CHJ(SZ:002345) Guan Cha Zhe Wang·2025-05-22 13:22Group 1: Company Strategy and Financial Performance - Company is planning to issue H-shares on the Hong Kong Stock Exchange to enhance its global strategy and brand image [1] - In 2024, company reported revenue of 6.52 billion yuan, a year-on-year increase of 10.5%, but net profit attributable to shareholders decreased by 41.9% to 190 million yuan due to goodwill impairment in the FION brand [2] - Jewelry business remains the core, contributing 95.57% of total revenue, with traditional gold sales increasing over 30% year-on-year [2] - In Q1 2025, company achieved revenue of 2.25 billion yuan, a 25.4% increase, and net profit of 189 million yuan, up 44.4% [3] Group 2: Market Position and Brand Development - Company has been focusing on high craftsmanship products, which have higher profit margins, and has collaborated with popular IPs to attract younger consumers [6] - The brand has expanded its store count from around 1,000 to over 1,500 between 2020 and 2024, with a significant proportion of franchise stores [7] - The company’s self-operated stores have a much higher gross margin (31.57%) compared to franchise stores (17.25%) [8] Group 3: Expansion Plans and Market Challenges - Company aims to expand into Southeast Asia, with a focus on Singapore, and has already opened stores in Kuala Lumpur and Bangkok [9] - The competitive landscape includes established brands like Chow Tai Fook and Lao Puhuang, which may pose challenges for market entry [10] - The potential impact of international political and economic conditions on gold prices and import tariffs in Southeast Asia could affect the company's pricing competitiveness [10] Group 4: Stock Market Performance - Following the announcement of the H-share listing, the company's stock rose approximately 8% to 12.22 yuan per share, with a market capitalization of about 10.86 billion yuan [11] - However, the stock experienced volatility, dropping to a low of 11 yuan per share shortly after the initial rise [11]