(Yicai) Feb. 28 -- Chinese gold companies, including jewelry retailer Beijing Caishikou Department Store and miner Zhongjin Gold, said they expect to report higher profit for last year thanks to booming demand for the precious metal. 

Caishikou's net profit was likely between CNY670 million and CNY735 million (USD93.1 million and USD102.1 million) in 2023, up 46 percent to 60 percent from the previous year. Zhongjin expects its annual net profit to have soared 31 percent to 57 percent.

The country’s gold consumption rose 8.8 percent to 1,089.69 tons last year, according to data from the China Gold Association. Jewelry made up 706.48 tons, an 8 percent increase, while bars and coins accounted for 299.6 tons, up 16 percent.

Jewelry makers Guangdong CHJ Industry, Shenyang Cuihua Gold and Silver Jewelry, and Zhejiang Ming Jewelry expect profits in the year ended Dec. 31 to have doubled, according to their most recent earnings forecasts.

With the recovery of China's economy and growth in incomes, the gold market this year may perform better than in 2023, noted Zhang Yongtao, vice president of the China Gold Association. 

But some diamond sellers saw their earnings decline last year. Net profit at DR will likely plunge between 88 percent and 92 percent on poor demand for diamond jewelry, the firm said, as gold's safe haven status spurred demand for the yellow metal and crimped that for diamond-encrusted items.

Diamond company Leysen Jewelry expects its annual net loss to have expanded to CNY76.2 million (USD10.6 million), compared with a CNY39.7 million loss a year earlier.

Editor: Martin Kadiev