Core Insights - The company reported a significant increase in revenue and profit for the six months ending June 30, 2025, with revenue reaching 12.354 billion RMB, a year-on-year increase of 251% [1] - The profit attributable to shareholders was 2.268 billion RMB, reflecting a year-on-year increase of 285.8%, with basic earnings per share at 13.38 RMB [1] Revenue Growth - The company's revenue growth rate was approximately 251.0% during the reporting period [1] - Gross profit amounted to approximately 4.705 billion RMB, an increase of about 3.35 billion RMB compared to the previous year's gross profit of approximately 1.455 billion RMB, representing a growth rate of about 223.4% [1] Brand Influence and Market Position - The company has established significant brand influence and market advantages, leading to substantial growth in both online and offline store revenues [1] - The company has been a pioneer in the ancient gold industry for over a decade, creating a strong brand position and influence [1] - The company is the drafting unit for industry standards for ancient gold jewelry and was the first to launch "gold inlaid diamond" and "gold body with blue burning" products, setting industry trends [1] Online Sales Performance - Despite focusing primarily on offline sales, the company achieved remarkable online sales performance during the 2025 Tmall 618 event, ranking first in the gold category with sales exceeding 1 billion RMB, marking a first for a gold jewelry brand [1] - Total online sales during the reporting period reached approximately 1.943 billion RMB [1] Product Development and Innovation - The company has created over 2,100 original designs and holds 273 domestic patents, 1,505 copyrights, and 246 foreign patents, supporting continuous product iteration and optimization [2] - The company's self-research capabilities have enabled it to consistently launch competitive core products [2] Store Expansion and Internationalization - As of June 30, 2025, the company opened 41 self-operated stores across 16 cities, located in 29 prestigious commercial centers with strict entry requirements [2] - New store openings include locations in Shanghai and Singapore, marking a significant step in the company's internationalization process [2]

Core Viewpoint - The company is experiencing rapid expansion and strong sales growth, particularly in high-end markets, supported by new store openings and innovative product offerings [1][2][3][4]. Group 1: Store Expansion and Market Presence - The company has opened new stores in Singapore and Shanghai, with additional locations in Hong Kong, Shenzhen, Beijing, and Nanjing expected to open later this year [1]. - By the end of 2024, the company will have established 36 self-operated stores in 15 major cities, focusing on high-end shopping centers [3]. - The company is upgrading existing stores to enhance brand positioning in premium markets, including a new store in Beijing's SKP [3]. Group 2: Sales Performance - The company reported a same-store sales growth of over 120.9% year-on-year for 2024, with a remarkable 170% growth in the first five months of 2025 [4]. - Online sales channels are also growing rapidly, with a 333% year-on-year increase in sales from Tmall and JD.com in early 2025 [4]. Group 3: Product Innovation and Market Trends - The company is leading the premium gold jewelry market, driven by product innovation and a shift towards high-value offerings [2]. - Recent product launches, such as "gold inlaid diamonds" and "gold body with blue burning," have strengthened the brand's competitive edge in the high-end jewelry sector [2]. Group 4: Financial Projections and Valuation - The company has raised its profit forecasts for 2025-2027, projecting net profits of 49.1 billion, 62.1 billion, and 75.8 billion respectively, reflecting a growth of 40%-43% [4]. - The company is assigned a target price of 1200 HKD for 2025, based on a 38.5x PE ratio, indicating strong growth potential and brand positioning [4].

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of HKD 1,200.00 [1][7]. Core Views - The company is experiencing strong growth momentum driven by rapid store expansion both domestically and internationally, particularly in high-end markets [1][2]. - The premium gold jewelry market is expanding, with the company leading the trend through product innovation and high craftsmanship [2]. - The company has successfully opened new stores in key locations, enhancing its brand positioning and targeting high-net-worth customers [3]. - Strong same-store sales growth is observed, with a significant increase in online sales contributing to overall revenue growth [4]. - Profit forecasts have been adjusted upwards due to sustained high demand and successful overseas market entry, with net profit projections for 2025-2027 increased by 40%-43% [5][12]. Summary by Sections Store Expansion and Upgrades - As of the end of 2024, the company has established 36 self-operated stores in 15 major cities, focusing on high-end shopping centers [3]. - Recent openings include stores in Beijing, Shenzhen, and Singapore, with plans for further expansions [3]. Sales Performance - The company reported a same-store revenue growth of over 120.9% in 2024, with a remarkable 170% growth in the first five months of 2025 [4]. - Online sales through platforms like Tmall and JD.com reached HKD 12.8 billion in early 2025, marking a 333% year-on-year increase [4]. Financial Projections - Revenue forecasts for 2025-2027 have been significantly raised, with expected revenues of RMB 23.6 billion, RMB 29.2 billion, and RMB 35.4 billion respectively [10][12]. - The adjusted net profit for 2025 is projected at RMB 4.9 billion, reflecting a 233.6% increase from the previous year [12][17]. Market Positioning - The company is recognized as the leading brand in traditional handcrafted gold jewelry, continuously innovating with products that blend heritage craftsmanship with modern aesthetics [2]. - The brand's positioning in high-end markets is reinforced by its strategic store locations and product offerings [3].