Chow Tai Fook is issuing HK$8.8 billion ($1.12 billion) in convertible bonds due 2030 to support its five-year transformation plan. The proceeds will fund gold jewelry operations, store upgrades, and market expansion. Despite a 26% premium on the conversion price, the announcement triggered a 7.29% stock drop on June 17. Facing weak gold demand and rising competition, Chow Tai Fook saw FY2025 revenue fall 17.5% to HK$89.66 billion ($11.42 billion), and net profit drop nearly 9%. Same-store sales in mainland China declined 19.4%, with nearly 900 store closures. The company is shifting toward higher-end positioning, launching flagship stores and expanding into jade and fixed-price gold products, but the strategy requires significant capital amid growing industry pressure.