Core Viewpoint - Chao Hong Ji has submitted its IPO application to the Hong Kong Stock Exchange, aiming to enhance its global strategy and brand image while raising funds for overseas expansion and new production facilities [1] Company Overview - Chao Hong Ji, listed on the Shenzhen Stock Exchange, has a market capitalization of 13.106 billion yuan and a share price of 14.75 yuan as of September 12 [1] - The company primarily generates revenue from jewelry sales, with a market share of 1.4% in the mainland China fashion jewelry market, ranking first among local competitors [3] Financial Performance - Revenue figures for Chao Hong Ji during the reporting period are approximately 4.364 billion yuan, 5.836 billion yuan, 6.452 billion yuan, and 4.062 billion yuan, with corresponding profits of 205 million yuan, 330 million yuan, 169 million yuan, and 333 million yuan [5] - The company’s revenue from jewelry sales constitutes 89.3%, 89.5%, 91.3%, and 93.6% of total revenue for the years 2022, 2023, 2024, and the first half of 2025, respectively [3] Sales Channels - Chao Hong Ji operates a total of 1,542 jewelry stores, including 201 self-operated stores and 1,337 franchise stores across over 200 cities in China, as well as 4 overseas stores [3] - The gross margin for self-operated stores is significantly higher than that of franchise stores, with self-operated store margins at 36.4%, 33.3%, 33.3%, and 35.3% compared to franchise margins of 22.6%, 18.9%, 16.6%, and 16.6% during the reporting period [4] Supplier Concentration - The company faces high supplier concentration, with the top five suppliers accounting for 71.7%, 77.9%, 83%, and 78.9% of total procurement during the reporting period [7] - Gold procurement constitutes a significant portion of the company's raw material costs, with gold purchases making up 94.4%, 96.6%, 98.3%, and 97.3% of total raw material procurement [8] Market Trends - Chao Hong Ji's stock price has increased by over 165% in 2025, driven by rising international gold prices and market speculation on precious metals [10] - The company has seen a shift in revenue contribution from self-operated stores, which decreased from 37.4% in 2022 to 27.3% in the first half of 2025, while franchise revenue increased from 32.5% to 54.6% during the same period [4][5]