Core Viewpoint - Guangdong Chao Hong Ji Industrial Co., Ltd. (Chao Hong Ji) is pursuing a dual listing on the A-share and Hong Kong stock markets, aiming to become the "first fashion jewelry stock" in Hong Kong if successful [3][4]. Company Overview - Chao Hong Ji was founded in 1996 by the Liao family and has grown from a self-operated gold shop to a well-known chain brand with over 1,500 stores [3][4]. - The company focuses on mid-to-high-end fashion consumer goods, including jewelry and handbags, and operates two main brands: "CHJ Chao Hong Ji" and "VENTI Fan Di" [4]. Financial Performance - Revenue figures for Chao Hong Ji from 2022 to the first half of 2025 are as follows: - 2022: approximately 4.364 billion RMB - 2023: approximately 5.836 billion RMB - 2024: approximately 6.452 billion RMB - First half of 2025: approximately 4.062 billion RMB [4][5]. - Net profit for the same periods is: - 2022: approximately 205 million RMB - 2023: approximately 330 million RMB - 2024: approximately 169 million RMB - First half of 2025: approximately 333 million RMB [4][5]. Revenue Breakdown - In the first half of 2025, 93.6% of Chao Hong Ji's revenue came from jewelry, with a notable decline in handbag revenue, which dropped by 16.9% year-on-year [6][7]. - The classic gold jewelry segment has shown significant growth, with revenue increasing from 1.42 billion RMB in 2022 to 2.92 billion RMB in 2024, reflecting a compound annual growth rate (CAGR) of 43.4% [7][9]. - Fashion jewelry revenue grew from 2.45 billion RMB in 2022 to 2.94 billion RMB in 2024, with a slower CAGR of 9.5% [8][9]. Operational Structure - As of June 30, 2025, Chao Hong Ji operates a total of 1,542 jewelry stores, comprising 201 self-operated stores and 1,337 franchise stores [10][11]. - The company has shifted from a self-operated model to a franchise-based model, indicating a strategic change in its operational approach [11]. Management - The CFO, Mr. Chen Shufeng, has been with the company since 2007 and was appointed CFO in November 2024, overseeing financial and accounting matters [12][18].

Core Viewpoint - Chao Hong Ji has submitted an application for the issuance and listing of overseas shares (H-shares) to the Hong Kong Stock Exchange, which is expected to advance the company's globalization strategy and enhance its international brand image and overall competitiveness [1] Group 1: Global Expansion - In 2024, Chao Hong Ji will initiate its brand overseas expansion, opening stores in Malaysia, Thailand, and Cambodia [1] - By the first half of 2025, Chao Hong Ji has established two stores in key commercial areas of Cambodia, specifically in the AEON Mall in Phnom Penh and the Umall Mall in Sihanoukville, further enhancing its overseas retail network [1] Group 2: Product Line Development - Chao Hong Ji is solidifying its product lines, with the introduction of the "Oriental Aesthetics" themed gold product line in the first half of 2025 [1] - The company is also reinforcing its "beaded string" specialty product line and launching four IP licensed product series: Pudding Dog, Mermaid Hanton, Line Dog, and Butter Bear [1] Group 3: Brand Positioning - Chao Hong Ji positions itself as an Oriental fashion jewelry brand aimed at younger consumers, capturing current aesthetic preferences [1] - The company focuses on three differentiated categories: "intangible cultural heritage," "beading," and "trending," which are expected to continuously drive brand momentum and open up performance potential [1]

