China Stocks: Hong Kong’s four major jewelry brands-Chow Tai Fook Jewellery (CJEWY) (1929)

Chow Tai Fook Jewellery Group Limited (OTCMKT: CJEWY, Hong Kong Stock Exchange: 1929) was founded in 1929 and is headquartered in Hong Kong Central, with 30,000 full-time employees. It is a business group owned by Hong Kong businessman Zheng Yutong and his family. The total asset value of the group is Over 5 billion U.S. dollars, operating businesses all over the world, employing a total of about 80,000 employees, is a subsidiary of Chow Tai Fook (Holding) Limited, engaged in the manufacture and sales of jewelry products.

Chow Tai Fook , Chow Sang Sang , Luk Fook Jewellery and Tse Sui Lin are collectively the four largest jewellers in Hong Kong .


Chow Tai Fook Jewellery Group (CJEWY):

Chow Tai Fook ranked seventh in the 2016 Global Powers of Luxury Goods report released by Deloitte Touche Tohmatsu Limited . Chow Tai Fook Group’s business is mainly operated by two companies: Chow Tai Fook Enterprise & Chow Tai Fook Jewellery.

1. Chow Tai Fook Enterprise

  • Currently holds 42.11% controlling shares of New World Development Co., Ltd., which is listed in Hong Kong, with a share price of more than US$3 billion. The group controls and manages businesses of different natures in Hong Kong, China and around the world, including hotels, real estate, facility management, Construction, department store and retail, public transportation, telecommunications, road networks, water supply, power and financial services. Control companies include New World First Bus, Citybus, NWS and Hip Hing Construction.
  • On May 9, 2011, 218 million shares of Giordano were purchased at an average price of RMB 4.81 per share, and 14.58% of the shares of Giordano were purchased at an average price of RMB 1.05 billion, becoming the largest single shareholder.
  • On July 20, 2011, it took a 42.67% stake in Pinnacle, a London social security housing management company.
  • On May 27, 2012, Chow Tai Fook invested more than RMB 10 billion to build the Guangzhou Chow Tai Fook Financial Center (Guangzhou East Tower) in Zhujiang New City. The total investment of the project exceeded RMB 10 billion (RMB, the same below), and the building was about 530 meters high. The tallest building in South China, the land was acquired by Chow Tai Fook Group for 1.55 billion yuan in 2008. The proposed facilities include five-star hotels, international apartments, international standard Grade A office buildings and shopping malls.
  • At the end of January 2012, Chow Tai Fook Enterprise issued approximately 104 million shares to CTF Holding, involving an amount of approximately 10.425 billion yuan. After completion, the paid-up capital increased to 12 billion yuan, but the shareholding structure remained unchanged.
  • Chow Tai Fook Enterprise (October 31, 2014) bought 496 million shares of Green Forest Group at an average price of US$0.09 per share off-market, involving more than US$44.65 million (about 350 million yuan). Chow Tai Fook has a long position 62.82% became the major shareholder of Green Forest.
  • On January 15, 2014, the aircraft leasing consortium jointly operated by Chow Tai Fook Enterprises and African Bank Investec purchased 15 Airbus A320 aircraft from Kuwait’s low-cost airline Jazeera Airways at a price of US$507 million (approximately HK$3.954 billion).
  • On January 27, 2015, New World Development purchased from the major shareholder Chow Tai Fook Enterprise 40% of the ownership of Jixiang Building in North Point with 1.779 billion cash, increasing the ownership of New World’s Jixiang Building to 90%, and 10 The% interest is held by Good Step, the major shareholder of certain subsidiaries of the company. The site is located at 704 and 706 King’s Road, 14 Healthy East Street and 1 Li Shun Street, and 708 and 710 King’s Road and Li Shun Street 3 And No. 5, the entire project includes 14 old buildings with a total of 504 titles, and the total site area is about 32,500 square feet. If the highest plot ratio for commercial development is 15 times, the buildable floor area is about 487,500 square feet.
  • On December 29, 2015, Chow Tai Fook Enterprise subscribed for 198 million shares of Galaxy Securities at a price of 11.99 yuan over the counter, involving an investment of 2.37 billion yuan and holding 5.36% of the shares.
  • On December 29, 2015, Evergrande acquired 6 real estate projects in Sichuan, Qingdao, Shanghai and Beijing from Chow Tai Fook Enterprise and New World China, involving 20.4 billion yuan in investment, including 13.1 billion acquisition of four real estate projects from Chow Tai Fook Enterprise project.
  • On March 15, 2017, Chow Tai Fook Enterprises acquired a 100% stake in Alinta Energy Holdings Ltd., the largest electricity retailer in Western Australia, for 4 billion Australian dollars (3.1 billion US dollars / approximately 23.89 billion Hong Kong dollars).

