Gold prices continue to rise, bringing substantial profits to gold jewelry companies

Hong Kong Securities Times Reporter Hu Huaxiong

On the evening of March 26, Chow Sang Sang, one of the leading jewelry and watch retailers in the Hong Kong stock market, released its 2025 performance forecast. The announcement shows that Chow Sang Sang’s total revenue from continuing operations in 2025 increased by 6%, reaching HKD 22.446 billion, with jewelry and watch retail sales growing 5% compared to 2024. The profit attributable to the company’s owners from continuing operations rose by 115%, hitting a record high of HKD 1.659 billion. The gross profit margin of the group’s continuing operations increased by 4.3 percentage points to 32.6%. The profit attributable to Chow Sang Sang’s owners for the year was HKD 1.717 billion, up 113% year-on-year. Notably, same-store sales growth in 2025 showed an upward trend, overall increasing by 7% compared to 2024.

Chow Sang Sang stated that the rise in gold prices led to higher profits from inventory purchased at lower costs in the past when sold. Additionally, ongoing optimization of the retail network resulted in cost savings, with sales and distribution expenses and administrative expenses decreasing by 6%. Benefiting from improved gross profit margins and reduced costs, the group’s retail segment achieved a significant growth of 141%.

Chow Sang Sang’s performance growth is a reflection of many Hong Kong-listed gold and jewelry companies achieving growth amid high gold prices in 2025.

Before Chow Sang Sang released its financial report, several other Hong Kong-listed gold and jewelry companies also announced their results, most of which reported revenue or profit growth.

Lao Pu Gold recently announced that in 2025, the group’s sales (including tax-included revenue) reached approximately RMB 31.375 billion, a year-on-year increase of about 220.3%. Operating revenue was about RMB 27.303 billion, up approximately 221.0% from 2024. In terms of profit, Lao Pu Gold’s gross profit in 2025 was about RMB 10.274 billion, an increase of approximately 193.4% compared to 2024. The annual profit was about RMB 4.868 billion, up approximately 230.5%.

Zhou Li Fu recently announced that in 2025, its total revenue reached HKD 5.834 billion, a 2% increase, with net profit of HKD 769 million, up 8.9%.

Mengjin Yuan’s annual performance report shows that in 2025, its revenue was approximately RMB 20.71 billion, a 5.1% increase from the previous year. Gross profit for the year was about RMB 1.579 billion, an 18.6% increase, while net profit was approximately RMB 110 million, a 45.2% decrease compared to the previous year.

The above companies also provided explanations for the changes in revenue or profit.

For example, Lao Pu Gold stated that its growth in 2025 was due to several factors: on one hand, the continued expansion of the group’s brand influence created a market advantage, leading to significant growth in overall online and offline store revenue; on the other hand, ongoing product optimization and new iterations ensured sustained high growth in revenue from both online and offline channels. Additionally, compared to 2024, the group added 10 new stores and optimized and expanded 9 stores in 2025, contributing incremental revenue.

Zhou Li Fu mentioned factors such as increased contribution from online sales, further improvement in the profitability of self-operated stores, and the stabilization of market position through structural adjustments in offline franchise business.