Chow Tai Fook Jewellery Posts 46.1% Growth in Retail Sales Value In
3QFY2024, Driven by Steady Progress of Ongoing Transformation


EQS Newswire / 12/01/2024 / 17:11 UTC+8

   Chow Tai Fook Jewellery Posts 46.1% Growth in Retail Sales Value
   In 3QFY2024, Driven by Steady Progress of Ongoing Transformation

Results Highlights

     * The Group's Retail Sales Value ("RSV") registered growth of
       46.1% during 3QFY2024. This was driven by Hong Kong and Macau
       of China and other markets which was up 70.8%, thanks to the
       continued recovery of inbound tourism and our annual sale in
       December. Mainland China (the "Mainland") RSV increased by
       42.2%, supported by the strong festive demand and a steady
       ramp up of our new stores.

     * In Hong Kong and Macau, with an average daily customer
       traffic increased by over 50% year-on-year, Same Store Sales
       ("SSS") increased 66.6% during the Quarter. In Mainland
       China, SSS increased by 22.7% during the Quarter and almost
       50% in December.

     * Bolstered by our global diamond campaigns and annual sale,
       RSV of Wonderful Life Collection in the Mainland was double
       that of 3QFY2023. Our newly launched
       Chow Tai Fook Dancing Lily Collection was also well received
       by our customers in both the Mainland and Hong Kong and
       Macau.

     * Strength in gold products continued given its nature of value
       preservation and defensiveness and increasing popularity
       among younger consumers. Some of our key and exclusive
       collections such as HUÁ Collection and ING Collection
       captured robust market demand, registering RSV growth in
       excess of 50% and 40% respectively during the Quarter.

     * Since November, we have progressively rolled out the change
       from weight-based pricing to fixed pricing for selective gold
       jewellery products. We have observed positive and encouraging
       responses from the market with strong growth recorded in
       December.

     * As we transition to a new phase of higher value growth and
       with our brand revamp set to be unveiled in April 2024, our
       focus remains steadfast on executing our five strategic
       priorities to drive a sustained enhancement in earnings
       quality.

KEY OPERATIONAL DATA

For the three months ended 31 December 2023



(% change compared to the same period last year)


Group


Retail Sales Value(1) growth

+46.1%


Mainland

China

Hong Kong &

Macau of China and

other markets

RSV growth

+42.2%

+70.8%

Contribution to Group RSV

84.2%

15.8%



Mainland

China


Hong Kong &

Macau of China

Same Store Sales(2) growth

+22.7%

+66.6%

SSS volume growth

+17.5%

+49.8%

SSSG by product



- Gem-set, Platinum and K-gold jewellery

-1.9%

+4.3%

- Gold jewellery and products

+32.5%

+104.3%

   (1) "Retail Sales Value" measures the sales at the ending price
   (VAT inclusive, if any), in respective functional currencies, of
   products sold to customers in the POS network and other channels.

   (2) "Same Store Sales" for the Third Quarter is the RSV from the
   self-operated POS of
   CHOW TAI FOOK JEWELLERY existing as at 31 December 2023 and which
   have been opened prior to 1 April 2022. RSV from franchised POS
   and other channels are not included.

   (Hong Kong, China, 12 January 2024) Chow Tai Fook Jewellery Group
   Limited ("Chow Tai Fook Jewellery Group", the "Group" or the
   "Company"; SEHK stock code: 1929), today announces certain
   unaudited key operational data of the Group for the three months
   ended 31 December 2023 (the "Third Quarter", or the "Quarter" or
   "3QFY2024").

Robust RSV and SSS Growth Driven by Festive Demand

   During 3QFY2024, both Mainland China and Hong Kong and Macau
   benefitted from strong festive demand. The Group's RSV registered
   a robust growth of 46.1% during the Quarter. This was driven by
   Hong Kong and Macau of China and other markets, which was up
   70.8%, thanks to the continued recovery of inbound tourism and
   our annual sale in December. For the first nine months of FY2024,
   our RSV in Hong Kong and Macau was about 70% of the corresponding
   FY2019 levels.

