Group 1: Research Basic Information - The research object is Di'ao Co., Ltd., belonging to the jewelry industry. The reception time was on October 30, 2025. The listed company's reception staff included Huang Shuirong, the deputy general manager of the board of directors, the financial controller, and the secretary of the board of directors, and Bin Bei, the IR supervisor [16] Group 2: Detailed Research Institutions - The research institutions included securities companies such as CITIC Securities, CITIC Construction Investment Securities, Huatai Securities, and many others, as well as futures brokerage companies, fund management companies, investment companies, asset management companies, private funds, and individual investors [17][18][19] Group 3: Main Content Management Performance Explanation - In the first three quarters of 2025, the company's operating income and net profit both increased year - on - year, with a steady and positive overall business trend. From January to September 2025, the company achieved an operating income of 1.156 billion yuan, a 4.03% increase from the same period last year; the net profit attributable to shareholders of the listed company was 102.5382 million yuan, a 407.97% year - on - year increase; the single - store income reached 2.6456 million yuan, a 30.77% year - on - year increase; the online self - operated business achieved an operating income of 226 million yuan, a 45.79% year - on - year increase [25] - The significant increase in net profit was mainly due to the company's optimization of the brand, improvement of the synergy between online and offline channels, and continuous optimization of resource allocation to reduce operating costs. As of the end of the reporting period, the company had 341 stores in operation, a net optimization of 60 stores compared with the same period last year. Despite the year - on - year decrease in the number of stores, the company still achieved a 4.03% year - on - year increase in income. The optimization of the store structure led to a significant decrease in sales expenses, with the combined rent, decoration, and labor costs decreasing by 91.6702 million yuan year - on - year [25] Q&A Session Category Planning and Gold Product Progress - In category planning, the company focuses on the "proposal" and "wedding" scenarios around the core brand value of "expression of love." The proposal scenario centers on diamond rings, while the wedding scenario focuses on traditional "three - gold" categories. For gold products, the company adheres to the "one - person - only - in - a - lifetime" purchase rule, with the wedding scenario as the core entry point. In 2025 Q3, the company launched two innovative gold products: the "Forever and Always" series of gold wedding rings and the globally launched "DR Princess Crown" wedding five - gold set [25][26][27] Thoughts on Offline Channel Construction - In the past two years, the company optimized operations in aspects such as channel layout, product experience, and store operation capabilities. The channel strategy aims to create terminal scenarios that enhance brand emotional resonance. In the first three quarters of 2025, the company closed 48 low - efficiency stores and opened 16 new ones, with a net decrease of 32 stores. The single - store income increased by 30.77% year - on - year. In the future, the company will improve the channel structure, focusing on enhancing brand potential in core domestic cities and expanding in high - potential commercial complexes in third - and fourth - tier cities [27][28] Online and Offline Product Strategies and Customer Profiles - The company uses a unified product inventory structure for online and offline channels to ensure brand image and product value consistency. Each channel promotes suitable product series according to its characteristics. Online channels cover a wider range, reaching more young and lower - tier market users, while offline channels focus on customers who value experience and service [29] Strategies to Improve Repurchase Rate - The company's current user base exceeds 2 million, but the repurchase rate is still low, mainly due to the early - stage concentrated product structure. To improve this, the company is learning from other industries, adjusting its organizational structure, and expanding its product matrix to become a partner accompanying users throughout their emotional journey [29][30] Overseas Business Development and Future Plans - The company will focus on diamond rings and wedding rings in the US market, replicating the domestic "Internet promotion + offline experience" model. It also aims to expand new categories and scenarios. In the international layout, it will enter the high - potential US market first and gradually expand to Southeast Asia, Europe, etc. Additionally, it is looking for multi - brand development opportunities through mergers and acquisitions [30][31][32]

