Core Viewpoint -潮宏基 is seeking to expand its international market presence through an "A+H" dual listing on the Hong Kong Stock Exchange, with a current market capitalization of approximately 13.505 billion and a stock price increase of over 160% this year [1] Company Overview -潮宏基 was established in 1997 and is headquartered in Shantou, Guangdong, focusing on fashion and personalized jewelry targeting young consumers, primarily featuring 18K gold products [3] -潮宏基 became the first fashion jewelry company to be listed on the A-share market in 2010 and acquired the well-known women's bag brand "FION" in 2014, diversifying its product offerings [3] Financial Performance -From 2022 to 2024, the revenue from classic gold jewelry is projected to grow from 1.42 billion to 2.92 billion, with a compound annual growth rate (CAGR) of 43.4%, while fashion jewelry revenue is expected to grow from 2.45 billion to 2.94 billion, with a CAGR of 9.5% [3] -For the first half of 2025, the growth rate for classic gold jewelry is 24.0%, while fashion jewelry shows a growth rate of 20.4% [3] Profitability Concerns -The overall gross margin for jewelry products decreased from 24.6% in 2022 to 19.6% in the first half of 2025, with fashion jewelry gross margin dropping from 34.5% to 26.8% and classic gold jewelry gross margin increasing from 7.9% to 11.8% [4] -The stability of fashion jewelry gross margins and the potential for further increases in classic gold jewelry margins are critical factors for the company's overall profitability [4] Challenges in Handbag Business -The handbag segment reported a revenue of 120 million in the first half of 2025, a year-on-year decline of 16.9%, with its revenue share dropping from 7.5% in 2022 to 3.0% [4] -This indicates that the strategy of expanding product categories through the acquisition of FION has not yet yielded significant results [4] Channel Strategy -潮宏基 employs a combination of self-operated and franchised stores, with a total of 1,542 jewelry stores as of June 30, 2025, including 201 self-operated and 1,337 franchised stores [4] -The revenue share from self-operated stores decreased from 37.4% to 27.3%, while the share from franchised stores increased from 32.5% to 54.6% during the same period [4] Same-Store Performance -In the first half of 2025, same-store GMV growth was 26.5% for 199 self-operated stores and 32.0% for 968 franchised stores [5] -The rapid growth in performance is attributed to an increased proportion of ancient gold products and a strategic shift towards expanding franchised stores [5] International Expansion -潮宏基 has made significant strides in international markets, opening its first overseas store in Malaysia in 2024, followed by a second store in Thailand, and two additional stores in Cambodia in 2025 [5] IPO Fund Utilization -The funds raised from the IPO will primarily be used for overseas expansion, establishing new production bases, opening three flagship stores in mainland China, marketing and brand building, and general corporate purposes [6]

Core Viewpoint - Guangdong Chao Hong Ji Industrial Co., Ltd. (referred to as "Chao Hong Ji") has submitted an application for an "A+H" dual listing on the Hong Kong Stock Exchange, aiming to enhance its global strategy and brand image [1] Group 1: Listing and Market Strategy - Chao Hong Ji plans to utilize the "A+H" listing model to diversify capital operations and promote internationalization [1] - The company aims to leverage the complementary advantages of financing flexibility and investor structure through the dual listing [1] Group 2: Fundraising and Utilization - The IPO proceeds are intended for overseas expansion, building new production bases, opening three flagship stores in mainland China, marketing and brand development, and general corporate purposes [2] - The company’s core business, jewelry, contributes approximately 90% of total revenue, with a strategic brand layout that includes multiple product lines [2] Group 3: Product Differentiation and Performance - Chao Hong Ji has adopted IP collaboration as a key differentiation strategy, with 12 top global IPs and over 400 SKUs launched [3] - For the first half of 2025, the company reported a revenue of 4.102 billion yuan, a year-on-year increase of 19.54%, and a net profit of 331 million yuan, up 44.34% [3] Group 4: Channel Expansion and Online Sales - The company has established a strong online presence across 14 major platforms, with online sales revenue increasing from 889 million yuan in 2022 to 942 million yuan in 2024 [3] - As of June 30, Chao Hong Ji operates 1,542 offline jewelry stores, including 201 self-operated and 1,337 franchised stores [3] Group 5: International Expansion - Chao Hong Ji has begun its overseas expansion by opening its first store in Malaysia in 2024, followed by another in Thailand, and plans to open two more in Cambodia in 2025 [4] - Successful listing in Hong Kong is expected to enhance the company's overseas financing capabilities and resource allocation efficiency, supporting domestic upgrades and international market expansion [4]