   In Mainland China, the annual sale also commenced in late
   December to capture growth momentum ahead of the Chinese New Year
   celebrations. During the Quarter, RSV of the Mainland increased
   by 42.2%, supported by the strong festive demand. In particular,
   on Christmas Eve and Christmas Day, RSV in the Mainland more than
   doubled year-on-year.

   In other markets, an increase in tourism also drove robust RSV
   growth of 168.6%, especially for Singapore, Malaysia, and
   duty-free shops in the Mainland. We will continue to evaluate and
   explore opportunities in markets with strong retail demand.

   The Same Store Sales Growth ("SSSG") in both markets demonstrated
   a positive trend. In the Mainland, SSS recorded growth of 22.7%
   during the Quarter. In particular, SSSG reached almost 50% in
   December, with positive SSSG observed across all product
   categories. In Hong Kong and Macau, the continued recovery of
   inbound tourism and our annual sale were supportive to our
   business and SSS increased by 66.6%. SSSG grew by 58.8% and
   100.7% for Hong Kong and Macau respectively. The encouraging
   growth was supported by the sustained return of Mainland
   tourists, coupled with our annual sale during the Quarter. The
   average daily customer traffic at our stores in Hong Kong and
   Macau increased by over 50% year-on-year during the Quarter.

   We continued to enhance digital customer engagement and bolster
   our online presence through targeted digital marketing
   initiatives. E-commerce's contribution in Mainland China edged up
   to 6.4% in RSV and 14.3% in volume in the Quarter.

Encouraging Performance of our Featured Diamond Collections

   For our gem-set business, we kicked off our global diamond
   campaign in September 2023 with a positive reception. We brought
   the "Beyond Time" diamond exhibition to Beijing in December,
   following its successful debut in Hong Kong. These diamond
   campaigns were designed and aimed at effectively raising
   consumers' awareness and enhancing their desirability for gem-set
   jewellery.

   Quality gem-set jewellery continued to be favoured by consumers,
   as illustrated by the strong performance of the Wonderful Life
   Collection in the Mainland, which doubled its RSV in 3QFY2023
   year-on-year. Our newly launched Chow Tai Fook Dancing Lily
   Collection was well received by our customers in the Mainland and
   Hong Kong and Macau. These underpinned our confidence in the
   long-term prospects of diamond jewellery.

   In the Mainland, SSS of the gem-set, platinum and k-gold
   jewellery category slightly declined by 1.9% during the Quarter
   yet on a monthly basis, it turned positive since November.
   Mainland RSV for this category grew 7.0% during the Quarter. In
   Hong Kong and Macau, SSS increased by 4.3% during the Quarter. In
   the Mainland, the Same Store Average Selling Price ("ASP") of
   gem-set jewellery was steady at HK$8,100 (3QFY2023: HK$8,200),
   while that of Hong Kong and Macau increased to HK$17,400
   (3QFY2023: HK$15,100).

   Sustained Momentum of Consumer Spending on Gold Jewellery and
   Products

   Strength in gold products continued given its nature of value
   preservation and defensiveness under the current macro
   environment and its increasing popularity among youngsters. The
   solid demand in key collections such as HUÁ Collection and ING
   Collection drove sustained strength in gold jewellery and
   products in both markets. These collections registered RSV growth
   in excess of 50% and 40% respectively during the Quarter.  In the
   Mainland, SSS for gold jewellery and products rose 32.5% during
   the Quarter. ASP was resilient at HK$5,600 (3QFY2023: HK$5,100).
   In Hong Kong and Macau, SSS of this product category surged by
   104.3%, benefitting from the Mainland tourist influx and festive
   demand. Its ASP also ascended to HK$8,100 (3QFY2023: HK$6,600).

