Chow Tai Fook Jewellery : Announcements and Notices - THE UNAUDITED KEY OPERATIONAL DATA FOR THE THREE MONTHS ENDED 31 DECEMBER 2016

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CHOW TAI FOOK JEWELLERY GROUP LIMITED

周 大福珠寶集團有限公司

(Incorporated in the Cayman Islands with limited liability)

Stock Code: 1929

THE UNAUDITED KEY OPERATIONAL DATA FOR THE THREE MONTHS ENDED 31 DECEMBER 2016

Chow Tai Fook Jewellery Group Limited (the "Company"), together with its subsidiaries (the "Group"), hereby announce certain unaudited key operational data of the Group for the three months ended 31 December 2016 (the "Third Quarter"). The unaudited key operational data in this announcement should be read in conjunction with the Company's FY2016/17 interim report.

KEY OPERATIONAL DATA For the three months ended 31 December 2016

(% change compared to the same period last year)
Mainland China(1)	Hong Kong and Macau
Retail Sales Value(2) ("RSV") growth	7%	-6%
Same Store Sales(3) ("SSS") growth	4%	-2%
Same Store Sales volume growth	-9%	-9%
Same Store Sales growth by product
- Gem-set jewellery	-4%	-17%
- Gold products	7%	8%
% of Respective Retail Sales Value by product
- Gem-set jewellery	24%	26%
- Gold products	60%	58%
- Platinum/karat gold products	11%	10%
- Watches	5%	6%

(1) "Mainland China" comprises the Jewellery and Watch businesses in Mainland China.

(2) "Retail Sales Value" measures the sales at the ending price (VAT inclusive, if any), in respective functional currencies, of products sold to customers in the POS network and other channels.

(3) "Same Store Sales" for the Third Quarter is the revenue from the self-operated POS existing as at 31 December 2016 and which have been opened prior to 1 April 2015. Revenue from wholesale and other channels are excluded.

Same Store Sales Growth

Mainland China

6%

4% Hong Kong and Macau

-7%

-13%

-6%

-17%

-25%

-22%

-2%

-24%

-23%

-27%

-20%

-30%

Q1 Q2 Q3 Q4 Q1 Q2 Q3

FY2016

FY2017

• RSV performance for both Mainland China and Hong Kong and Macau markets in the Third Quarter improved sequentially due to stabilising fundamentals and a relatively low base of comparison. The improving trend in the Group's RSV performance during the Quarter, as well as the performance of holiday sales, are generally in line with the expectation of the Group.

• Both Mainland China and Hong Kong and Macau markets recorded a SSS volume decline, yet Average Selling Price ("ASP") grew during the Quarter. In particular, ASP of gold products increased as the average international gold price rose 10% during the Third Quarter compared to the same period last year.

• The percentage of RSV settled by China UnionPay or RMB to the total RSV of Hong Kong and Macau market, a proxy for sales contribution from Mainland tourists, declined to 47% in the Quarter as compared to 51% of the same period last year. Yet, such contribution improved when compared to 45% in the first half of FY2017.

• RSV of the e-commerce business in Mainland China grew by 25% and contributed 4% and 12% of RSV and retail sales volume, respectively in Mainland China in the Third Quarter.

POS network	As at 31 December 2016	Net changes in Third Quarter
Mainland China - Jewellery POS(1)	2,123	+53
Mainland China - Watch POS	119	-1
Hong Kong and Macau	102	-1
Other markets	20	+1
Hearts On Fire(2)	13	-1
Total(3)	2,377	+51

(1) Included Hearts On Fire POS in Mainland China

(2) Included Hearts On Fire POS in the United States and Taiwan

(3) Excluded Hearts On Fire shop-in-shop and counter-in-shop

CAUTION STATEMENT

The Board wishes to remind investors that the above operational update is based on the Company's internal records and management accounts for the three months ended 31 December 2016 which have not been reviewed or audited by auditors of the Company. Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

Chow Tai Fook Jewellery Group Limited Dr. Cheng Kar-Shun, Henry

Chairman

Hong Kong, 9 January 2017

As at the date of this announcement, the executive directors are Dr. Cheng Kar-Shun, Henry, Mr. Wong Siu-Kee, Kent, Mr. Cheng Chi-Kong, Adrian, Mr. Cheng Chi-Heng, Conroy, Mr. Chan Sai-Cheong, Mr. Suen Chi-Keung, Peter, Mr. Chan Hiu-Sang, Albert, Mr. Cheng Ping-Hei, Hamilton and Mr. Liu Chun-Wai, Bobby; the non-executive director is Mr. Cheng Kam-Biu, Wilson; and the independent non-executive directors are Mr. Cheng Ming-Fun, Paul, Dr. Fung Kwok-King, Victor, Mr. Kwong Che-Keung, Gordon, Mr. Lam Kin-Fung, Jeffrey and Dr. Or Ching-Fai, Raymond.