“金条遭疯抢，饰金卖不动”，老凤祥有烦恼：金价越涨，生意越愁

Core Insights - International gold prices have surged to a historical high, surpassing $4500 per ounce, leading to increased retail prices for gold jewelry in China, with prices for pure gold jewelry exceeding 1400 RMB per gram [2][12] - Despite the rising gold prices, consumer demand for gold jewelry has decreased, with many opting for trade-in options instead of new purchases, while investment gold bars are experiencing high sales and shortages in stores [2][5][14] - The performance of gold jewelry companies, particularly the century-old brand Lao Feng Xiang, has shown significant declines in revenue and profit, indicating a deterioration in profitability [2][6][16] Gold Price Trends - As of the latest report, the spot price of London gold is at $4488 per ounce, with a year-to-date increase of over $1860, marking a 70% rise [3][12] - Domestic retail prices for gold jewelry have also risen sharply, with major brands like Lao Feng Xiang and Chow Tai Fook adjusting their prices upwards [3][12] Consumer Behavior - A store employee noted that the high gold prices are affecting consumer purchasing behavior, with a noticeable decline in demand for gold jewelry, except for essential purchases like weddings and gifts [5][14] - Many consumers are choosing to exchange old jewelry for new pieces, indicating a shift in purchasing patterns [5][14] Investment Gold Demand - Investment gold bars are in high demand, with reports of stores running out of stock, as consumers are increasingly interested in investment options rather than traditional jewelry [5][14] - The pricing for investment gold includes VAT and has a lower profit margin compared to jewelry, leading store owners to limit inventory of gold bars [5][15] Company Performance - Lao Feng Xiang reported a revenue of 48.001 billion RMB for the first three quarters of 2025, a decline of 8.71% year-on-year, with net profit dropping by 19.05% to 1.438 billion RMB [6][16] - The company's profitability is declining faster than its revenue, indicating weakened financial health [6][16] - The gross profit margin for Lao Feng Xiang has decreased to 8.17%, and accounts receivable have increased by 35%, raising concerns about cash flow and operational health [8][17] Structural Challenges - Lao Feng Xiang's reliance on traditional gold jewelry, which is highly sensitive to gold price fluctuations, has contributed to its profit decline, as the proportion of high-value products remains low [7][16] - The company's sales network heavily depends on franchisees, and the slowdown in consumer demand has led to reduced replenishment willingness among franchisees, impacting wholesale revenue [9][18]