Editor’s Note
Mingpai Jewelry’s forecast of a multi-billion-yuan net loss for 2025 signals severe financial distress, with the projected decline exceeding 1,600% year-on-year. This stark reversal from prior profitability underscores significant challenges within the company and the broader jewelry retail sector.
Mingpai Jewelry (002574) recently released its performance forecast, stating that it expects a full-year net profit attributable to shareholders of between -2.8 billion yuan and -3.8 billion yuan for 2025. This represents a significant decline of 1657.50% to 2213.75% compared to the profit of 179.775 million yuan in the same period last year. The company also expects a non-GAAP net loss of between -3 billion yuan and -3.9 billion yuan, compared to a loss of -1.78 billion yuan in the previous year.
Financial reports show that for the first three quarters of 2025, the company’s operating revenue was 2.62 billion yuan, a year-on-year decrease of 25.4%. The net profit attributable to shareholders was a loss of 107 million yuan, a decrease of 1502.1% year-on-year. Based on calculations, the company’s net loss attributable to shareholders for the fourth quarter alone reached between 173 million yuan and 273 million yuan.
Mingpai Jewelry’s loss-making “annual report card” stands in stark contrast to the profits reported by its peers in the industry.
For 2025:
– DR Corporation (Dia) expects a net profit attributable to shareholders of 128 million yuan to 147 million yuan, a year-on-year increase of 140.98% to 176.30%.
– Chow Tai Fook Jewellery Group (Chow Sang Sang) expects a net profit attributable to shareholders of 436 million yuan to 533 million yuan, a year-on-year increase of 125% to 175%.
– Cuihua Jewelry expects a net profit attributable to shareholders of 21 million yuan to 31 million yuan, a year-on-year decrease of 85.69% to 90.31%.
Regarding the performance change, Mingpai Jewelry explained that during the reporting period, the photovoltaic (PV) industry is still in a cyclical downward adjustment phase. Competition in the PV cell industry is fierce, and product prices remain low. Additionally, the depreciation of fixed assets related to the company’s PV cell business increased compared to the same period last year, and the company plans to make asset impairment provisions, leading to increased losses in the PV cell business.
The amount of the proposed asset impairment provision has not been audited. The final amount will be based on the company’s disclosed 2025 annual report.
Public information shows that Mingpai Jewelry is primarily engaged in the design, R&D, production, and sales of mid-to-high-end precious metal and gemstone jewelry products such as gold and platinum. Its core business is the chain management of the “Mingpai Jewelry,” “Mingpai Family Heirloom Gold,” and “Mingpai Little Golden Joy” brands. The company was listed on the Shenzhen Stock Exchange on April 2, 2011.
Tracing back to February 2023, the company announced an investment plan for the “super factory” project of Riyue PV Cells, marking its cross-sector entry into photovoltaics. However, as the core subsidiary producing PV cells, Riyue Solar Energy incurred a loss of 274 million yuan in 2024, significantly dragging down the company’s overall performance.
Looking at its performance in recent years, Mingpai Jewelry’s revenue has remained above 3 billion yuan, but its net profit has shown significant volatility. In 2020, 2021, 2022, and 2024, the company’s net profit attributable to shareholders was -257 million yuan, 137 million yuan, 159 million yuan, and 17.98 million yuan, respectively.
Furthermore, since 2019, the company’s non-GAAP net profit has been consistently negative, with profitability achieved only in 2023.
In the secondary market, as of the close on February 5, Mingpai Jewelry’s stock fell 1.54% to 6.39 yuan per share, with a total market capitalization of approximately 3.374 billion yuan. The company’s stock price has accumulated an increase of about 40% over the past year.