Core Viewpoint - The performance of Laopu Gold (6181.HK) in H1 2025 is strong, with revenue and profit close to the upper guidance limit, driven by the rising gold prices and enhanced brand strength [1][17]. Financial Performance - Laopu Gold achieved total revenue of 12.35 billion RMB in H1 2025, a year-on-year increase of 251%, marking a continuous acceleration in performance since H1 2024 [1][17]. - The net profit for H1 2025 reached 2.27 billion RMB, up 286% year-on-year, despite a decline in gross margin due to rising raw material costs [1][17]. - The gross margin decreased by 3.2 percentage points to 38.1% due to a significant increase in gold prices, which rose approximately 24% in H1 2025 [5][26]. Store Expansion - Laopu Gold opened 5 new stores in H1 2025, with 4 located in key urban areas, achieving more than half of its annual target of 6-8 stores [1][22]. - The company launched its first overseas store in Singapore in June 2025, marking the beginning of its global expansion [2][22]. Same-Store Sales Growth - Same-store sales increased by 201% in H1 2025, benefiting from improved brand recognition and optimized store locations [2][24]. - If the same store performance continues, the average revenue per store for the year could exceed 500 million RMB, approaching that of luxury brand Hermès [3][24]. Online Channel Performance - Online sales reached 1.62 billion RMB in H1 2025, accounting for 13.1% of total revenue, reflecting a slight increase of 2 percentage points [4][19]. Cost Management - Sales expenses increased by 175% year-on-year due to enhanced marketing efforts and entry into prime urban locations, but the overall expense ratio decreased significantly due to high revenue growth [6][28]. - The net profit margin improved by 1.7 percentage points to 18.4% as a result of effective cost management [8][28].

Core Viewpoint - The performance of Laopu Gold (06181.HK) in H1 2025 is strong, with revenue and profit nearing the upper guidance limit, driven by the rising gold prices and enhanced brand strength [1][9]. Group 1: Financial Performance - Laopu Gold achieved total revenue of 12.35 billion, a year-on-year increase of 251%, and the revenue for H1 2025 exceeded the total revenue of the previous year [1][9]. - The net profit for H1 2025 reached 2.27 billion, representing a year-on-year growth of 286% [1]. - The same-store revenue growth accelerated to 201%, indicating improved store efficiency and customer retention [2][16]. Group 2: Store Expansion - The company opened 5 new stores in H1 2025, with 4 located in key urban areas, achieving more than half of the annual target of 6-8 stores [1][14]. - Laopu Gold launched its first overseas store in Singapore in June, marking the beginning of its global expansion [1][14]. Group 3: Online and Product Strategy - Online sales reached 1.62 billion, accounting for 13.1% of total revenue, reflecting a 2 percentage point increase [2][11]. - The proportion of high-margin products, particularly gold-inlaid items, is increasing, contributing to overall revenue growth [2][18]. Group 4: Cost and Profitability - The gross margin decreased by 3.2 percentage points to 38.1% due to rising gold prices, despite a price increase of 5%-12% in February [3][18]. - Operating leverage has led to a significant decrease in expense ratios, with net profit margin improving by 1.7 percentage points to 18.4% [3][20].