### Overview Chao Hong Ji is a prominent player in the jewelry retail sector, focusing on high-end gold and jewelry products. This analysis pertains to the recent earnings report reflecting the company’s performance in the first quarter of 2025. Despite fluctuations in gold prices, the report indicates a resilience in sales, laying the groundwork for future growth."

### Key Financials The report highlights stable sales performance across stores, which managed to keep an upward trend in average daily sales during the first quarter, despite the volatility of gold prices. This stability suggests an underlying strength in consumer demand and operational efficiency. While specific revenue figures were not disclosed, the consistent sales figures suggest that the company maintains healthy margins, indicative of their competitive positioning in the market.

### Management Commentary Management remains cautiously optimistic about the company's trajectory. They acknowledged the challenges posed by the fluctuating gold prices but emphasized that so far, these fluctuations have not adversely affected sales. Furthermore, there is a proactive approach towards the planned issuance of H-shares, which is likely to provide additional funding for expansion and growth initiatives.

### Trends and Drivers Key trends driving the numbers include the robustness of store performance despite external market pressures. The company's focus on expanding its product range and distribution channels indicates a strategic move towards diversifying revenue streams. The ongoing evolution of e-commerce presents additional opportunities for growth, particularly as consumer preferences continue to shift towards online shopping platforms.

### Risks and Outlook Despite the current sales stability, potential risks related to gold price volatility pose challenges for the future. Management has highlighted that while adverse effects from these fluctuations have not yet materialized, they are continuously monitoring the situation. Investors should remain cautious about external economic conditions that might impact consumer spending and gold prices in the coming quarters.

### Conclusion In summary, Chao Hong Ji demonstrates a resilient operational performance in a challenging market environment, with stable sales and strategic growth plans. The company's focus on expanding product lines and channels, along with the upcoming H-share issuance, could position it well for future growth. However, investors should keep an eye on gold price fluctuations and their potential impact on sales as they navigate through the upcoming quarters.