Core Insights - The company reported a total revenue of 1.156 billion yuan for Q3 2025, representing a year-on-year increase of 4.03%, while the net profit attributable to shareholders reached 103 million yuan, up 407.97% compared to the previous year [1] - The gross margin improved to 66.4%, an increase of 1.27% year-on-year, and the net profit margin surged to 8.87%, reflecting a significant increase of 388.31% [1] - The company has seen a substantial rise in accounts receivable, which increased by 31.81% year-on-year, raising concerns about cash flow management [1][4] Financial Performance - Total revenue for Q3 2025 was 1.156 billion yuan, up from 1.112 billion yuan in Q3 2024, marking a 4.03% increase [1] - Net profit attributable to shareholders for Q3 2025 was 103 million yuan, compared to 20.1858 million yuan in Q3 2024, reflecting a 407.97% increase [1] - The gross margin for Q3 2025 was 66.4%, up from 65.57% in the previous year, while the net profit margin increased from 1.82% to 8.87% [1] - Total operating expenses (sales, management, and financial expenses) amounted to 698 million yuan, accounting for 60.34% of revenue, a decrease of 10.36% year-on-year [1] Cash Flow and Assets - The company reported a negative operating cash flow per share of -0.47 yuan, a significant decline of 181.66% year-on-year [1] - Cash and cash equivalents increased by 90.29% due to changes in financing activities, despite a decrease in cash flow from operating activities [6] - Accounts receivable reached 772.188 million yuan, up 31.81% from the previous year, raising concerns about the company's liquidity [1][4] Strategic Developments - The company launched two innovative gold products in Q3 2025: the "One Life One World" series of gold rings and the "DR Golden Crown" wedding five metals, aimed at enhancing customer engagement and market presence [5] - The company focuses on emotional expression through its products, particularly in the wedding and engagement segments, aligning with consumer demand for meaningful purchases [4] Investment Insights - Analysts expect the company's performance for 2025 to reach 128 million yuan, with an average earnings per share forecast of 0.33 yuan [4] - The company has seen a significant increase in prepayments and other current assets, indicating a strategic investment in market promotion and product development [3][6]

Financial Performance - In the first three quarters of 2025, the company achieved a revenue of 1.156 billion CNY, a year-on-year increase of 4.03% [3] - Net profit attributable to shareholders reached 102.54 million CNY, a significant increase of 407.97% compared to the previous year [3] - Single-store revenue was 2.6456 million CNY, reflecting a growth of 30.77% year-on-year [3] - Online self-operated business generated 226 million CNY in revenue, up 45.79% year-on-year [3] Operational Efficiency - The company optimized its brand and improved the efficiency of online and offline channel operations, leading to a significant reduction in operational costs [3] - The total number of stores decreased by 60, resulting in a total of 341 stores, yet revenue still grew by 4.03% [3] - Sales expenses decreased significantly, with rent, decoration, and labor costs combined reducing by 91.67 million CNY [3] Product Strategy - The company focuses on emotional expressions through its product offerings, particularly in the "proposal" and "wedding" categories [4] - New product launches include the "One Life One Love" series of gold rings and the "DR Golden Crown" wedding five metals, both designed to meet modern consumer needs [4] - The company aims to enhance its product line to improve customer repurchase rates, particularly targeting the 35+ age group, which contributes over 20% to revenue [9] Channel Development - The company closed 48 underperforming stores and opened 16 new ones, resulting in a net decrease of 32 stores [6] - Single-store operational efficiency improved, with revenue per store increasing by 30.77% [6] - Future plans include enhancing brand presence in core urban areas and expanding into lower-tier cities [6] Online vs. Offline Strategy - The overall gross margin for the company was 66.40%, showing improvement due to optimized product sales structure [7] - The company maintains a unified product structure across online and offline channels to ensure brand consistency [7] - Online channels reach a broader audience, particularly younger consumers, while offline channels focus on experiential service [7] International Expansion - The company plans to expand into the U.S. market, focusing on diamond and wedding ring categories, leveraging its successful domestic strategies [11] - Future international expansion will also target Southeast Asia and Europe, building a global market network [11] - The company is exploring multi-brand development opportunities, capitalizing on the current low valuations of global jewelry brands [11]