Group 1 - The core viewpoint of the news is that潮宏基's stock has experienced fluctuations, with a year-to-date increase of 163.85% but a recent decline in the last five and twenty trading days [1] - As of June 30, 2025,潮宏基's revenue reached 4.102 billion yuan, representing a year-on-year growth of 19.54%, while the net profit attributable to shareholders was 331 million yuan, up 44.34% [2] - The company has a diverse revenue structure, with high-end fashion jewelry accounting for 48.53% and traditional gold products for 44.63% of total revenue [2] Group 2 -潮宏基 has made cumulative cash distributions of 1.809 billion yuan since its A-share listing, with 711 million yuan distributed in the last three years [3] - As of June 30, 2025, the number of股东 increased by 51.55% to 40,400, while the average circulating shares per person decreased by 33.99% to 21,446 shares [2] - The top ten circulating shareholders include significant institutional investors, with new entrants such as银华富利精选混合A and长安成长优选混合A [3]

Core Viewpoint - Chao Hong Ji Industrial Co., Ltd. is planning a secondary listing on the Hong Kong Stock Exchange, focusing on the mid-to-high-end fashion consumer goods market, particularly in jewelry and fashion bags [3]. Financial Performance - Revenue for Chao Hong Ji from 2022 to 2024 is projected to be RMB 4.364 billion, RMB 5.836 billion, and RMB 6.452 billion, respectively, with net profits of RMB 205 million, RMB 330 million, and RMB 169 million [4]. - In the first half of 2025, the company reported revenue of RMB 4.062 billion, a year-on-year increase of 19.59%, and a net profit of RMB 333 million, up 44.07% [3]. Market Position - Chao Hong Ji ranks first among jewelry companies in mainland China with a market share of 1.4% based on sales revenue for 2024 [3]. - In the K-gold market, the company is positioned fifth among jewelry enterprises in mainland China [3]. Store Network - As of June 30, 2025, Chao Hong Ji operates a total of 1,538 jewelry stores, including 201 self-operated stores and 1,337 franchise stores, with 86.9% of the total being franchise stores [5]. Employee Trends - The total number of full-time employees has decreased from 4,425 in 2022 to 3,527 in the first half of 2025, indicating a reduction of 898 employees over three and a half years [8]. - Employee turnover rates vary by region, with mainland China showing rates of 30.8% to 36.4%, while Singapore has a notably high turnover rate of 58.3% [8][9].

Core Viewpoint - Chao Hong Ji has submitted its prospectus for H-share listing and plans to expand its overseas business, starting with its first overseas store in Malaysia in 2024 [1][5]. Group 1: Business Overview - Chao Hong Ji is a leading fashion jewelry brand in mainland China, focusing on a "young and fashionable" brand image, with a market share of 1.4% in 2024 [2]. - As of June 30, 2023, the company operates 1,542 offline jewelry stores, including 201 self-operated and 1,337 franchised stores across over 200 cities in China [2]. - The company has four overseas stores, including one self-operated store in Malaysia and three franchised stores in Thailand and Cambodia [2]. Group 2: Financial Performance - The company's revenue for 2022, 2023, 2024, and the first half of 2025 was approximately RMB 4.364 billion, RMB 5.836 billion, RMB 6.452 billion, and RMB 4.062 billion, respectively [2][4]. - Net profit for the same periods was approximately RMB 205 million, RMB 330 million, RMB 169 million, and RMB 333 million [2][4]. - Online sales revenue for 2022, 2023, 2024, and the first half of 2025 was RMB 889 million, RMB 1.022 billion, RMB 942 million, and RMB 496 million, respectively [5]. Group 3: Sales Channels - Chao Hong Ji utilizes both self-operated and franchised stores to optimize market layout and promote sustainable development [2]. - The company has established a presence on 14 major online sales platforms, including JD.com, Tmall, and Vipshop [5]. - The revenue from the top five customers accounted for 9.5%, 8.4%, 7.7%, and 7.8% of total revenue in 2022, 2023, 2024, and the first half of 2025, respectively [6]. Group 4: Supplier Relationships - The main suppliers are gold suppliers and commercial banks providing gold loans, with the top five suppliers accounting for 71.7%, 77.9%, 83.0%, and 78.9% of total procurement in the respective years [7]. - The largest supplier's procurement accounted for 51.0%, 61.6%, 66.3%, and 61.6% of total procurement in the same periods [7].

