Core Viewpoint - The company is experiencing a structural adjustment in its franchise model, leading to a decline in revenue from this channel, which has been overtaken by online sales as the primary revenue source [1][2][3] Group 1: Financial Performance - In the first half of 2025, the company achieved a revenue of 3.15 billion yuan, a year-on-year increase of 5.2%, and a net profit of 415 million yuan, up 11.9% [1] - Revenue from gold jewelry products grew by 9% to 2.53 billion yuan, while diamond and other jewelry sales fell by 4% to 235 million yuan [1] - Franchise service fee income decreased by 11% to 381 million yuan due to a reduction in franchise store numbers [2] Group 2: Franchise Model Challenges - The franchise model, once a growth engine, is facing challenges with a 17% decline in revenue, attributed to rising gold prices affecting consumer purchasing behavior [2][5] - The number of franchise stores decreased by 278 year-on-year, with a total of 3,760 franchise stores remaining [2] - Franchise revenue now accounts for 39% of total revenue, down from 49% the previous year [2] Group 3: Online Sales Growth - Online sales revenue surged by 34% to 1.63 billion yuan, making up 52% of total revenue, marking a significant shift in the company's revenue structure [3] - The online channel's revenue share has increased from 34.6% in 2022 to 40% in 2024 [3] Group 4: Strategic Initiatives - The company is focusing on product innovation and brand enhancement, including the opening of a high-end flagship store and plans to expand its self-operated stores to around 200 in three years [4][3] - The company is also entering international markets, with plans to increase overseas store count from 6 to 10, including new markets like Singapore [4][5] Group 5: Market Trends and Competition - The jewelry industry is facing increased competition and a shift in consumer preferences towards younger demographics, emphasizing personalization and value [5] - The company is adapting to these trends through collaborations and innovative designs, although this has led to intensified competition among brands [5]
周六福加盟模式失速，上半年净关270余家门店