Core Viewpoint - The rise of national trends and the demand for personalization and light luxury are driving the continuous expansion of the Chinese jewelry market, with market size expected to grow from 610 billion yuan in 2020 to 728 billion yuan in 2024, and projected to reach 937 billion yuan by 2029, reflecting a compound annual growth rate of 5.2% from 2024 to 2029 [1] Company Overview - Chao Hong Ji focuses on jewelry and fashion handbag sectors, with approximately 90% of its revenue coming from jewelry business between 2022 and the first half of 2025 [2] - The company operates two core brands: "CHJ Chao Hong Ji," established in 1997, and "FION," a well-known handbag brand acquired in 2014 [4] - As of the end of June 2025, Chao Hong Ji had a market capitalization exceeding 13.4 billion yuan [1] Financial Performance - Chao Hong Ji's revenue has shown an upward trend, with figures of approximately 4.36 billion yuan in 2022, 5.84 billion yuan in 2023, 6.45 billion yuan in 2024, and 4.06 billion yuan in the first half of 2025 [9] - The company's gross profit margin has declined from 29.3% in 2022 to 23.1% in the first half of 2025, attributed to lower sales of higher-margin products [9] - The company’s trade receivables increased from approximately 266 million yuan to 370 million yuan from 2022 to the first half of 2025, indicating potential risks in timely collection [8] Market Dynamics - The jewelry market in China is characterized by high supplier concentration, with the top five suppliers accounting for over 70% of total procurement [6] - The jewelry industry is facing intense competition, with Chao Hong Ji ranking 9th among jewelry companies in China by revenue, holding a market share of 0.8% [16] - The demand for gold jewelry remains strong, with gold jewelry expected to account for 72% of total sales revenue by 2024, while the fashion jewelry market has seen a decline [12][15] IPO and Future Plans - Chao Hong Ji has submitted an IPO application to the Hong Kong Stock Exchange, aiming to raise funds for establishing 20 self-operated stores overseas and opening three flagship stores in mainland China [20] - The company plans to balance expansion and profitability amid the challenges of a shrinking fashion jewelry market and increasing accounts receivable [20]

Core Viewpoint - Chao Hong Ji, known as the "King of K Gold," is facing legal challenges from international brands such as Bulgari and Richemont, which may impact its IPO plans in Hong Kong [1][2]. Company Overview - Chao Hong Ji was founded by Liao Muzhi and his son Liao Chuangbin, focusing on K gold and jewelry products, and is the first chain jewelry brand listed in A-shares [2]. - The company emphasizes original design and has a unique product feature of cartoon IP collaborations, including partnerships with top global IPs like Kuromi and Minions [2]. Market Position - According to Frost & Sullivan, Chao Hong Ji is projected to rank first among jewelry companies in mainland China by sales revenue in 2024, with a market share of 1.4% [2]. - The company is also expected to be the fastest-growing jewelry brand in mainland China in 2024, based on the number of new franchise stores opened [2]. Legal Challenges - Chao Hong Ji is currently involved in multiple lawsuits regarding trademark and design infringement, with claims totaling 5 million RMB from Bulgari and Richemont [3][4]. - The company has faced a ruling from the Suzhou Intermediate Court, requiring it to compensate Richemont 1 million RMB for infringement related to bracelet products [4]. Financial Performance - Chao Hong Ji reported a revenue of 6.518 billion RMB in 2024, a year-on-year increase of 10.48%, but its net profit decreased by 41.91% to 194 million RMB [6]. - The company has accumulated goodwill impairment provisions of 658 million RMB related to its acquisition of the FION brand, which has not performed as expected [5][6]. Brand Performance - The FION brand has shown a declining trend in same-store sales, with a 21.8% decrease in 2024 and a 15.5% decrease in the first half of 2025 [7].

Core Viewpoint - Guangdong Chao Hong Ji Industrial Co., Ltd. (Chao Hong Ji) is pursuing a dual listing on the A-share and Hong Kong stock markets, aiming to become the "first fashion jewelry stock" in Hong Kong if successful [3][4]. Company Overview - Chao Hong Ji was founded in 1996 by the Liao family and has grown from a self-operated gold shop to a well-known chain brand with over 1,500 stores [3][4]. - The company focuses on mid-to-high-end fashion consumer goods, including jewelry and handbags, and operates two main brands: "CHJ Chao Hong Ji" and "VENTI Fan Di" [4]. Financial Performance - Revenue figures for Chao Hong Ji from 2022 to the first half of 2025 are as follows: - 2022: approximately 4.364 billion RMB - 2023: approximately 5.836 billion RMB - 2024: approximately 6.452 billion RMB - First half of 2025: approximately 4.062 billion RMB [4][5]. - Net profit for the same periods is: - 2022: approximately 205 million RMB - 2023: approximately 330 million RMB - 2024: approximately 169 million RMB - First half of 2025: approximately 333 million RMB [4][5]. Revenue Breakdown - In the first half of 2025, 93.6% of Chao Hong Ji's revenue came from jewelry, with a notable decline in handbag revenue, which dropped by 16.9% year-on-year [6][7]. - The classic gold jewelry segment has shown significant growth, with revenue increasing from 1.42 billion RMB in 2022 to 2.92 billion RMB in 2024, reflecting a compound annual growth rate (CAGR) of 43.4% [7][9]. - Fashion jewelry revenue grew from 2.45 billion RMB in 2022 to 2.94 billion RMB in 2024, with a slower CAGR of 9.5% [8][9]. Operational Structure - As of June 30, 2025, Chao Hong Ji operates a total of 1,542 jewelry stores, comprising 201 self-operated stores and 1,337 franchise stores [10][11]. - The company has shifted from a self-operated model to a franchise-based model, indicating a strategic change in its operational approach [11]. Management - The CFO, Mr. Chen Shufeng, has been with the company since 2007 and was appointed CFO in November 2024, overseeing financial and accounting matters [12][18].

