LAOPU GOLD (06181) shares plummeted 16.75% in intraday trading on Tuesday, as the company's latest positive profit alert for the first half of the year failed to impress investors and instead highlighted a sharp sequential slowdown in the second quarter.

The sell-off was triggered by the company's H1 positive profit alert released on July 27, which forecast non-IFRS adjusted net profit of approximately RMB 4.31 billion to 4.36 billion, representing a year-over-year increase of 83% to 85%, with revenue of RMB 19.8 billion to 20.5 billion, up 60% to 66%. While these headline figures indicate robust annual growth, they masked a material sequential decline in Q2 revenue from Q1 and fell notably short of UBS's prior forecast of 93% revenue growth and 118% net profit growth for the half. The deceleration was attributed to gold price declines during Q2, which dampened consumer spending. Management indicated it has implemented promotional measures including more attractive purchase incentives and lower-priced new products to counter the headwind.

Adding to the concerns, Goldman Sachs had previously flagged that the company's Tmall flagship store sales plunged 63% year-over-year in Q2, reversing a 155% surge in Q1, further underscoring the sharp slowdown in consumer demand during the period.