Zhejiang Hangmin Co.,Ltd. stated in response to investor inquiries that its gold jewelry business consists of two segments: processing of supplied materials and wholesale operations. Processing services account for approximately 80% of the business, while wholesale makes up the remaining 20%. Regardless of whether it is wholesale or processing services, the company essentially earns design and processing fees, which actually carry decent gross profit margins. However, because the wholesale business includes the cost of gold, it lowers the overall gross margin.
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