Recently, LAOPU GOLD announced another price increase, stating that product price adjustments will take effect on August 25th. Six months ago, the company also raised prices once, with product price increases ranging from 5% to 12%.

Based on past experience, LAOPU GOLD's price increase announcements typically trigger a wave of consumer "buying frenzies," with queue times often exceeding three hours. Is this scenario repeating itself now?

A field visit to two LAOPU GOLD stores in Hong Kong revealed that customer numbers have significantly decreased, with an average wait time of 10-20 minutes to enter and shop, sometimes requiring no queue at all.

Additionally, LAOPU GOLD recently released its interim results, showing that its first-half revenue reached 12.354 billion yuan, a year-over-year increase of 251%; net profit was 2.268 billion yuan, up 285.8% year-over-year; and adjusted net profit reached 2.35 billion yuan, up 291% year-over-year. According to media reports, LAOPU GOLD's Executive Chairman Xu Gaoming made bold statements at the earnings conference: "In the low-end market, imitation and copying can still make a living, but in the high-end market, imitating us is equivalent to seeking death."

The imitation Xu Gaoming refers to comes mainly from Hong Kong's local gold and jewelry giants. Visits to brands like Chow Tai Fook, Chow Sang Sang, and Luk Fook Jewellery revealed that these companies are launching "wars" against LAOPU GOLD across multiple dimensions including style, price, and quality, attempting to reclaim diverted customers and market share.

Sales staff also directly pointed out LAOPU GOLD's purity issues, stating: "Brands like ours can achieve AU9999 (99.99%) 'four-nine fine gold,' while LAOPU sells so expensively but can only achieve AU990 (99%) gold content."

**Price Increase Countdown, Stores Unexpectedly Quiet**

On Canton Road in Tsim Sha Tsui, Kowloon, Hong Kong, luxury brand stores like LV, DIOR, CHANEL, and BVLGARI line the street, creating Asia's most representative luxury skyline.

Visits to LAOPU GOLD's two Hong Kong stores at Harbour City and Silvercord revealed no clear announcements or notices about the current price adjustment upon entering the stores. However, sales staff at both locations confirmed they had "received price adjustment notifications from headquarters."

When asked about specific product categories and ranges for this price increase, sales staff responded that they "have not yet received specific price adjustment details." But they unanimously added that based on past experience, "this range is generally around 5-12%" and "prices are about to increase, so some styles have already started selling out."

Notably, this "price increase" did not trigger the frenzied buying seen in February this year. Observations revealed that while both stores still had full customer capacity requiring queues, the number of people waiting had significantly decreased, no longer showing the long queues requiring 3-4 hour waits, with an average wait time of 10-20 minutes to enter.

A LAOPU GOLD Harbour City sales representative explained: "After the price increase announcement, store traffic increased compared to normal days. Weekends generally see more people requiring queues, while weekdays are manageable, with 80% of consumers being mainland tourists."

A LAOPU GOLD Silvercord sales representative stated: "Right after the price increase notice came out, our store had long queues on weekends, but traffic decreased somewhat afterward. Currently, customers can basically get products on the spot."

**Local Giants "Encircle," Directly Targeting LAOPU's Purity Issues**

Hong Kong's gold market has a long history, having formed scale as early as the 19th century. Benefiting from free port policies and tax-free advantages, Hong Kong gold prices are relatively low with guaranteed purity (usually 999.9 pure gold), attracting global consumers and nurturing local gold and jewelry giants like Chow Tai Fook, Chow Sang Sang, Luk Fook Jewellery, and TSL Jewellery.

Visits revealed that counters of Hong Kong local gold and jewelry brands like Chow Tai Fook, Chow Sang Sang, and Luk Fook Jewellery almost all carry "identical styles" with styles and craftsmanship extremely similar to LAOPU GOLD.

Specifically, these brands' similar styles concentrate on traditional craft categories like ancient gold, chasing, and filigree inlay, with classic imagery like vajras and ancient gourds. Whether in craftsmanship, patterns, or texture, they form "mirror-like" responses to LAOPU GOLD's main product lines.

In these stores, sales staff are quite familiar with LAOPU GOLD's social media "hit products." When a customer wanted to see a "cross vajra" style, Hong Kong sales staff could not only respond quickly but also present multiple sizes for selection, skillfully seizing the sales opportunity to recommend: "Their (LAOPU GOLD's) 'diamond-dotted gourd' is also very popular. We have these styles too. Would you like to see them as well?"

However, this encirclement doesn't stop at "similarity" – the sharper offensive appears in pricing strategies. While LAOPU GOLD announced price increases, Hong Kong local gold and jewelry brands like Chow Tai Fook and Chow Sang Sang simultaneously launched significant discount offers, including aggressive "discounts on discounts" and "store anniversary specials."

