Laopu Gold, a high-end Chinese heritage-style gold jeweler, has seen its market value plummet by half from its July 2025 peak of over HK$180 billion, settling around HK$80 billion as of June 2026. This significant decline follows a 221% revenue surge in 2025 to 27.3 billion yuan, which was fueled by rising gold prices, store expansion, and increased brand recognition among Chinese consumers.
The downturn in 2026 is largely attributed to weakening tailwinds. International gold prices have retreated since late January, almost erasing year-to-date gains and returning to 2025 levels by early June. In response, Citi revised its fiscal 2026 revenue forecast for Laopu Gold down by 6% to 37.7 billion yuan. The company itself acknowledged that falling gold prices can dampen consumer sentiment, though lower gold costs might boost gross margins, making the previous rapid revenue-growth pace difficult to maintain.
Sales visibility has also diminished, with Laopu Gold not disclosing detailed sales figures since the start of the second quarter. Citi noted that while May sales were likely stronger than April due to holiday promotions, the company's Tmall 618 campaign appeared weaker than anticipated. Observations from Jiemian News also indicated less customer activity in Shenzhen stores, contrasting with previous bustling scenes. The jeweller's premium pricing, whichCiti noted has increased to over 55% above traditional gold retailers (up from 10% in 2025 and 30% in 2024), may be contributing to the pressure as gold prices are no longer climbing.
