Laopu Gold Revenue Skyrockets 221% to 27.3B RMB

Revenue Triples to 27.3B RMB, Exceeding Forecasts

On March 23, Laopu Gold reported extraordinary full-year 2025 results that significantly outperformed market expectations. The luxury retailer's revenue rocketed 221% year-over-year to 27.30 billion RMB, beating the 26.9 billion RMB consensus estimate. Net profit for the year reached 4.87 billion RMB, also edging past the projected 4.82 billion RMB. In a show of confidence, the company announced a final dividend of 11.95 RMB per share.

This powerful performance stems from an aggressive physical expansion strategy. In 2025 alone, Laopu Gold opened 10 new boutiques and upgraded nine existing locations, expanding its footprint in China's top-tier shopping centers. As of February 2026, the company operates approximately 50 stores, cementing its market leadership in the ancient-craft gold segment.

Gross Margin Shrinks to 38.1% as Gold Costs Climb

The company's sales benefited from a strong macro tailwind, as spot gold prices increased nearly 65% during 2025. This surge enhanced the appeal of gold jewelry as both a luxury purchase and a store of value for consumers. The strong demand enabled Laopu Gold to achieve record top-line growth.

However, the same rising commodity prices that fueled consumer interest also squeezed the company's profitability. The cost of raw gold cut into margins, causing the gross margin to contract to 38.1% in the first half of 2025 from 41.3% in the same period a year earlier. This highlights the fundamental challenge for retailers of balancing high sales volume against rising input costs in a volatile commodity market.

Global Expansion Planned for 2026 Amid Price Volatility

Looking ahead, Laopu Gold is planning to build on its domestic success with international expansion. The company intends to open three to four overseas stores in 2026, with a focus on key Asian markets such as Japan and Singapore. This move tests the brand's ability to compete on a global stage.

This expansion plan proceeds even as the gold market shows signs of volatility. On March 20, domestic gold jewelry prices experienced a sharp downturn, falling by approximately 100 yuan per gram over two days. While Laopu's annual results demonstrate its ability to capitalize on a bull market, investors will be watching closely to see how its margins and growth strategy hold up against potential price fluctuations in the coming year.