Lao Feng Xiang Reports Declining Revenue and Profit Amid Surging Gold Prices

Despite the continuous rise in gold prices, Lao Feng Xiang Co., Ltd. (600612) reported a decline in both revenue and net profit for the third quarter of 2025. According to the company's financial report, operating revenue reached 48.001 billion yuan, down 8.71% year-on-year, while net profit attributable to shareholders dropped 19.05% to 1.438 billion yuan. Adjusted net profit fell 25% to 1.274 billion yuan, and operating cash flow plummeted 63.86% to 2.366 billion yuan.

In Q3 alone, revenue rose 16.03% to 14.646 billion yuan, but net profit attributable to shareholders declined sharply by 41.61% to 217 million yuan. Adjusted net profit for the quarter decreased 7.48% to 221 million yuan.

The company attributed the profit decline to reduced earnings from its subsidiary Shanghai Lao Feng Xiang Co., Ltd. Net operating cash flow also suffered due to lower cash receipts from sales and services. Meanwhile, monetary funds increased by 30.95%, driven by higher cash reserves at Shanghai Lao Feng Xiang.

Other key financial changes included a 32.07% rise in trading financial assets, a staggering 1,541.31% surge in accounts receivable (linked to Shanghai Lao Feng Xiang Silver Store Co., Ltd.), and a 31.91% drop in inventory. Short-term borrowings grew 43.35%, while contract liabilities fell 66.21%.

Notably, non-operating income plunged 59.23%, whereas non-operating expenses skyrocketed 256.56%. Credit impairment losses rose 38.20%, and R&D expenses were halved (-50.98%).

The jewelry giant, founded in 1848, specializes in gold jewelry, art crafts, and stationery. However, soaring gold prices have significantly dampened consumer demand for gold ornaments. Industry data shows China’s gold jewelry consumption fell 26% YoY in H1 2025, with total gold demand down 3.54%.

Lao Feng Xiang’s H1 results mirrored this trend: revenue slid 16.52% to 33.356 billion yuan, with net profit down 13.07% to 1.22 billion yuan. The company noted that high gold prices suppressed jewelry sales, though lightweight, high-design-value products remained popular.

In a surprising pivot, Lao Feng Xiang recently announced a 24-million-USD investment in Maybach Luxury Asia Pacific—a nearly 10,000,000% valuation premium—despite having no operational control. The move prompted an inquiry from the Shanghai Stock Exchange.

Maybach Luxury, established in 2013, expanded from premium automotive branding into high-end accessories and lifestyle products. Its Asia-Pacific entity was registered in Hong Kong in February 2025.