Lao Pu Gold's 2025 Single Shopping Mall Sales Approached 1 Billion, Gross Margin Declined Due to Rising Gold Prices

Question: Why hasn’t the rise in gold prices affected Lao Pu Gold’s net profit margin growth?

Blue Whale News, March 23 (Reporter Tang Shiyun) Amid a sharp decline in gold prices, Lao Pu Gold released its 2025 annual performance report. The financial report shows that Lao Pu Gold’s revenue for the period was 27.303 billion RMB, a year-on-year increase of 221.0%; parent company attributable profit was 4.868 billion RMB, up 230.5%; gross profit increased by 193.4% to approximately 10.274 billion RMB.

Regarding the new performance high, Lao Pu Gold attributes it in the financial report to: the brand’s absolute market advantage, continuous product optimization and new iterations, store expansion and optimization during the period.

Offline stores are Lao Pu Gold’s core sales channel, accounting for over 82% of total revenue. Over the past year, Lao Pu Gold’s offline stores have continued to penetrate top-tier and new first-tier cities’ commercial centers. By 2025, it plans to add 10 new stores and optimize and expand 9 existing ones, achieving full coverage of key commercial districts such as SKP, MixC, and IFC. Notably, Lao Pu Gold’s first overseas store opened at Marina Bay Sands Shopping Center in Singapore, marking a significant step in international development.

The financial report discloses that in 2025, Lao Pu Gold’s average annual sales per mall nearly reached 1 billion RMB. According to data from Frost & Sullivan, in 2025, among global luxury groups, this group ranked first in both sales per store and sales per square meter in mainland China. From this perspective, Lao Pu Gold has surpassed Hermès.

Among global luxury brands, Lao Pu Gold ranked second in revenue in mainland China in 2025. It is also the only Chinese brand among the top five global luxury groups in revenue in mainland China.

Meanwhile, online platform revenue share increased to 17.1%, with the brand’s influence rapidly penetrating consumer groups beyond first-tier and new first-tier cities. As of December 31, 2025, Lao Pu Gold had 610,000 members, a 74.3% increase year-on-year. Frost & Sullivan’s research shows that the overlap rate between Lao Pu Gold consumers and those of Louis Vuitton, Hermès, Cartier, Bulgari, and other top five international luxury brands increased from 77.3% in July 2025 to 82.4% in March 2026. The original financial report states, “Lao Pu Gold consumers highly overlap with international luxury brand audiences, characterized by high-end consumption, confirming the brand’s premium positioning.”

Despite this, product pricing, production costs, and gross profit margins are still affected by fluctuations in gold prices. The report shows that during the period, gold prices continued to rise—from 633.21 RMB/gram in January 2025 to 979.92 RMB/gram in December 2025, an increase of 54.8%. As a result, Lao Pu Gold’s gross profit margin temporarily dipped to 37.6%, but scale effects drove net profit margin up to 18.4%. This gross margin is significantly higher than other gold companies but still lags behind luxury giants like Hermès (71%) and Richemont Group (67%).

It is worth noting that recent gold market volatility has attracted widespread market attention. Some consumers are curious whether Lao Pu Gold, as a representative fixed-price gold brand, will adjust prices accordingly. While Lao Pu Gold has strong brand advantages and market share, its popularity depends heavily on the soaring gold prices, and it has yet to face the future test of a downward cycle.