Hong Kong–listed Zhou Liu Fu Jewellery (06168) reported solid full-year growth for 2025, underpinned by a sharp expansion in e-commerce.

Financial performance • Revenue rose 2.0% to RMB 5.83 billion, driven by a 29% surge in online sales. • Gross profit climbed 8.5% to RMB 1.60 billion; gross margin widened 1.6 ppts year on year to 27.5% on stronger fixed-price product mix and higher gold prices. • Net profit increased 8.9% to RMB 769.28 million; profit before tax reached RMB 954.73 million. • Basic EPS was RMB 1.88 (2024: RMB 1.89) on a higher average share base following the June 2025 IPO.

Channel dynamics • Online sales became the primary growth engine, contributing 51% of group revenue (RMB 2.94 billion) versus 40% a year earlier. • Franchise revenue declined 19% to RMB 2.33 billion amid high gold prices and store rationalisation; 602 mainland franchise stores were closed, leaving 3,440 franchise outlets globally. • Offline self-operated store sales slipped 5% to RMB 433.00 million; the number of self-run outlets increased by 21 to 112, focused on higher-end malls in top-tier cities.

Product mix • Gold jewellery sales grew 4% to RMB 4.62 billion, buoyed by robust online demand and a shift toward fixed-price pieces. • Diamond-set and other jewellery added RMB 462.95 million, up 6%. • Service-fee income from franchisees fell 12% to RMB 747.40 million amid store closures.

Cost and expense profile • Cost of sales eased 0.2% to RMB 4.23 billion. • Selling and marketing expenses inched up 2.3% to RMB 497.33 million; administrative costs rose 5.8% to RMB 122.04 million. • Other expenses surged to RMB 49.46 million, reflecting exchange losses, gold-loan valuation losses and inventory write-downs. • Finance costs were contained at RMB 10.58 million.

Balance-sheet highlights • Cash and bank balances expanded to RMB 1.17 billion, boosted by IPO proceeds; interest-bearing borrowings fell to RMB 426.31 million. • Net assets stood at RMB 4.26 billion; gearing ratio improved to 26.4% (2024: 34.9%). • Inventories increased to RMB 3.17 billion, partly due to product line expansion.

Dividend The Board proposes a final dividend of RMB 0.45 per share (about RMB 198.28 million), following an interim dividend of the same amount paid in 2025. Shareholders on record as of 3 June 2026 will be entitled to the payout, expected on 30 June 2026.

Strategic priorities for 2026 Management will focus on: 1) deepening e-commerce penetration and nurturing new digital sub-brands; 2) enhancing offline store profitability via flagship openings and broader fixed-price product lines; 3) stabilising and upgrading the franchise network through store relocation, differentiated product support and digital tools; 4) steady overseas expansion, targeting about 10 additional stores across Hong Kong, Macau, Southeast Asia and Australia.

No material post-balance-sheet events were reported beyond preparations for the 2026 AGM and a potential 10% H-share repurchase mandate.