Ge Long Hui A P P·2025-10-31 06:07Core Viewpoint - Chao Hong Ji reported a significant revenue increase of 49.5% year-on-year in Q3 2025, reaching 2.13 billion yuan, despite a minor net profit loss due to goodwill impairment from Fion [1] Financial Performance - The company achieved a net profit of 160 million yuan in Q3 2025, reflecting an 81.5% year-on-year increase, excluding the impact of Fion's goodwill impairment [1] - The jewelry segment's net profit grew by 86.8% year-on-year, indicating strong performance in the core business [1] Growth Drivers - Revenue growth is primarily driven by same-store sales increases and proactive store openings by distributors [1] - The significant net profit growth, excluding Fion's impairment, is attributed to the strong sales of high-margin brand products and adjustments in direct sales channels alongside accelerated franchise expansion [1] Strategic Adjustments - The company engaged a third-party asset evaluation firm to assess the goodwill related to the acquisition of Fion, leading to a goodwill impairment provision that alleviates future goodwill pressure [1] - The company is optimizing its channel structure and product mix, resulting in a decrease in expense ratios under a light asset operation model [1] Market Position and Outlook - Chao Hong Ji is positioned to benefit from the rise of Eastern aesthetics and the national trend, with ongoing brand momentum [1] - Compared to leading industry brands, Chao Hong Ji has substantial room for growth in revenue scale and store count, with strong certainty in channel expansion, suggesting a potential for sustained rapid growth [1]