The Group’s e-commerce business demonstrated robust performance in the first ten months of this year, with revenue recording a year-on-year growth of 32%, net profit surging by 71%, and net profit margin exceeding 8% for the same period. Under China’s new gold tax policy, the Group’s Double 11 sales still showcased formidable strength, leaving no doubt about the Group’s brand influence, risk resilience, and profitability.
Since its establishment in 2004, Zhou Liu Fu has grown into a leading enterprise in China’s jewellery industry, operating 4,000 offline stores nationwide with a sales network covering the entire country. The Company listed on the Main Board of The Stock Exchange of Hong Kong in June this year. Since listing, its share price performance has been highly impressive, having more than doubled from the offer price, with its current market capitalization surpassing HKD 20 billion, becoming a focal point of industry attention.
In the fiercely competitive and aging traditional domestic jewellery market, the Group has risen to prominence through its forward-thinking management philosophy and becoming a pioneer in the youth-oriented gold jewellery trend. Following its Hong Kong listing, the Group needs to maintain rapid growth and expansion, thus giving rise to three driving forces—the cooperative partnership model, e-commerce growth, and overseas expansion—jointly propelling operating revenue to new heights.
Double 11 Sales Reach New Heights with Online-Offline Dual-Track Development
The Group’s classic flagship brand “Zhou Liu Fu”, together with emerging sub-brands “CHAOJIN” and “FENS”, commands a massive customer base domestically, particularly among young female consumers. Through brand differentiation, diversified product strategies, market positioning advantages, a nationwide network of 4,000 offline franchise and self-operated stores, and growth in online e-commerce platforms, the Group possesses powerful brand influence domestically, leading the youth-oriented trend in domestic gold jewellery.
The Group recently introduced the launch of an innovative operational cooperation model – CHAOJIN cooperative partnership stores, establishing joint venture entities with high-quality franchisees through 51% to 49% equity participation. Under this partnership model, the Group’s online traffic and brand advantages complement franchisees’ offline localized operational strengths, while the management model similar to subsidiaries enhances decision-making and execution efficiency, laying the foundation for large-scale replication. Additionally, the Group’s 51% equity allows cooperative partnership store revenue to be consolidated into the Company’s financial statements, directly increasing revenue and enhancing the Group’s attractiveness in the capital market. This new model is expected to become a new profit growth engine for the Group, accelerating offline store expansion while driving per-store revenue growth and boosting overall Group performance.
On the other hand, Zhou Liu Fu’s online channels have experienced explosive growth. Through precision marketing and product innovation, the Group achieved substantial increases in online sales, injecting strong momentum into full-year performance growth while playing a significant role in customer acquisition and empowerment for offline cooperative partnership stores. The recently concluded Double 11 particularly showcased Zhou Liu Fu’s formidable brand strength with outstanding sales performance, successfully capitalizing on the golden opportunity of online consumption. Zhou Liu Fu’s strategic positioning of online-offline collaborative development has not only expanded brand influence but also opened up entirely new growth horizons for the Group.
“Going Global” Strategy Advances Steadily with Exponential Performance Growth on Horizon
Overseas markets represent another key focus area for Zhou Liu Fu post-listing. The Hong Kong and Macau markets serve as bridgeheads for the Group’s international strategic expansion, with plans to open 10 offline stores in 2025, expanding to approximately 20 stores in 2026. The Group is simultaneously establishing stores across Southeast Asian regions including Thailand, Cambodia, Vietnam, and Malaysia, with plans to enter Singapore, Australia, and New Zealand markets next. Overseas stores will adopt the successful domestic “franchise and cooperative partnership” model to rapidly penetrate international markets, with plans to expand to over 200 physical stores in the next three years.
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