Core Viewpoint - The company reported significant growth in revenue and net profit for the first half of 2025, driven by brand strength, product innovation, and market expansion [1][2]. Revenue and Profit Growth - In 2025H1, the company achieved revenue of 12.354 billion RMB, a year-on-year increase of 250.90%, and a net profit of 2.268 billion RMB, up 285.76% [1]. - The company declared an interim dividend of 9.59 RMB per share, totaling approximately 1.66 billion RMB, with a payout ratio of 73% [1]. Brand and Market Position - The company's brand influence has expanded, leading to significant market advantages and increased sales in both online and offline channels [1]. - In 2025H1, the average sales performance per store in shopping malls was approximately 459 million RMB, maintaining the top position among all jewelry brands in mainland China [1]. - Same-store sales grew by approximately 200.8% [1]. Online and Offline Sales Performance - Online sales reached approximately 1.943 billion RMB in 2025H1, with the Tmall flagship store achieving over 1 billion RMB in sales during the 618 shopping festival [1][2]. - Offline sales contributed 86.9% of total revenue, amounting to 12.241 billion RMB, with a year-on-year increase of 243.2% [2]. Customer Base Expansion - The company has expanded its customer base, with loyal members reaching approximately 480,000, an increase of 130,000 from the end of 2024 [1]. - The overlap rate of the company's consumers with those of major luxury brands is as high as 77.3%, indicating the brand's high-end positioning [1]. Product Development and Pricing Strategy - The company has created over 2,100 original designs and holds 273 domestic and 246 international patents [1]. - In response to rising gold prices, the company adjusted product prices by approximately 5-12% in February 2025 [1][2]. Financial Metrics - The company's gross margin for 2025H1 was 38.09%, a decrease of 3.24 percentage points due to rising gold prices [2]. - Despite increased expenses, the net profit margin improved by 1.7 percentage points to 18.36% [2]. Future Growth Prospects - The company plans to continue expanding its channels and optimizing stores, with 41 self-operated stores opened in 16 cities by 2025H1 [3]. - New store openings in Singapore mark a significant step in the company's international expansion [3]. Investment Outlook - The company is positioned to benefit from the shift in the gold jewelry market towards product and brand-driven growth, with a strong focus on high-end traditional gold segments [3]. - Revenue forecasts for 2025-2027 have been adjusted to 24.020 billion RMB, 33.813 billion RMB, and 41.402 billion RMB, respectively [3].

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company reported a significant revenue increase of 250.90% year-on-year, reaching 12.354 billion RMB in H1 2025, with a net profit of 2.268 billion RMB, up 285.76% year-on-year [2] - The company has a high dividend payout ratio of 73%, distributing approximately 1.66 billion RMB in dividends [2] - The brand's market influence and product innovation are key drivers for revenue and profit growth, with same-store sales increasing by approximately 200.8% [3][4] - The company has expanded its loyal customer base, with 480,000 members as of June 30, 2025, reflecting a 13,000 increase from December 31, 2024 [3] - The company has created over 2,100 original designs and holds 273 domestic and 246 international patents [3] Revenue Breakdown - In H1 2025, revenue from gold products was 14.174 billion RMB, with online and offline sales contributing 19.43 billion RMB and 122.41 billion RMB respectively, showing year-on-year growth of 313.3% and 243.2% [4] - Revenue from mainland China and overseas markets was 12.584 billion RMB and 1.6 billion RMB, respectively, with year-on-year growth of 232.8% and 455.2% [4] Profitability Analysis - The company's gross margin was 38.09%, a decrease of 3.24 percentage points due to a rise in gold prices exceeding 20% [5] - The net profit margin improved by 1.7 percentage points to 18.36% despite increased sales and administrative expenses [5] Future Growth Prospects - The company plans to continue expanding its channels and optimizing stores, with 41 self-operated stores opened in 16 cities by H1 2025 [6] - The opening of new stores in high-end shopping centers in Shanghai and Singapore marks a significant step in the company's international expansion [6] Investment Recommendations - The company is positioned well in the high-end gold jewelry market, integrating traditional Chinese culture with modern design [7] - Revenue forecasts for 2025-2027 are adjusted to 24.020 billion RMB, 33.813 billion RMB, and 41.402 billion RMB, respectively, with EPS estimates of 27.32 RMB, 38.51 RMB, and 47.20 RMB [7]

Investment Rating - The report maintains a "Strong Buy" rating for the company [1][3]. Core Insights - The company is expected to achieve a revenue of RMB 12 billion to 12.5 billion in the first half of 2025, representing a year-on-year growth of 241% to 255%. The net profit is projected to be between RMB 2.23 billion and 2.28 billion, with a year-on-year increase of 279% to 288% [1][7]. - The report has revised profit forecasts, estimating net profits for 2025, 2026, and 2027 to be RMB 4.582 billion, RMB 6.458 billion, and RMB 8.563 billion respectively, with year-on-year growth rates of 211%, 41%, and 33% [1][7]. Financial Data and Valuation - Total revenue for 2025 is estimated at RMB 25.214 billion, with a year-on-year growth of 196% [2][10]. - The company’s net profit for 2025 is projected at RMB 4.582 billion, reflecting a growth of 211% compared to the previous year [2][11]. - The price-to-earnings (PE) ratio for 2025 is expected to be 24.5 [2][11]. - The company’s return on equity (ROE) is projected to be 61.6% in 2025 [11]. Market Performance - The company has seen a significant increase in brand influence and channel expansion, with new store openings in high-end shopping centers in major cities and overseas [7]. - The net profit margin for the first half of 2025 is expected to be between 17.8% and 19.0%, an improvement from 16.7% in the first half of 2024 [7].