Summary of the Conference Call Company Overview - The company is focused on the gold jewelry industry, particularly in gold embedded products, which have seen significant revenue growth since 2024. [2][3][4] Key Points Revenue and Product Structure - Starting from 2024, the company's gold business revenue has significantly increased, initially driven by weight-based gold sales. By Q1 2025, embedded gold products accounted for a higher proportion, enhancing store efficiency and profitability. [2][3] - The company's offline business constitutes 90% of total sales, with gold sales making up 70% and non-gold sales 30%. Among gold sales, fixed-price embedded gold accounts for 80%. [2][4] - Different product gross margins vary significantly: weight-based gold has a margin of around 10%, fixed-price embedded gold around 40%, K gold with diamonds around 50%, and jadeite has a higher margin but lower sales proportion. [2][5] Product Performance and Design - The company launched the "Transitional Jewelry Series" in 2025, with the "Royal Carriage Series" and "Iris Series" contributing over 15% to total sales, while the Transitional Jewelry Series accounts for about 10%. [2][5] - The design philosophy is rooted in European aesthetic culture, with products inspired by Belgian royal totems and Van Gogh's "Starry Night." [2][7] Target Demographics - The primary consumer demographic is women aged 35-55, who prefer self-rewarding purchases, with an average transaction value of approximately 15,000 yuan, positioning the brand in the mid to high-end market. [2][8] Store Expansion and Sales Strategy - The company aims to create "ten million-level" stores, enhancing overall efficiency from the existing 300+ stores. Some stores have already achieved annual sales of ten million yuan. [2][9] - Store performance is monitored through a coaching department and retail management, optimizing product display and supply turnover. [3][11] Online Sales and E-commerce Strategy - Online sales saw rapid growth in Q1 2025, primarily due to the acceptance of new gold embedded products, with new customers accounting for 40%. [15] - The company does not have high expectations for online growth this year due to lower margins, focusing instead on increasing the proportion of high-margin products. [16][27] Financial Outlook - The company reported a net profit margin of 7.9% in Q1, with confidence in maintaining above 7% for the year through improved product structure and brand strength. [26] - The gross margin for online sales is expected to remain stable, despite fluctuations during promotional periods. [27] Challenges and Market Conditions - Fluctuations in gold prices impact the jewelry industry, but the company has strategies in place to mitigate risks, including cash purchases and leasing gold. [23][24] - The company has a conservative approach to gold leasing, currently at 10% of gold inventory, adjusting based on market conditions. [24][25] Future Plans - The company plans to expand its franchise business, targeting 30-40 new franchise stores in 2025, with a focus on northern cities and regions like Liaoning, Beijing, and Tianjin. [13][36] Additional Insights - The company emphasizes a systematic training approach for store staff to enhance sales capabilities and align with brand culture. [11] - The impact of promotional events, such as VIP gatherings, is aimed at maintaining sales during off-peak seasons. [21] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting the company's focus on product innovation, market positioning, and growth strategies in the gold jewelry sector.