Laopu Gold reports increase in annual sales

Laopu Gold Co Ltd has reported a rise in annual sales. In its preliminary earnings announcement, the company estimated tax-inclusive sales of 31 billion yuan ($4.5 billion) to 32 billion yuan, up 216 percent to 227 percent year-on-year. Net revenue is expected at 27 billion yuan to 28 billion yuan, while net profit is forecast at 4.8 billion yuan to 4.9 billion yuan, marking a 226-233 percent increase.

The company projects its revenue to surpass 30 billion yuan for 2025, more than triple the prior year's figure.

Laopu Gold said performance was boosted by "the continuous expansion of brand influence, leading to the dominant market position of the group which resulted in a significantly increased overall revenue from both online and offline boutiques."

Additionally, it said it also benefited from "the continuing optimization, promotion and iteration" of its products which sustained high revenue growth.

Consultancy Frost & Sullivan data show it is the only ancient craft gold brand with full coverage of China's top 10 high-end shopping centers, often securing premium mall locations adjacent to luxury boutiques.

The company saw a visible network expansion last year. Laopu Gold added 10 new stores and optimized nine existing outlets in 2025, accelerating from seven openings and four optimizations in 2024.

As of February 2026, Laopu Gold operates roughly 50 stores across 36 malls, including seven in overseas markets. Emerging rival Jemper has expanded more modestly, opening five stores in 2025, mostly in malls where Laopu Gold is already present.

Rising gold prices have been a tailwind, with spot gold climbing nearly 65 percent in 2025, approaching 1,000 yuan per gram by year-end, compared with sub-600 yuan levels throughout 2024. The surge has supported higher prices and consumer demand for luxury goods perceived as safe-haven or wealth-preserving.

However, profitability faces challenges amid higher gold costs. Laopu Gold's first-half 2025 gross margin dropped to 38.1 percent from 41.3 percent a year earlier, reflecting price pressures. Analysts at Citibank expect 2025 second-half margins to have declined slightly, though potentially less than anticipated.

The company is eyeing East and Southeast Asia for international growth. China Securities' research in February said Laopu Gold plans to open three to four overseas stores in 2026, targeting overseas markets including Japan and Singapore.

Due to a sharp retracement in international gold prices, however, domestic gold jewelry prices tumbled on March 20, with the price per gram for many brands falling to around 1,440 yuan, a drop of about 100 yuan over two days.

wangzhuoqiong@chinadaily.com.cn