--- title: "New Stock Outlook | The leading national jewelry brand seeks new engines, can going overseas become CHJ's \"antidote\"?" type: "News" locale: "en" url: "https://longbridge.com/en/news/258206752.md" description: "After 15 years of being listed on the Shenzhen Stock Exchange, CHJ has chosen to go public again, seeking to expand \"overseas\" by applying for listing on the Hong Kong Stock Exchange. In recent years, with the increase in residents' purchasing power, China's jewelry market has shown steady growth, but foreign brands dominate the market. CHJ, driven by a dual approach of \"culture + design,\" emphasizes youth and fashion, and has become one of the major fashion jewelry companies in mainland China, with a market share of 1.4%" datetime: "2025-09-21T03:28:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/258206752.md) - [en](https://longbridge.com/en/news/258206752.md) - [zh-HK](https://longbridge.com/zh-HK/news/258206752.md) generator: "portal-rs" --- # New Stock Outlook | The leading national jewelry brand seeks new engines, can going overseas become CHJ's "antidote"? In recent years, with the continuous improvement of residents' purchasing power and the increasingly diversified daily wearing needs, China's jewelry market has achieved steady growth. From the perspective of the competitive landscape, the domestic jewelry market is still mainly dominated by foreign brands. These brands have built multi-dimensional competitive advantages based on high quality, high recognition, rarity, and deep historical accumulation, resulting in a relatively stable market position. Faced with the strong competition from international brands, it is quite challenging for local jewelry companies to break through. Against this backdrop, many brands have chosen to "go overseas" to expand their markets. To prepare for the "going overseas" expansion, 15 years after landing on the Shenzhen Stock Exchange, the "national trend innovation" model of the mainland jewelry industry, CHJ, has chosen to list again and challenge the Hong Kong Stock Exchange. Recently, Guangdong CHJ Industrial Co., Ltd. (referred to as "CHJ") officially submitted its listing application to the main board of the Hong Kong Stock Exchange, with CITIC Securities as its exclusive sponsor. What are the highlights of CHJ's return to the capital market? ## Steady Revenue, Fluctuating Profitability The prospectus shows that CHJ established its core jewelry brand "CHJ" in 1997 and gradually expanded its business based on this, enhancing the brand's influence in the fashion field. The company relies on the national-level intangible cultural heritage of flower silk craftsmanship to promote the commercialization transformation of traditional skills and the innovation of cultural symbols, winning several important awards in design and craftsmanship. In 2023, CHJ was selected as the only jewelry brand from mainland China in Forbes' "National Trend Innovation Brands." The company emphasizes breaking through traditional jewelry paradigms with a "cultural + design dual-drive" approach, positioning itself not only as a jewelry manufacturer but also as a promoter of modern Chinese aesthetic concepts. The brand is centered on "youth and fashion," gradually building a differentiated brand image and product system. Currently, CHJ has developed into one of the major fashion jewelry companies in mainland China. According to a Frost & Sullivan report, based on sales revenue in 2024, the company ranks first in the Chinese fashion jewelry market, with a market share of 1.4%. The company focuses on the mid-to-high-end market and has established its market-leading position with a comprehensive and distinctive product portfolio, making it one of the mainstream jewelry companies in mainland China. CHJ has been selected as one of the "China's 500 Most Valuable Brands" for 21 consecutive years and was rated as one of the "Asia's Top 500 Brands" by the World Brand Lab in 2024. The jewelry business, as the core business during the reporting period, contributes approximately 90% of the total revenue annually. With CHJ as the main brand, the company has formed a multi-brand collaborative development strategy, offering diversified products through different positioned brands such as CHJ, CHJ|Soufflé, and CHJ‧ZHEN. In addition, the company has launched a sub-brand, Cëvol, focused on the emerging cultivated diamond market, to cover consumer groups with more differentiated needs. To enrich its product matrix, the company acquired the fashion handbag brand FION in 2014, which primarily targets young customers. As of June 30, 2025, the company has a total of 1,542 offline jewelry stores. Specifically, the company's sales network includes 201 self-operated stores and 1,337 franchise stores in over 200 cities nationwide, as well as four overseas stores, including one self-operated store in Malaysia, one franchise store in Thailand, and two franchise stores in Cambodia The company adopts a dual approach, establishing sales points through both self-operated stores and franchise stores, leveraging the advantages of both operational strategies to drive growth through this hybrid model. Under this strategy, CHJ has achieved steady revenue growth. In 2022, 2023, 2024, and the first half of 2025, the company achieved revenues of approximately RMB 4.364 billion, RMB 5.836 billion, RMB 6.452 billion, and RMB 4.062 billion, respectively. The company's gross profit also shows an overall upward trend, with figures of RMB 1.278 billion, RMB 1.474 billion, RMB 458 million, and RMB 936 million during the reporting period. However, influenced by multiple factors such as fluctuations in raw material prices and intensified market competition, the company's