Recently, IP economy concept stock Guangdong Chj Industry Co.,Ltd. released an announcement regarding major shareholder reduction progress. The company's second-largest shareholder has completed its reduction plan, with calculations showing a cash-out amount of approximately 133 million yuan. Since the beginning of this year, Guangdong Chj Industry's stock performance has been strong, with the share price once reaching a historical high and achieving a maximum annual gain of 227%! Over the past few years, Guangdong Chj Industry's revenue has grown rapidly, but its gross profit margin has continued to decline.
Guangdong Chj Industry specializes in brand operation management and product design, research and development, production and sales of mid-to-high-end fashion consumer goods, currently focusing on jewelry and fashion handbags. The company's sales model is mainly divided into three categories: self-operation, franchise agency, and wholesale. Among these, the self-operation model can be further divided into three major categories: joint operation, direct operation, and online sales.
Due to the rapid development of franchise agency channels, Guangdong Chj Industry's performance has grown rapidly. In the first half of this year, Guangdong Chj Industry achieved operating revenue of 4.102 billion yuan, up 19.54% year-on-year; net profit reached 331 million yuan, up 44.34% year-on-year. According to Guangdong Chj Industry's 2025 interim report, in the first half of 2025, the company's franchise agency channel revenue was 2.244 billion yuan, compared to 1.364 billion yuan in the same period last year, representing a year-on-year increase of 36.24%. Additionally, the company's wholesale channel revenue increased by as much as 97.10% year-on-year, though the overall scale remains modest at only 101 million yuan in the first half of 2025.
Market data shows that Guangdong Chj Industry encompasses multiple popular concepts including the IP economy. The company's "CHJ" jewelry brand targets the younger generation and actively engages in IP collaboration in the fashion jewelry sector. It has successively obtained image licensing rights for multiple internationally renowned cartoon brands including Doraemon, Sanrio, Minions, Jurassic, and Crayon Shin-chan, launching a series of IP jewelry products such as "Doraemon," "Minions," "Pikachu," "Cinnamoroll," "Kuromi," "My Melody," and "Crayon Shin-chan."
With performance growth and popular concept support, Guangdong Chj Industry's stock performance in 2025 has been strong. Calculated on a forward-adjusted basis, Guangdong Chj Industry's closing price at the end of 2024 was 5.56 yuan, while in June 2025, the company's stock price hit a historical high with a peak of 18.18 yuan. Based on this calculation, Guangdong Chj Industry's maximum annual gain reached 227%! As of September 29, 2025, Guangdong Chj Industry's closing price was 14.17 yuan, with a market capitalization exceeding 12 billion yuan and a dynamic P/E ratio above 40 times.
Following the significant stock price surge, Guangdong Chj Industry's second-largest shareholder began planning to reduce holdings, with the pre-disclosure announcement for share reduction released in June 2025. On the evening of September 29, 2025, Guangdong Chj Industry released an announcement regarding the expiration and implementation of the reduction plan by shareholders holding more than 5% of shares. The announcement showed that shareholder Dongguan Group Co., Ltd. reduced its holdings of company shares by a total of 8.8849 million shares through centralized bidding, representing 1% of the company's total share capital. Dongguan Group's reduction price was 14.97 yuan, resulting in a cash-out amount of approximately 133 million yuan. After completing this reduction plan, Dongguan Group holds 7.67% of Guangdong Chj Industry's shares, remaining the company's second-largest shareholder.
Although Guangdong Chj Industry's franchise channels are developing rapidly, their gross profit margins are significantly lower. In the first half of 2025, Guangdong Chj Industry's self-operated channel gross profit margin was 37.79%, online channel gross profit margin was 24.38%, while franchise agency channel gross profit margin was only 16.81%, and wholesale agency was merely 9.23%. The franchise agency model refers to Guangdong Chj Industry's brands authorizing franchisees or agents to open brand specialty stores at designated locations, with personnel, finances, and materials controlled by franchisees, operating according to the company's unified management model. The wholesale model involves Guangdong Chj Industry directly selling products in bulk to corporate customers.
Taking a longer-term view, Guangdong Chj Industry's overall gross profit margin has been continuously declining. Data shows that from 2020 to 2024, Guangdong Chj Industry's operating revenue increased from 3.215 billion yuan to 6.518 billion yuan, but its gross profit margin decreased from 35.83% to 23.60%. Additionally, the company's net profit margin is not high, standing at only 2.60% in 2024.
While Guangdong Chj Industry's franchise agency channels are growing rapidly, their gross profit margins are relatively low. In the long term, might this potentially harm the company's brand strength? When contacted for comment, representatives from Guangdong Chj Industry's securities department indicated that this question was not convenient to answer.
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