   In the near term, we expect Chinese consumers to continue showing
   a strong preference for quality gold jewellery differentiated by
   exquisite craftsmanship. To capture the demand by our younger
   consumers, we are progressively leveraging our extensive R&D and
   IP in product design to incorporate rich Chinese cultural
   elements in some of our collections.

   Since November, we have progressively rolled out the change from
   weight-based pricing to fixed pricing for selective gold
   jewellery products. We observed positive and encouraging
   responses from the market with strong growth recorded in
   December. Given the current growth trajectory validated by market
   feedback, we recognise the potential to grow contributions more
   substantially. We will take a calibrated approach with our
   allocation of resources to plan for growth as we execute our
   strategic priority of product optimisation.

   As 2024 marks the Year of Dragon in the Lunar calendar, this
   typically translates to a good year for jewellery consumption,
   particularly around CNY. We will be launching our new HUÁ
   Collection featuring the Dragon later this month to seize the CNY
   sales opportunity.

   Sustaining Our Growth Trajectory Through Execution of Five
   Strategic Priorities and Brand Revamp

   Despite the prevailing market uncertainties, we are firmly
   focused on a bottom-up approach in diligently executing the
   planned initiatives under our five strategic priorities to
   sustain our growth trajectory.

   As we transition to a new phase of higher value growth and with
   our brand revamp set to be unveiled in April 2024, our focus
   remains steadfast on executing our five strategic priorities to
   drive a sustained enhancement in earnings quality. We recognise
   the fluidity of the market and continue to stay nimble and pay
   close attention to consumers' spending to calibrate our growth
   strategy accordingly.

###

   Chow Tai Fook Jewellery Group Limited
   Chow Tai Fook Jewellery Group Limited (the "Group"; SEHK stock
   code: 1929) was listed on the Main Board of The Stock Exchange of
   Hong Kong in December 2011. The Group's vision is to become the
   most trusted jewellery group in the world.

   Founded in 1929, the Group's iconic brand "CHOW TAI FOOK" is
   widely recognised for its trustworthiness and authenticity, and
   is renowned for its product design, quality and value. A
   long-standing commitment to innovation and craftsmanship has
   contributed to the Group's success, along with that of its iconic
   retail brand, and has been embodied in its rich heritage.
   Underpinning this success are our long-held core values of
   "Sincerity * Eternity".

   The Group's differentiation strategy continues to make inroads
   into diverse customer segments by catering to a bespoke
   experience for different lifestyles and personalities, as well as
   customers' different life stages. Offering a wide variety of
   products, services and channels, the Group's brand portfolio
   comprises the CHOW TAI FOOK flagship brand with curated retail
   experiences, and other individual brands including HEARTS ON
   FIRE, ENZO, SOINLOVE and MONOLOGUE.

   The Group's commitment to sustainable growth is anchored in its
   customer-centric focus and strategies, which are in place to
   promote long-term innovation in business, in people and in
   culture. Another asset underpinning sustainable growth is a
   sophisticated and agile business model. This supports the Group
   by fostering excellence and extending opportunities along the
   entire value chain to communities and industry partners across
   the world.

   With an extensive retail network in China, Japan, Korea,
   Southeast Asia, the United States and Canada, as well as a
   fast-growing smart retail business, the Group is implementing
   effective online-to-offline ("O2O") strategies to succeed in
   today's omni-channel retail environment.

________________________________________________________________________________


Media Enquiries:

Chow Tai Fook Jewellery Group Limited

Haide Ng

Senior Manager, Investor Relations and Corporate Communications

Tel: (852) 3115 4402

Email: haideng@chowtaifook.com


Acky Chan

Senior Manager, Investor Relations and Corporate Communications

Tel: (852) 3115 4403

Email: ackychan@chowtaifook.com

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   Retail Sales Value In 3QFY2024, Driven by Steady Progress of
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