The LAOPU GOLD (06181) store, which once required hours of queuing to enter, now hosts only a few scattered customers. Against the backdrop of continuously rising international gold prices, a March 3rd visit by a reporter to the LAOPU GOLD store in Chengdu IFS revealed that the frantic gold-buying frenzy appears to have paused following the price increase. The spectacle of long queues has temporarily come to an end.

On February 28th, LAOPU GOLD implemented its first price adjustment of the year, with increases ranging from 20% to 30%. For example, a 20.8-gram necklace saw its price jump overnight from 47,300 yuan to 60,100 yuan, a surge of 27.6%. Just one day before the price hike, stores across the country experienced a real-life version of "Fast & Furious." A salesperson described the scene that day: "Shortly after the Chengdu IFS mall opened for business on the morning of February 27th, the passageway outside our store was quickly filled with queues." Around the same time, LAOPU GOLD stores in Beijing SKP, Shanghai Yuyuan, and Hangzhou MixC were similarly surrounded by crowds of eager buyers.

However, the excitement lasted only until the price increase took effect. "After the price adjustment, the spectacle of long queues has temporarily ended. Except for certain periods, customers can basically shop immediately upon arrival without waiting in line," the salesperson reported. They also noted that prolonged stock-outs of some best-selling items are another reason for the decline in customer traffic.

An anonymous consumer revealed that the extent of LAOPU GOLD's recent price hike has exceeded psychological expectations, and the excessively high fixed prices are deterring ordinary consumers.

Who, then, is splurging on LAOPU GOLD? Interestingly, behind this gold-buying frenzy is a consumer group with a distinct profile. According to Frost & Sullivan research data, the average overlap rate between LAOPU GOLD consumers and those of five major international luxury brands—Louis Vuitton, Hermès, Cartier, and Bulgari—is as high as 77.3%. This indicates that LAOPU GOLD's target clients have never been ordinary consumers but are precisely targeted high-net-worth individuals.

The question remains: when gold jewelry prices stand at highs alongside international gold prices, will this small segment of consumers, accustomed to luxury goods, continue to purchase as usual?

It was noted that due to sudden international conflicts, international gold prices have continued their sharp ascent. On March 2nd, the spot gold price surpassed $5,400 per ounce, rising over 2% intraday to hit a new high since February of this year. The spot silver price broke through $95 per ounce, climbing about 2% intraday. However, in the afternoon of March 3rd, gold and silver prices experienced a short-term plunge. As of the time of writing, spot gold had fallen below the $5,300 per ounce mark, down 0.48% on the day. With gold price volatility intensifying, market sentiment has cooled.

Amid this roller-coaster gold price movement, LAOPU GOLD, post-price adjustment, seems to have lost its previous allure. Nevertheless, from a performance perspective, LAOPU GOLD's fundamentals remain strong. Financial reports show that for the first half of 2025, LAOPU GOLD's revenue surged 251% year-over-year to 12.354 billion yuan, while net profit jumped 285.8% to 2.268 billion yuan. Both revenue and net profit achieved explosive growth.

In its 2025 interim report, LAOPU GOLD commented on the price adjustment, stating that the company typically adjusts prices two to three times annually. In the first half of 2025, only one adjustment was made in February. Influenced by the sustained rapid rise in gold prices following the adjustment, the company's gross profit margin for the reporting period slightly decreased to approximately 38.1% compared to previous periods. However, this short-term fluctuation in gross margin did not impact the company's earnings. Benefiting from the scale effect generated by explosive performance growth, the company's non-IFRS adjusted net profit margin for the reporting period improved to 19.0%, up from 17.1% for the six months ended June 30, 2024.

In the secondary market, as of the close on March 3rd, LAOPU GOLD's stock price fell, closing at 687 HKD per share, a decline of 4.98%, with a total market capitalization of approximately 121.4 billion HKD.