Laopu Gold's First-Half Profit Climbed on Higher Revenue, Price Changes

By Megan Cheah

Laopu Gold reported higher first-half net profit that was largely in line with its guidance, thanks to continued revenue growth and product price changes.

The Beijing-based jewelry maker said Tuesday that profit for the six months ended June was 4.27 billion yuan, equivalent to $635.2 million, an 88% increase from a year earlier.

Profitability improved, with net profit margin rising to 21.5% from 18.4%. Sufficient reserves of relatively low-cost inventory at the end of 2025 and product price adjustments implemented at end-February led to better margins, the company said.

Revenue for the period rose 60% to 19.81 billion yuan. The company attributed the growth to its expanding brand influence and continued product optimization. Increased consumption among high-end customers also helped, it said.

Laopu said it ranked second by revenue in mainland China among global luxury brands, citing consulting firm Frost & Sullivan.

The company, known for its Chinese motifs and designs, derives the majority of its revenue from mainland China, where it has strategically set up shop in high-end malls in major cities, cementing its brand status. However, as gold prices have eased from all-time highs in January, concerns about Laopu's sales outlook have grown, pressuring its share price.

Hong Kong-listed Laopu closed 2.1% lower ahead of the earnings, taking year-to-date losses to 37%.

Gold prices have been volatile amid shifting central bank interest-rate expectations and continuing geopolitical tensions stemming from the Middle East conflict. Considered a safe-haven asset, the precious metal typically gains in times of market uncertainty, though the prospect of higher inflation, interest rates and bond yields has taken the shine off the nonyielding yellow metal.

Still, the second-quarter results likely marked a bottom for the jeweler, regardless of the gold-price outlook, Citi analysts said before the results.

They cited improvements in sales from personal shoppers and new customers in July and August, noting that the former were a key driver of sales, while the latter seemed to genuinely appreciate the brand's design and narrative. Laopu is Citi's top pick in the Chinese jewelry sector.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

August 25, 2026 05:44 ET (09:44 GMT)