profitability has shown a downward trend. During the period, the company's gross profit margin declined from 29.3% in 2022 to 22.6% in 2024, with a slight increase to 23.1% in the first half of 2025. At the same time, the company's profit also showed slight fluctuations. The profits from 2022 to 2024 were RMB 205 million, RMB 330 million, and RMB 169 million, respectively, indicating a downward trend in profitability, although the company's profit rebounded to RMB 333 million in the first half of 2025. ## How to Break Through the "Red Ocean" Market? According to Zhitong Finance APP, the company pointed out in its prospectus that fluctuations in raw material prices and unstable supply have impacted its business. During the reporting period, gold accounted for the largest share of raw material costs, having a particularly far-reaching impact. The gold purchased by the company accounted for 94.4%, 96.6%, 98.3%, and 97.3% of the total raw material procurement during the period. According to Frost & Sullivan, from 2020 to 2024, the average annual spot price of 9999 gold in China steadily rose from RMB 387.4 per gram in 2020 to RMB 557.2 per gram in 2024. Meanwhile, the vast majority of the company's inventory consists of gold or is made from gold. During the reporting period, CHJ's inventory levels remained high, reaching RMB 2.216 billion, RMB 2.247 billion, RMB 2.603 billion, and RMB 2.592 billion. Although in a bull market for gold, strong gold prices typically ensure that gold jewelry sells well, leading to a significant reduction in inventory turnover days, once the gold market "cools down," high inventory levels may pose risks for the company. The company admits that significant fluctuations in gold prices may have a substantial adverse impact on its business, operating performance, and financial condition. However, considering the current industry situation and future development trends, the fashion jewelry market remains a segment with considerable development potential. From 2020 to 2024, the overall scale of the jewelry market in mainland China grew from RMB 610 billion to RMB 728 billion, with a compound annual growth rate of 4.5%. It is expected that by 2029, the overall market scale will further expand to RMB 937 billion, with a compound annual growth rate of 5.2% from 2024 to 2029. This growth is mainly attributed to the rise of "Guochao" driven by the integration of traditional Chinese culture and modern design, as well as the continuous increase in consumer demand for personalized and affordable luxury jewelry. Brands are also actively implementing youth-oriented strategies, enhancing digital interaction through live streaming, social e-commerce, and short video platforms to bridge the gap with consumers and significantly boost online sales Driven by multiple factors such as consumption upgrading, the prominence of brand value, and the integration of online and offline channels, the jewelry industry is gradually moving towards high-end and differentiated development, laying the foundation for its long-term growth. In the mainland China fashion jewelry market, where CHJ focuses, the market size has decreased from RMB 284.8 billion in 2020 to RMB 203.8 billion in 2024, with a compound annual growth rate of -8.0%. This decline is mainly influenced by the increased attractiveness of gold jewelry due to the significant rise in gold prices, highlighting its investment attributes, as well as a notable shrinkage in demand for diamond jewelry, intensifying competitive pressure in this segment. Starting from 2024, the market is expected to gradually recover, reaching RMB 245 billion by 2029, with a projected compound annual growth rate of 3.7%. Factors driving the recovery include the growing demand for light luxury style accessories, the enhancement of young consumers' pursuit of individuality and style, and the ongoing influence of digital marketing and social e-commerce. ![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250921/1758424888259920.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) It is noteworthy that the market is highly competitive. Based on sales revenue in 2024, although CHJ ranks first in the Chinese fashion jewelry market, its market share is only 1.4%, reflecting the industry's high dispersion and low brand concentration. To further capture the market, CHJ has chosen to "go overseas." According to Zhitong Finance APP, in 2024, CHJ will expand its business overseas for the first time, opening stores in IOI Citymall in Kuala Lumpur, Malaysia, and ICONSIAM in Bangkok, Thailand, officially entering the Southeast Asian market. Since 2025, CHJ Jewelry has opened two stores in Cambodia's Phnom Penh AEON Mall and Sihanoukville Umall. From the perspective of fundraising purposes, global expansion is one of the main objectives of the company's listing. According to the prospectus, the funds raised will be used for overseas expansion, the construction of new production bases, etc., with CHJ planning to open 20 self-operated stores overseas by the end of 2028 to expand its international sales network. In the current industry context of both opportunities and challenges, CHJ continues to promote brand youthfulness and product differentiation strategies, actively expanding its multi-brand matrix and integrating online and offline sales channels, while accelerating its layout in overseas markets such as Southeast Asia, demonstrating strong market adaptability and growth potential. In the future, with the deepening of "national trends" and consumption recovery, can the company further enhance its brand influence, optimize product structure and cost control, and seize opportunities in industry consolidation? 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