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [5] Core Views - The company is advancing its H-share issuance and listing, which is expected to accelerate its globalization process [5][8] - The company has opened stores in key business districts in Malaysia, Thailand, and Cambodia, enhancing its overseas retail network [8] - The brand is continuously solidifying its product lines and has attracted over 20 million members, with a significant portion of its consumer base being younger generations [8] Financial Performance and Forecast - The company’s projected revenue for 2025 is 7,727 million RMB, with a year-on-year growth rate of 18.55% [7] - The projected net profit attributable to the parent company for 2025 is 472 million RMB, reflecting a year-on-year growth of 143.89% [7] - The earnings per share (EPS) for 2025 is estimated at 0.53 RMB, with a price-to-earnings (P/E) ratio of 28.60 [7][10] - The return on equity (ROE) is expected to reach 12.70% in 2025 [7] Market Position and Strategy - The company is positioning itself as a fashionable jewelry brand targeting younger consumers, focusing on "intangible cultural heritage," "beading," and "trending" categories [8] - The ongoing international expansion and brand development are expected to enhance the company's market penetration and influence in overseas markets [8]

Core Viewpoint - Chao Hong Ji is experiencing declining gross margins and rising debt levels while expanding its store network and increasing gold lending amounts, raising concerns about potential risks [2][18]. Financial Performance - Gross margin decreased from 29.3% in 2022 to 22.6% in 2024, with a slight recovery to 23.1% in the first half of 2025 [5][6]. - Revenue for the first half of 2025 was approximately 4.062 billion, a year-on-year increase of 19.6% [5]. - The company’s gold lending amount rose from 5.18 billion in 2022 to 10.75 billion by July 2025, contributing to increased debt levels [8][18]. Expansion Plans - Chao Hong Ji plans to open 20 self-operated stores overseas by the end of 2028, with an investment payback period of 18-20 months [3][10]. - The company aims to establish three high-end flagship stores in first-tier cities in China, with significant design and inventory costs anticipated [10]. Store Operations - As of mid-2025, Chao Hong Ji operated 1,542 jewelry stores, with 202 self-operated and 1,340 franchised [5]. - The gross margin for self-operated stores was 35.3%, while for franchised stores it was only 16.6%, indicating a dilution of overall gross margin due to the increase in franchise operations [6]. Debt and Cash Flow - The asset-liability ratio increased to approximately 41.9% by mid-2025, up from 34.3%-37.7% in the previous three years [7][8]. - Cash and cash equivalents decreased from 548 million at the end of 2022 to 356 million by the end of 2024, before recovering to 456 million in mid-2025 [11][12]. Consumer Complaints and Online Sales - Online sales revenue increased from 889 million in 2022 to 942 million in 2024, with 496 million recorded in the first half of 2025 [16]. - Consumer complaints primarily focused on issues related to online purchases, including discrepancies in product quality and after-sales service [17][18].

Core Viewpoint - Chao Hong Ji has officially begun its IPO journey in Hong Kong after three months of planning, aiming to enhance its global strategy and brand image [1][2][4] Group 1: IPO Details - Chao Hong Ji submitted its application for listing on the Hong Kong Stock Exchange on September 12, 2025 [6] - The company aims to connect with international capital markets and enhance its competitiveness through this IPO [6][4] - The application materials were published on the Hong Kong Stock Exchange website, indicating compliance with regulatory requirements [6] Group 2: Business Performance - In the first half of 2025, Chao Hong Ji achieved approximately 4.1 billion yuan in revenue, marking a nearly 20% year-on-year increase [12] - The net profit attributable to shareholders reached 331 million yuan, a historical high for the same period, with a year-on-year growth of about 44% [12][11] - Sales expenses decreased by 10 million yuan despite the revenue growth, indicating improved operational efficiency [12] Group 3: Global Expansion - Chao Hong Ji has been expanding its presence in Asia, with 4 stores in other Asian regions as of June 2025, including 1 self-operated and 3 franchised stores [9] - Revenue from other Asian regions amounted to 12.8 million yuan in the first half of 2025, accounting for 0.31% of total revenue [10] - The company has seen a gradual increase in overseas revenue, with figures of 4.85 million yuan in the first half of 2024 and 19.38 million yuan for the entire year [10] Group 4: Historical Financial Performance - Chao Hong Ji's revenue from 2020 to 2024 showed a consistent upward trend, with figures of 3.215 billion yuan, 4.636 billion yuan, 4.417 billion yuan, 5.9 billion yuan, and 6.518 billion yuan respectively [12] - The net profit for the same period fluctuated, with notable adjustments in 2022 and 2024, reflecting market challenges [12]

