Against the backdrop of soaring gold prices, Chj Jewellery, which has been listed on the Shenzhen Stock Exchange for 16 years, is leveraging the current momentum to pursue a listing in Hong Kong. According to a disclosure by the Hong Kong Stock Exchange on April 2, Chj Jewellery has once again submitted an application to list on the main board, with CITIC Securities acting as the sole sponsor. This comes less than a month after its previous Hong Kong listing application expired on March 12.
In May 2025, Chj Jewellery announced that, to advance its global strategy, enhance its international brand image, and strengthen ties with overseas capital markets, the company was planning an H-share listing in Hong Kong. As a leading fashion jewelry company in China, Chj Jewellery has maintained solid financial performance in recent years, with a stable management structure led by family members. However, the company continues to face challenges from infringement lawsuits filed by Bulgari and Cartier, for which it has set aside provisions for damages.
As of Tuesday's close, Chj Jewellery's shares rose 2.02% to 10.61 yuan per share, with a total market capitalization of 9.427 billion yuan. While the stock has declined over 15% year-to-date, it recorded a significant gain of 129% throughout 2025.
Net Profit Surges 150% Year-on-Year In 2025, international gold prices performed strongly, rising nearly 70% over the year—the largest annual increase since the 1979 oil crisis. Influenced by global trends, domestic gold prices also rose noticeably, with the price of gold jewelry increasing from approximately 800 yuan per gram to around 1,360 yuan per gram during the year. For Chj Jewellery, which specializes in jewelry and handbag products, the improvement in performance was expected.
Financial reports show that the company's operating revenue reached 9.318 billion yuan in 2025, a 43% increase from 6.518 billion yuan in 2024. Net profit attributable to shareholders surged even more dramatically, from 193.6 million yuan in 2024 to 497 million yuan in 2025, representing a year-on-year increase of 157%. Such results have undoubtedly drawn envy from peers.
However, over the past three years, "goodwill impairment" has stood out as a notable item after other expenses. Data indicates that the company recorded goodwill impairments of 39.4 million yuan, 176.8 million yuan, and 171.2 million yuan in 2023, 2024, and 2025, respectively. The company attributed these impairments primarily to its handbag brand FION, citing underperformance relative to expectations.
Handbag Business Drags Performance, Forcing Impairments The impairment related to FION highlights Chj Jewellery's product portfolio strategy. The company offers jewelry products under brands such as CHJ Chj Jewellery, Chj Jewellery | Soufflé, Zhen ZHEN, and Cevol, while handbags are sold under the FION brand. Among these, CHJ Chj Jewellery focuses on classic gold jewelry and fashion jewelry, Chj Jewellery | Soufflé specializes in fashion jewelry, Zhen ZHEN offers custom jewelry and gold/silverware, and Cevol provides lab-grown diamond jewelry. Jewelry sales constitute the primary revenue source, accounting for 89.5%, 91.3%, and 94.0% of total revenue in recent years. Fashion jewelry represents the largest segment, while FION handbag sales account for only a single-digit percentage and have been declining annually.
Acquired by Chj Jewellery in 2014, FION targets young consumers with fashionable handbags but has evidently underperformed since the acquisition. Initially intended as a new profit growth driver, FION has instead become a drag on the company's results. Changes in the number of franchisees, franchised stores, and self-operated stores across product categories indicate that FION's performance continues to weaken. While the number of FION franchisees has remained relatively stable over the past three years, the total number of self-operated and franchised stores has declined year after year.
Legal Challenges from Bulgari and Cartier Among the risks highlighted by the company, Chj Jewellery specifically mentioned two infringement lawsuits filed by the internationally renowned luxury jewelry brands Bulgari and Cartier. In the Bulgari case, in March 2024, Bulgari S.P.A. filed a claim against Chj Jewellery, alleging infringement of intellectual property rights related to the "small skirt" fan-shaped pattern trademark used in Bulgari's "Diva’s Dream" collection. Bulgari claimed that design elements used by Chj Jewellery on certain products were highly similar to its trademark, causing consumer confusion. The plaintiff sought 5 million yuan in damages and demanded that Chj Jewellery cease production, marketing, and sales of products featuring the disputed design. On December 30, 2025, the court ruled that Chj Jewellery must pay 1.1 million yuan in compensation. The company has appealed the decision.
In the Cartier case, Cartier International AG (later replaced by Richemont International SA as the plaintiff following an acquisition) accused Chj Jewellery in September 2024 of infringing intellectual property rights related to the "screw lock" design in Cartier's "Love" series, seeking 5 million yuan in compensation. Of this amount, 3 million yuan was to be paid by Chj Jewellery's subsidiary Guangdong Chaohui, which was also held jointly liable. In July 2025, the court ordered Chj Jewellery to pay 1 million yuan in compensation, with Guangdong Chaohui bearing 400,000 yuan of that amount under joint liability. Chj Jewellery has also appealed this ruling. The company stated that it has set aside a provision of 3 million yuan for the infringement lawsuits in its 2024 and 2025 fiscal years.
The Rise of a Chaozhou Entrepreneurial Family Chj Jewellery's development history is also the story of a legendary entrepreneurial family from the Chaozhou region. According to the listing application, key figures in the company largely belong to the Liao family. Records show that in the 1980s, co-founder Liao Muzhi, now 79, was in his prime. With only a high school education, he engaged in gold processing and trading in the Chaozhou area, acting as a intermediary between material suppliers and factories. His son, Liao Chuangbin, born in 1972, joined the gold business after dropping out of high school in 1989.
By the 1990s, Liao Muzhi recognized that OEM manufacturing offered thin profit margins and limited prospects, leading him to decide on creating his own brand focused on design to capture the most lucrative segment of the industry chain. In March 1996, Liao Muzhi and his business partner Liao Jianhong, born in 1962, established the company's predecessor, Shantou Chj Jewellery, with Liao Muzhi holding a 51.9% stake. In 1997, Liao Muzhi registered the CHJ Chj Jewellery trademark, positioning it as a fashion K-gold jewelry brand distinct from traditional gold stores. The company went public on the Shenzhen Stock Exchange in 2010. Following a period of rapid expansion, Liao Muzhi retired in 2020, succeeded by his son Liao Chuangbin as chairman and general manager.
Currently, 54-year-old Liao Chuangbin serves as board chairman, executive director, and general manager of Chj Jewellery, wielding significant authority. Liao Muzhi has stepped back to a non-executive director role. Lin Junping, 53, the company's vice chairman, executive director, and deputy general manager, is also a relative of the Liao family; he married Liao Chuangbin's sister, making him Liao Chuangbin's brother-in-law and Liao Muzhi's son-in-law. Lin has been involved in Chj Jewellery's development since 2001. The current ownership structure shows that the Liao family holds absolute controlling interest. Major shareholder Shantou Chj Jewellery Investment holds 28.55% of the company's shares, with Liao Muzhi, Lin Junping, and Liao Chuangbin ultimately owning approximately 51.6%, 9.17%, and 8.20% interests, respectively, in this entity. Based on these figures, Liao Muzhi, Liao Chuangbin, and Lin Junping collectively control about 95% of Chj Jewellery's equity, firmly establishing it as a family-controlled enterprise.
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