Gold prices are soaring, but it’s harder for industry leaders to make money.

2025 03 11 The word count of this article is 1051, and the reading time is about 2 minutes Introduction Under the background of the high price of gold, how to find a way out, is the urgent need to solve the problem of every jewelry enterprise. Author Liu Xiaoying, First Financial

2025 03 11 The word count of this article is 1051, reading time is about 2 minutes Introduction Under the background of the high price of gold, how to find a way out, is the urgent need to solve the problem of each jewelry enterprise.

2025 03 11

The word count of this article is 1051, and the reading time is about 2 minutes.

Introduction In the context of the entire high gold prices, how to find a way out, is the urgent need to solve the problem of every jewelry enterprise.

Author Liu Xiaoying, First Financial

Gold prices all the way to high let chain brand gold store performance under pressure.

Lao Fengxiang 600612 SH 11th evening released performance snapshot, 2024 realized total operating income of 56.793 billion yuan, a year-on-year decline of 20 5 Net profit of 1.95 billion yuan, a year-on-year decline of 11 95 .

The announcement shows that although the company actively promotes market expansion, improves the market layout of the Hidden Treasure Gold Fengxiang Xixi Theme Store, and upgrades the theme image of the new retail store, the company’s outlets are less than expected due to the weak consumption of gold jewelry. As of the end of 2024, the Company had a total of 5,838 domestic and overseas marketing outlets, including 197 directly-managed stores Containing 15 directly-managed stores abroad, a net increase of 10 stores from the beginning of the period Franchised stores 5,641 stores, a net decrease of 166 stores from the beginning of the period.

For revenue and net profit double drop, Lao Fengxiang explained, 2024, the world economic growth momentum and domestic effective demand is insufficient, coupled with the continuous rise in the price of gold continues to set a new record high, resulting in weak consumption of gold jewelry. According to the statistics of China Gold Association, China’s gold jewelry consumption in 2024 was 532 02 tons, down 24 69 year-on-year. The Company’s operating income from gold jewelry Net profit declined somewhat year-on-year.

The performance decline is not the embarrassing situation faced by Lao Fengxiang alone.

Earlier, industry leader Chow Tai Fook 0116 HK released its unaudited operating data for the three months ended December 31, 2024. In the mainland market, Chow Tai Fook’s same-store sales dropped 27 4 year-on-year, while in the Hong Kong and Macau markets, the figure was even higher 32 4 . In terms of retail network, Chow Tai Fook made optimization adjustments in the third quarter. A net of 261 retail outlets were closed in the Mainland market, while 2 new retail outlets were added in Hong Kong and Macau.

The performance of Dream Gold Garden 02585 HK, which was successfully listed only last year amid the boom of gold companies going public in Hong Kong, was also poor. According to the prospectus submitted by this company at that time, in 2021, 2022, 2023 and January-June 2024, DreamGold realized revenues of $16.871 billion, $15.724 billion, $20.209 billion and $9.980 billion respectively, with net profits of $225 million, $18.1 billion, $23.4 billion and $52.3 million respectively. It can be seen that although the price of gold has gone from 6 to 8 over the past two years, it is more difficult for a company like Mengjinyuan to make money.

Competition in the gold jewelry market is becoming increasingly fierce. Industry insiders believe that with the diversification of the consumer market, traditional gold stores are facing strong competition from Internet brands and emerging jewelry brands. These new brands are often able to win consumers with lower prices and more flexible marketing strategies, while traditional gold stores need to make deep adjustments under the pressure of shareholder performance and market changes. Against the backdrop of high gold prices, how to find a way out is an urgent issue for every jewelry company.

WeChat Edit The production team’s donkey Pulling the mill version

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