At noon on August 20, Lao Pu Gold (HK: 6181), known as the “first stock of Traditional Gold Craftsmanship,” released its financial report for the first half of fiscal year 2025: revenue surged by 251.0% year-on-year to RMB 12.354 billion [USD 1.695 billion] (2024 same period: RMB 3.52 billion).
In terms of profitability, gross profit increased by 223.4% year-on-year to RMB 4.705 billion [USD 645.6 million]. However, due to the unilateral and rapid rise in gold prices and the fact that the company adjusted its prices only once in February, the gross profit margin slightly declined to around 38.1%. Benefiting from the scale effect generated by explosive growth in performance, net profit rose by 285.8% year-on-year to RMB 2.268 billion [USD 311.1 million].
Driven by performance, on August 20 the company’s stock price rose by 8.84% to HKD 782 per share, with a total market capitalization of HKD 135 billion. Since the beginning of this year, the stock price has risen by 222% in total.
The company stated in the financial report that the significant increase in revenue and profit was mainly attributable to three core factors:
Factor one: the continuous expansion of brand influence has created a significant market advantage, leading to a substantial increase in overall revenue from both online and offline stores.
Lao Pu Gold has established a prominent brand position and brand influence by leveraging its first-mover advantage.
- Omnichannel layout: During the reporting period, offline stores remained the main source of revenue, contributing RMB 10.736 billion [USD 1.472 billion], accounting for 86.9% of total revenue. Meanwhile, online platforms served as a strong supplement, achieving revenue of RMB 1.618 billion [USD 222 million], with its share rising to 13.1%, a year-on-year increase of 313.3%, demonstrating strong growth potential.
- Leading store efficiency: In the first half of 2025, Lao Pu Gold achieved average sales of approximately RMB 459 million [USD 63.0 million] per shopping mall. According to data cited in the financial report from Frost & Sullivan, Lao Pu Gold ranks first in terms of average revenue and revenue per square meter per mall among all jewelry brands (including international and domestic brands) in the Chinese Mainland.
- Outstanding performance of online channels: Although the company mainly focuses on offline channel sales, during the 2025 Tmall 618 shopping festival, its Tmall flagship store topped the sales ranking in the gold category, with transaction volume exceeding RMB 1 billion [USD 137.3 million]. During the reporting period, total online sales reached RMB 1.943 billion [USD 266.4 million].
- Loyal members and high-end customer base continue to expand: As of the end of June 2025, the company had approximately 480,000 loyal members, an increase of 130,000 compared to the end of 2024. According to data cited in the financial report from Frost & Sullivan, Lao Pu Gold consumers have an average overlap rate of up to 77.3% with the consumers of the top five international luxury brands, validating the brand’s high-end positioning.
- Strong same-store growth momentum: The expansion of brand influence has led to sustained high growth in same-store revenue. Compared to the same period in 2024, the same-store sales growth rate was approximately 200.8%.
Factor two: continuous optimization and innovation of the group’s products supported the sustained growth of online and offline revenue.
Lao Pu Gold adheres to originality, values product R&D innovation and upgrades, and continues to launch competitively distinctive products.
According to the financial report, as of the end of June 2025, the company had created more than 2,100 original designs, held 273 domestic patents, 1,505 design copyrights, and 246 overseas patents. As the first brand in the industry to launch “24K Gold with Diamond Inlay” and “Gold with Enamel” products, the company continues to lead industry trends.
From the perspective of product categories, the company’s revenue is almost entirely derived from gold product sales. During the reporting period, 24K gold products (including plain gold and inlaid gold products) achieved revenue of RMB 12.346 billion [USD 1.694 billion], accounting for 99.9% of total revenue, a year-on-year increase of 250.9%, once again confirming its professional leadership in the field of traditional handcrafted gold jewelry.
Factor three: accelerated expansion and optimization of the channel network, with a key step taken toward brand internationalization.
Lao Pu Gold possesses strong capabilities in channel expansion and can systematically open new stores in well-known commercial centers with strict entry requirements.
As of the end of June 2025, the company had opened 41 self-operated stores across 16 cities, all located in 29 well-known commercial centers, including 6 SKP malls and 11 MIXC malls. During the reporting period, the company added 5 new stores and optimized and expanded 2 existing stores. Meanwhile, the opening of the Shanghai IFC store marked Lao Pu Gold’s entry into 9 of the top 10 leading commercial centers in China.
In terms of regional distribution, the Chinese Mainland market remains the core, contributing revenue of RMB 10.758 billion [USD 1.475 billion], accounting for 87.1%. Notably, overseas business revenue experienced explosive growth, increasing by 455.2% year-on-year to RMB 1.597 billion [USD 219.1 million], with its revenue share rising to 12.9%. Among them, the opening of the Singapore Marina Bay Sands store on June 21, 2025, marked the company’s first overseas store and a significant step in its strategy of “brand internationalization and market globalization.”
| Source: Company Financial Report
| Image Credit: Company Website
| Editor: LeZhi
