Chao Hongji: Net profit in 2025 is expected to increase by 156.66% year-on-year, with a proposed dividend of 3.5 RMB per 10 shares.

On March 27, Chow Tai Seng (002345) released its 2025 annual report. The report shows that in 2025, the company achieved operating revenue of RMB 9.318 billion, up 42.96%; net profit attributable to shareholders of listed companies was RMB 497 million, up 156.66% year over year; and net profit after deducting non-recurring gains and losses was RMB 518 million, up 176.84%. The profit distribution proposal approved by the company’s board of directors is as follows: using 889 million shares as the base, cash dividends of RMB 3.5 per 10 shares to all shareholders (including tax).

During the reporting period, the company’s core jewelry business performed strongly, achieving operating revenue of RMB 9.044 billion, up 45.53%, accounting for 97.06% of total revenue. By product, revenue from fashion jewelry products was RMB 5.101 billion, up 71.77%; revenue from traditional gold products was RMB 3.609 billion, up 22.39%. By sales model, franchise and agency business became the main growth engine, achieving revenue of RMB 5.796 billion, up 79.77% year over year, and increasing its share of jewelry business revenue to 62.21%; revenue from self-operated and online sales was RMB 1.980 billion and RMB 1.000 billion, respectively.

In terms of channel expansion, the company adheres to the strategy of “focusing on the main brand” and continues to advance the construction of franchise channels. By the end of 2025, the total number of Chow Tai Seng jewelry stores reached 1,668, a net increase of 163 from the beginning of the year, including 1,486 franchise stores. The company deepened its omnichannel layout; for online business, transaction value reached RMB 1.211 billion through third-party platforms. At the same time, the company accelerated its international expansion efforts; during the reporting period, it successfully entered the Cambodia and Singapore markets, and added 9 stores in four Southeast Asian countries. As of the end of the reporting period, the total number of overseas stores reached 11.

The announcement shows that the company continues to strengthen product strength and brand strength centered on “Eastern aesthetics,” creating differentiated products around intangible cultural heritage flower-thread work, fashion bead stringing, and IP collaborations. During the reporting period, R&D investment reached RMB 93.77 million, up 37.71%. Multiple products won industry design awards, and the brand value continued to improve.

Looking ahead, the company states that it will focus on the vision of “becoming a respected operator of mid-to-high-end fashion consumer goods,” and will continue to advance its core strategy of “focusing on the main business, 1+N brand, omnichannel marketing, and internationalization.” In 2026, the company plans to be driven by four rounds—product strength, brand strength, channel strength, and empowerment—to continue optimizing its products and services, and to adhere to a channel strategy of “high quality and steady expansion.” At the same time, it will continue to deeply develop the Southeast Asian market, actively expand into emerging markets such as Japan and Australia, and steadily advance the process of an IPO on the Hong Kong stock market. (Wang Luo)

【Source: China Securities Journal · China Securities Network】