Is Lao Feng Xiang profitable in 2026?

Yes but thinly. Net profit margin is around 3.4% with ROE near 13.3%. H1 2025 net income fell 13.1% YoY to CNY 1.22 billion as revenue dropped 16.5% to CNY 33.36 billion, squeezed by record gold prices and volume declines.

Is Lao Feng Xiang's revenue declining?

Yes, sharply. FY2023 revenue was about CNY 71.2 billion, falling to CNY 56.55 billion in FY2024 and CNY 52.82 billion in FY2025, a roughly 26% cumulative decline over two years, driven by record gold prices squeezing volumes.

Who is Lao Feng Xiang's biggest competitor threat?

Laopu Gold, a fixed-price heritage-luxury jeweler founded 2009, grew H1 2025 revenue 251% YoY to CNY 12.35 billion with profit up about 291%, while Lao Feng Xiang's revenue fell 16.5% YoY in the same period.

Could AI replace Lao Feng Xiang's core business?

No. Hand craftsmanship, gemstone setting, and physical gold retail built on trust and hallmarking are largely AI-immune. Lao Feng Xiang's reported AI glasses venture with ByteDance's Doubao, first reported June 2025, was denied by ByteDance again in January 2026 and remains unconfirmed.

How many stores does Lao Feng Xiang have compared to Laopu Gold?

Lao Feng Xiang operates over 3,000 to 4,000 stores worldwide as of July 2026, versus Laopu Gold's roughly 33 boutiques as of March 2025, though Laopu's fixed-price model is capturing disproportionate growth.

Is Lao Feng Xiang facing regulatory risk in China?

A Chinese NDRC price-fixing probe into Shanghai-based jewellery shops was reported on 19 July 2026, already hitting Chow Tai Fook and Chow Sang Sang shares. Lao Feng Xiang, headquartered in Shanghai, was not explicitly named but faces reputational read-through risk.

Consumer brands · China

Lao Feng Xiang Co., Ltd.

175-year-old Chinese heritage gold and jewelry retailer with 3,000+ stores nationwide.

Losing its protection

Assessed 25 July 2026 · Evidence as of 25 July 2026

The structural protection is eroding.

On the recordSince 25 July 2026 · Checkable from 27 August 2026 · Every call on the record Checkpoint: Next scheduled earnings update

The call

A century-old gold retailer still leads by store count, but Laopu Gold's premium fixed-price model is eating the profitable end of its business.

Lao Feng Xiang sells gold jewelry and has 3,000 stores across China, backed by a 175-year reputation. A newer rival called Laopu Gold is stealing its profitable customers by charging a fixed price instead of basing price on weight, and Lao Feng Xiang's sales have fallen 26% over two years while its profit margins stay paper-thin at 3.4%. The key thing to watch is whether Laopu Gold can grow from about 33 stores to 150-200 stores quickly. If it does, Lao Feng Xiang's best customers and profits may disappear for good.

Why

AI pressure: None apparent. No AI product currently reshapes gold jewelry retail; competition here runs on pricing model and craftsmanship, not algorithms. Could AI do the core job? Unlikely.

Bigger players: Laopu Gold. Laopu Gold's fixed-price premium jewelry pulls affluent buyers away as Lao Feng Xiang's weight-based pricing gets squeezed by record gold prices. Could a giant copy it? Probably.

What protects it. 3,000+ stores, a 175-year name, and state-recognized craft heritage keep it China's second-largest jeweler despite the squeeze.

What would change this call

Laopu Gold's boutique count crossing 100-150 stores in tier-1/2 cities within 24 months. Would show the fixed-price model is scaling and taking share permanently.
Lao Feng Xiang revenue growth or decline in FY2026 annual results. Shows whether the multi-year revenue slide has bottomed or continues.
Any NDRC price-fixing probe formally naming Lao Feng Xiang. Would signal regulatory risk compounding the competitive pressure on margins.

