Laopu Gold Growth Slows Amid Gold Price Decline

Laopu Gold Co., a Chinese luxury jeweller, reported slower revenue and profit growth in the first half of this year. The company's revenue increased by 60% to 19.8 billion yuan ($2.9 billion), while net income rose by 88% to 4.27 billion yuan. These figures are significantly lower than last year's growth rates of 251% for revenue and over 280% for net income.

The slowdown in growth is attributed to the decline in gold prices, which has reduced demand for luxury goods. Laopu sells all its items at fixed retail prices, resulting in steep premiums when bullion prices retreat. The company implemented multiple price hikes after the gold price drop, further exacerbating the issue.

To mitigate the impact of declining demand, Laopu rolled out measures to support sales, including promotions and discounts on select products. On Alibaba's Tmall store, shoppers received discounts of up to 20% on certain Laopu gold pieces during China's Valentine's Day promotion.