CHJ(SZ:002345) 3 6 Ke·2025-09-22 08:48Core Viewpoint - The rise of national trends and the demand for personalization and light luxury are driving the continuous expansion of the Chinese jewelry market, with market size expected to grow from 610 billion yuan in 2020 to 728 billion yuan in 2024, and projected to reach 937 billion yuan by 2029, reflecting a compound annual growth rate of 5.2% from 2024 to 2029 [1] Company Overview - Chao Hong Ji focuses on jewelry and fashion handbag sectors, with approximately 90% of its revenue coming from jewelry business between 2022 and the first half of 2025 [2] - The company operates two core brands: "CHJ Chao Hong Ji," established in 1997, and "FION," a well-known handbag brand acquired in 2014 [4] - As of the end of June 2025, Chao Hong Ji had a market capitalization exceeding 13.4 billion yuan [1] Financial Performance - Chao Hong Ji's revenue has shown an upward trend, with figures of approximately 4.36 billion yuan in 2022, 5.84 billion yuan in 2023, 6.45 billion yuan in 2024, and 4.06 billion yuan in the first half of 2025 [9] - The company's gross profit margin has declined from 29.3% in 2022 to 23.1% in the first half of 2025, attributed to lower sales of higher-margin products [9] - The company’s trade receivables increased from approximately 266 million yuan to 370 million yuan from 2022 to the first half of 2025, indicating potential risks in timely collection [8] Market Dynamics - The jewelry market in China is characterized by high supplier concentration, with the top five suppliers accounting for over 70% of total procurement [6] - The jewelry industry is facing intense competition, with Chao Hong Ji ranking 9th among jewelry companies in China by revenue, holding a market share of 0.8% [16] - The demand for gold jewelry remains strong, with gold jewelry expected to account for 72% of total sales revenue by 2024, while the fashion jewelry market has seen a decline [12][15] IPO and Future Plans - Chao Hong Ji has submitted an IPO application to the Hong Kong Stock Exchange, aiming to raise funds for establishing 20 self-operated stores overseas and opening three flagship stores in mainland China [20] - The company plans to balance expansion and profitability amid the challenges of a shrinking fashion jewelry market and increasing accounts receivable [20]