What is Laopu Gold? Its stock soared 2,000% and now it's opened a store in Marina Bay Sands

Business Times

17-07-2025

[SINGAPORE] Up-and-coming Chinese jewellery label Laopu Gold has made waves in the past year with both consumers and investors alike.
There has been rapidly rising demand for its offerings – and a stock price that has soared more than 2,000 per cent since its blockbuster Hong Kong listing at an initial public offering price of HK$40.50 last year. Currently, it is at HK$874.50 as at Wednesday's close.
Analysts are getting bullish on the stock, and one fund manager has trounced more than 90 per cent of his peers by buying into Gen Z-favoured names such as Laopu Gold.
Now, the jeweller is expanding outside of China and has selected Singapore as its first destination, with the opening of its first international boutique at Marina Bay Sands (MBS) marking a key milestone in the brand's ambitious regional expansion strategy.
The Singapore store, which has drawn long queues during peak hours, is the first of four planned outside of China, according to Chinese news media. That is as the company positions itself as a serious contender to global names. It plans to open a store in Japan, but the two other locations have not been confirmed.
A Bloomberg article in July cited analysts saying that Laopu poses a 'serious threat' to Western luxury brands. The owner of Cartier, Richemont, has warned investors about Laopu's rise, according to reports.
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The Singapore store
The Singapore store opened on Jun 21, with its location just outside the MBS casino. Long queues formed during the weeks following its opening.
The store features a product selection based on the existing range, with pricing broadly in line with those at stores in China, UOB KayHian analysts noted.
It also launched a new Gold Cross series for the store opening, incorporating Christian elements.
'The company's Singapore store recorded a two-hour wait time during peak time, with a higher proportion of local customers compared to the tourist-heavy Hong Kong and Macau stores, according to management,' said Nomura in a note on Jul 3.
'Management highlighted that future design direction remains rooted in Chinese aesthetics with heritage gold craftsmanship, but international designers have also been introduced to elevate the product's premium/international perception,' it added.
Unlike the Singapore store, its store in Tokyo will focus on promoting cultural exchange with non-Chinese communities and emphasising finely crafted gold jewellery tailored to local aesthetic preferences, said UOB KayHian analysts.
A different kind of gold business
What sets Laopu apart is fundamentally its pricing model.
Unlike traditional Chinese jewellers that price by weight and link daily pricing to international gold markets, Laopu uses a fixed-price model that factors in design, symbolism and craftsmanship.
Its exclusivity is drawn in part from a strategy pulled from the playbook of its Western competitors.
Rising gold prices have pushed investors towards bullion and coins, and gold jewellery sales in China fell around 24.7 per cent to 532 tonnes. But Laopu twice raised prices on its designer jewellery.
The business again upped prices of these goods by 5 to 12 per cent last month, said a Reuters report.
Laopu is eschewing the spot price for gold to which other domestic competitors peg their selling rates, charging a premium for design and branding.
Nomura highlighted, citing Laopu's management, that its pricing mechanism involves at least two annual price increases, with no reductions even if gold prices fall.
'Management believes that fixed pricing and its proprietary gold designs... could help decouple product pricing from gold price fluctuations. This, according to management, will help maintain Laopu's gross margin trend in the long term,' said Nomura.
Founded in 2009 by Xu Gaoming – then a government clerk in Hainan's fisheries department – Laopu Gold was officially established as a brand in 2016. It focuses on traditional Chinese designs and craftsmanship. Products include jewellery, ornaments, tableware and seasonal gifts, with a strong emphasis on high-end, goldware pieces marketing at luxury-level branding.
Laopu's financials
A source with direct knowledge of Laopu's business said its annual sales approached 10 billion yuan (S$1.8 billion) in 2024, up from 3.18 billion yuan in the previous year, said a Reuters report.
'Laopu's average store revenue is nearly 300 million yuan, compared with the average single-store revenue of most international jewellery brands in China, which generate around 100 million yuan to 200 million yuan annually,' the source said.
Its gross profit margin has also been stable, at above 40 per cent for three years prior to its first-half 2024 review, according to Phillip Securities Hong Kong.
A bigger trend?
Laopu's rise underscores a larger shift in Chinese brands muscling in on the global scene, such as electric vehicle giant BYD and toy maker Pop Mart.
One such brand is Seres Group, an automaker once best known for its 30,000 yuan minivans, which has overtaken BMW and Mercedes-Benz Group to become China's hottest high-end automaker, with its Aito M9 sport utility vehicle taking the title of the country's bestselling car above 500,000 yuan.
Another is Mao Geping Cosmetics, a premium skincare brand founded in 2000, which saw its revenue and profit jump more than 30 per cent last year, even as foreign rivals such as L'Oreal struggled with disappointing sales in China, said a Bloomberg report.
Chinese brands may have stolen market share from Nike in sportswear and L'Oreal in beauty, but they still struggle to threaten global luxury players which charge a premium for storytelling, heritage and design.
While Laopu might have overtaken 96-year-old chain Chow Tai Fook this year, the road ahead is far from easy.
Chow Tai Fook has since introduced its own heritage gold jewellery line, and a number of smaller brands are now mimicking Laopu's ornamental approach, intensifying domestic competition.
Still, analysts from Nomura note that Laopu's brand-led approach and focus on product innovation places it in a strong position to defend its lead in a crowded and fast-evolving market.
Investing in gold
While Laopu Gold is more akin to a luxury consumer good, investments in gold can take various forms such as bullions, futures contracts, gold mining stocks such as CNMC Goldmine and exchange-traded funds (ETFs).
This means that, for example, a Laopu Gold bangle with specific designs is more of an artisan item, while an one-ounce Pamp Suisse gold bar is considered a standard investment product.
Securities such as gold ETFs also track the price of gold and are backed by physical bullion held in secure vaults, while Laopu Gold does not.
'Gold ETFs are cost-effective with lower storage and insurance costs, as compared to physical gold, and they come with minimal tracking error, meaning they closely mirror the actual price of gold,' said Dan Chang, trading representative at PhillipCapital, in an interview with The Business Times.
As for Laopu assets, their sale (and re-sale) values could vary a bit more independently of gold prices, though there is some correlation.
For example, a Laopu Gold necklace could sell for S$2,000 even if the gold content is worth only S$1,300. This is because of the excess value of design and branding, whereas an SPDR Gold Shares ETF directly tracks the price of gold.
In another circumstance, reselling a Laopu Gold asset may yield 60 to 70 per cent of its purchase price – unless it is a collectible. Comparatively, selling a gold bar or ETF is more straightforward and transparent to investors due to their value pegged to current gold prices.
That said, the steady rise in the price of gold, which currently trades at around double its level in 2022, has given Laopu a boost as buyers see its wares as a place to park their cash amid uncertain times.