Core Viewpoint - The company Chao Hong Ji is seeking to expand its market presence by applying for an IPO on the Hong Kong Stock Exchange amid rising international gold prices, aiming to leverage its dual capital platform for further growth [1][5][47]. Company Overview - Chao Hong Ji, a jewelry enterprise with over 15 years of listing on A-shares and a market capitalization exceeding 13.5 billion yuan, is attempting to expand through an "A+H" dual capital platform [1][4][5]. - Founded nearly 30 years ago, the company has evolved from a family-run gold processing business to a leading fashion jewelry brand in China [6][36]. Financial Performance - The company reported revenues of 4.36 billion yuan in 2022, 5.84 billion yuan in 2023, and 6.45 billion yuan in 2024, with a 19.6% year-on-year growth in the first half of 2025 [38][39]. - Despite revenue growth, the company has faced declining profit margins, with net profits fluctuating significantly, dropping from 330 million yuan in 2023 to 169 million yuan in 2024 [40][42]. Market Position - Chao Hong Ji holds a 1.4% market share in the Chinese fashion jewelry market, ranking first among competitors [37][38]. - The company has a total of 1,542 stores as of mid-2025, with a significant portion being franchise stores, indicating a need for further expansion compared to competitors like Zhou Dazheng [44]. Product Segmentation - The company's core revenue sources are jewelry, with fashion jewelry accounting for 45.6% and classic gold jewelry for 45.2% of total revenue in 2024 [40][41]. - The company has seen a decline in the contribution of its FION business, which reported a 27.4% drop in revenue in 2024 [42]. Strategic Initiatives - The IPO proceeds are intended for expanding the overseas sales network, establishing a Hong Kong office, and building new production facilities, reflecting the company's commitment to internationalization and core business enhancement [47].

Core Viewpoint - Chao Hong Ji, a jewelry company, is seeking a secondary listing on the Hong Kong Stock Exchange to enhance its global strategy and brand image while connecting with international capital markets [3][10]. Group 1: Company Overview - Chao Hong Ji submitted its main board listing application to the Hong Kong Stock Exchange, with CITIC Securities as the sponsor [3]. - The company reported a revenue of 4.102 billion CNY in the first half of the year, a year-on-year increase of 19.54%, and a net profit of 331 million CNY, up 44.34% [3]. - As of June 30, 2025, Chao Hong Ji had over 1,540 stores, with 1,340 being franchise stores, contributing significantly to its revenue [5]. Group 2: Market Performance - Chao Hong Ji's stock price surged by over 165% in 2025, rising from 5.47 CNY per share to a peak of 18.18 CNY [8][10]. - The company's current price-to-earnings ratio stands at 45.7, significantly higher than its peers, indicating a potentially overvalued position [10]. Group 3: Expansion and Strategy - The company aims to expand internationally, having initiated its overseas strategy in 2024, focusing on Southeast Asia due to cultural similarities [10][11]. - Chao Hong Ji has faced challenges with past acquisitions, such as the purchase of the FION brand, which has not contributed positively to its performance [6][11]. Group 4: Risks and Concerns - The competitive landscape for jewelry brands is intense, and the franchise model may not provide a strong competitive edge [11]. - Recent insider selling by major shareholders raises concerns about the company's valuation and future performance [11].