Core Viewpoint - Chao Hong Ji, a jewelry company, is seeking a secondary listing on the Hong Kong Stock Exchange to enhance its global strategy and brand image while connecting with international capital markets [3][10]. Group 1: Company Overview - Chao Hong Ji submitted its main board listing application to the Hong Kong Stock Exchange, with CITIC Securities as the sponsor [3]. - The company reported a revenue of 4.102 billion CNY in the first half of the year, a year-on-year increase of 19.54%, and a net profit of 331 million CNY, up 44.34% [3]. - As of June 30, 2025, Chao Hong Ji had over 1,540 stores, with 1,340 being franchise stores, contributing significantly to its revenue [5]. Group 2: Market Performance - Chao Hong Ji's stock price surged by over 165% in 2025, rising from 5.47 CNY per share to a peak of 18.18 CNY [8][10]. - The company's current price-to-earnings ratio stands at 45.7, significantly higher than its peers, indicating a potentially overvalued position [10]. Group 3: Expansion and Strategy - The company aims to expand internationally, having initiated its overseas strategy in 2024, focusing on Southeast Asia due to cultural similarities [10][11]. - Chao Hong Ji has faced challenges with past acquisitions, such as the purchase of the FION brand, which has not contributed positively to its performance [6][11]. Group 4: Risks and Concerns - The competitive landscape for jewelry brands is intense, and the franchise model may not provide a strong competitive edge [11]. - Recent insider selling by major shareholders raises concerns about the company's valuation and future performance [11].

Core Viewpoint - The company is focusing on cautious and progressive expansion in the jewelry retail sector while enhancing support for franchisees and improving store operations through digitalization and refined management practices [2][3]. Group 1: Company Performance - In Q1 2025, the company reported a main revenue of 2.252 billion yuan, a year-on-year increase of 25.36% [3]. - The net profit attributable to shareholders was 189 million yuan, up 44.38% year-on-year [3]. - The net profit excluding non-recurring items was 188 million yuan, reflecting a 46.17% increase year-on-year [3]. - The company's debt ratio stands at 41.56%, with investment income recorded at -21,920 yuan and financial expenses at 8.7984 million yuan [3]. - The gross profit margin is reported at 22.93% [3]. Group 2: Market Expansion - The company has a significant presence in Southeast Asia, with over 20 stores in Singapore and Hong Kong, and has opened 2 new jewelry stores in Cambodia this year, totaling 4 stores in the region [3]. - The company plans to accelerate its overseas market expansion to showcase Eastern culture to global consumers and steadily promote its brand internationalization [3]. Group 3: Institutional Ratings - In the last 90 days, 28 institutions have rated the stock, with 22 buy ratings, 5 hold ratings, and 1 neutral rating [4]. - The average target price set by institutions over the past 90 days is 10.74 yuan [4]. Group 4: Earnings Forecast - Various institutions have provided earnings forecasts for the next three years, with projected net profits for 2025 ranging from 4.63 billion yuan to 5.63 billion yuan [5]. - The forecasts for 2026 and 2027 show a continued upward trend in net profits, indicating positive growth expectations for the company [5].

Group 1: Company Performance and Strategy - The company has observed strong terminal performance this year, with franchisees showing high enthusiasm for opening new stores. However, the company will maintain a cautious approach in expanding its franchise channels, focusing on empowering franchisees and improving store operation quality through digitalization and refined management capabilities [1] - The store expansion pace will ultimately be determined by actual market conditions [2] Group 2: International Expansion - The company has a long-standing presence in the Southeast Asian market, with over 20 stores in Singapore and Hong Kong, and has opened 2 stores in Cambodia this year, indicating positive market opportunities [2] - Future plans include accelerating the layout in overseas markets to present the unique charm of Eastern culture to global consumers, thereby steadily promoting the brand's internationalization process [2] Group 3: Product and Business Development - Discussions included the company's jewelry product series, new product planning, product structure, women's bag business, and e-commerce operations, with references to previously disclosed announcements and interactive platform Q&A [2] - The exchange process adhered strictly to relevant regulations, with no incidents of undisclosed significant information leakage [2]