Key numbers

FY2025 revenue fell 7% YoY to CNY 52.82 billion (2026-07-10)
Net margin just 3.4%, ROE 13.3% (2026-01-01)
Laopu Gold has ~33 boutiques vs its 3,000+ stores (2026-01-01)

Named risks

Revenue decline of roughly 26% cumulative FY23-FY25 amid record gold prices squeezing volumes. Severity: high
NDRC price-fixing probe into Shanghai jewellers reported July 2026 poses regulatory read-through risk. Severity: medium
Laopu Gold's fixed-price heritage model eroding Lao Feng Xiang's high-margin segment. Severity: high
Razor-thin 3.4% net margin leaves little buffer against further gold price or demand shocks. Severity: medium
Unconfirmed AI glasses venture with ByteDance repeatedly denied, creating reputational and strategic uncertainty. Severity: low

Rivals, as read in July 2026

Rival	Direction	Evidence
Laopu Gold	losing to	Laopu H1 2025 revenue up 251% YoY to CNY 12.35 billion vs Lao Feng Xiang down 16.5% same period
Chow Tai Fook	losing to	Chow Tai Fook holds ~8% China jewellery market share in 2025 vs Lao Feng Xiang's ~6%, per Euromonitor
Luk Fook Holdings	contesting	Luk Fook FY2023-24 revenue ~HK$15.3bn with 3,240+ mainland shops as of Jan 2024
Shanghai Yuyuan Tourist Mart (Laomiao Gold)	contesting	Yuyuan third-party-reported revenue ~CNY 37.24 billion, below Lao Feng Xiang's ~CNY 52.82 billion FY2025
China National Gold Group	losing to	China National Gold third-party-reported revenue ~CNY 74.16 billion, exceeding Lao Feng Xiang's FY2025 figure

Questions people ask

Is Lao Feng Xiang profitable in 2026?: Yes but thinly. Net profit margin is around 3.4% with ROE near 13.3%. H1 2025 net income fell 13.1% YoY to CNY 1.22 billion as revenue dropped 16.5% to CNY 33.36 billion, squeezed by record gold prices and volume declines.
Is Lao Feng Xiang's revenue declining?: Yes, sharply. FY2023 revenue was about CNY 71.2 billion, falling to CNY 56.55 billion in FY2024 and CNY 52.82 billion in FY2025, a roughly 26% cumulative decline over two years, driven by record gold prices squeezing volumes.
Who is Lao Feng Xiang's biggest competitor threat?: Laopu Gold, a fixed-price heritage-luxury jeweler founded 2009, grew H1 2025 revenue 251% YoY to CNY 12.35 billion with profit up about 291%, while Lao Feng Xiang's revenue fell 16.5% YoY in the same period.
Could AI replace Lao Feng Xiang's core business?: No. Hand craftsmanship, gemstone setting, and physical gold retail built on trust and hallmarking are largely AI-immune. Lao Feng Xiang's reported AI glasses venture with ByteDance's Doubao, first reported June 2025, was denied by ByteDance again in January 2026 and remains unconfirmed.
How many stores does Lao Feng Xiang have compared to Laopu Gold?: Lao Feng Xiang operates over 3,000 to 4,000 stores worldwide as of July 2026, versus Laopu Gold's roughly 33 boutiques as of March 2025, though Laopu's fixed-price model is capturing disproportionate growth.
Is Lao Feng Xiang facing regulatory risk in China?: A Chinese NDRC price-fixing probe into Shanghai-based jewellery shops was reported on 19 July 2026, already hitting Chow Tai Fook and Chow Sang Sang shares. Lao Feng Xiang, headquartered in Shanghai, was not explicitly named but faces reputational read-through risk.

Timeline

2026-07-19NDRC price-fixing probe into Shanghai jewellery shops reported, hits Chow Tai Fook and Chow Sang Sang shares
2026-07-10Q1 2026 revenue reported at CNY 13.74 billion, down 21.6% quarter over quarter
2026-01-11ByteDance again denies imminent Doubao AI glasses launch despite Lao Feng Xiang supply-chain reports
2025-12-15FY2024 revenue confirmed at CNY 56.55 billion, down 20.6% YoY per WSJ data
2025-09-03H1 2025 revenue reported down 16.5% YoY to CNY 33.36 billion, net income down 13.1%
2025-07-27ByteDance Volcano Engine publicly denies AI glasses collaboration with Lao Feng Xiang
2025-06-12SCMP reports Lao Feng Xiang developing AI-powered smart glasses with ByteDance's Doubao for elderly consumers
2009-07China First Pencil Co., Ltd. renamed Lao Feng Xiang Co., Ltd. after absorbing jewelry business
1992-05-20Listed legal entity incorporated as China First Pencil Co., Ltd.
1848Original Lao Feng Xiang jewelry shop founded in Shanghai

Head to head

Chow Tai Fook Jewellery Group Limited vs Lao Feng Xiang Co., Ltd.

Revision history

25 July 2026

First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.

In the same band

PVH VF Kering