Gold prices remain high, testing industry quality! Lao Fengxiang's revenue and net profit both decline, Chao Hongji's pre-increase exceeds 125%

NightAirdropper · 2026-03-08T05:27:22+00:00

Affected by rising gold prices and new tax policies, the domestic gold jewelry industry is experiencing increased segmentation, with Lao Feng Xiang and China Gold facing performance pressure, while Chao Hong Ji defies the trend with growth. Lao Feng Xiang expects revenue and profit to decline, while Chao Hong Ji's net profit is expected to increase significantly. The industry faces challenges in product innovation and refined operations.

NightAirdropper

2026-03-08 05:27:22

Abstract generation in progress

【Source: Global Times】

【Global Times Financial Report】 Due to the continuous rise in gold prices reaching new highs, along with multiple factors such as new tax policies, the performance of the domestic gold jewelry industry has become increasingly polarized. Lao Fengxiang and China Gold are both under pressure, while Chao Hongji, known for its fashionable designs, has achieved significant growth against the trend.

On the evening of March 6, Lao Fengxiang released its 2025 performance brief, showing that, based on preliminary calculations, the company achieved approximately 52.823 billion yuan in operating revenue in 2025, a decrease of 6.99% year-on-year; net profit attributable to shareholders was about 1.755 billion yuan, down 9.99% year-on-year. Regarding the decline in performance, Lao Fengxiang stated that it was affected by multiple factors including insufficient consumer demand, the continuous rise in gold prices reaching new highs, and the implementation of new gold tax policies, leading to weak domestic gold jewelry consumption. By the end of 2025, the company had 5,355 marketing outlets, but 499 franchise stores were closed, and outlet expansion did not meet expectations.

However, not all companies are facing growth difficulties. Chao Hongji’s performance forecast shows that the company expects a net profit of approximately 436 million to 533 million yuan in 2025, representing a year-on-year increase of 125% to 175%. Chao Hongji attributes its growth to the continuous enhancement of product strength and brand influence, as well as the team’s meticulous operational efforts.

Industry analysts believe that the high gold prices and the implementation of tax reforms in 2025 have accelerated industry segmentation. This not only tests companies’ channel capabilities but also demands higher standards for product innovation, inventory management, and refined operations. Under the structural shift where investment demand for gold surpasses that for jewelry gold, balancing investment and consumption attributes has become a key to breaking through for jewelry companies. (Sailor)

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