Revenue distribution by sectors:

• Jewelry and Watches: approx. 85%
• Real Estate: approx. 10%
• Other: approx. 5%

TOP 3 markets and their percentage shares:

• Mainland China: approx. 50%
• Hong Kong: approx. 30%
• Macau: approx. 15%

Luk Fook Holdings generates the majority of its revenue from the sale of jewelry and watches, which represents the core area of the company. The real estate sector and other smaller business segments also contribute to revenue, but to a significantly lesser extent.

The most important market for Luk Fook Holdings is mainland China, followed by Hong Kong and Macau. These markets are crucial for the company as they exhibit high demand for luxury goods and have a strong presence in these regions.

Production Sites: Hong Kong, China

Luk Fook Holdings (International) Limited produces the majority of its jewelry products in its production facilities in Hong Kong and China. These locations are strategically chosen to benefit from the advantages of proximity to raw material suppliers and major markets in Asia.

The production facilities are known for their advanced manufacturing technologies and skilled workforce, enabling the company to produce high-quality jewelry pieces.

Revenue Growth: Estimated at 5-7% annually (2026)
Expansion Strategy: Increasing presence in Mainland China and Southeast Asia
Digitalization: Expansion of the E-commerce channel

Luk Fook Holdings (International) Limited is focusing on geographical expansion, particularly in Mainland China and Southeast Asia, to benefit from the growing middle class and increasing demand for luxury goods.

Additionally, the company is investing in digitalization to expand the E-commerce channel and reach a broader customer base. This strategy aims to reduce dependence on physical stores and increase revenue through online sales.

Another focus is on diversifying the product portfolio to meet changing consumer preferences and tap into new market segments.

Main raw materials: Gold, diamonds, gemstones

Countries of origin:

• Gold: South Africa, Australia, Canada
• Diamonds: Russia, Botswana, Canada
• Gemstones: India, Sri Lanka, Myanmar

Luk Fook Holdings (International) Limited mainly imports gold and diamonds, which are essential components of their jewelry products. Gold is often sourced from countries like South Africa, Australia, and Canada, which are among the largest gold producers globally.

Diamonds mainly come from Russia, Botswana, and Canada, as these countries are significant players in the global diamond market. Gemstones such as sapphires, rubies, and emeralds are frequently imported from India, Sri Lanka, and Myanmar, known for their high-quality gemstones.

This import strategy enables Luk Fook to secure high-quality materials for their products and simultaneously benefit from global market conditions.

Market share in the jewelry industry: 5% (estimated 2026)
Gross margin: 30% (2025)
Return on equity (ROE): 12% (2025)

Luk Fook Holdings (International) Limited has a moderate competitive advantage in the jewelry industry, supported by its established brand presence and extensive retail network in Asia. The company benefits from a solid gross margin of 30%, indicating efficient cost structures and a strong negotiating position with suppliers.

The 12% return on equity shows that the company is able to effectively utilize its investments to generate profits. This is an indicator of healthy financial performance compared to some competitors in the industry.

Nevertheless, Luk Fook faces intense competition from other major jewelry manufacturers and retailers, increasing pressure on margins and market share. To strengthen its competitive advantage, the company could continue to invest in brand awareness, product innovations, and expansion into new markets.

Institutional Investor Share: Estimated around 30% (2026)
Insider Buys/Sells: No significant transactions reported (2026)

The institutional investor share in Luk Fook Holdings is estimated to be around 30%. This indicates that a significant portion of the shares is held by institutional investors, suggesting a certain level of confidence in the company's stability and growth potential.

In 2026, no significant insider buys or sells were reported. This could indicate that the management and other insiders are satisfied with the current company strategy and development and see no need to change their positions.

Market share of Luk Fook Holdings: Estimated 5% (2026)

Main competitors and their market shares:

1. Chow Tai Fook Jewellery Group (SEHK:1929) - 20%
2. Chow Sang Sang Holdings (SEHK:116) - 15%
3. Luk Fook Holdings (SEHK:590) - 5%
4. Tse Sui Luen Jewellery (SEHK:417) - 4%
5. Emperor Watch & Jewellery (SEHK:887) - 3%

Moat of Luk Fook Holdings:

Luk Fook Holdings has a moderate moat, mainly based on its brand recognition and distribution network. The company benefits from a strong presence in China and Hong Kong as well as a growing international market.

Compared to its competitors, Chow Tai Fook has the strongest moat, due to its extensive market presence and strong brand loyalty. Chow Sang Sang follows with a solid brand image and a diversified product range.

The competitive landscape in the jewelry sector is intense, and while Luk Fook Holdings has some competitive advantages, these are less pronounced compared to the leading companies. However, a focus on quality and customer experience could strengthen the moat in the long run.

Revenue Growth: 8.5% (2025) Profit Growth: 7.2% (2025) Market Share in China: 12% (2025)

Luk Fook Holdings (International) Limited recorded solid revenue growth of 8.5% in 2025. This indicates stable demand for their products, especially in Asian markets. The 7.2% profit growth shows that the company is able to effectively manage its costs and maintain its margins.

The company holds a significant market share of 12% in China, one of the largest jewelry markets in the world. This provides a strong foundation for further growth, especially given the increasing consumer spending in the region.

Additionally, Luk Fook has invested in digitization and expanding its e-commerce business in recent years, allowing it to reach new customer segments and expand its market presence.

Overall, the stable financial indicators and strategic investments suggest that Luk Fook Holdings is an attractive investment opportunity, especially for investors interested in participating in the Asian jewelry market.

Dividend Yield: 5.2% (2025)

Dividend History: Consistent payout over the last 5 years

Luk Fook Holdings (International) Limited regularly pays dividends to its shareholders. The dividend yield was 5.2% in 2025, indicating an attractive payout. The company has followed a reliable dividend policy over the past five years, pointing to stable financial health and solid earnings.

The reliability of dividend payment is supported by the company's continuous profitability. Analysts estimate that Luk Fook Holdings will also be able to pay dividends at a similar level in the coming years, provided that no significant market changes occur.