Editor’s Note
This article examines Chao Hong Ji’s strategic decision to pursue a secondary listing on the Hong Kong Stock Exchange after 15 years on the Shenzhen Stock Exchange, exploring whether international expansion can serve as a new growth engine for the leading domestic jewelry brand.
After 15 years of listing on the Shenzhen Stock Exchange, Chao Hong Ji, a model of ‘national trend innovation’ in China’s mainland jewelry industry, has chosen to go public again by targeting the Hong Kong Stock Exchange, preparing ample ‘ammunition’ for overseas expansion.
In recent years, with the continuous improvement in purchasing power and the increasing diversification of daily wear demands, China’s jewelry market has achieved steady growth. From a competitive landscape perspective, the domestic jewelry market is still predominantly led by foreign brands. These brands have established multi-dimensional competitive advantages through high quality, strong recognizability, exclusivity, and deep historical heritage, maintaining a relatively stable market position.
Facing the strong competition from international brands, local jewelry enterprises encounter significant challenges in breaking through. Against this backdrop, many brands have opted for ‘going global’ as a strategy to expand their markets.
Recently, Guangdong ChaoHongji Industrial Co., Ltd. (referred to as ‘ChaoHongji’) officially submitted its application for listing on the main board of the Hong Kong Stock Exchange, with CITIC Securities acting as its exclusive sponsor.
According to the prospectus, ChaoHongji established its core jewelry brand ‘CHJ ChaoHongji’ in 1997 and gradually expanded its business based on that foundation, enhancing the brand’s influence in the fashion sector. The company leverages the national intangible cultural heritage of filigree craftsmanship, promoting the commercial transformation of traditional techniques and innovating cultural symbols, earning multiple prestigious awards in design and craftsmanship. In 2023, ChaoHongji was selected as the only jewelry brand from mainland China in Forbes’ list of ‘National Trend Innovation Brands.’ The company emphasizes a ‘culture + design dual-driven approach’ to break through traditional jewelry paradigms, positioning itself not just as a jewelry manufacturer but also as a purveyor of modern Chinese aesthetic concepts.
With a core focus on ‘youth and fashion,’ the brand has gradually built a differentiated image and product system. Currently, ChaoHongji has grown into one of the major fashion jewelry enterprises in mainland China. According to a Frost & Sullivan report, based on sales revenue in 2024, the company ranks first in China’s fashion jewelry market, with a market share of 1.4%. Focusing on the mid-to-high-end segment, the company has established its market leadership through a comprehensive and distinctive product portfolio, becoming one of the mainstream jewelry enterprises in mainland China.
CHJ ChaoHongji has been selected as one of the ‘China’s 500 Most Valuable Brands’ for 21 consecutive years and was named an ‘Asia’s 500 Most Influential Brand’ by the World Brand Lab in 2024. The jewelry business, as the core operation during the reporting period, contributed approximately 90% of total revenue annually. With CHJ ChaoHongji as the main brand, the company has formed a multi-brand synergistic development strategy, offering diverse products through brands such as CHJ ChaoHongji, ChaoHongji|Soufflé, and CHJ‧ZHEN Zhen. Additionally, the company has launched a sub-brand, Cëvol, focusing on the emerging lab-grown diamond market to cover consumer groups with more differentiated needs. To enrich its product matrix, the company acquired the fashion handbag brand FION in 2014, which primarily targets younger customers.
As of June 30, 2025, the company had a total of 1,542 offline jewelry stores. Specifically, the sales network includes 201 self-operated stores and 1,337 franchise stores across over 200 cities nationwide, along with four overseas stores: one self-operated store in Malaysia, one franchise store in Thailand, and two franchise stores in Cambodia. The company adopts a dual approach, establishing sales points through both self-operated and franchise stores, leveraging the advantages of both operational strategies to drive growth through this hybrid model.
According to Zhitong Finance APP, the company stated in its prospectus that fluctuations in raw material prices and supply instability have impacted its business. During the reporting period, gold accounted for the largest proportion of raw material costs, with a particularly profound impact. The company purchased gold accounting for 94.4%, 96.6%, 98.3%, and 97.3% of total raw material procurement in the respective periods. According to Frost & Sullivan data, the average annual spot price of 9999 gold in China rose steadily from RMB 387.4 per gram in 2020 to RMB 557.2 per gram in 2024. Meanwhile, the vast majority of the company’s inventory consists of gold or gold-made products. During the reporting period, ChaoHongji’s inventory levels remained high, reaching RMB 2.216 billion, RMB 2.247 billion, RMB 2.603 billion, and RMB 2.592 billion, respectively. Although in a gold bull market, gold jewelry often sells well under strong gold prices, and inventory turnover days typically shorten significantly, once the gold market ‘cools down,’ high inventory levels could pose hidden risks for the company. The company acknowledged that significant fluctuations in gold prices could have a material adverse effect on its business, operating results, and financial condition.
However, considering the current industry status and future development trends, the fashion jewelry market remains a niche segment with considerable growth potential.
From 2020 to 2024, the overall size of China’s mainland jewelry market grew from RMB 610 billion to RMB 728 billion, with a compound annual growth rate (CAGR) of 4.5%. It is expected that by 2029, the overall market size will further expand to RMB 937 billion, with a CAGR of 5.2% from 2024 to 2029. This growth is primarily driven by the rise of the ‘national trend’ wave, fueled by the integration of traditional Chinese culture and modern design, as well as the increasing consumer demand for personalized and affordable luxury jewelry. Brands are also actively implementing youth-oriented strategies, enhancing digital interaction through live streaming, social commerce, and short video platforms to bridge the gap with consumers, driving significant growth in online sales. Driven by multiple factors such as consumption upgrades, the prominence of brand value, and the integration of online and offline channels, the jewelry industry is gradually moving towards high-end and differentiated development, laying the foundation for long-term growth.
In the mainland China fashion jewelry market, where ChaoHongji focuses, the market size decreased from RMB 284.8 billion in 2020 to RMB 203.8 billion in 2024, with a CAGR of -8.0%. This decline was mainly attributed to the significant rise in gold prices, which enhanced the appeal and investment attributes of gold jewelry, along with a notable contraction in demand for diamond jewelry, intensifying competitive pressure in this segment. Starting from 2024, the market is expected to gradually recover, reaching approximately RMB 245 billion by 2029, with a projected CAGR of 3.7%. Factors driving the recovery include growing demand for affordable luxury accessories, the pursuit of individuality and style among younger consumers, and the continued influence of digital marketing and social commerce.
It is noteworthy that this market is highly competitive. Although ChaoHongji ranked first in China’s fashion jewelry market by sales revenue in 2024, its market share was only 1.4%, reflecting the highly fragmented nature of the industry and low brand concentration.
To further capture market share, ChaoHongji has chosen to ‘go global.’ According to Zhitong Finance APP, in 2024, ChaoHongji expanded its business overseas for the first time, opening stores at IOI Citymall in Kuala Lumpur, Malaysia, and ICONSIAM in Bangkok, Thailand, officially entering the Southeast Asian market. Since 2025, ChaoHongji jewelry has opened two stores in Cambodia: one at Aeon Mall in Phnom Penh and another at Umall in Sihanoukville.