Investment Rating - The investment rating for the company is "Buy" [1][8] Core Insights - The company's performance in the fiscal year 2024 slightly exceeded expectations, driven by brand momentum, continuous product innovation, and channel network expansion. The expectation of rising gold prices is anticipated to accelerate terminal sales, with high growth continuing into fiscal year 2025 [3][8]. - The operating leverage has significantly improved the net profit margin, with a gross margin of 41.16% (down 0.73 percentage points) and an adjusted net profit margin of 17.66% (up 4.29 percentage points). The period expense ratio decreased by 6.08 percentage points to 18.32% [5][8]. - The company is focusing on enhancing its brand's international presence, leveraging successful operations in the Hong Kong and Macau regions to accelerate store expansion in Singapore and Japan, thereby opening up growth opportunities overseas [5][8]. Financial Summary - In fiscal year 2024, the company achieved revenue of 85.06 billion RMB, representing a year-on-year increase of 167.5%. The net profit reached 14.73 billion RMB, up 253.9% year-on-year, with adjusted net profit at 15.02 billion RMB, also up 253.4% [7][8]. - The company’s revenue from physical stores was 74.50 billion RMB (+164.3%), while online platforms contributed 10.55 billion RMB (+192.2%), indicating a slight increase in the proportion of online sales [8]. - The company’s domestic business generated 76.51 billion RMB (+152.95%), while revenue from Hong Kong and Macau reached 8.55 billion RMB (+451.41%) [8].

Group 1: Tariff Measures Overview - The new tariff measures announced by the U.S. on April 2, 2025, involve "reciprocal tariffs" affecting over $2.3 trillion in imports, accounting for 72% of U.S. total imports[8] - Tariffs on China are set to increase by 34%, while ASEAN countries will see an average increase of 34%, and the EU will face a 20% increase[6] - The current tariff rate on Chinese goods is 31.6%, with the new measures expected to raise it to an effective rate of 32.3%[15] Group 2: Economic Impact - The tariffs are projected to reduce China's total exports by approximately 4.7 percentage points, and considering re-export trade, the total impact could be around 6.3 percentage points[21] - U.S. inflation is expected to rise by 2.6 percentage points due to these tariffs, with consumer goods contributing 2.1 percentage points and capital goods contributing 0.5 percentage points[30] - The average tariff rate on U.S. imports is expected to increase by 18.2 percentage points as a result of these measures[27] Group 3: Trade Dynamics - The "exemption list" for tariffs includes products like copper, pharmaceuticals, and semiconductors, which collectively represent about 20% of U.S. imports[13] - The impact on net exports is expected to be limited, as a decline in exports may also lead to a decrease in imports, creating a "natural hedge" on trade surplus[23] - There is potential for alternative trade opportunities, particularly with the EU, as it may increase imports of Chinese consumer electronics and electrical equipment in response to U.S. tariffs[21]