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Lao Feng Xiang's second-quarter net profit fell over 70%, gold price swings hit the gold jewellery industry
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.