LAOPU GOLD (06181) fell more than 7% in the afternoon session, dropping 7.23% to HKD 628.5 by the time of writing, with a turnover of HKD 631 million.
On December 1, Baolan Jewelry, a company specializing in the research and promotion of filigree inlay and ancient gold craftsmanship, announced the completion of its Series A funding round. In late November, another ancient gold brand, Linchao Jewelry, disclosed a funding round worth hundreds of millions, with Dayone Capital as the sole investor.
Among the four major ancient gold brands—dubbed the "Four Sisters of Ancient Gold" (LAOPU GOLD, Junpei, Linchao, and Baolan)—three have now secured capital backing.
Nomura previously noted that LAOPU GOLD's management remains confident in achieving its 2026 sales and profit targets. Despite the company's third price hike in October, customers have continued queuing outside some stores in recent weeks.
Recent adjustments to gold purchase taxes are expected to increase LAOPU GOLD's raw material procurement costs by 6%, potentially narrowing gross margins by 3 to 4 percentage points, according to Nomura. However, the bank believes the actual impact on margins will be limited, given LAOPU GOLD's earlier price increases and accumulated gold inventory at lower costs.
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