Recently, the performance of Chinese listed gold and jewelry companies has been on a downward trend, with continued closures of stores. This week on Tuesday (26th), both Chow Tai Fook and Luk Fook Group released their interim performance reports, with Chow Tai Fook closing a net of 239 retail points in the first half of the year and Luk Fook Group reducing 175 store locations, amounting to a total decrease of 414 stores.
As the largest jewelry retailer in China, Chow Tai Fook announced its financial results for the first half of the 2025 fiscal year (ending six months on September 30, 2024) on Tuesday. The announcement indicated that during this period, Chow Tai Fook’s revenue was HK$39.408 billion, a 20.4% year-on-year decrease. Within this, mainland China experienced an 18.8% decline in sales.
The company’s net profit for the period was HK$2.53 billion, a 44.4% year-on-year decrease. Chow Tai Fook attributed this mainly to significant fluctuations in international gold prices during the period, resulting in losses from the revaluation of gold borrowing contracts, whereas in the same period last year, they recorded gains from the revaluation of gold borrowing.
Regarding the decline in total gold, silver, and jewelry retail sales in mainland China for the 2025 fiscal year, Chow Tai Fook mentioned in its financial report that this market situation aligns with their observations. This is due to the rise in gold prices to historical highs, leading some mainland consumers to adopt a wait-and-see attitude towards purchasing gold jewelry.
The financial report indicated that as of the end of September 2024, Chow Tai Fook had a total of 6,968 jewelry retail points in mainland China, with around 77% being franchise stores. During the period, they closed a net of 239 jewelry retail points.
Another Hong Kong-listed gold and jewelry company, Luk Fook Group, disclosed its interim financial report, showing that during the reporting period, their revenue was HK$5.449 billion, a 27.2% decrease year-on-year. Operating profit was HK$536 million, a 53% decrease year-on-year, with profit amounting to HK$417 million, down by 55.7% year-on-year.
In terms of product breakdown, Luk Fook Group’s sales of gold and platinum products decreased by 24.1% year-on-year to HK$3.689 billion during the reporting period. Sales of priced jewelry, including diamond products, fell by 34.8% year-on-year to HK$1.356 billion.
Regarding changes in store numbers, Luk Fook Group reduced a net of 175 store locations during the reporting period.
Recently, Hong Kong-listed gold and jewelry company Tse Sui Luen disclosed its interim financial results for the six months ending September 30, 2024, showing an operating income of HK$864.4 million, a decrease of approximately 35.8% year-on-year.
Tse Sui Luen closed several loss-making and underperforming retail stores in mainland China and Hong Kong during the aforementioned period.
Another Chinese jewelry brand, Chow Sang Sang, disclosed its half-year report for 2024, showing a net profit attributable to shareholders of the listed company of RMB 601 million in the first half of the year, a decrease of 18.71% year-on-year.