Mokingran Jewellery Group (2585) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 4.7% YoY to RMB10,450.9m, but results swung to a net loss of RMB64.0m from profit of RMB52.3m, mainly due to losses on Au (T+D) contracts and gold loans.

• Gross profit increased 33.2% to RMB822.5m and gross margin expanded to 7.9% from 6.2%; elevated gold prices also weighed on jewellery demand.

Financial highlights

• Revenue was RMB10,450.9m versus RMB9,979.7m; gross profit was RMB822.5m versus RMB617.5m.

• Net loss was RMB64.0m versus net profit of RMB52.3m; loss attributable to owners was RMB70.1m and basic EPS was a loss of RMB0.26 versus earnings of RMB0.21.

• Loss before tax was RMB71.1m versus profit before tax of RMB66.9m; income tax credit was RMB7.1m versus tax expense of RMB14.6m.

• Other expenses and net gains/losses were a net loss of RMB695.9m versus RMB347.8m; H1 included RMB7.1m of listing expenses.

Outlook and guidance

• Priorities include deepening offline channels, developing e-commerce and private traffic, and tailoring products and campaigns to market trends and younger consumers.

• International online marketing launched in H1, with plans for further overseas expansion through digital channels and tailored product portfolios.

• Plans include strengthening controls over Au (T+D) operations and gold loans, and realizing gains more quickly when selling products at gold prices above average procurement cost.