Core Viewpoint - The company reported strong financial performance in Q1 2025, with significant year-on-year growth in revenue and net profit, indicating a positive trend in product strength and consumer recognition [1][4]. Financial Performance - In Q1 2025, the company achieved revenue of 2.252 billion yuan, a year-on-year increase of 25.36%, and a net profit attributable to shareholders of 189 million yuan, up 44.38% year-on-year [1]. - The company's net profit for 2024 was 194 million yuan, reflecting a decline of 41.91% year-on-year, while the adjusted net profit was 187 million yuan, down 38.72% year-on-year [1]. - The comprehensive gross margin for Q1 2025 was 22.93%, a decrease of 1.99 percentage points compared to the previous year [1]. Expense Management - The company's expense ratio for Q1 2025 was 11.48%, down 3.09 percentage points year-on-year, with specific expense ratios for sales, management, R&D, and finance being 8.76%, 1.30%, 1.03%, and 0.39% respectively [2]. - In 2024, the overall expense ratio was 15.29%, which also saw a year-on-year decline of 2.47 percentage points [2]. Product and Channel Development - The company is focusing on enhancing product design and has launched several new series, including collaborations with well-known IPs like Doraemon and Crayon Shin-chan to attract younger consumers [3]. - In 2024, the total number of "CHJ潮宏基" jewelry stores increased by 129, reaching 1,505 stores, with 1,268 being franchise stores [3]. - The company has expanded into overseas markets, opening stores in Malaysia and Thailand in 2024 [3]. Profit Forecast - The company has raised its profit forecast, increasing the expected net profit for 2025 and 2026 by 1% and 2% to 441 million yuan and 502 million yuan respectively, and has added a forecast for 2027 of 544 million yuan [4]. - The company continues to expand its product matrix, enhance product design, and optimize channel structure, maintaining a "buy" rating [4].