Mokingran Jewellery Group (2585) H1 2026 earnings summary

Executive summary

• H1 2026 revenue fell 2.6% YoY to RMB10,175.3 million; net profit recovered to RMB29.0 million from a RMB64.0 million loss, mainly as losses on gold contracts and loans declined.

• Gross margin contracted to 4.2% from 7.9% as high gold costs and lower selling prices pressured profitability amid weak jewellery demand.

• Overseas revenue rose 76.7% YoY to RMB255.7 million; the offline network had 2,394 stores at June 30, 2026.

Financial highlights

• Revenue was RMB10,175.3 million, down 2.6% YoY; cost of sales rose 1.2% to RMB9,747.3 million.

• Gross profit declined 48.0% to RMB428.0 million; gross margin fell to 4.2% from 7.9% as selling prices adjusted lower while inventory costs remained high.

• Profit before tax was RMB44.0 million versus a RMB71.1 million loss; net profit was RMB29.0 million versus a RMB64.0 million loss.

• Basic and diluted EPS was RMB0.07 versus a loss per share of RMB0.26; profit attributable to owners was RMB19.5 million versus a RMB70.1 million loss.

• Operating cash flow was an outflow of RMB301.2 million versus an inflow of RMB65.6 million; cash and cash equivalents ended at RMB444.3 million.

Outlook and guidance

• H2 priorities include channel transformation, premium-brand enhancement, intelligent manufacturing and overseas expansion to improve efficiency, business mix and sustainable growth.

• Plans include rationalizing stores, prioritizing prime locations and flagship experiences, and expanding content e-commerce, livestreaming and private-domain customer operations.

• Premium-brand plans include expanding high-value, heritage-inspired and customized product ranges and upgrading high-end customization services.

• Manufacturing initiatives include flexible production, 3D precision engraving, intelligent inspection and integrated digital supply-chain systems.

• Overseas plans include tailored products for Southeast Asia and the Middle East, broader distributor and cross-border e-commerce channels, and stronger logistics and after-sales service.