Summary of the Jewelry Industry Conference Call Industry Overview - The conference call focused on the jewelry industry, specifically discussing the company's performance and strategies in the online and offline sales channels [1][2]. Key Points and Arguments Online Sales Performance - The company reported significant growth in online sales, achieving sales of 15.39 billion yuan from November 1 to 14 through a specific e-commerce platform, alongside 7.47 billion yuan from prepaid orders in October, resulting in a total year-on-year growth of ten times compared to 2.11 billion yuan in the same period last year [2][4]. - Online sales for the first half of November reached 23.25 billion yuan, reflecting over 1,000% year-on-year growth [3]. Offline Sales Performance - Offline sales in October increased by 142.24% to 28.73 billion yuan, with November's first half sales at 10.34 billion yuan, expected to exceed 22 billion yuan in the latter half [2][6]. - The company noted a decline in some non-hotspot store channels, indicating mixed performance across different locations [6]. Pricing Strategy - The company plans to implement price increases of 11%-14% around the Spring Festival, depending on gold price fluctuations, with a second price increase expected in September [4][14]. - Despite the price increases, consumer enthusiasm remains high, although a slight reduction in demand is anticipated in the coming months [6]. Growth Projections - The company has set a sales target of 370 to 380 billion yuan for the next year, aiming for a growth rate of 50% [4][12]. - Same-store sales growth is projected to be around 20%-30% [14]. Product Mix and Margins - The current gross margin is approximately 37.9%, with a target to optimize it to over 38% by the end of the month [10]. - The product mix is shifting, with the proportion of gold inlay products expected to reach 59% this year, and some products achieving gross margins as high as 46-47% [10][11]. Marketing and Advertising Strategies - The company utilizes platforms like "Business Assistant" and "Magic Mirror" to predict online traffic and has signed cooperation agreements with e-commerce platforms to ensure ROI and online cleanliness [9]. - Advertising strategies include self-promotion and new product launches to increase average transaction values to over 20,000 yuan [9]. New Store Openings - The company plans to open new stores in various locations, including Japan and several cities in China, despite a public statement indicating a halt on new mall expansions [13]. Product-Specific Insights - The "Golden Seven Seven" product has achieved sales of 39 million yuan this year, with significant sales from the Shanghai store [15]. - The target consumer for "Golden Seven Seven" includes high-net-worth individuals and traditional cultural collectors [16][17]. Market Performance of New Products - The "Goddess of Light" series is currently underperforming compared to the "Mandala" series, achieving only about 6.6% of its sales target [18]. Additional Important Information - The company is optimistic about the online market's future growth, driven by large promotional events and strategic resource allocation [7][8]. - The company is actively engaging in international luxury brand marketing operations, particularly in December [11].

Core Insights - The company reported a revenue of 1.371 billion yuan for the first half of 2025, with a comparable revenue growth of 4% after excluding the Ed Hardy brand from the consolidated financial statements [1] - The multi-brand matrix strategy has led to a robust development in the domestic market, with comparable income growth of approximately 5% year-on-year, and a notable 8.4% growth in the second quarter [1] - The company's net profit attributable to shareholders increased significantly by 45.3% year-on-year to 85.06 million yuan, reflecting a recovery in profitability due to stable domestic market performance and cost reduction measures in overseas operations [1] Online Sales Performance - The company continued to advance its multi-brand and multi-platform online strategy, achieving rapid growth in online sales [2] - The IRO brand experienced exceptional online growth in China, with online channels achieving over 60% growth, and ranking among the top ten luxury brands on Douyin during the 618 shopping festival [2] - The self-portrait brand saw an online revenue increase of over 40%, maintaining its position among the top international brands on Tmall and ranking high on Douyin [2] - The Laurèl brand's online revenue grew by 14%, remaining in the top tier of women's suit categories on Tmall, with a noticeable upward trend on Douyin [2] - The ELLASSAY brand's online revenue increased by 13%, with significant growth in live streaming on video platforms [2] - Overall, the company's online sales reached 268 million yuan, reflecting a rapid growth of 21% year-on-year, with online revenue accounting for 20% of the main business, an increase of 2.83 percentage points on a comparable basis [2]

Core Viewpoint - In 2024, HLA's revenue and net profit declined due to a slower-than-expected recovery in the consumer market, with a significant drop in net profit by 26.88% year-on-year. However, the first quarter of 2025 showed unexpected growth, with a net profit of 935 million yuan, up 5.46% year-on-year [1][2]. Financial Performance - In 2024, HLA achieved a revenue of 20.957 billion yuan, a decrease of 2.65% year-on-year, and a net profit attributable to shareholders of 2.159 billion yuan, down 26.88% [2]. - The main revenue contributors, pants and T-shirts, saw significant declines in revenue and gross margin, with pants revenue at 3.766 billion yuan (down 12.14%) and T-shirts at 2.918 billion yuan (down 8.20%) [2]. - Inventory levels increased notably, with pants and T-shirts inventory rising by 22.30% and 19.03%, respectively, and shoe inventory surging by 143.28%. Total inventory at the end of 2024 reached 11.987 billion yuan, up 28.38% [2]. Store Operations - In 2024, HLA experienced a significant number of store closures, with 431 franchise stores closed compared to 78 new openings, while direct stores saw 341 new openings and 125 closures. By the end of 2024, there were 1,468 direct stores and 4,365 franchise stores [2]. - Direct stores contributed significantly to gross profit, with a gross margin of 62.85%, compared to 40.95% for franchise and other stores [2]. Sales Channels - HLA's offline revenue declined from 17.496 billion yuan in 2023 to 15.743 billion yuan in 2024, with offline sales accounting for 78.08% of total revenue, down from 84.30% [3]. - Conversely, online sales grew significantly, reaching 4.419 billion yuan in 2024, an increase of over 30%, and accounting for 21.92% of total revenue [3]. - In the first quarter of 2025, online sales reached 1.014 billion yuan, up approximately 20%, contributing to a total revenue of 6.187 billion yuan, a slight increase of 0.16% year-on-year [3].