Despite Uncertainties, We Expect Gold Price Recovery to Support Laopu Gold's Revenue Growth

In recent years, Laopu Gold has pioneered the development and retailing of heritage gold products, which combine traditional Chinese cultural elements with intricate manufacturing techniques. We think Laopu has effectively appealed to affluent customers in China through trendy product design, sophisticated craftsmanship, and luxury-oriented brand positioning. Following its initial success in China’s wealthy cities, Laopu now views established luxury brands such as Richemont’s Cartier and Van Cleef & Arpels as key competitors. That said, we expect it will take time for the firm to approach these global peers in terms of brand prestige.