Core Viewpoint - The company has implemented its third price increase of the year on October 26, with gold prices rising sharply, reflecting its commitment to becoming the leading brand in high-end gold jewelry [1][2] Pricing Strategy - The price increase for gold products is approximately 24%-30% for plain gold and 16%-26% for diamond-studded products, which is significantly higher than previous increases of 6%-10% and 12.5% earlier this year [1][2] - The average price per gram for plain gold products is now around 1600 RMB, while diamond-studded products range from 2100 to 2200 RMB, indicating a clear premium over the market price of approximately 900 RMB [1][2] Financial Performance - The gross margin is expected to rebound to over 40% in Q4, with the second half of the year maintaining a gross margin of around 38%, showing significant improvement compared to Q3 [2][4] - The company anticipates that the adjusted net profit margin will reach 20%-23% in the medium term, indicating an upward trend in profitability [4][6] Market Positioning - The company aims to attract a growing customer base primarily from high-net-worth individuals, with a focus on maintaining its luxury brand image and avoiding mass-market appeal [3][4] - The high-end gold jewelry market is projected to expand, with the market size expected to reach 900 billion RMB in 2024, driven by the increasing value retention attributes of gold [3][4] Expansion Strategy - The company plans to optimize existing stores domestically while opening 3-4 new stores overseas, particularly in high-end markets such as Hong Kong, Macau, Japan, and Singapore [4][5] - Recent store openings in major luxury shopping centers indicate a strategic focus on high-end retail environments [4][5] Valuation Outlook - The company is expected to align its valuation with international luxury brands like Hermès and LVMH, with potential upward adjustments in its price-to-earnings (PE) ratio [5][6] - Projected revenues for 2025-2027 are 252.8 billion, 333.7 billion, and 413.9 billion RMB, with corresponding net profits of 48.1 billion, 65.1 billion, and 81.5 billion RMB, reflecting substantial growth [6]

Core Viewpoint - The company has implemented its third price increase of the year on October 26, with gold prices rising sharply, reflecting its commitment to becoming the leading brand in high-end gold jewelry [1][2] Pricing Strategy - The price increase for gold products ranges from approximately 24%-30% for plain gold items and 16%-26% for diamond-studded products, which is significantly higher than previous increases this year [1][3] - The average price per gram for plain gold products is now around 1600 RMB, while diamond-studded products are priced between 2100-2200 RMB per gram, indicating a clear premium over mass-market brands [2][3] Financial Performance - The gross margin is expected to rebound to 40% in Q4, with the second half of the year maintaining a gross margin of around 38%, showing improvement compared to Q3 [3][5] - The recent surge in gold prices has led to a significant increase in the average price per gram, with a 20.6% rise since the last price adjustment [3][4] Target Customer Base - The company aims to attract a growing number of high-net-worth individuals, with a focus on maintaining its high-end brand positioning [4][5] - Consumer behavior indicates a quick adaptation to price increases, as evidenced by increased foot traffic in luxury shopping areas despite the absence of discount promotions [4][5] Market Outlook - The gold jewelry market is projected to grow, with the high-end segment expected to expand significantly, driven by rising gold prices and the perception of gold as a luxury asset [4][5] - The company is strategically opening new stores in high-end shopping districts, enhancing its presence in both domestic and international markets [5][6] Valuation Perspective - The company is positioned to align its valuation with luxury brands like Hermes and LVMH, with potential for upward adjustment in its price-to-earnings ratio [6][7] - Future revenue projections indicate substantial growth, with expected revenues of 252.8 billion RMB in 2025, reflecting a year-on-year increase of 197.3% [7]