Laopu Gold (06181) saw its shares decline more than 3% during trading, with the stock last down 3.1% at HK$362.80, recording a turnover of HK$401 million.

According to calculations based on the company's first-quarter profit forecast, Laopu Gold generated estimated revenue of HK$2.3-3.3 billion in the second quarter, with net profit ranging between HK$467-667 million. This marks a significant sequential drop from the first quarter, primarily due to the sharp decline in gold prices during the period.

Company founder Xu Gaoming has repeatedly stated publicly that Laopu Gold does not employ any hedging instruments to mitigate gold price volatility risks. He argues that "adopting hedging strategies equates to abandoning the brand strategy," advocating instead for enhancing brand premium to offset the impact of gold price fluctuations.

A research report from JPMorgan noted that Laopu Gold's second-quarter sales slowdown leans more toward being cyclical rather than structural. While short-term sales performance remains dependent on gold price movements, the Mid-Autumn Festival and National Day holidays will serve as the next crucial observation point, the bank believes the company's brand competitiveness and mid-to-long-term profitability remain solid.