Small cap 280.hk King Fook Group ——Gold covered call

$KING FOOK HOLD(00280.HK)

Mainly deals in gold, silver, and jewelry, diamonds.
The directors have deep connections with Chow Tai Fook Group and the Cheng family, but they are just employees with no significant shareholding.

Major shareholder Yeung Chi Shing holds 64.47%, the rest none.

Market cap of 500 million.

Non-current assets 100 million, right of use assets 40 million, debt instruments at fair value through other comprehensive income 30 million
Current assets 900 million, inventory 420 million, cash 280 million
Current liabilities 160 million, gold loans 80 million, payables 50 million
——Gold loans led to a fair value loss of 20 million on gold loans designated at fair value through profit or loss, understood as a short gold mechanism, hit by rising gold prices
——The purpose of gold loans is to hedge the company's gold inventory price fluctuations
——The report did not specify the total gold inventory
——The report is as of 2025.3.31, after which gold prices continued to rise
Non-current liabilities 26 million

Excellent balance sheet structure

I heard some say that some jewelry companies are replacing the weight-based pricing system with a fixed-price system for gold jewelry, bringing high profits.

But King Fook hasn't, the annual report states "selling prices are based on the gold price on the transaction date," and the directors said they are gradually trying: "We have also launched a series of point diamond gold products and fixed-price gold items known for their excellent craftsmanship."

As for the future—rising gold prices may reduce purchasing willingness, and the diamond consensus is collapsing...?

Emm scratching my head, I don't know much about jewelry companies, to study King Fook, should I go to Hong Kong to check out its offline stores?

I might buy a little considering the cash at half market cap, the unknown amount of gold inventory and current gold prices, and the company's stable dividend payments.