This "similar style, better price" combination punch creates powerful customer diversion and encirclement of LAOPU GOLD's core customer base. For example, LAOPU GOLD's classic "diamond-dotted vajra" small pendant has a store price of 22,740 HKD, approximately 20,940 RMB. Similar styles at Luk Fook Jewellery, after "discounts on discounts," cost only around 17,000 RMB.

A jewelry counter sales representative directly stated: "Almost identical styles can save you thousands of yuan here."

Meanwhile, sales staff from these Hong Kong local gold and jewelry giants unanimously expressed concerns about LAOPU GOLD's purity when discussing the brand. "Brands like ours can achieve AU9999 (99.99%) 'four-nine fine gold,' while LAOPU sells so expensively but can only achieve AU990 (99%) gold content."

"Local people don't buy LAOPU GOLD," stated a Chow Sang Sang Hong Kong store sales representative. "In Hong Kong, we consider at least AU999 (99.9%) purity as fine gold. If customers don't like a style anymore, they can return products to us for recycling at current gold prices, directly converting to cash. But LAOPU GOLD, due to purity and other issues, cannot be recycled and calculated this way, which doesn't suit our habits."

**Stock Price "Roller Coaster," Chairman Makes Bold Claims**

On August 20th, LAOPU GOLD released interim results for the six months ended June 30, 2025, showing first-half revenue of 12.354 billion yuan, up 251% year-over-year; net profit of 2.268 billion yuan, up 285.8% year-over-year; and adjusted net profit of 2.35 billion yuan, up 291% year-over-year.

More impressive is its single-store performance. As of June 30th, LAOPU GOLD had 41 stores in 29 leading commercial centers, with average sales performance per mall reaching 459 million yuan, significantly surpassing all domestic and international jewelry brands and leading international luxury first-tier brands.

By the end of the first half, LAOPU GOLD had opened 41 self-operated stores in 16 cities, all located in 29 renowned commercial centers with strict admission requirements, including SKP series (6 stores) and MixC series (11 stores). In the first half of 2025 alone, the company entered 3 new commercial centers.

In July 2025, LAOPU GOLD's stock price broke through 1,100 HKD, becoming the tenth "thousand-dollar stock" in Hong Kong stock history, with year-to-date gains exceeding 20 times. However, this "carnival" came to an abrupt halt. Starting July 9th, LAOPU GOLD's stock price began continuously declining from the high of 1,080 HKD per share. By July 23rd, it hit an intraday low of 765 HKD per share, down over 30% from the historical high of 1,108 HKD per share this month, with the stock price resembling a "roller coaster."

UBS published a report stating that looking ahead to the second half, the bank believes market expectations for LAOPU GOLD's full-year net profit of 5.5 billion RMB remain too high. If gold price momentum slows or stagnates, it will face downside risks, maintaining a "Neutral" rating. Morgan Stanley gave LAOPU a "Neutral" rating, with core logic being whether LAOPU GOLD's overseas story can succeed, with the key being the performance of its first Singapore store.

More sensitive is shareholder reduction pressure. Data shows that on June 28th, 69.0507 million LAOPU GOLD shares were unlocked, representing 39.99% of total share capital, including shares held by 12 shareholders including LAOPU GOLD Chairman Xu Gaoming facing large-scale unlocking.

On August 20th, after LAOPU GOLD released better-than-expected first-half results, the stock price rose over 10% intraday. However, after LAOPU GOLD held its interim results briefing on August 21st, the stock price suddenly plunged, once falling 8%, closing down 3.96% at 751 HKD per share with a total market value of 129.7 billion HKD.

According to media reports, LAOPU GOLD Executive Chairman Xu Gaoming made bold statements at the earnings conference: "In the low-end market, imitation and copying can still make a living, but in the high-end market, imitating us is equivalent to seeking death." He also stated that after price adjustments, LAOPU GOLD's "gross margin will increase somewhat in the second half."

Jewelry industry strategy expert Cui Degan commented: "LAOPU GOLD's frequent price increase strategy remains effective. Its positioning as the 'Hermès of gold' targets the luxury market, and the key to luxury goods lies in continuously creating scarcity."

In his view, this scarcity may partly stem from longer handcraft production cycles and partly from proactive market strategy. "This approach won't exhaust consumer trust because it targets high-net-worth individuals. For this customer segment, frequent price increases actually strengthen brand premium capability and high-end positioning – these are common practices in the luxury sector."

He further analyzed: "The 'handcraft ancient gold' category competition is rapidly shifting from blue ocean to red ocean. Price wars are expected to emerge in early 2026, with resource competition intensifying and product homogenization continuously increasing. To survive the intense price battles of the next two to three years, brands must secure top-three industry positions. If unable to rank in the top three, they need to immediately assess exit or transformation possibilities."