Laopu Gold (06181) saw a sharp uptick in afternoon trading, climbing more than 5%. As of press time, the stock was up 5.22% to HKD 394.8, with a turnover of HKD 234 million.

The move comes on the heels of the company's Qixi festival promotion at its Beijing SKP location, which officially began on July 23. The event layers a 'thousands-off-fifty' store discount with benefits for Black Card and Gold membership tiers. The aggressive pricing has drawn long queues of eager consumers.

By introducing additional promotional rules without altering the mall's own terms, Laopu Gold effectively lowered the effective price point. This strategy successfully reached customers who had been on the sidelines due to falling gold prices and a lack of expectations for further price hikes.

Earlier, Nomura issued a report citing a Laopu Gold management investor call. Management noted that Q2 sales were impacted by the decline in gold prices. In response, the company implemented measures including more attractive rebates and gifts, the introduction of more affordable new products, and targeted support for high-end clients. These efforts have yielded satisfactory results and are set to be expanded to more stores in the second half of the year.

Nomura also suggested that if gold prices stabilize over the coming quarters, the prevailing market pessimism surrounding Laopu Gold's sales performance could begin to dissipate.