From the east to Southeast Asia, China National Gold Group Gold Jewellery has entered the fast lane of going global.

CITIC SEC released a research report stating that Southeast Asia is becoming an incremental blue ocean for the gold and jewelry industry, and Chinese brands are facing a strategic opportunity period for overseas expansion. The economies and population demographics of major Southeast Asian countries are resonating, with opportunities for consumption upgrades. The demand structure of the Southeast Asian gold and jewelry industry aligns highly with Chinese brands, and cultural affinity plus iterative craftsmanship catalyze the release of demand for gold jewelry. Chinese brands going overseas have entered an accelerated phase, with leading brands strategically positioning themselves with years of overseas operational experience to open up overseas growth space through direct operation and franchise models. The gold and jewelry sub-industry is rated "stronger than the overall market." A summary of the two main investment themes: 1) Select high-growth performers with established stores in Southeast Asia, accompanying single-store profitability models, and great potential for expanding store space in the future. 2) Focus on industry leaders with early overseas layouts and rich operational experience, planning to accelerate overseas expansion in the future to further open up growth space. Key points from CITIC SEC: Southeast Asia's gold and jewelry market is rapidly developing, becoming an important growth hub for the global gold and jewelry industry The disposable income of residents in the core six countries of Southeast Asia continues to increase, with a young population structure: The World Bank predicts steady GDP growth in the core six countries of Southeast Asia in the future, expecting Vietnam, the Philippines, and Indonesia to have higher economic growth rates than China in the next three years; the population structure is young, with 63% of the population under 40 in the core six countries of Southeast Asia by 2022, similar to China's population structure in 2006. The growth of the gold and jewelry market in Southeast Asian countries is particularly remarkable: By 2024, the market size in the core six countries of Southeast Asia will reach $11.6 billion, a year-on-year increase of 7%, with a CAGR of 7.6% from 2021 to 2024. Looking at individual countries, the growth rate of the gold and jewelry market in the six countries of Southeast Asia far exceeds that of more mature markets such as China, the US, Japan, and South Korea. Indonesia/Singapore/Malaysia/Vietnam/Thailand see industry size growth rates of 11.4%/7.6%/4.8%/3.9%/3.5% by 2024. Traditional culture and emotional value catalyze the release of jewelry consumption, and safe-haven sentiment drives investment gold demand growth Singapore: An international hub for high-end jewelry consumption, with a low concentration of high-end jewelry market and a dispersed competitive landscape. The proportion of high-end luxury jewelry consumption is significantly higher, with luxury jewelry consumption primarily from offline stores. In recent years, demand for gold jewelry has declined significantly due to the high gold price, with investment gold demand peaking since 2010. Malaysia: The jewelry market is growing steadily, with leading luxury jewelry groups expanding their market share. Products mainly consist of 22K pure gold jewelry, with stable shares of accessory jewelry. Gold jewelry consumption was under pressure in 2025Q1, but demand for investment gold bars and coins remained strong. Thailand: Preference for 23K and gemstone categories, with a stable market size and competition among leading jewelry brands. As a core region for global colored gemstone processing, the share of accessory jewelry is expanding. In recent years, gold jewelry consumption has contracted, with the high gold price in 2025Q1 further suppressing jewelry demand, while investment demand for gold bars and coins continues to rise. Vietnam: A stable market size, with increasing demand for investment and accessory jewelry. Consumer demand for fashion and personalized products drives jewelry market diversification; post-epidemic gold jewelry consumption quickly recovered, but overall showed a downward trend, with investment gold bar and coin consumption in 2025Q1 somewhat suppressed by the Vietnam Central Bank's gold sales. Indonesia: Rapidly growing market size, with stable gold jewelry consumption demand and a surge in investment gold bar demand. In recent years, gold jewelry consumption has remained contracted, with consumption being further suppressed in 2025Q1 by the high gold price, while enthusiasm for investment in gold bars and coins has increased. The Philippines: A stable market model, preferring traditional craft gold jewelry, with a significantly larger share of online channel sales. Mainly driven by traditional wedding and religious needs, the gold and jewelry consumption group has expanded to include Generation Z, with younger individuals increasing their demand for diversified jewelry, and a high market share in accessory jewelry. Brand overseas expansion is underway, with Southeast Asia as a strategic springboard Southeast Asia's market, with its high cultural affinity, preference for gold products, and rapid economic growth, has become the first stop for Chinese gold and jewelry brands going overseas. China National Gold Group Gold Jewelry's continuous updating and iteration of jewelry design and manufacturing craftsmanship have steadily increased its international influence. Overseas consumers' appreciation of Chinese traditional craftsmanship such as filigree and ancient gold has improved, providing favorable conditions for China National Gold Group Gold Jewelry brands to enter the international market. LAOPU GOLD: Successfully entered Singapore as the first overseas battle, with considerable growth potential overseas. According to the company's prospectus, the company expects to enter the Japanese market by 2026. CHOW TAI FOOK: Strong sales performance in Southeast Asian stores, with store upgrades and core area expansions driving brand transformation. FY25 has a total of 37 overseas stores, with 23 stores in Southeast Asia. The FY25 annual report indicates that the company will actively promote its international development strategy in the future. LUK FOOK HOLD: Maintaining high growth in overseas markets, planning to allocate more resources to expand overseas markets. In FY25, a total of 31 overseas stores were opened (17 directly operated stores and 14 franchise stores), with 12 stores in Southeast Asia. Guangdong CHJ Industry: Quality operations in overseas markets, accelerating the establishment of Southeast Asian stores. As of 2025M6, the company has opened 4 stores in Southeast Asia, with plans to focus on franchise models for future overseas store expansions, with plans to open stores in Singapore in 2025. Shanghai Yuyuan Tourist Mart: Actively expanding its various businesses into overseas markets, with the "Old Temple" accelerating its overseas landing. The company's performance exchange meeting indicated plans to deepen its presence in the Southeast Asian market, taking advantage of Thailand's lantern festival to quickly expand its "Old Temple" store layout in Southeast Asia. Risk factors: 1) Increased market competition risk; 2) Macroeconomic fluctuations and weakened consumer spending power risk; 3) Unexpected delays in overseas expansion; 4) Product and brand strength not meeting expectations; 5) Changes in marketing channels.