Investment Rating - The industry is rated as "Buy" with an expectation of an increase exceeding 15% over the next 3-6 months [5] Core Insights - The new tax policy effective from November 1, 2025, will eliminate tax arbitrage for investment gold sales, leading to a concentration of demand towards leading enterprises with membership in the Shanghai Gold Exchange [2][3] - Non-investment gold jewelry sales enterprises will face short-term profit pressure due to changes in tax policies, but long-term benefits are expected for industry leaders with pricing power [2][3] - The shift in tax policy is anticipated to improve cash flow for larger jewelry enterprises while putting pressure on smaller firms, potentially leading to market consolidation [3] Summary by Sections Event Background - Starting from November 1, 2025, a differentiated VAT management system will be implemented for standard gold transactions through the Shanghai Gold and Futures Exchange, with specific tax exemptions and requirements for different types of transactions [1] Industry Impact - Investment gold sales enterprises will see a shift in demand towards top-tier companies due to the elimination of tax arbitrage, benefiting firms like Cai Bai, China Gold, and Lao Feng Xiang [2] - Non-investment gold jewelry firms will experience increased VAT burdens, leading to short-term profit pressures, while larger firms with pricing power may benefit in the long run [2][3] Investment Recommendations - Short-term profit pressures are expected for non-member jewelry enterprises, while member enterprises of the Shanghai Gold Exchange are likely to be less affected. Long-term, the industry concentration is expected to increase, favoring brands with pricing power [3] - Recommended to focus on member enterprises engaged in investment gold business and those with a growing proportion of fixed-price gold products, such as Lao Pu Gold and Chao Hong Ji [3]