Gold Giant Backed by a Trillion-Yuan Powerhouse Sparks Outrage Among Workers

A single gold pendant stamped with the words “牛馬” and the pinyin “jia” has pushed jewelry and gold heavyweight Chow Tai Fook into the center of a storm—drawing sharp criticism from many working people who say the design feels insulting.

As online debate intensified around accusations of “mocking overtime workers,” Chow Tai Fook’s customer service responded that the pendant symbolizes perseverance in the face of hardship and “double the luck.” But for many critics, the explanation did little to calm the outrage.

The controversy arrives at a moment when Chow Tai Fook’s results for the first half of fiscal 2026 (the six months ended September 30) showed signs of stabilization. Still, a closer look suggests meaningful room for improvement remains.

During the period, the company recorded revenue of HK$38.986 billion, down 1.07% year on year—an improvement compared with the prior period’s sharper decline. Profit attributable to the period came in at HK$2.564 billion, up a slight 0.02%, returning to marginal growth.

Seeking a new breakthrough, Chow Tai Fook has launched a five-year brand transformation plan and recently brought in two former Starbucks executives, aiming to inject fresh thinking and energy into the business.

In October, the company’s share price once climbed above HK$16. By the close on December 29, however, it had retreated to HK$12.61, leaving its market capitalization at roughly HK$124.4 billion.

Notably, the Cheng family—long associated with Chow Tai Fook—ranked 20th on the Hurun Rich List 2025 with estimated wealth of RMB 175 billion, underscoring the financial strength behind the group.

Chow Tai Fook’s “Niu Ma” pendant draws accusations of mocking workers

In recent days, multiple reports circulated after a social media post by a user in Guangdong criticized Chow Tai Fook’s newly launched “牛馬” gold pendant, joking that “once you buy this, you become a gold-medal workhorse.”

The post quickly ignited widespread discussion, with the topic “Chow Tai Fook ‘Niu Ma’ pendant accused of mocking working people” rising to the top of trending charts on Weibo.

On the afternoon of December 29, Radar Finance checked Chow Tai Fook’s Tmall flagship store and found the product page still accessible, though the listing displayed a notice indicating shoppers should add it to their cart to receive restock notifications.

According to product images, one side of the pendant features the characters “牛馬,” while the other shows “jia” in pinyin. Pricing starts from RMB 3,044.7. The page indicated more than 1,000 users had added it to their carts, with nearly 40 units sold.

Responding to the controversy, customer service on one e-commerce platform said the pendant is meant to convey “fearless in the face of difficulty” and “good luck multiplied,” adding that the “牛馬” inscription is in traditional-style lettering.

Media reports also cited Chow Tai Fook’s official customer service as saying the pendant is currently sold only through online channels and has been selling well. If customers object to the style, the feedback would be recorded and escalated, with ongoing optimization promised.

Radar Finance also reviewed the Xinhua Dictionary (which includes more than 11,200 entries, including traditional and variant characters) and noted that standard Chinese does not include a single independent character created by fusing “牛” and “馬” into one.

Separately, Density Finance reported that searching “牛馬” in Chow Tai Fook’s official Douyin store livestream previously surfaced the pendant with wording such as “exclusive for ‘niu ma’.”

Online reactions remain divided. Many critics argue the brand is deliberately taking aim at working people, saying “牛馬”—often used as self-deprecating slang—should not be turned into a marketing hook, and accusing the product of “profiting from workplace hardship.”

Others defended the company, framing it as a harmless joke and suggesting some people are “overreacting.”

It is also worth noting that, according to Tianyancha, Chow Tai Fook Jewellery and Goldsmith (Shenzhen) Co., Ltd. has filed over 6,400 patents in total, including more than 1,200 related to pendants.

Results stabilize, but more than 600 stores shut in six months

The pendant at the center of the dispute is part of a zodiac-themed collection prepared for the Year of the Horse.

Radar Finance, citing Chow Tai Fook’s fiscal 2025 annual report, noted that the zodiac products fall under the company’s “Heritage” line.

Chow Tai Fook describes the Heritage line—launched in 2017—as one of its best-selling series. Its designs draw inspiration from traditional Chinese culture and auspicious symbolism, while showcasing refined traditional gold craftsmanship.

In fiscal 2025, the Heritage line accounted for about 39% of Chow Tai Fook’s retail value of gold jewelry and products in mainland China.

However, in the newly released interim report for fiscal 2026, the Heritage line represented about 37% of total retail value in mainland China during the six months ended September 30—a decline from the full-year fiscal 2025 level.

Overall, the first half of fiscal 2026 reflected a recovery trend, but still left substantial room for improvement.

Revenue totaled HK$38.986 billion, down 1.07% year on year. While this was a significant improvement versus the prior year period’s 20.43% drop, it still did not fully reverse the downward trajectory.

Profit for the period came in at HK$2.564 billion, up 0.02%. This marked a turnaround from the prior year period’s 44.46% decline, though the growth itself was minimal.

In its report, Chow Tai Fook attributed its steadier performance to an improving consumer environment and a recovery in jewelry consumption in key markets, saying the group demonstrated resilience and delivered stable results.