Core Viewpoint - The company Chao Hong Ji is seeking to expand its market presence by applying for an IPO on the Hong Kong Stock Exchange amid rising international gold prices, aiming to leverage its dual capital platform for further growth [1][5][47]. Company Overview - Chao Hong Ji, a jewelry enterprise with over 15 years of listing on A-shares and a market capitalization exceeding 13.5 billion yuan, is attempting to expand through an "A+H" dual capital platform [1][4][5]. - Founded nearly 30 years ago, the company has evolved from a family-run gold processing business to a leading fashion jewelry brand in China [6][36]. Financial Performance - The company reported revenues of 4.36 billion yuan in 2022, 5.84 billion yuan in 2023, and 6.45 billion yuan in 2024, with a 19.6% year-on-year growth in the first half of 2025 [38][39]. - Despite revenue growth, the company has faced declining profit margins, with net profits fluctuating significantly, dropping from 330 million yuan in 2023 to 169 million yuan in 2024 [40][42]. Market Position - Chao Hong Ji holds a 1.4% market share in the Chinese fashion jewelry market, ranking first among competitors [37][38]. - The company has a total of 1,542 stores as of mid-2025, with a significant portion being franchise stores, indicating a need for further expansion compared to competitors like Zhou Dazheng [44]. Product Segmentation - The company's core revenue sources are jewelry, with fashion jewelry accounting for 45.6% and classic gold jewelry for 45.2% of total revenue in 2024 [40][41]. - The company has seen a decline in the contribution of its FION business, which reported a 27.4% drop in revenue in 2024 [42]. Strategic Initiatives - The IPO proceeds are intended for expanding the overseas sales network, establishing a Hong Kong office, and building new production facilities, reflecting the company's commitment to internationalization and core business enhancement [47].

Core Viewpoint - Guangdong Chao Hong Ji Industrial Co., Ltd. (referred to as "Chao Hong Ji") has submitted an application for an IPO on the Hong Kong Stock Exchange, aiming for a dual listing in both A-share and H-share markets, with CITIC Securities as the sole sponsor [1] Company Overview - Chao Hong Ji was established in 1997 in Shantou, Guangdong, focusing on the younger consumer demographic with a differentiated product offering of 18K gold jewelry, earning the title "King of K-gold" [2] - The company successfully listed on the Shenzhen Stock Exchange in 2010, becoming the first fashion jewelry company to do so in China [3] Business Expansion - In 2014, Chao Hong Ji fully acquired the well-known women's bag brand "FION," expanding its business from jewelry to handbags [4] - The company has shifted its focus towards trendy, lightweight, and high-craftsmanship gold jewelry, launching a series of products in collaboration with domestic cultural trends [5] Financial Performance - For the first half of 2025, Chao Hong Ji reported a revenue of 4.102 billion RMB, a year-on-year increase of 19.54%, and a net profit attributable to shareholders of 331 million RMB, up 44.34% [5] - Jewelry remains the primary revenue source, contributing 93.6% of total income in the first half of 2025, while handbag revenue has been declining, dropping 16.9% year-on-year to 120 million RMB [7][5] Revenue Growth and Trends - The classic gold jewelry segment has seen rapid growth, with revenue increasing from 1.42 billion RMB in 2022 to 2.92 billion RMB in 2024, reflecting a compound annual growth rate (CAGR) of 43.4% [8] - In contrast, the fashion jewelry segment has experienced slower growth, with revenue rising from 2.45 billion RMB in 2022 to 2.94 billion RMB in 2024, showing a CAGR of 9.5% [9] Margin Analysis - The overall gross margin for Chao Hong Ji's jewelry has declined from 24.6% in 2022 to 19.6% in the first half of 2025 [10] - Specifically, the gross margin for fashion jewelry decreased from 34.5% to 26.8%, while the classic gold jewelry margin improved from 7.9% to 11.8% [11] Store Expansion Strategy - As of June 30, Chao Hong Ji operated a total of 1,542 jewelry stores, including 201 self-operated and 1,337 franchise stores [12] - The company has transitioned from a self-operated model to a franchise model, with the number of self-operated stores decreasing from 324 to 202 between 2022 and 2025 [13] Same-Store Sales Growth - In the first half of 2025, same-store gross merchandise volume (GMV) for self-operated stores grew by 26.5%, while franchise stores saw a 32.0% increase [14] International Expansion - Chao Hong Ji has begun international expansion, opening its first overseas store in Malaysia in 2024, followed by another in Thailand, and two more in Cambodia in 2025 [16] - The funds raised from the IPO will primarily be allocated for overseas expansion, building new production facilities, and marketing efforts to support both domestic and international growth [16]

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]