Laopu Gold's Performance Takes Hit as 'Hermes of Gold' Narrative Fails

Laopu Gold, a luxury gold jewelry brand, has been struggling to maintain its valuation after releasing its half-year performance report. Despite seeing a revenue increase of 60% year-on-year to RMB 19.8 billion, the company's actual figure fell at the lower bound of its previously issued guidance.

The report revealed that Laopu's revenue growth was largely driven by a rush purchase wave before the price hike in February, with almost all performance in the first half of the year coming from this period. In contrast, Q2 saw a significant decline in revenue, down 16% to 42% year-on-year.

The company's domestic new store expansion has been suspended, with a focus on upgrading existing stores and expanding overseas. However, even these efforts have not managed to boost Laopu's performance, which remains heavily dependent on the gold price.