Jewelry companies' performance diverges as gold prices soar! Lao Feng Xiang's profits are expected to decline in 2025, while Chao Hong Ji forecasts net profit growth of over 125%

Red Star Capital Bureau, March 7 — On the evening of March 6, Lao Feng Xiang (600612.SH) released its 2025 performance forecast. According to preliminary calculations, its revenue in 2025 is approximately 52.823 billion yuan, a year-on-year decrease of 6.99%; net profit is about 1.755 billion yuan, down 9.99% year-on-year.

Screenshot from Lao Feng Xiang announcement

Regarding the decline in performance, Lao Feng Xiang stated in the announcement that in 2025, due to multiple factors such as insufficient consumer growth momentum, continuous rise in gold prices reaching new historical highs, and the implementation of new gold tax policies, domestic gold jewelry consumption remained weak, and consumption structure experienced a phased shift. In 2025, its revenue and net profit from gold jewelry sales declined compared to the previous year.

Red Star Capital Bureau notes that as gold prices rise, public demand for gold jewelry decreases, while demand for gold bars and other products surges. According to data from the China Gold Association, in 2025, China’s gold consumption was 950.10 tons, a decrease of 3.57% year-on-year. Among these, gold jewelry consumption was 363.84 tons, down 31.61%; gold bars and coins totaled 504.24 tons, an increase of 35.14%.

Screenshot of AU99.99 price trend in recent years, from Shanghai Gold Exchange

Lao Feng Xiang also stated that it has been working to stabilize existing market share and expand market growth by establishing regional subsidiaries and opening regional direct stores, aiming to enhance the market layout of “Treasure Gold” and “Feng Xiang Xi Shi” themed stores. However, due to various factors, store expansion did not meet expectations. By the end of 2025, it operated a total of 5,355 stores.

Not only Lao Feng Xiang is affected; China Gold (600916.SH) also issued a forecast of a significant decrease in annual performance for 2025, estimating its net profit to be between 286 million and 368 million yuan, a decline of 55% to 65% compared to the previous year.

In response, China Gold explained that this is mainly due to the combined impact of the gold market and new policies, which have affected sales of its main investment and consumer gold products. The decline in customer flow at terminal stores has caused temporary sales pressure; additionally, the gold leasing business applies different accounting standards and measurement methods on the asset and liability sides of the financial statements. The rapid increase in gold prices has outpaced inventory turnover, leading to temporary negative impacts on profit due to fair value changes.

However, another jewelry company, Chao Hong Ji (002345.SZ), earned more in 2025.

As early as January this year, Chao Hong Ji announced that it expected its net profit in 2025 to be between 436 million and 533 million yuan, a year-on-year increase of 125% to 175%. “Thanks to continuous improvement in product strength and brand influence, as well as meticulous operational efforts by the team, our jewelry business achieved significant growth in 2025.”

Rising gold prices may further test the operational capabilities of jewelry companies.

Red Star News Reporter Yang Peiwen

Editor: Xiao Shiqing

Reviewer: Wang Guangdong