Lf Company Performance Forecast

Business Segments

Divided Parts

Assumption

Supporting Facts

Jewelry Retailing

Self-operating
Stores
@Mainland
China

Off-line sales growth of 20%/17%/15% in FY19E-21E

1) Recovering SSSG
2) New self-operating stores opened
3) 12.58% in FY17 & 27.20% in FY18

E-commerce
@Mainland
China

30% growth in E-commerce sales & over 16%/17%/18% of total revenue in Mainland China in FY19E-21E

89% in FY18 & about 15% of total revenue in Mainland China

Self-operating
Stores
@HK, Macau
& Overseas

8%/5%/4% retailing revenue increase in FY19E-21E

1) High base effect
2) Mature and saturated market
3) -17.34% in FY17 & 10.21% in FY18

Jewelry Manufacture and wholesale

Licensing Stores
@Mainland
China

13%/7%/6% wholesale revenue increase in FY19E-21E

1) Focus in rapid developing market —— tier 3 cities and below cities
2) Smaller sales bases & extensive geographical coverage
3) -5.48% in FY17 & 13.55% in FY18

licensing

Licensing Stores
@Mainland
China

25%/20%/18% licensing revenue increase in FY19E-21E

1) Expected 120 new stores in Mainland China (64 in FY17 & 132 in FY18)
2) Licensing fees are fixed cost compared to wholesale revenue which rely on sales growth of licensing stores
3) -2.23% in FY17 & 26.55% in FY18