Dear Investor.
Zee here. Gold just hit a high of USD4,300, which was a +57.09% gain for the past 1 year.
However, in the span of just eighteen months, a Beijing-based Gold jewelry company has accomplished what most investors only dream of: turning a modest HK$40,000 into a staggering HK$750,000. That’s an extraordinary 1,100% surge in value. This isn’t a lottery ticket or a speculative gamble.
This is Laopu Gold Co Ltd (HKG: 6181), and since its Hong Kong listing in June 2024, it has fundamentally altered how investors think about China’s luxury jewelry sector. The numbers alone are eye-catching. But they barely scratch the surface of what’s really happening beneath the surface, a perfect storm of market timing, consumer demand, and strategic positioning that’s reshaping an entire industry.
While others are still trying to understand the story, savvy investors are already asking: what’s fueling this explosive growth, and is there still opportunity ahead?
The answer lies in seven transformative factors that explain why this luxury gold jeweler isn’t just riding a wave, it’s creating one.
On 28 Oct, we’ll be conducting a live webinar “Investing in Q4 2025 – Opportunities and Risks”. We’ll also break down a stock that’s recently dropped but may be setting up for a turnaround.
1. Not Your Grandmother’s Gold Jewelry
Laopu Gold operates completely differently from traditional gold retailers. While competitors like Chow Tai Fook and Luk Fook sell jewelry based on weight plus processing fees, Laopu Gold functions like a luxury fashion brand.
The company specializes in “ancient technique gold”, pieces created using traditional Chinese craftsmanship methods dating back centuries, featuring imperial designs and Buddhist motifs. Prices are fixed and deliberately disconnected from daily gold price fluctuations, much like how a Hermès Birkin bag maintains its value regardless of material costs.
2. Profitability That Outpaces the Competition
The numbers tell an impressive story. In 2024, Laopu Gold achieved a gross profit margin of 41.2%, nearly double that of Chow Tai Fook (24%) and dramatically higher than competitors like Lao Feng Xiang (9%). This extraordinary profitability reflects the company’s premium positioning and strong pricing power in the market.
3. Premium Per Store Performance
Laopu Gold generates over CNY300 million (~USD42 million) in annual revenue per store, the highest-performing jewelry brand per location in China. This efficiency is remarkable considering the company operates just 36 boutiques, all strategically located in premium shopping malls alongside luxury brands like Louis Vuitton and Cartier. The scarcity approach creates an Hermès-like exclusivity that keeps customers coming back.
4. Customers Queue for Hours
The brand’s appeal is undeniable. During Chinese New Year 2024, customers waited up to eight hours outside Laopu Gold stores. This level of demand is a sign of powerful luxury branding and exceptional product-market fit.
Additionally, the company raises prices 2-3x annually regardless of gold market movements and refuses to offer discounts, maintaining premium positioning. Laopu’s gold sells for over CNY1,200 per gram compared to competitors’ typical CNY900 per gram, which is a 33% price premium.
5. Explosive Growth Trajectory
The financial growth has been extraordinary. Revenue exploded 168% from 2014 to CNY8.5 billion in 2024, while net profits surged 254% to CNY1.5 billion.
Management projects another 241-255% revenue growth for the first half of 2025, with net profit growth of 279-288%. Same-store sales grew over 120% in 2024, and the company targets CNY1 billion in average store revenue, potentially tripling its current performance.
6. Going Global with International Expansion
Laopu Gold is taking its luxury positioning worldwide. The company opened its first overseas store at Singapore’s Marina Bay Sands in June 2025, with reports of 1-2 hour wait times during peak periods. This signals strong international appeal.
The expansion strategy includes Tokyo store openings in 2026, four Southeast Asian stores by 2026, and potential expansion into other international markets. Global expansion could unlock massive valuation growth if investors see this as a genuine international luxury brand rather than just a Chinese domestic story.
7. Impressive Returns and Future Dividend Potential
Laopu Gold’s return on equity (ROE) reached approximately 54% in 2024, more than double that of industry peers. While the company’s first dividend yield was modest at just 1% (HK$6.88 per share), this signals management confidence in future profitability.
Historically, early-stage dividend payments are often an indicator that a company expects to reward shareholders more generously as the business matures. If the global expansion strategy succeeds and profitability continues climbing, investors could see substantial dividend growth.
The Bottom Line
Laopu Gold has successfully positioned itself as China’s premier luxury jewelry brand, commanding premium pricing and customer devotion rivaling established fashion houses.
With explosive growth, high profitability margins, and ambitious international expansion plans, the company represents a unique play on Chinese luxury consumption.
However, investors should note the stock trades at a 32x forward PE ratio, a premium valuation that leaves little room for disappointment.
Those betting on continued Chinese luxury brand dominance globally may find this growth story compelling.
All information here is for educational purposes only. This is not financial advice. Please do your own research and speak with a licensed advisor before making any investment decisions. Past performance is not indicative of future returns. How we invest may not suit your investment goals and risk management profile.