Industry pressures from volatile gold prices and subdued jewellery demand framed MOKINGRAN’s first-half 2026 performance. Revenue slipped 2.6 % year on year (YoY) to RMB10.18 billion, yet the group reversed last year’s RMB64.02 million loss to report net profit of RMB28.96 million.
Gross profit halved to RMB428.0 million, driving margin down to 4.2 % (H1 2025: 7.9 %). Management attributed the compression to high input costs carried in inventory while retail prices tracked declining market gold quotations. Cost of sales edged up 1.2 % to RMB9.75 billion as raw-material prices remained elevated.
Segmentally, gold jewellery and related products generated RMB9.96 billion (-1.7 % YoY) amid weakening domestic consumption, while K-gold, diamond and other items dropped 37.5 % to RMB164.32 million following an e-commerce unit divestment. Service revenue held steady at RMB53.05 million (+0.4 %). Mainland China contributed 97.5 % of turnover, but overseas sales surged 76.7 % to RMB255.69 million, reflecting early success of the international expansion strategy.
Operating expenses were mixed: selling and distribution costs declined 5.5 % to RMB102.16 million; R&D outlays eased 6.5 % to RMB11.49 million; administrative expenses rose 22.0 % to RMB59.97 million, driven by higher labour and consulting charges. Net other losses narrowed sharply to RMB165.09 million (H1 2025: RMB695.93 million) as mark-to-market hits on gold loans and derivatives moderated.
Total assets reached RMB5.01 billion at 30 June 2026. Inventories expanded 5.7 % to RMB2.78 billion, reflecting higher raw-material costs. Net cash and equivalents (including pledged deposits) stood at RMB665.70 million; unrestricted cash was RMB444.33 million. Interest-bearing borrowings climbed to RMB1.83 billion, lifting the gearing ratio to 80.7 % (end-2025: 61.3 %).
Capital expenditure totalled RMB18.30 million, focused on production equipment, land-use rights and IT upgrades. Net proceeds of RMB420.70 million from the 2024 IPO are 45 % deployed; the remaining RMB190.22 million is earmarked for production expansion, sales-network development and IT projects, with utilisation now targeted by end-2027. The board declared no interim dividend.
Management highlighted four strategic priorities for H2 2026: optimise store mix towards prime urban locations, accelerate omni-channel integration, deepen premium brand initiatives, expand intelligent-manufacturing capabilities, and scale overseas distribution—particularly in Southeast Asia and the Middle East—to diversify revenue and mitigate domestic headwinds.
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