Laopu Gold Sees Aggressive Expansion Ahead Despite Sector Headwinds
Laopu Gold (Trans), a goldware and jewelry company, announced plans for 'aggressive' expansion in the US and Europe next year. In its FY26 interim earnings call, management stated that while they expect to see growth continue into Q3 and beyond, it will be difficult to meet expectations due to 'triple pressure' from declining sector consumption, a rare gold price plunge, and their own seasonal price hike.
Despite these challenges, the company's sales performance rose 61% year-over-year (YoY) to RMB 22.78 billion, with revenue increasing 60% YoY to RMB 19.8 billion. Net profit soared 84% YoY to RMB 4.32 billion.
Management attributed the growth in gross profit margin (GPM) and net profit margin (NPM) to low-cost inventory reserved by end-2025, a late-Feb 2026 price adjustment, and revenue growth. They also highlighted the importance of product research and development (R&D), stating that new products 'became blockbusters' without providing specific data.
The company's e-commerce channels, primarily on Tmall and JD, accounted for 22% of revenue. Management emphasized the need to balance online and offline sales, warning against an overly high online share due to the brand's positioning as supplementary rather than primary.