Laopu Gold Stresses Resilience Amid Slowdown

Laopu Gold, a Chinese jewelry brand often referred to as the 'Hermes of gold', reported slower growth in its first-half earnings due to a decline in China's gold demand. Despite a 60.3% increase in revenue to RMB 19.8 billion (USD 2.9 billion) and an 88.2% rise in net income to RMB 4.27 billion (USD 633.9 million), the company fell short of analyst estimates.

Laopu's executive director and vice general manager, Feng Jianjun, attributed the growth slowdown to a complex macroeconomic environment and gold price fluctuations. However, he emphasized that the brand has maintained its lead over both domestic and international jewelry brands, with average sales exceeding RMB 500 million (USD 74.2 million) per store during the six-month period.

Laopu's loyalty program saw a 20% increase in membership to 730,000 as of June 2026, despite a 41% decline in China's gold demand during the same period. The company has rolled out various measures to boost sales since July, including bundled gifts and enhanced member perks.

Founder and Chairman Xu Gaoming expressed confidence that Laopu has established strong brand pricing power and forecasted continued growth in gold prices from the third quarter through next year. The company plans to expand its presence in Southeast Asia for the remainder of 2026 and make 'aggressive' forays into overseas markets, including the US, Canada, France, and the UK.