CHJ(SZ:002345) 2 1 Shi Ji Jing Ji Bao Dao·2025-09-15 12:48Core Viewpoint - Chao Hong Ji, a Chinese jewelry company, is seeking a secondary listing on the Hong Kong Stock Exchange to enhance its global strategy and brand image, amidst a rising trend in the Hong Kong consumer sector [1][6]. Group 1: Company Overview - Chao Hong Ji was founded in 1997 and initially focused on gold processing, later transitioning to brand establishment and targeting younger consumers with 18K gold products [2]. - The company went public in A-shares in 2010 and has since adopted a franchise model for expansion, with a total of 1,540 to 1,542 stores expected by June 2025, including 1,340 franchise stores [2]. Group 2: Financial Performance - In the first half of the year, Chao Hong Ji reported revenue of 4.102 billion yuan, a year-on-year increase of 19.54%, and a net profit of 331 million yuan, up 44.34% [1]. - The franchise channel contributed significantly to revenue, generating 2.244 billion yuan, a 36.24% increase [2]. Group 3: Market Trends and Stock Performance - Chao Hong Ji's stock price has surged over 170% this year, from 5.47 yuan per share to a peak of 18.18 yuan, reflecting strong investor interest in consumer stocks [5][6]. - The company's price-to-earnings ratio stands at 45.7, significantly higher than its peers, indicating a potentially overvalued position in the market [6]. Group 4: Strategic Moves and Challenges - The company has initiated cross-industry acquisitions, including a near 1.4 billion yuan purchase of the handbag brand FION, which has not yielded positive financial results [3][4]. - Chao Hong Ji's international expansion efforts began last year, targeting Southeast Asia, with plans to adapt products to local cultural preferences [6][7]. - Despite the positive stock performance, major shareholders have begun to reduce their stakes, raising concerns about the sustainability of the company's growth model [7].