Laopu Gold, China's "Hermes of gold" soared 7% on Thursday. The jewelry maker soared more than 2,300% since its listing in late June 2024 to set a new record last Thursday, emerging as the new face of Chinese luxury and outperforming over 500 peers in the Hang Seng Composite Index. Its share price far surpasses the second-most expensive stock in Hong Kong: bubble tea maker Mixue Group which is trading at around HK$538.

Laopu Gold is a notable outlier in China's luxury goods market, which has been hammered by an extended consumer malaise due to concerns over job and wage security and a prolonged property slump.

The company has blended Chinese cultural elements within contemporary designs to emerge as a uniquely homegrown luxury brand. The strategy has been fortified by its use of gold, considered a safe investment by Chinese consumers during periods of instability.

But a source with direct knowledge of Laopu's business said its annual sales approached 10 billion yuan in 2024, up from 3.18 billion in the previous year.

"Laopu's average store revenue is nearly 300 million yuan, compared to the average single-store revenue of most international jewellery brands in China, which generate around 100 to 200 million annually," the source said.