Financial Data and Key Metrics Changes - The group's revenue increased by 25.6% to HKD 6.8 billion compared to the same period last year [3] - Operating profit margin rose by 1.6 percentage points to 11.4%, boosting operating profits by 45.4% to HKD 518 million [4] - Profit attributable to equity holders increased by 42.5% to HKD 619 million, with basic earnings per share rising by 41.9% to HKD 1.05 [4] - Overall gross margin increased by 2 percentage points to 34.7%, marking a record high for both interim and annual results [4][5] - Inventory balance grew to around HKD 12.3 billion, with inventory turnover days increasing by over 60 days year-on-year [5][6] Business Line Data and Key Metrics Changes - Retailing revenue increased by 12.8% to HKD 5.26 billion, accounting for 76.8% of total revenue [8] - Wholesale revenue rose significantly by 119.6% to HKD 1.12 billion, turning selling profit from a loss to a profit of HKD 108 million [9] - Licensing income increased by 16.6% to HKD 471 million, driven by improved sales in the mainland [9] Market Data and Key Metrics Changes - Revenue from the Hong Kong/Macau/Overseas market increased by 9.9% to HKD 3.86 billion, accounting for 56.4% of total revenue [6] - Revenue from the mainland market surged by 54.2% to HKD 2.98 billion, accounting for 43.6% of total revenue [7] - Retailing revenue in the mainland increased by 23.6% to HKD 1.5 billion, despite selling losses due to gold hedging [13] Company Strategy and Development Direction - The company has set a new three-year corporate strategy focusing on overseas market expansion, market-oriented products, and operational efficiency enhancement [17] - Plans to enter at least three additional countries and add a net of 50 overseas shops within three years [18][19] - Emphasis on product differentiation and optimizing product mix to cater to both premium and affordable luxury segments [20] Management's Comments on Operating Environment and Future Outlook - Management noted that despite geopolitical tensions and rising gold prices, the group's performance remained strong across all regions [3] - The company expects to see continued double-digit growth in simple sales for the second half of the financial year [36] - Management is optimistic about future growth and network expansion, particularly in overseas markets [45] Other Important Information - The company experienced a net decrease of 174 shops globally, including 173 Luk Fook shops and one 3DG Jewelry shop [4] - The average international gold price increased by nearly 91% year-on-year, impacting sales by weight [10] - The company has integrated ESG principles into its corporate planning and operational decision-making processes [26] Q&A Session Summary Question: Can you compare November sales momentum versus October? - Management indicated that overall simple sales growth for the mainland market exceeded 40% from October to November, with self-operated shops showing mid-teen growth and licensed shops over 40% [32] Question: What is the sales momentum by products for November? - Fixed-price jewelry products are growing faster than gold sales by weight, with gold sales by weight increasing faster in November compared to fixed-price jewelry [33][34] Question: What is the guidance for simple sales growth for the full year of FY 2026? - Management expects double-digit growth to continue in the second half, despite a higher base in the second half compared to the first [36] Question: What is the outlook for gross profit margin next year? - Management anticipates maintaining a high gross margin due to the new VAT policy and lower cost inventory, with expectations for a record high margin in the second half [39] Question: What are the drivers behind the strong performance in wholesale revenue? - The shift in strategy to include exclusive and promotional products in the wholesaling business has driven significant revenue growth [41]

Financial Data and Key Metrics Changes - Revenue reached HKD 13.3 billion, a 12.9% decrease compared to the same period last year, primarily due to a decline in sales of gold products caused by high gold prices [5] - The group's profit for the year decreased by 39.3% to HKD 1 billion, with basic earnings per share decreasing by 37.9% to HKD 1.87 [6] - Proposed final dividend of HKD 0.55 per share, with an annual dividend of HKD 1.1 per share and a dividend payout ratio of 59% [6] - Total operating expenses increased by 13.7% to around HKD 2.6 billion, leading to an increase in the ratio of total operating expenses to revenue by 4.6 percentage points to 19.6% [7][27] Business Line Data and Key Metrics Changes - Retailing revenue decreased by 13.5% to HKD 11 billion, accounting for 82.7% of the group's total revenue, with segment profit decreasing by 17.7% to HKD 1 billion [13] - Licensing income decreased by 12.6% to HKD 904 million, accounting for 6.8% of the group's total revenue [15] - Wholesaling revenue decreased by 8.8% to HKD 1.4 billion, accounting for 10.5% of the group's total revenue, with segment profit decreasing to HKD 14 million [14] Market Data and Key Metrics Changes - Revenue from Hong Kong, Macau, and overseas markets decreased by 19.6% to HKD 8.07 billion, accounting for 60.5% of the group's revenue [10] - Revenue from the Mainland market decreased by 0.2% to RMB 5.3 billion, accounting for 59.5% of the group's total revenue [11] - Retailing revenue in Mainland increased by 10.4% to HKD 3.1 billion, accounting for 59.9% of Mainland market's total [21] Company Strategy and Development Direction - The group has set a new three-year corporate strategy focusing on overseas market expansion, market-oriented products, and operational efficiency enhancements [29] - Plans to enter three more countries and establish 50 new overseas shops within the next three years [30] - Commitment to developing e-commerce business and optimizing its own platforms to sustain growth in e-commerce revenue [30] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about medium to long-term business prospects in Mainland and plans to continue expanding in the Mainland market [31] - The group expects same store sales growth across all regions to be in the double digits for FY 2026 [63] - Management noted that high gold prices may affect sales performance, but increased profit margins will help mitigate the impact of declining sales [42] Other Important Information - The average international gold price increased nearly 30% year on year, affecting consumer sentiment and leading to a 15% decrease in sales of gold and platinum products by weight [16] - The group aims to net 50 shops in the Mainland market in FY 2026 and is optimistic about growth potential in overseas markets [31] Q&A Session Summary Question: Can you elaborate on the recovery in sales momentum for Mainland China? - Management noted strong performance in fixed price gold jewelry products due to new collections and effective promotions, with a new ambassador contributing positively to sales [49][50] Question: What is the ASP trend for fixed price gold products? - The contribution of fixed price gold products to overall retailing revenue increased from 33% to 54%, with expectations for continued growth [56][68] Question: What is the guidance for same store sales growth and profitability? - Management expects double-digit growth in same store sales across all regions for FY 2026, with a stable gold hedging ratio maintained [63][61]