Chow Tai Fook Jewellery Group Limited announced the renewal of its tenancy framework agreement with substantial shareholder Chow Tai Fook Enterprises Limited (CTF Enterprises) for a further three-year term spanning 1 April 2026 to 31 March 2029. The framework governs leases of retail, office and residential premises owned by the CTF Enterprises Group for use by the jewellery group. No changes have been made to the agreement’s terms since its original signing on 28 November 2011.

For the three financial years ending 31 March 2027, 31 March 2028 and 31 March 2029, the board approved new annual caps covering: • Right-of-use asset recognition: HK$189 million, HK$99 million and HK$97 million respectively. • Variable and short-term lease expenses: HK$37 million for each of the three years.

Under IFRS 16, right-of-use assets reflect the present value of future lease payments, while variable or short-term lease charges are recognised as expenses. On a combined basis, the maximum aggregate exposure is HK$226 million for FY2027, HK$136 million for FY2028 and HK$134 million for FY2029. Management derived the caps from historical usage, underlying lease terms, expected market rentals on renewals and estimated rentals for prospective sites.

Actual consideration paid under the framework was HK$107 million in FY2024 and nil in FY2025 and FY2026.

Pricing will adhere to prevailing market rates. Before entering or renewing any definitive lease, the group will compare independent valuer quotations and market comparables for premises with similar attributes and locations. Internal safeguards include annual reviews by independent non-executive directors, external auditor checks on cap compliance and audit-committee oversight.

Because CTF Enterprises is a connected person, the transactions constitute continuing connected transactions under Chapter 14A of the Hong Kong Listing Rules. The highest applicable percentage ratio is above 0.1 % but below 5 %, triggering reporting, annual-review and announcement obligations while exempting the renewal from independent shareholder approval.

All directors approved the renewal and the new caps, with four directors—Dr. Cheng Kar-Shun, Henry; Mr. Cheng Chi-Heng, Conroy; Ms. Cheng Chi-Man, Sonia; and Mr. Cheng Kam-Biu, Wilson—voluntarily abstaining from voting.