BRIEF: Laopu Gold’s profit soars on growing brand influence
Jewelry seller Laopu Gold Co. Ltd. (6181.HK) said on Sunday its revenue and profit more than tripled in the first half of this year, boosted by growing recognition of its brand.
The company expects to report revenue of 12 billion yuan ($1.68 billion) to 12.5 billion yuan for the six-month period, up between 241% and 255% year-on-year, respectively, according to the announcement. Its net profit rose 279% to 288% year-on-year to between 2.23 billion yuan and 2.28 billion yuan, it said.
It credited the strong gains to the growing influence of its brand, which focuses on craftsmanship and jewelry designs over more traditional shops whose customers are more interested in products for the value of the gold they contain. It added that recent store and channel expansions were not a major factor in the gains during the first half of the year, but were expected to make contributions in the second half.
Laopu Gold’s shares opened higher, but quickly reversed course and were down 3.6% at HK$737 in early trading on Monday. The stock has more than tripled this year.
By Doug Young
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