Gold laopuA Beijing jeweler known for his handmade accessories, has emerged as a favorite among affluent users.
With only 36 stores in China's largest, the company listed in Hong Kong sold 3.5 billion yuan (US $ 482.7 million) value of pure gold jewelry and a gem set in the first half of 2024, up 148 percent from a year earlier, according to his temporary report. His net profit made Skyrocio nearly 200 percent to reach 588 million yuan during the same period.
Laopu Gold's shares are up more than 550 percent since the company's trade appearance in June, reaching a peak of HK $ 457 (US $ 58.7) on Tuesday.
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With gold prices on the rise For nearly a year and consumer feel remains subject to China's slowdown, the demand for mass market gold jewelery has been declining. But Laopu's performance is “very different,” in the sense that it “focuses entirely on the high -end market,” said Richard Lin, the leading consumer analyst at SPDB International, an investment bank.
“Wealthy consumers are not only affected by wider economic conditions, but more importantly, unlike the ordinary consumer who buys gold as an accessory or for consumption, they also consider the value of investment Gold products, “he said.
Laopu's success can be attributed in part to its pricing model. Unlike a competitor Chow Tai Fook jewelry – selling most of its gold accessories based on a dynamic pricing model that rises and falls with the yellow metal – laopu follows a “fixed price” model, where prices remain the same even though they are Includes a high mark to reflect the complex of the workmanship company.
To laopu, this means more profit. According to his interim report, the company's gross edge reached 41.3 percent in the first half of 2024, compared to about 20 percent for Chow Tai Fook.
“With a gold price now approximately 600 yuan (US $ 82.30) per gram and likely to keep up, many consumers think, as we have to pay extra for the brand and craftsmanship anyway, maybe That we will also choose laoping given the quality of its products, “said Lin. “So fundamentally this is about brand power.”
A laoping appeal among the young and affluent is also attached to its promotion of “Heritage Gold” – a form of pure gold jewelery that fuses ancient crafting techniques, Chinese culture and design elements inspired by the Fuddic faith.
Sheila Zhang, a financial professional from Beijing, bought a prayer wheel necklace that cost around 20,000 yuan in January. She said her first impression of Laopu was that it was “very different from the other brands”.
Shoppers at an outdoor center in Beijing. Photo: app alt = shoppers at an outdoor center in Beijing. Photo: AP>
The shop he visited at Wangfujing, a commercial area of the city center, offers two main categories of jewelery: one containing traditional Chinese accessories and taoism, and another focusing on Buddhism.
“For the most part, laoping is very simple and clear in its offerings, which, compared to other brands that overwhelm you with options, is surprising makes it easier to make a choice,” he said. “I liked it a lot, because his style is very unique.”
Zhang is not the only person who feels this way. On Rednote, the Chinese social media app that recently arose to international fame due to the US collision on Tiktok, there have been more than 1.2 million jobs including the hashtag “Laopu Gold.” These posts include elaborate necklace craftsmanship and jeweler rings, as well as videos of long queues outside their shops.
“I really like this brand. I have to work hard to make more money,” one consumer wrote a Rednote named Yoyo Zaizai, who posted a picture of herself wearing a pendant trophy gold. “It's so beautiful. Once you start buying a laopu, you can't escape the 'pool.'”
With a gold price striking a highest ever this week, triggered according to the demand for secure homepage assets in the center of turmoil triggered by US tariffs, Laopu Gold stands for benefit. China International Capital Corporation predicted in October that the company's net profit could reach 1.7 billion yuan in 2025, adding that, in 2026, it could hit 2.3 billion yuan.
But the risk of disadvantage is deviating. With the company's shares rising as gold prices shoot up, Laopu could lose favor among consumers when gold prices begin to fall.
“When that happens, the question is whether the strength of the Laopu brand can compensate for some negative cycle effect on down gold prices,” Lin said. “It's a possibility.”
