China's Gold Chain Stores Collapse Amid High Prices, Declining Consumption

The Chinese jewelry industry is facing a crisis as several gold chain stores have gone bankrupt in recent months. Qianye Jewelry, a Beijing-based brand listed on the New Third Board, has encountered major financial difficulties after defaulting on employee salaries and struggling to sell products due to high gold prices.

According to Northeast Securities' risk warning announcement, Qianye's actual controllers Lin Mingjie and Gao Xiaosong could not be contacted for unknown reasons. The company's official flagship stores on platforms such as Tmall, JD.com, and Douyin have largely removed products from shelves, with many offline stores closed or vacated.

Qianye's financial report shows a 26.07% year-on-year decline in revenue to 213 million yuan in the first half of this year, with total liabilities reaching 290 million yuan. The company's inventory is valued at 1.535 billion yuan, accounting for 96.56% of its total assets, mostly tied up in gold and jewelry stock.

This is not an isolated incident; Cuihua Jewelry, a long-standing player in the A-share gold sector, received a prior notice of termination of listing from the Shenzhen Stock Exchange due to failing to disclose its annual report within the specified time limit. Hangmin Jewelry has also closed its online stores citing 'strategic adjustment and optimization of online business'.