Chow Tai Seng Jewellery Co Ltd

Chow Tai Seng released its 2026 interim report. The company's total operating revenue was 3.641 billion yuan, down 20.79% from the same period last year. Net profit attributable to the parent company was 450 million yuan, down 24.24% year-on-year. Net cash inflow from operating activities was 204 million yuan, down 49.49% year-on-year. The company's latest asset-liability ratio was 26.13%, gross margin was 36.95%, return on equity was 7.23%, and diluted earnings per share was 0.41 yuan. The number of shareholders was 33,000, and the top ten shareholders held 70.76% of the total share capital.

Gold jewellery brand Lao Feng Xiang released its half-year report. In the first half of the year, total operating revenue was 19.987 billion yuan, down 40.08% year on year, and net profit attributable to the parent company was 716 million yuan, down 41.34% year on year. In the second quarter, operating revenue was 6.245 billion yuan, down 60.56% year on year, and net profit attributable to the parent company was 169 million yuan, down 72.21% year on year. The company noted that the revenue decline was mainly due to lower income at its subsidiaries Shanghai Lao Feng Xiang Company Limited and Shanghai Lao Feng Xiang Silver Building Company Limited, while selling expenses rose 12.37% year on year to 474 million yuan, and net cash flow from operating activities turned from positive to negative. As of the end of June 2026, Lao Feng Xiang had 4,916 domestic and overseas marketing outlets, including 213 directly operated stores and 4,703 franchised stores. The company proactively closed 342 low-efficiency franchised stores in third- and fourth-tier cities and opened 71 franchised stores in first- and second-tier cities. Among peers, Lao Pu Gold posted first-half revenue of 19.808 billion yuan, up 60.3% year on year, and adjusted net profit of 4.32 billion yuan, up 83.6% year on year, though second-quarter results fell sharply quarter on quarter. Chow Tai Seng posted first-half revenue of 3.641 billion yuan, down 20.79% year on year, and net profit attributable to the parent company of 450 million yuan, down 24.24% year on year, with second-quarter net profit attributable to the parent company down 54.12% year on year. All companies cited the impact of sharp swings in high gold prices during the second quarter. At the end of June 2026, the London spot gold fixing price was down 8.22% from the start of the year, and the Shanghai Gold Exchange Au9999 closing price was down 11.21% from the opening price at the start of the year. China Gold Association data showed that in the first half of 2026, China's gold consumption was 511.412 tonnes, up 1.23% year on year, with gold jewellery consumption down 33.88% year on year and gold bar and coin consumption up 28.42% year on year. As of the close on 26 August, Lao Feng Xiang fell 2.08% to 34.81 yuan per share.

International gold prices have fallen more than 25 percent from their peak at the start of the year. Domestic spot gold has dropped over 360 yuan per gram from its high this year. For a typical 50-gram set of wedding gold jewellery, the purchase cost is now about 18,000 yuan cheaper than at the beginning of the year. Gold jewellery consumption has weakened noticeably, hit by a buy-on-the-rise-not-on-the-dip mentality and a 7 percent value-added tax. A merchant in Shenzhen's Shuibei district says sales volumes have fallen around 15 percent year-on-year so far this year, while foot traffic at several branded gold stores in Guangzhou and Shenzhen remains sparse. Data from the China Gold Association shows gold jewellery consumption slid 37.10 percent year-on-year in the first quarter, while purchases of gold bars and coins surged 46.40 percent. Facing sales pressure, gold jewellery companies are accelerating a shift toward high-end, high-margin products. Some listed firms say their profit model does not depend on gold price swings, and that gross margins on high-value-added products can be more than double those of traditional plain gold items.