Laopu Gold (HKG:6181) experienced a sharp 6.45% decline in its stock price during Wednesday's trading session, despite reporting impressive financial results for the full year 2024. This unexpected drop comes on the heels of a significant 37% surge in the company's shares over the past week, suggesting potential profit-taking by investors.

The company's 2024 financial report revealed substantial growth, with revenue soaring 168% to CN¥8.51 billion compared to the previous year. Net income also saw a remarkable increase of 254%, reaching CN¥1.47 billion. Additionally, Laopu Gold's profit margin improved from 13% to 17%, driven by higher revenue. The company even managed to exceed analyst revenue estimates by 1.5%.

However, the market's reaction appears to be at odds with these positive results. Analysts speculate that the stock's recent strong performance may have led to inflated expectations, causing some investors to sell off their holdings despite the robust financial figures. It's also possible that some market participants anticipated even stronger results, leading to a "sell on the news" scenario. As Laopu Gold continues to navigate the luxury market in Hong Kong, investors will be closely watching how the company builds on its 2024 performance in the coming quarters.