Mokingran Jewellery Group (2585) H2 2024 earnings summary

Executive summary

• FY2024 revenue fell 2.5% YoY to RMB19,712.9m; gross profit rose 23.5% to RMB1,330.9m, while profit for the year declined 14.0% to RMB200.7m.

• Higher gold prices supported gross margin through procurement-and-sales timing, but also coincided with weaker consumption and larger losses on gold contracts and gold loans.

Financial highlights

• Revenue was RMB19,712.9m versus RMB20,208.6m in 2023; cost of sales decreased 3.9% to RMB18,382.0m.

• Gross profit increased 23.5% to RMB1,330.9m; gross margin was 6.8% versus 5.3%, reflecting lower-cost gold procurement before market prices rose.

• Profit before tax declined 11.6% to RMB269.8m; profit for the year fell 14.0% to RMB200.7m and owner-attributable profit fell 17.8% to RMB189.4m.

• Basic EPS was RMB0.81 versus RMB1.01; listing expenses were RMB14.6m versus RMB2.8m in 2023.

Outlook and guidance

• 2025 expected to be challenging amid geopolitical tensions, macro uncertainty, uncertain consumer sentiment and high gold prices; priorities include strengthening high-purity gold products and upgrading production facilities.

• Plans include expanding domestic and overseas sales through online/offline channels, growing the franchise network, selectively opening self-operated stores and broadening coverage in first- and second-tier cities.

• Overseas growth, locally tailored designs, international events and marketing to younger and high-net-worth consumers are strategic priorities; no numerical guidance was stated.