Guangdong CHJ Industry Co., Ltd. (CHJ, 002345) posted a net loss of 14.28 million yuan in the third quarter. Excluding goodwill impairment, the net profit attributable to shareholders reached 157 million yuan for the quarter.
On October 30, the mainland fashion jewelry brand released its Q3 2025 financial report, showing revenue of 6.237 billion yuan for the first nine months, up 28.35% year-on-year. Net profit attributable to shareholders stood at 317 million yuan, a slight increase of 0.33%, while net cash flow from operations rose 35.30% to 602 million yuan.
For Q3 alone, revenue grew 49.52% to 2.135 billion yuan, but net loss attributable to shareholders widened 116.52% to 14.28 million yuan.
CHJ explained in its report that it engaged a third-party asset appraisal firm to assess goodwill related to its acquisition of Fion Limited, resulting in a 171 million yuan impairment charge. Excluding this impact, net profit for January-September would have been 488 million yuan, up 54.52% year-on-year, with Q3 adjusted profit at 157 million yuan, an 81.54% increase.
The company attributed revenue and adjusted profit growth primarily to its core CHJ jewelry business.
In a separate announcement, CHJ noted it acquired 100% of Fion Limited in 2014, generating 1.162 billion yuan in goodwill. Despite brand revitalization efforts for Fion, progress fell short of expectations due to various factors. The company had previously recorded impairment charges of 210 million yuan (2018), 152 million yuan (2019), 80.66 million yuan (2022), 39.43 million yuan (2023), and 177 million yuan (2024). While Fion's brand upgrade showed initial results, 2025's challenging domestic and international consumer environment may impact performance, indicating further impairment risks.
The 171 million yuan impairment won't significantly affect normal operations, CHJ stated, adding it will optimize resources and strengthen Fion's competitive edge while improving risk management to protect minority shareholders' interests.
CHJ focuses on jewelry and women's handbags, with core brands including CHJ, Fion, CHJ|Soufflé, CHJ•Zhen, and Cëvol. Its jewelry targets young women, with post-80s, 90s, and 00s consumers accounting for 85% of sales. Lightweight gold pieces with IP collaborations have gained popularity.
Listed on Shenzhen Stock Exchange since January 28, 2010, CHJ has applied for a secondary listing on Hong Kong Stock Exchange's main board, with CITIC Securities as sole sponsor. Proceeds will fund working capital, debt repayment, and overseas expansion to optimize capital structure.
As of October 31, CHJ shares rose 0.74% to 13.61 yuan.
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