Core Viewpoint - The recent announcement of a share reduction by major shareholder Ningbo Ningju comes after a significant stock price increase for jewelry retailer Leysen Tongling, which has seen its stock rise by 171% this year, despite a history of declining profits from 2018 to 2024 [1][2]. Group 1: Company Performance - Leysen Tongling's net profit has declined for seven consecutive years, from a peak of 309 million yuan in 2017 to a loss of 184 million yuan by 2024 [2]. - In the first half of 2025, Leysen Tongling reported a net profit of 60.61 million yuan, marking a year-on-year increase of 263.52% [2][3]. - The company's performance turnaround is attributed to the popularity of embedded gold jewelry products, despite a general decline in gold consumption in China [2][3]. Group 2: Shareholder Actions - Ningbo Ningju, which acquired a 5.31% stake in Leysen Tongling in August 2024, plans to reduce its holdings by up to 343,000 shares, representing a maximum of 1% of the total shares, due to personal funding needs [4][5]. - As of September 18, 2025, Ningbo Ningju's unrealized gains from its investment in Leysen Tongling reached approximately 144.37%, amounting to around 112 million yuan [6]. Group 3: Market Context - The jewelry retail industry is experiencing a structural upgrade, with differentiated gold jewelry products gaining market favor amid high gold prices and changing consumer preferences [2][3]. - Leysen Tongling's brand, "Leysen1855," is positioned as a high-end jewelry brand with cultural significance, contributing to its competitive advantage in the market [3].

Core Viewpoint - The company, Leysen Jewelry Co., Ltd., reported a net loss of approximately 184.34 million yuan for the fiscal year 2024 and has decided not to distribute profits, including cash dividends or stock bonuses, due to its financial situation and future business needs [3][52][98]. Company Overview - Leysen operates in the jewelry retail industry, focusing on brand management, product design, and retail of various jewelry types, including gold, diamonds, and jade [4]. - The company has upgraded its gold product line and aims to create unique artistic gold pieces that blend Eastern and Western design elements [4][10]. Financial Performance - For the fiscal year 2024, the company reported a net profit attributable to the parent company of -184,338,868.63 yuan, with an ending undistributed profit of 137,443,457.38 yuan as of December 31, 2024 [3][98]. - The decision to not distribute profits aligns with regulatory guidelines and is intended to support the company's ongoing operations and development [52][98]. Profit Distribution Plan - The company plans to forgo profit distribution for 2024, which includes not issuing cash dividends, stock bonuses, or capital increases from reserves [3][52][98]. - This decision has been approved by the board and will be submitted for shareholder approval [99][100]. Stock Incentive Plan - The company has a stock incentive plan that allows for the release of 1,035,000 shares from restrictions, which will be available for trading on April 29, 2025 [19][35][88]. - The plan has undergone necessary approvals and is in compliance with relevant regulations [41][42].