Investments under Chow Tai Fook Holdings:

  • New World Development 43.41%
  • Chow Tai Fook Jewellery Group 89.3%
  • Chow Tai Fook Energy Company 100%
  • Ping An Insurance of China 3.4% HK$19.448 billion
  • Giordano 24.51%
  • Comprehensive environmental protection 46.93%
  • Hsin Chong Construction 7.71%
  • United Medical Service 20%
  • New Era Energy 29.18%
  • Shengjing Bank 3.41%
  • Macau Tourism and Entertainment 9.6%
  • SJM Holdings 0.10%
  • Yinji Group 8.07%
  • Lifestyle International indirectly holds 51.55% equity through Real Reward, which holds 50% equity
  • Hengshi Mining
  • Yaocai Securities 8.92%
  • Four Seasons Hotel Shanghai 77% HK$1.164 billion
  • Qingdao Tangdao Bay Project 50% 1.183 billion RMB
  • Shanghai Qingpu Land F and G land 90% 2.432 billion yuan
  • Guangzhou Chow Tai Fook Financial Center
  • Chow Tai Fook Marina Center
  • New World Millennium Hong Kong Hotel
  • Queen’s Wharf Brisbane entertainment city and integrated resort development project in Brisbane, Queensland, Australia 25%
  • Qianhai (Hong Kong) Global Commodity Shopping Center
  • United Medical Service 15%
  • Universal Medical 5.7%
  • Chow Tai Fook Commercial Center (Trend Special Zone)

2. Chow Tai Fook Jewellery

Mainly engaged in the retail and production business of Chow Tai Fook brand jewelry. In the jewelry industry in Greater China, it ranks first in the market in terms of annual sales. Chow Tai Fook is also one of the designated dealers of DeBeers Group, the world’s largest supplier of rough diamonds, and has received direct placement of raw diamonds. Chow Tai Fook has two diamond cutting factories in Johannesburg, South Africa, with more than 300 employees. In addition, it also has jewelry processing plants in Hong Kong and Shunde, China, with more than 3,000 employees, and produces more than 2.5 million jewelry pieces each year.

Chow Tai Fook is a well-known jewellery retailer in Hong Kong, founded by Zhou Zhiyuan in 1929 on Hongde Road, Henan, Guangzhou, due to the Civil War. It opened in Macau and Hong Kong in 1931 and 1939 respectively. In 1957, it was taken over by his son-in-law Zheng Yutong.

Chow Tai Fook also opened a ctf.2 jewelry store for young customers, and its products are mainly trendy jewelry.

Chow Tai Fook is the largest jewelry retailer in mainland China and Hong Kong and Macau. In 2010, it had a market share of 12.6% in the mainland and 20.1% in Hong Kong and Macau. 60% are self-operated stores, the remaining 30% are franchise operations, and 20% are joint ventures.

As of the end of March 2012, Chow Tai Fook had a turnover of 56.571 billion yuan, a net profit of about 6.341 billion yuan, and 1,627 sales points. The turnover of the business in Mainland China was HK$32,016.4 million. The business turnover of Hong Kong, Macau and other Asian markets was HK$24,554.7 million.

Chow Tai Fook (Holding) Limited holds 89.34% of Chow Tai Fook Jewellery.

On June 18, 2014, Chow Tai Fook Jewellery Group announced that it would acquire Hearts On Fire Company LLC, a well-known American diamond jewelry company, for a total cash consideration of US$150 million.

Chow Tai Fook Jewellery Group (CJEWY) shop:

As of March 31, 2016, Chow Tai Fook opened 2,057 jewelry stores and 122 watch shops in mainland China; opened 126 jewelry stores in Hong Kong, Macau and internationally; in addition, opened 14 Hearts On Fire brand stores .

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