Core Insights - The company reported a significant increase in revenue and net profit for the first half of 2025, with revenue reaching 12.354 billion RMB, a year-on-year growth of 251.0%, and net profit of 2.268 billion RMB, up 285.8% [1] - The board proposed an interim dividend of 9.59 RMB per share, with a payout ratio of 73% [1] Revenue Performance - Same-store sales showed strong performance, contributing to explosive revenue growth [1] - The company’s loyal membership base grew to approximately 480,000, an increase of 130,000 from the end of 2024 [1] - Online sales surged by 313.3% to 1.618 billion RMB, accounting for 13.1% of total revenue [1] Store Expansion - Five new stores were opened in the first half of 2025, including locations in major high-end shopping centers [2] - As of June 30, 2025, the company operated 41 self-owned stores across 16 cities [2] - Revenue from the domestic market reached 10.758 billion RMB, a year-on-year increase of 232.8%, while international revenue grew by 455.2% to 1.597 billion RMB [2] Profitability and Cost Management - The gross profit margin decreased by 3.2 percentage points to 38.1% due to delayed price adjustments amid rising gold prices [3] - The company benefited from economies of scale, with selling and administrative expense ratios decreasing to 11.9% and 1.7%, respectively [3] - Adjusted net profit margin improved by 1.9 percentage points to 19.0% [3] Inventory and Cash Flow - Inventory increased to 8.685 billion RMB to support store optimization and expansion [3] - Inventory turnover days improved from 195 days at the end of 2024 to 150 days [3] - The net cash flow from operating activities was -2.215 billion RMB, primarily due to increased inventory for business growth [3] Future Outlook - The company plans to continue its brand internationalization and market globalization strategy, with a new store opening in Shanghai expected in October 2025 [4] - Revenue projections for 2025-2027 are set at 25.453 billion RMB, 34.151 billion RMB, and 45.897 billion RMB, with year-on-year growth rates of 199.3%, 34.2%, and 34.4% respectively [4] - Expected net profits for the same period are 4.576 billion RMB, 6.429 billion RMB, and 8.949 billion RMB, with growth rates of 210.6%, 40.5%, and 39.2% respectively [4]

Investment Rating - The report maintains an "Accumulate-A" rating for the company [1] Core Views - The company achieved explosive revenue growth in the first half of 2025, driven by strong brand power and channel expansion, with revenue reaching 12.354 billion yuan, a year-on-year increase of 251.0%, and a net profit of 2.268 billion yuan, up 285.8% year-on-year [2][3] - The company plans to continue its strategy of brand internationalization and market globalization, with new store openings in key commercial centers [9] Financial Performance - In the first half of 2025, same-store sales grew by 200.8%, with a loyal customer base of approximately 480,000 members, an increase of 130,000 from the end of 2024 [3] - The company opened 5 new stores in the first half of 2025, expanding its presence in high-end markets both domestically and internationally [4] - Revenue from the domestic market was 10.758 billion yuan, a year-on-year increase of 232.8%, while overseas revenue reached 1.597 billion yuan, up 455.2% [4] Profitability and Cost Management - The gross profit margin decreased by 3.2 percentage points to 38.1% due to the lag in price adjustments amid rising gold prices [5] - The adjusted net profit margin improved by 1.9 percentage points to 19.0% due to the benefits of scale [5] - The company’s inventory increased to 8.685 billion yuan to support store optimization and new store expansion, with inventory turnover days decreasing from 195 days at the end of 2024 to 150 days [5] Future Projections - The company’s revenue forecasts for 2025-2027 are 25.453 billion yuan, 34.151 billion yuan, and 45.897 billion yuan, representing year-on-year growth of 199.3%, 34.2%, and 34.4% respectively [9] - The projected net profit for the same period is 4.576 billion yuan, 6.429 billion yuan, and 8.949 billion yuan, with year-on-year growth of 210.6%, 40.5%, and 39.2% respectively [9]