Core Viewpoint - Chow Tai Fook (01929.HK) reported a 17.8% year-on-year increase in retail value for the third quarter ending December 31, 2025, indicating a gradual improvement in jewelry consumption sentiment [1] Group 1: Sales Performance - The same-store sales growth for direct stores in mainland China reached 21.4%, while franchise stores achieved 26.3% growth during the same period [1] - Same-store sales in Hong Kong and Macau increased by 14.3%, with Hong Kong rising by 10.1% and Macau by 31.3% [1] Group 2: Average Selling Price - The average selling price of gold jewelry in mainland China rose to HKD 11,000, up from HKD 7,300 in the third quarter of the 2025 fiscal year [1] - In Hong Kong and Macau, the average selling price for gold jewelry increased to HKD 20,100, compared to HKD 13,300 in the same period of the previous fiscal year [1] - The average selling price for gold jewelry in mainland China reached HKD 9,500, up from HKD 5,200 in the previous fiscal year, while the average price for jewelry embedded with gold rose to HKD 8,900 from HKD 8,000 [2] - In Hong Kong and Macau, the average selling price for gold jewelry increased to HKD 8,300 from HKD 4,700, while the average price for jewelry embedded with gold was HKD 17,500, slightly down from HKD 18,700 [2]

Overall Performance - Chow Tai Fook Jewelry Group's total revenue for the fiscal year 2025 (April 2024 to March 2025) was HKD 89.6 billion, a year-on-year decrease of 17.5% [2] - For the period from April to September 2025, total revenue reached HKD 39 billion, showing a smaller decline of 1.1% compared to the previous year [2][25] - The group maintained a net profit margin of 6.6%, with net profit remaining stable year-on-year [6][30] Financial Health - The group experienced significant fluctuations in cash flow, with operating cash flow showing a net outflow of HKD 29.5 billion [12][37] - The increase in financing cash flow was attributed to strategic transformation and risk defense preparations [41] - As of September 2025, total assets amounted to HKD 76.5 billion, with inventory accounting for 72.4% of current assets [14][40] Main Business - The sales of priced jewelry in the mainland market increased by 16% year-on-year, with priced gold jewelry making up 66% of sales [16][42] - The average selling price of priced gold jewelry rose to HKD 6,300, an increase of 18.9% year-on-year [44] - Cultural IP products generated total sales of HKD 3.4 billion, reflecting a year-on-year growth of 48% [44] Development Trends - The company opened 57 new stores in the first half of the fiscal year 2026, achieving an average monthly sales of over HKD 1.3 million, a 72% increase [45] - The retail value in first and second-tier cities increased by 9.4 percentage points to 64.7%, while third and fourth-tier cities saw a decline [45] - The mainland market remains the largest revenue source, with a revenue of HKD 32.2 billion, down 2.5% year-on-year, but showing signs of recovery in same-store sales [19][46]