Chow Tai Seng Jewellery backs franchisees with $300m in loan guarantees

Chow Tai Seng Jewellery Co., Ltd. will partner with China Guangfa Bank Co., Ltd. Harbin Branch to offer a maximum guarantee of RMB 300 million for its franchisees in Heilongjiang province. This initiative aims to reduce financing costs and support operational procurement, enhancing the stability and sales capabilities of its distribution channels. The guarantees will cover 10% of the total loan amount, with a maximum individual guarantee of RMB 300 million, targeting a loan tenure from December 1, 2025, to November 30, 2028.

To mitigate risks, Chow Tai Seng Jewellery will also sign a "Maximum Guarantee Counter-Indemnity Contract" with Hengrun Jewellery and its actual controllers and their spouses. Hengrun Jewellery, a provincial service provider and designated supplier for Chow Tai Seng, will provide equivalent counter-guarantees, depositing 10% of the actual loan amount into a designated bank account and then to Chow Tai Seng Jewellery's guarantee account at China Guangfa Bank.

The company's board of directors approved this external guarantee on November 25, 2025. Following this guarantee, the total external guarantees by the company and its subsidiaries will amount to 1.78% of its latest audited net assets.