major players like Chow Tai Fook respond to economic pressures [2] - The rise in gold prices may influence consumer purchasing behavior and overall market dynamics within the jewelry industry [2]

Core Viewpoint - The recent decline in Chow Tai Fook's stock price, despite rising gold prices, raises concerns about the company's performance and market sentiment [2][4]. Stock Price Decline - Chow Tai Fook's stock fell by 8.67% on November 3, closing at HKD 14.28, alongside a broader decline in the gold jewelry sector [2]. - Major banks have lowered their forecasts for Chow Tai Fook, indicating a cautious outlook for the short term [4]. Tax Policy Impact - A new tax policy announced on November 1, which differentiates between investment and non-investment gold, has increased operational costs for Chow Tai Fook [4][5]. - The company acknowledged that the new tax policy would impact its profitability and has adjusted prices for some gold products accordingly [4][5]. Revenue Decline and Operational Challenges - For the first half of the 2025 fiscal year, Chow Tai Fook reported a revenue decline of 20.4% to HKD 39.408 billion and a 44.4% drop in profit attributable to shareholders [6]. - Despite the revenue drop, operating profit increased by 4.0% to HKD 6.776 billion, indicating a strategic shift towards prioritizing quality over quantity [6]. Store Closures and Business Model Issues - Chow Tai Fook closed 842 stores, primarily in mainland China, reflecting challenges in its franchise model and the impact of high gold prices on franchisee profitability [10][13]. - The company's reliance on a franchise model has led to diluted profits and quality control issues, prompting a shift towards self-operated stores [10][13]. Consumer Behavior Changes - Retail gold prices have reached historical highs, leading to a noticeable change in consumer purchasing behavior, with reduced willingness to buy gold jewelry [8][9]. - Chow Tai Fook is adapting its product strategy, with a significant increase in sales from fixed-price gold products, indicating a shift in consumer preferences [9][11]. Future Outlook - The new tax policy is expected to exert cost pressure on the company, but management remains optimistic about narrowing same-store sales declines and slowing store closures [14]. - Chow Tai Fook maintains a leading market share of 11.8% in the domestic market and possesses unique supply chain advantages, suggesting potential for recovery in the long term [15].

Group 1 - The new gold tax policy has sparked significant fluctuations in gold prices, affecting consumer sentiment [3][4] - Major gold retailers, including Chow Tai Fook, have raised prices in response to increased procurement and production costs due to the new tax regulations, with some products seeing price hikes of over 5% in a single day [4] - Chow Tai Fook reported a retail value growth of 43.7% year-on-year for its priced gold products in the third quarter, indicating strong demand and sales recovery in mainland China, Hong Kong, and Macau [4] Group 2 - The new tax policy exempts individuals from value-added tax when selling personal items, including gold jewelry, but frequent and large-scale sales may be classified as business activities subject to taxation [3][4] - Chow Tai Fook's pricing strategy focuses on product design, service quality, and customer relationships to maintain reasonable profit margins [5]

Core Viewpoint - The new gold tax policy has led to fluctuations in gold prices, impacting consumer behavior and prompting major jewelry brands like Chow Tai Fook to adjust their pricing strategies in response to increased costs associated with gold procurement and production [2][3]. Group 1: Tax Policy Impact - The new tax policy exempts individuals from value-added tax when selling used items, including gold jewelry, but frequent and large-scale sales may be classified as "business sales" by tax authorities [2]. - Chow Tai Fook confirmed that the recent tax policy has resulted in additional costs for gold procurement and production, leading to price adjustments for certain gold products starting November 3 [2]. Group 2: Price Adjustments - Chow Tai Fook raised retail prices for gold products by 12% to 18% last month, following an earlier price increase of 10% to 20% in the first half of the year [3]. - Other major gold retailers, including Lao Miao and Chow Sang Sang, also increased prices significantly, with some experiencing daily price hikes exceeding 5% [2]. Group 3: Sales Performance - Chow Tai Fook reported a 43.7% year-on-year increase in retail value growth for priced gold products in the third quarter, benefiting from strong demand and improved sales trends in mainland China, Hong Kong, and Macau [3]. - The company emphasizes the importance of product design, service quality, and customer relationships in maintaining its market position and profitability [3]. Group 4: Risk Management and Consumer Sentiment - Chow Tai Fook utilizes financial tools to hedge risks and maintains stable gold inventory levels aligned with production and sales needs, rather than focusing solely on the appreciation of gold prices [3]. - The company highlights that the emotional value of jewelry should be prioritized, suggesting that consumers should focus on the joy of purchasing rather than being overly concerned with gold price fluctuations [3].