Chinese gold and jewelry retailer Lao Feng Xiang published its performance briefing for 2016 and stated that its operating revenue was expected to reach about CNY34.964 billion, a year-on-year decrease of 2.1%; and its net profit attributable to shareholders was about CNY1.057 billion, a year-on-year decrease of 5.36%.
Lao Feng Xiang said that the decrease of revenue and profit was attributed to economic environment changes in China and abroad which led to the continued violent shock of international gold prices. The retail end market had a strong wait-and-see mood and the entire industry is waiting to see the bottom.
Lao Feng Xiang's main businesses cover trade of jewelry accessories and gold and it accounted for 98% of the revenue of the company. As a leading jewelry accessories provider in China, Lao Feng Xiang had 2,986 sales sites by the end of June 2016.
At the same time, Lao Feng Xiang said due to the weak demand of gold, silver and jewelry market, the company's future performance may see low growth.