Chow Tai Fook Jewellery Group (1929) investor relations material

Executive summary

• Achieved record high results in FY2026, with profit attributable to shareholders of HK$9,004 million (up 52.2% YoY) and revenue of HK$94,398 million (up 5.3% YoY), validating the brand transformation strategy.

• Gross profit margin expanded to 32.3%, operating profit increased 27.8% to HK$18,850 million, and operating profit margin reached 20.0%.

• Transformation initiatives included global flagship store launches, expansion into high jewellery, and international market entries, with fixed-price jewellery mix in Mainland China rising to 35.4% of RSV.

• Opened first global flagship store in Hong Kong and expanded into Southeast Asia and Oceania.

• Brand transformation and product optimization drove growth, supported by new product lines and IP collaborations.

Financial highlights

• Revenue: HK$94,398 million (+5.3% YoY); Gross profit: HK$30,500 million (+15.3% YoY); Gross margin: 32.3% (+2.8 pts YoY).

• Operating profit: HK$18,850 million (+27.8% YoY); Operating margin: 20.0% (+3.6 pts YoY); Net profit margin: 9.6%.

• Profit attributable to shareholders: HK$9,004 million (+52.2% YoY); EPS: HK$0.91 (basic, +53.7% YoY).

• Dividend per share: HK$0.67; payout ratio 73.4%.

• Free cash flow: HK$7,795 million; bank balances and cash at year-end: HK$8,262 million.

Outlook and guidance

• Entering a definitive phase of multi-year transformation, focusing on brand desirability, retail experience, and product differentiation.

• Cautiously optimistic on market outlook despite macroeconomic uncertainties; committed to financial discipline and sustainable earnings.

• FY2030 ambitions: above-market revenue growth, ROE above 25%, 50 luxury-format stores in Mainland, double international RSV, and 50% reduction in GHG emissions from FY2024 baseline.