On September 12, 2025, Guangdong CHJ Industry Co., Ltd. submitted its H-share listing application to the Hong Kong Stock Exchange, aiming for a dual A+H listing with CITIC Securities as the sole sponsor. As the "first fashion jewelry stock" listed on the Shenzhen Stock Exchange in 2010, CHJ's move has drawn significant market attention. The IPO proceeds are intended for overseas expansion, new production facilities, three "CHJ ZHEN" flagship stores in mainland China, and marketing.
However, uncertainties remain regarding CHJ's A+H listing. The company reported a net loss in Q3 2025, raising doubts about sustainable growth. Additionally, multiple intellectual property lawsuits since 2024 pose risks for overseas expansion, where IP protection is stringent. Currently, CHJ's overseas revenue contribution remains minimal.
**Profitability Under Pressure from Franchise Model** CHJ designs and sells fashion jewelry, gold products, and women's handbags under its core brands: CHJ, VENTI, and FION. Despite rising gold prices since 2023, CHJ's performance has been volatile. From 2022 to Q3 2025, revenue grew from RMB4.42 billion to RMB6.24 billion, but net profit fluctuated sharply, dropping 116.52% YoY in Q3 2025 to a loss of RMB14.28 million.
Franchise stores now dominate CHJ's revenue, accounting for 1,337 of its 1,538 outlets as of H1 2025. However, this model has eroded profitability, with gross margins declining from 35.8% in 2020 to 23.6% in 2024. Franchise sales margins (16.81%) lag far behind self-operated stores (37.79%).
**Quality and Compliance Issues** Rapid franchise expansion has also led to rising consumer complaints, with over 900 grievances on the Black Cat Complaints platform, citing defects like scratches, discoloration, and undisclosed product weights. In April 2025, Zhejiang regulators flagged CHJ’s precious metal jewelry for failing quality inspections.
**Goodwill Risks and Overseas Hurdles** CHJ’s 2014 acquisition of handbag brand FION for RMB1.4 billion left RMB1.16 billion in goodwill, now a lingering burden. A RMB171 million impairment in Q3 2025 contributed to its net loss. Overseas expansion plans—20 stores by 2028—face challenges, as CHJ operates only four international outlets, trailing rivals like Chow Tai Fook and Luk Fook.
**IP Lawsuits and R&D Shortfalls** Despite branding efforts, CHJ’s R&D spending (RMB68 million in 2024) hasn’t kept pace with revenue growth (RMB6.52 billion). The company has faced lawsuits from Bulgari and Richemont (Cartier’s parent) over design infringements, with one ruling in July 2025 ordering RMB1 million in damages. These disputes complicate CHJ’s global ambitions.
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