Lao Feng Xiang Co Ltd A

Lao Feng Xiang released its 2026 interim report, showing first-half net profit attributable to the parent of 716 million yuan, down 41.3% year on year. Operating revenue was 19.99 billion yuan, down 40.1% year on year. Net profit attributable to the parent excluding non-recurring items was 822 million yuan, down 22.0% year on year. Net operating cash flow was negative 208 million yuan, down 104.4% year on year. In the second quarter, operating revenue was 6.24 billion yuan, down 60.6% year on year, and net profit attributable to the parent was 169 million yuan, down 72.2% year on year. The company said the decline was mainly affected by the macroeconomic environment and deep industry adjustment. The new gold tax policy caused a significant drop in sales of investment-oriented gold products in the wholesale business, while sales of gold jewellery products increased slightly and gross margin improved. The company has adjusted its operating strategy, integrated its internal structure, and optimised its regional operating model to respond to market changes.

Lao Feng Xiang disclosed its 2026 half-year report on 26 August. First-half operating revenue was 19.987 billion yuan, down 40.08% year on year, and net profit attributable to the parent was 716 million yuan, down 41.34% year on year. The revenue decline was mainly due to a sharp contraction in investment gold business, with cumulative gold trading revenue falling 69.48% in the first half, compounded by lower gold jewellery consumption. However, a higher proportion of high-margin ornaments lifted gross margin to 12.16%. The company proactively optimised its store network, closing 342 low-efficiency franchised stores in third- and fourth-tier cities in the first half while opening 71 franchised stores in first- and second-tier cities. It also launched an interim dividend plan of 0.20 yuan per share, totalling 105 million yuan.