Summary of Key Points from the Conference Call on the Gold and Jewelry Industry Industry Overview - The gold and jewelry market showed significant improvement in Q3 2025, primarily due to a low base in Q3 2024, high sales proportion in Q3, and the end of the customer wait-and-see period following the gold price increase in April 2025 [1][7] - The overall market demand has recovered, with a slight increase in gold prices in early September having limited impact on the end market [1] Brand Performance - Different brands exhibited varied performance during the ordering sessions: - **Chow Tai Fook**: Average performance with a 4.5% growth in July, but a decline of 7% expected by the end of September [2][3] - **Chao Hong Ji**: Outstanding performance with a 43% growth in July and expected to maintain over 40% growth by the end of September [2][4] - **Lao Miao and Lao Feng Xiang**: Experienced a decline of approximately 12% in July and 13% by the end of September [2][3] - The sales of gold-inlaid products and gold bars have become new growth points, with significant increases in average transaction values [1][10] Market Trends and Consumer Behavior - The consumer behavior is increasingly complex, with demands for excellent product design, reasonable pricing, and brand recognition [21] - The "one-price" sales model has gained significant traction, especially for small gold items, showing strong growth momentum [23][24] - The gold recovery business has rapidly developed, although profit margins remain limited [27][28] Financial Performance and Profitability - Disparities in profitability among dealers are notable: - Chow Tai Fook dealers have a gross margin of about 20%, while Lao Miao and Lao Feng Xiang range from 25% to 30% [15] - Chao Hong Ji has a higher margin of 30% to 35%, with top performers achieving up to 35% [15] - The highest margins are seen in brands like Man Ka Long and Lai Shen Tong Ling, reaching up to 40% [15] Future Outlook - The gold and jewelry industry is expected to continue facing challenges, including significant brand differentiation and sales fluctuations due to holiday timing [5] - The upcoming peak season is anticipated to yield a 10% to 15% growth in Q4 2025, driven by traditional consumption patterns [20][17] - The industry is projected to experience a store closure wave, with 2025 expected to be a peak year for this trend, leading to a more concentrated competitive landscape among leading brands [31][32] Conclusion - The gold and jewelry industry is navigating a complex landscape characterized by varied brand performances, evolving consumer preferences, and significant financial disparities among dealers. The outlook remains cautiously optimistic, with expectations of growth in the upcoming peak season despite ongoing challenges.