Core Viewpoint - The company is benefiting from industry trends, launching low-priced products and maintaining a strong position despite rising gold prices [1][3]. Group 1: Revenue Growth - In Q3 2025, the company's revenue reached 2.14 billion, a year-on-year increase of 49.5%, while the net profit attributable to shareholders was -0.1 million [2]. - Excluding goodwill impairment of 170 million for women's bags, the adjusted net profit was 160 million, reflecting an 81.5% increase [2]. - Jewelry revenue grew by 53.6%, indicating a clear shift towards one-price and differentiated products amid high gold prices [2]. Group 2: Industry Transformation - The gold jewelry industry is transitioning from channel-driven growth to brand and product-driven growth due to rising gold prices and changing consumer sentiment [2][3]. - Recent adjustments in the value-added tax policy for gold are expected to create short-term challenges but will accelerate the industry's shift towards craftsmanship and design innovation [2]. Group 3: Profit Forecast and Valuation - The company is projected to achieve net profits of 470 million and 640 million in 2025 and 2026, respectively, maintaining a "strong buy" rating [3]. - The ongoing rise in gold prices and improvements in gold craftsmanship are expected to stimulate daily wear and self-indulgent demand in the industry [3].

Core 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]