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].