On November 6, 2025, SHANGSHAN GOLD (01939) successfully completed a placement of 11.88 million shares, raising approximately HK$90 million in net proceeds. The funds will primarily be allocated to global channel expansion and brand system development, with a focus on scaling smart gold terminals and technological upgrades. This strategic move accelerates the company’s position in the intelligent gold retail sector, coinciding with the dual tailwinds of a booming trillion-dollar gold recycling market and industry-wide digital transformation.
**Trillion-Dollar Opportunity: Market Gaps Meet Policy Tailwinds** Geopolitical tensions and economic uncertainty have reinforced gold’s safe-haven appeal. Global gold demand surged to 1,206 tonnes in Q1 2025, with Southeast Asia leading growth—Singapore’s demand rose 35% YoY, while Thailand and Malaysia saw sustained investment interest. However, China’s gold production of 534.106 tonnes in 2024 lagged behind consumption of 985.31 tonnes, highlighting a supply-demand imbalance.
China’s private gold holdings now exceed 17,000 tonnes (worth over ¥10 trillion), held by 350 million individuals—a vast potential market for recycling. Yet traditional recycling suffers from opaque pricing, inconsistent testing, and slow transactions. Policy support, including China’s 2025–2027 Gold Industry High-Quality Development Plan promoting smart and green solutions, aligns perfectly with SHANGSHAN GOLD’s tech-driven model. Cities like Shanghai and Hefei have endorsed its smart stores as innovative retail formats.
**Tech Disruption: Smart Terminals Redefine Gold Transactions** Leveraging parent company Jinya Group’s expertise, SHANGSHAN GOLD’s subsidiary has developed AI-powered terminals capable of 3-minute gold purity tests (0.01g precision) and real-time pricing linked to the Shanghai Gold Exchange, enabling instant payments. The "Gold ATM" holds GA38 (China) and CE (EU) certifications, setting industry benchmarks.
Its asset-light "recycle-retail-customize" model requires just 3–5 sqm per store, with a ¥500,000 investment—far lower than traditional jewelry shops. By June 2025, nearly 100 smart stores were operational across major Chinese cities, partnering with 50 banks and serving 300,000 users. H1 2025 recycling volume jumped 589% YoY, with flagship Shanghai outlets achieving 1,668% quarterly growth (26kg gold recycled in May alone). Mature stores generate monthly profits of ¥80,000–150,000, breakeven within 6–12 months.
**Global Expansion: Placement Fuels International Growth** The proceeds will accelerate overseas deployment. Pilot terminals in Macau’s luxury hotels and business districts feature multilingual interfaces and multi-currency settlements tied to Hong Kong’s gold prices, serving as a springboard for Southeast Asia and Portuguese-speaking markets.
SHANGSHAN GOLD’s nearly 100 patents and certifications create high barriers to entry. Its closed-loop ecosystem—combining recycling, retail, and digital currency settlements—forms a durable moat. Strategically, its "thousand cities, ten thousand stores" plan mirrors Luckin Coffee’s scalable franchise model and Pop Mart’s global playbook (which saw 834% overseas e-commerce growth in 2024 via smart kiosks).
**Investment Outlook** Amid record gold prices and macroeconomic volatility, SHANGSHAN GOLD’s tech-enabled approach to unlocking China’s 17,000-tonne private gold stockpile positions it as a future leader in intelligent gold retail. With proven scalability, policy backing, and trillion-dollar demand, the company is poised to capitalize on the industry’s shift toward digital efficiency, offering investors a gateway to this transformative market.
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