Group 1: Company Strategy and Financial Performance - Company is planning to issue H-shares on the Hong Kong Stock Exchange to enhance its global strategy and brand image [1] - In 2024, company reported revenue of 6.52 billion yuan, a year-on-year increase of 10.5%, but net profit attributable to shareholders decreased by 41.9% to 190 million yuan due to goodwill impairment in the FION brand [2] - Jewelry business remains the core, contributing 95.57% of total revenue, with traditional gold sales increasing over 30% year-on-year [2] - In Q1 2025, company achieved revenue of 2.25 billion yuan, a 25.4% increase, and net profit of 189 million yuan, up 44.4% [3] Group 2: Market Position and Brand Development - Company has been focusing on high craftsmanship products, which have higher profit margins, and has collaborated with popular IPs to attract younger consumers [6] - The brand has expanded its store count from around 1,000 to over 1,500 between 2020 and 2024, with a significant proportion of franchise stores [7] - The company’s self-operated stores have a much higher gross margin (31.57%) compared to franchise stores (17.25%) [8] Group 3: Expansion Plans and Market Challenges - Company aims to expand into Southeast Asia, with a focus on Singapore, and has already opened stores in Kuala Lumpur and Bangkok [9] - The competitive landscape includes established brands like Chow Tai Fook and Lao Puhuang, which may pose challenges for market entry [10] - The potential impact of international political and economic conditions on gold prices and import tariffs in Southeast Asia could affect the company's pricing competitiveness [10] Group 4: Stock Market Performance - Following the announcement of the H-share listing, the company's stock rose approximately 8% to 12.22 yuan per share, with a market capitalization of about 10.86 billion yuan [11] - However, the stock experienced volatility, dropping to a low of 11 yuan per share shortly after the initial rise [11]

Core Viewpoint - Chao Hong Ji plans to go public in Hong Kong, aiming for an "A+H" listing to enhance its global strategy and brand image [1] Group 1: IPO and Stock Performance - Chao Hong Ji's stock price experienced significant fluctuations, with a cumulative increase of over 20% over three trading days [1] - On May 20, the stock reached a closing price of 11.28 yuan per share, resulting in a total market capitalization of 100.22 billion yuan [1] - The company announced its intention to issue H-shares on the Hong Kong Stock Exchange, with details yet to be finalized [1] Group 2: Business Operations and Market Expansion - Despite a significant store closure trend in 2024, Chao Hong Ji continues to expand its channel layout, adding 129 new jewelry stores, bringing the total to 1,505 [2] - The company has initiated its internationalization strategy by entering the Southeast Asian market, opening stores in Kuala Lumpur and Bangkok [2] - In 2025, the company plans to further focus on Southeast Asia to strengthen its international market presence [2] Group 3: Financial Performance - In 2024, Chao Hong Ji reported a revenue of 6.518 billion yuan, a year-on-year increase of 10.48%, but a net profit decline of 41.91% to 194 million yuan [2] - The decline in profit is attributed to goodwill impairment related to the acquisition of FION, with a provision of 177 million yuan for goodwill impairment in 2024 [2] - In the first quarter of the current year, the company achieved a revenue of 2.252 billion yuan, a year-on-year growth of 25.36%, and a net profit of 189 million yuan, up 44.38% [2] Group 4: R&D and Competitive Edge - Chao Hong Ji is focusing on its core business and accelerating its digital transformation, with R&D expenses increasing over the years [3] - R&D expenses for 2023, 2024, and the first quarter of 2025 were 62.69 million yuan, 68.09 million yuan, and 23.21 million yuan, reflecting year-on-year growth rates of 4.76%, 8.62%, and 46.36% respectively [3]