Mainland China-based jewellery retailer Chow Tai Fook Jewellery is expected to successfully list on the stock market following its fifth attempt at an initial public offering (IPO). The company recently passed a regulatory hearing, marking a key step forward after four failed applications—one in Hong Kong and three in mainland China.
Chow Tai Fook has reportedly begun its IPO roadshow, aiming to raise up to US$200 million (HK$1.56 billion) through the offering.
The company is forecasting an 11% year-on-year increase in revenue and a 7% rise in net profit for 2024. This comes as rising gold prices continue to pressure retail sales across the jewellery sector, including market leader Chow Tai Fook Jewellery Group (1929).
Founded in 2004, Chow Tai Fook operated 4,129 stores as of the end of last year. Nearly all—4,034 stores or about 98%—are franchise locations. The retailer has 4,125 outlets in mainland China and four franchise stores overseas.
In terms of store count, Chow Tai Fook ranked fifth among Chinese jewellery brands in 2024, dropping one position from the previous year. The company plans to shift toward direct ownership, with plans to open 12 self-operated stores this year, 13 in 2026, and 15 in 2027—totaling 40 new stores over three years.
Despite these expansion plans, rising gold prices have led some jewellery retailers to scale back. Last year, Chow Tai Fook closed 674 franchise stores and reported a net decrease of 239 stores in mainland China.
The company also faces legal and reputational challenges. It has been accused of trademark infringement involving several established Hong Kong jewellers, including Chow Tai Fook Jewellery Group and Luk Fook Jewellery (0590). In its 2023 prospectus, the company disclosed involvement in over 400 lawsuits and noted it had received 451 consumer complaints.
Related topics:
- Surge in AI Course Enrollments as Businesses Seek Competitive Edge
- Louis Vuitton Expands Vivienne Collection Ahead of Summer Season
- 2025 Couture Design Awards Celebrate the Best in Fine Jewelry
