Laopu Gold (6181) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2024, reached RMB3,520.19 million, up 148.3% year-over-year, with net profit rising 198.8% to RMB587.81 million and EPS at RMB4.11, up from RMB1.44.

• Gross profit increased 146.4% to RMB1,454.98 million, with gross margin stable at 41.3%, driven by brand expansion, new boutique openings, and product innovation.

• Same-store revenue grew 104.2% year-over-year, reflecting strong consumer demand for heritage gold products.

• Six new boutiques and one expanded boutique contributed to revenue growth; total boutiques reached 33 in 14 cities.

• The company maintained its position as the top heritage gold jewelry brand in China, with strong brand influence and first-mover advantages.

Financial highlights

• Revenue: RMB3,520.19 million (+148.3% YoY); Net profit: RMB587.81 million (+198.8% YoY); Gross profit: RMB1,454.98 million (+146.4% YoY).

• Earnings per share: RMB4.11, up from RMB1.44 in 1H2023.

• Gross profit margin stable at 41.3%; net margin: 16.7% (up from 13.9%).

• Total assets: RMB3,840.72 million; Total equity: RMB2,897.24 million as of June 30, 2024.

• Cash and cash equivalents: RMB823.90 million as of June 30, 2024.

Outlook and guidance

• Plans to expand market presence, internationalize the brand, and maintain high-end positioning, leveraging product innovation and boutique expansion.

• Confident in future growth, aiming to build a globally competitive Chinese high-end gold jewelry brand.