Laopu Gold Co. saw its share price plunge after sales at physical stores fell mid‑double digits year‑on‑year from March to May. Alibaba Tmall sales slid 71% in April and 66% in May, in contrast to 200‑plus percent jumps during the Lunar New Year. The drop follows a 20% decline in spot bullion.

Laopu’s strategy of fixed‑price luxury jewelry has earned it a 55% premium over traditional jewelers, but the recent 20% fall in gold prices strains that model. Citigroup cut its 2026 revenue estimate and lowered the price target by nearly 40% to HK$700, citing weaker bullion‑linked demand.

The company’s market cap sank roughly $13 billion after a 50% slide from its July 2025 peak, making it one of the Hang Seng’s biggest losers. Analysts warn that Laopu’s earnings will face lingering pressure if bullion stays subdued, questioning whether premium pricing can survive a bullion‑driven cycle.

Citigroup notes Laopu now hosts nearly 50 boutiques across China and has launched eight new collections this year, yet its fixed‑price model still relies heavily on consumer willingness to pay above metal value. Investors now face a clear trade‑off: brand loyalty versus bullion sensitivity.