During the period, the company continued to advance its brand transformation and product optimization. It said these strategic moves improved operational efficiency and financial resilience while reinforcing its path toward higher-quality growth.

Same-store sales in mainland China and in Hong Kong and Macau returned to growth, which the company said validated its focus on improving store productivity.

In mainland China, same-store sales increased 2.6% in the first half. Excluding watches, same-store sales grew 4.7%. On a same-store basis, franchised retail point sales rose 4.8%.

In Hong Kong and Macau, same-store sales increased 4.4%, supported by a rebound in retail sentiment and higher foot traffic. Hong Kong rose 1.8%, while Macau surged 13.7%.

The second quarter of fiscal 2026 was described as an important inflection point, as same-store sales in both mainland China and Hong Kong/Macau rebounded broadly, helped by strong growth in fixed-price products and improving trends in gold-priced-by-weight offerings.

Profitability also improved. The operating profit margin reached 17.5% in the first half—its highest level in nearly five years—though gross margin declined by 0.9 percentage points to 30.5%.

Chow Tai Fook said the gross margin dip was largely due to smaller realized gains from gold price increases, which pressured retail product margins and offset benefits from a higher share of fixed-price jewelry and retail business.

A key data point: in the first half of fiscal 2026, the number of “Chow Tai Fook Jewellery” retail points in mainland China fell by a net 611. As of the end of September, the brand operated 5,663 retail points in mainland China.

The company explained it had closed underperforming stores and selectively opened higher-productivity new locations, arguing that these moves improved overall store productivity.

Chow Tai Fook emphasized that its priority remains improving profit quality and ensuring earnings resilience, with retail network management still centered on boosting store productivity to maintain leadership and strengthen the financial health of the network.

Managing Director Kent Wong (Huang Shaoji) said in interviews that the group had pursued rapid expansion in previous years, but is now shifting toward optimizing and upgrading stores, with a stronger focus on lifting same-store sales.

Gold price volatility creates complex effects as shares pull back from highs

For the gold jewelry industry—Chow Tai Fook included—2025 has been anything but ordinary.

Gold prices surged sharply. According to iFinD data from Tonghuashun, gold rose from roughly RMB 20,000 per ounce at the start of the year to above RMB 30,000 per ounce more recently.

In its latest report, Chow Tai Fook said it managed to sustain gross margins above 30% this fiscal year, crediting both rising gold prices and increased contribution from higher-margin fixed-price jewelry.

The Wu Jincao team at Soochow Securities’ retail and consumer group argues that, over the long term, higher gold prices can allow gold jewelry companies to sell products to distributors with higher markups, supporting profitability.

But the same team also cautioned that in the short term, gold price swings can have complicated impacts.

A sharp rise in gold prices can suppress consumption, they noted, while a period of flat or gradually rising prices may trigger “catch-up” demand from consumers.

In their view, slow and steady price increases provide the strongest boost to demand. A flat price trend does not directly stimulate demand, but during such periods, purchases postponed during a rapid surge may return.

Conversely, whether prices fall quickly or gradually, lower gold prices can weaken distributors’ willingness to stock up and open new stores, which can negatively affect jewelry companies’ profitability.

To manage gold price volatility, Chow Tai Fook noted in its report that it uses gold loans (short positions) as an economic hedge to reduce the financial impact of price fluctuations on its gold inventory (long positions).

Over the long run, the company expects long and short positions to offset as inventory is sold. In the short run, outstanding gold loan contracts are marked to market at each reporting period end (or upon close-out), while gold inventory is not revalued under accounting standards—creating timing differences.

As gold prices climbed, Chow Tai Fook also raised prices repeatedly. First Financial reported that the company has increased prices for certain fixed-price gold products three times this year.

On December 17, Chow Tai Fook’s official Tmall flagship store posted a notice on its homepage stating that, due to market factors, some products would soon see price increases, with the adjustment taking effect on December 19.

Reports indicated that, in this round, some fixed-price gold jewelry rose by 4% to 16%, and the per-gram price for pure gold jewelry has now exceeded RMB 1,400.

Alongside these operational adjustments, Chow Tai Fook—during fiscal 2025, which marked its 95th anniversary—launched its five-year transformation plan.

The company said the plan focuses on five strategic pillars: brand transformation, product optimization, accelerated digitalization, improved operational efficiency, and stronger talent development—intended to respond more flexibly to rapidly evolving preferences among younger consumers.

It also brought in two former Starbucks executives this year—Ye Jiaying as Chief Financial Officer and Wang Jingying as an independent non-executive director.

According to Tide News, some industry observers believe Starbucks’ strengths in membership systems and data-driven marketing could help Chow Tai Fook refine its online-offline integration strategy. They also suggested that Starbucks-style lifestyle marketing may help the brand connect more precisely with Gen Z, repositioning jewelry from a “store of value” toward an “emotional carrier.”

In the capital markets, Chow Tai Fook shares once surged above HK$16 in October. Recently, however, the price has pulled back. As of the close on December 29, the stock stood at HK$12.61, giving the company a market value of HK$124.4 billion.