Laopu Gold’s cooling growth tests its luxury credentials

What happened Laopu Gold expects first-half adjusted net profit to rise as much as 85% year-on-year, a marked slowdown from a year earlier, as demand for its jewelry came under pressure in recent months amid dropping gold prices, Bloomberg reported today. The Beijing-based jeweler said non-IFRS adjusted net profit is projected to reach 4.31 billion RMB to 4.36 billion RMB ($637 million to $644 million), according to a filing to the Hong Kong Stock Exchange. Revenue rose about 60% to 66% in the six months ended June, to as much as 20.5 billion RMB ($3.03 billion). That compares with revenue growth of 221% a year earlier. The Jing Take The profit warning lands at a delicate moment. Laopu Gold’s shares have fallen 54% from their July 2025 peak, wiping out more than HK$100 billion ($12.85 billion) in market value. The fixed-price model that powered its ascent — charging a premium of roughly 55% over traditional jewelers for design and craftsmanship — worked while gold climbed. In a falling market, counter-cyclical price hikes, including a February increase of more than 20% on some items, have tested shoppers’ patience, and inventory has swelled to 16 billion RMB ($2.21 billion). Analysts are split: Citi is bearish, while JPMorgan argues the market underestimates the brand’s ability to manage gold-price volatility. Competition is intensifying, too. Rivals Jemper, Borland, and Linchao — grouped with Laopu as the “four sisters” of heritage gold — now operate in at least 19 of the 32 mainland malls where Laopu has stores, betting that ancient goldsmithing is not one company’s to claim. China’s gold jewelry demand stratifies as buyers split by budget Yet the slowdown says as much about the market as it does about the brand. China’s gold jewelry demand is stratifying rather than shrinking: World Gold Council data shows jewelry volumes fell 25% in 2025 even as bar and coin purchases jumped 28%, while spending on gold jewelry still rose 8%. High-net-worth individuals continue to treat heirloom-grade pieces as stores of value — gold has ranked as their top investment choice for three consecutive years, according to the Hurun Chinese Luxury Consumer Survey, which now places Laopu third among their most favored jewelry brands. Mainstream buyers, meanwhile, are trading down to lighter, sub-10-gram pieces. That bifurcation is why Western maisons are watching. Richemont has name-checked Laopu on analyst calls for two consecutive years, reading its rise as evidence that Chinese consumers respond to fresh narratives and genuine craft. Luca Solca, managing director and global head of luxury goods at Bernstein, has argued that Laopu’s achievement lies in elevating China’s long tradition of 24-karat gold jewelry into a contemporary, compelling high-end value proposition. The first half now poses the harder question: does that proposition hold when gold no longer does the heavy lifting? Every genuine luxury house eventually faces its first downcycle, and Laopu’s 37.6% gross margin — well below Richemont’s 60% to 70% — shows how much brand equity it still has to build. How it defends its pricing power through this stretch will reveal whether China has produced a luxury champion, or a beneficiary of a once-in-a-generation gold rally. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

Laopu Gold’s cooling growth tests its luxury credentials

How Bottega Veneta weaved China’s forever it bag

Upgrade to Pro

Sectors

Insights

Company

Laopu Gold’s cooling growth tests its luxury credentials

How Bottega Veneta weaved China’s forever it bag