Core Viewpoint - Morgan Stanley's report indicates that despite a recent 12.5% price increase for Lao Pu Gold (06181), there is still a queue outside stores, reflecting strong demand. The company believes consumers are beginning to accept its pricing mechanism and will continue to implement biannual price adjustments [1] Group 1 - The company aims to maintain a long-term gross margin target of approximately 40%, although short-term fluctuations in gold prices may impact this margin [1] - The focus for Lao Pu Gold's Chinese operations in 2026 will be on upgrading the existing store network [1] - Following the recent opening of a store in Singapore, the next planned store will be in Japan during 2026-2027, contingent on the owner's handover timeline [1] Group 2 - The financing scale required for inventory procurement will depend on the performance growth trajectory in Q4 of this year and the company's expectations for growth in Q1 of 2026 [1]

Core Viewpoint - The company indicated that the high gross margin in Q1 2025 is influenced by product mix and is not a normal occurrence [1] Summary by Categories Financial Performance - The gross margin in Q2 is expected to decline compared to Q1 due to factors such as production line expansion [1] - The company's gross margin has consistently remained above 30% in recent years, and there is confidence in maintaining this level in the future [1]

Core Viewpoint - The company indicated that the high gross margin in Q1 2025 was influenced by product mix and is not expected to be a norm [1] Summary by Categories Financial Performance - The gross margin in Q2 experienced a decline compared to Q1 due to factors such as production line expansion [1] - The company's gross margin has been maintained at slightly above 30% in recent years, and there is confidence in sustaining this level in the future [1]