Company Overview - Hemei Group (SZ 002356) announced a temporary board meeting on August 25, 2025, to discuss investment projects related to its subsidiaries [1] - As of the report, Hemei Group has a market capitalization of 4.3 billion yuan [1] Revenue Composition - For the first half of 2025, Hemei Group's revenue composition is as follows: - Energy sales and refueling accounted for 75.15% - Diamond jewelry sales accounted for 24.34% - Shared bicycle operations accounted for 0.34% - Other revenues accounted for 0.17% [1]

Overview - The jewelry industry in China has seen a steady increase in demand due to rising consumer purchasing power and a shift in consumer preferences towards quality, brand, and cultural significance [1][11] - In 2023, the market size of China's jewelry industry reached 820 billion yuan, a year-on-year growth of 14.05%. However, in 2024, the market is expected to shrink to 778.8 billion yuan due to macroeconomic slowdown and decreased consumer confidence [1][11] Market Size - The market size breakdown for 2024 includes: - Gold products: approximately 568.8 billion yuan (73.0%) - Diamond products: approximately 43 billion yuan (5.5%) - Jade products: approximately 98 billion yuan (12.6%) - Colored gemstones: approximately 27 billion yuan (over 3.5%) - Pearl products: approximately 21 billion yuan (nearly 2.7%) - Platinum and silver products: approximately 8 billion yuan (1.0%) - Fashion jewelry and other categories: approximately 13 billion yuan (1.7%) [1][11] Industry Chain - The upstream of the jewelry industry includes suppliers of raw materials such as gold, diamonds, jade, colored gemstones, pearls, platinum, and silver, as well as suppliers of processing equipment [4] - The midstream involves design, research and development, and manufacturing processes [4] - The downstream consists of sales channels including jewelry specialty stores, department stores, and e-commerce platforms [4][6] Sales Channels - Offline channels, including jewelry specialty stores and department stores, remain the most important sales channels in China, accounting for over 80% of the market share due to the preference for in-person shopping experiences for high-value items [6] Economic Context - In 2024, China's GDP is projected to reach 13.49 trillion yuan, growing by 5.0%. However, both GDP growth and per capita disposable income growth are expected to decline compared to previous years [8] - Retail sales of gold and silver jewelry are projected to decline by 3.1% in 2024, reflecting the sensitivity of non-essential goods to economic fluctuations [8] Competitive Landscape - The jewelry industry in China is highly competitive, with major players including China Gold, Lao Feng Xiang, Yu Garden, and others. In 2024, China Gold is expected to lead with total revenue of 60.46 billion yuan [13][15] - Lao Feng Xiang is projected to have total revenue of 56.79 billion yuan, with jewelry sales contributing 82.6% of its total revenue [17] Development Trends - The jewelry market is expected to see a polarization in consumer spending, with high-end jewelry appealing to high-net-worth individuals, while the mass market focuses on cost-effectiveness and trendy, affordable options [19] - Increasingly, Chinese jewelry companies are integrating cultural elements into their branding, promoting a shift towards a brand economy [19]

Group 1: Market Overview - The Chinese jewelry market has shown significant growth, with the market size increasing from 580 billion yuan in 2018 to 820 billion yuan in 2023, reflecting a compound annual growth rate (CAGR) of 7.2%. The market is expected to exceed 920 billion yuan in 2024 [1] - The gold price has surged, reaching historical highs, with international spot gold prices hitting $3,500.16 per ounce on April 22, 2023 [5][6] - Despite rising gold prices, the overall consumption of gold in China is projected to decline, with a total consumption of 985.31 tons in 2024, down 9.58% year-on-year [5] Group 2: Company Profile - Wanbang Jewelry, established in 2010, operates as a jewelry retailer and wholesaler based in Hong Kong, with five retail stores targeting the mid-market segment [3] - The company plans to go public on NASDAQ under the ticker MPJS, aiming to issue 1.5 million shares at a price range of $4 to $5, with an expected market capitalization of $130 million [1] Group 3: Financial Performance - For the fiscal year 2023-2024, Wanbang Jewelry reported revenues of 71.64 million HKD and 111.98 million HKD, with net profits of 5.05 million HKD and 5.98 million HKD respectively [4] - The company's gross profit margin has declined significantly, from 25.70% in 2023 to 18.94% in 2024, primarily due to a drop in the gross margin of pure gold products from 16.68% to 11.55% [6] Group 4: Market Challenges - The surge in gold prices has led to a decrease in consumer demand, impacting sales across the jewelry sector, as evidenced by a 15% drop in revenue for a competitor, Chow Sang Sang [6] - Wanbang Jewelry's cash flow from operating activities was negative at -158,300 HKD, necessitating reliance on external financing for business growth [7] - The jewelry market in Hong Kong is characterized by high concentration, with a few large retailers holding over 60% market share, posing competitive challenges for Wanbang Jewelry [9]