HK Stock Movement | ZHOU LIU FU (06168) Extends Gains for Third Day with Heavy Volume, Plans to Optimize Brand Partnership Model for Long-Term Value Creation

Stock News11-06

ZHOU LIU FU (06168) continued its upward trend for the third consecutive day, with total turnover exceeding HKD 700 million over the period. At the time of writing, the stock rose 0.54% to HKD 48.2, with a turnover of HKD 147 million.

The company recently announced that after more than 21 years of steady development, ZHOU LIU FU Group has established a robust brand portfolio. Centered around its core brand "ZHOU LIU FU," the group has expanded with emerging sub-brands "CHAOJIN" and "FENS," creating a diversified and complementary brand ecosystem. The group has achieved balanced growth in both franchise and self-operated models, accumulating extensive experience in B2B franchise partnerships and strong C2C sales capabilities across online and offline channels.

Leveraging these core strengths and considering the current trends in the gold and jewelry market, the company plans to innovate and optimize its brand partnership model. This initiative aims to create new profit growth drivers, support offline store expansion, and enhance per-store revenue and market share.

Under its joint venture partnership model, ZHOU LIU FU collaborates with franchisees to establish regional operating entities (with the company holding 51% and franchisees holding 49%). This structure not only deepens capital ties but also consolidates off-balance-sheet operations. The key breakthrough of this model lies in redefining the relationship between headquarters and franchisees through equity alignment.

By holding a 51% controlling stake in the joint venture, ZHOU LIU FU retains strategic and decision-making authority, while franchisees' 49% stake ensures shared interests and risks. This mechanism mitigates short-term opportunistic behavior common in traditional franchise systems, fostering long-term value co-creation instead.

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