Major changes in Shangshan Gold (01939), a new consumer potential stock: starting a “frontline battle” to reshape the gold recycling industry, and the revaluation arrow is on the cusp

In the secondary market, it is not uncommon to see phased differences between the short-term stock price performance of listed companies and their long-term growth prospects. In the case of the liquor industry, which is very representative of large consumption, in 2012-2013, the entire liquor sector was hit hard by a series of negative factors such as the plasticizer crisis, the “ban on alcohol,” “eight regulations,” and “six bans.” At the time, the market value of Kweichow Moutai, the industry leader still evaporated 70% in 2013, and it became a market consensus to see the future of liquor decline for a while. However, there is probably no need to go into too much detail about what happened later. After Maotai's “Return of the King,” Maotai dominated the A-share list for a long time. The reason for being bearish back then is clearly not worth mentioning if you look at it this time.

Don't forget the past, the teacher for the future. The market's short-term pessimistic expectations often trigger irrational pricing of targets, which in turn creates a valuable value depression. Shangshan Gold (01939), whose stock price was recently thrown out of a “deep pit”, is probably another typical example. Currently, Shangshan Gold is in a period of strategic transformation, anchoring the main gold business. Shangshan Gold is accelerating market expansion work. Subsequently, it will set up flagship stores, standard stores and franchise stores in regions with huge consumption potential, such as Asia, the Middle East, and even Europe, to overcome the pain points of the traditional gold recycling industry and respond to the expectations of the market and consumers.

Needless to say, any new consumption model will inevitably have a “valuation chaos period” in the early stages of commercialization. Even Bubble Mart, which is popular today, experienced a three-year hiatus after it went public, and it wasn't until 2024 that sensible investors began to re-examine the value of Bubble Mart and the blind box economy behind it. Looking back at Shangshan Gold, although the company has been slow to wait for a systematic revaluation of value, I believe that as it continues to advance the strategic layout of the gold business in depth, Shangshan Gold's growth will become more and more visible. At that time, the upward shift in its stock price operation center will also be a natural result.

The potential of the main gold industry was first revealed, and expectations for improving fundamentals were strengthened

On November 27, Shangshan Gold's performance report for the first half of fiscal year 2026 (April to September 2025) was officially released. This is a report card verifying initial improvements in the company's fundamentals and “spoilers” the long-term growth potential of Shangshan Gold's new business ahead of time.

Financial reports show that during the reporting period, Shangshan Gold's revenue surged 139.8% year on year to HK$76.474 million, and gross profit increased 25.2% year over year to HK$337.34 million. The net profit index also turned a loss into a profit, reaching HK$665,000.

The core financial data has been comprehensively optimized, but this is far from sufficient to fully reflect the “gold content” of the latest financial report of Shangshan Gold. In the first half of fiscal year 2026, Shangshan Gold's gold and gold-related business officially began generating revenue. Although the business is still in the early stages of commercialization, its scale is still climbing at this stage, given that the gold recycling industry is a trillion-level racetrack, and Shangshang Gold's smart terminal model also has a unique competitive advantage, which not only meets policy expectations, but also responds to the potential monetization needs of hundreds of millions of private gold holders, its growth momentum cannot be underestimated.

Growth momentum can be expected. First, it stems from Shangshan Gold's unique smart terminal business model. The smart recycling terminal used by Shangshan Gold, known as the “Gold ATM”, was independently developed by the group's brother company Shangshan Intelligence. The equipment has passed authoritative qualifications such as GA38 Ministry of Public Security certification and EU CE certification. Combining artificial intelligence and spectral inspection technology, it can complete accurate testing with an accuracy of 0.01 grams within 3 minutes, and can connect with the Shanghai Gold Exchange gold price in real time to achieve rapid repayment within 30 minutes. While significantly improving efficiency, it fundamentally solves the trust problem in traditional gold recycling. Through this licensing cooperation, Shangshan Gold has gained a solid technical base and unique market competitiveness, providing core support for its continued expansion in the trillion-level gold recycling circuit.

Facing the huge and growing demand for gold recycling at home and abroad, Shangshan Gold has also built a unique “recycling-retail-customization” full-link business model to achieve efficient expansion through a lightweight layout. As is well known, Shangshan Gold's various efforts to reshape the gold circulation ecosystem with smart terminals and novel models will also affect the company's own fundamentals in the future and drive the company to achieve a shift in investment value.

Value revaluation is on the way, and new consumer potential stocks are “waiting for the wind”

This year has been a year where new consumer companies have been systematically re-evaluated by the capital market. Bubble Mart, the old store Gold, and Michelle Group have all experienced a spectacular return in value. Meanwhile, Lucky Coffee, which completed a “rebirth” after successfully overcoming the crisis of trust, has also increased its US stock by more than 40% during the year since the beginning of the year.

With these new, recognizable consumer companies already in the lead, it is probably wise for investors to lay out good gold ahead of time for good gold, which is currently undergoing a continuous improvement process and which has the same huge potential for future growth.

At the beginning of last month, Shangshan Gold achieved a major breakthrough in financing matters. The company successfully completed the placement of 11.88 million shares and raised about HK$90 million in net capital. This portion of capital will later focus on global channel layout and brand system construction, with a focus on large-scale deployment and technological upgrading of Gold smart terminals. What is certain is that this injection of placement capital will push the global layout of Shangshan Gold onto the fast track.

Earlier this year, Shangshan Gold had already signed strategic cooperation agreements with leading Finnish precious metals company Jalonom Oy and Kazakh listed company BASS Gold. Among them, the Finnish family business Jalonom Oy focuses on precious metal recycling, investment products and safe deposit box services. After in-depth exchanges, the delegation highly appreciated Shangshan Gold's “technology+gold” innovation model. The two sides have reached many agreements on technology application and market entry, and officially launched collaborative development of the Finnish market. At the same time, cooperation with BASS Gold, a listed gold company in the entire Kazakh industry chain, will focus on gold resource development, technology upgrading, and localized expansion of the Central Asian market to achieve deep collaboration from upstream resources to terminal technology, and further consolidate Shangshan Gold's supply chain foundation and regional implementation capabilities in a global layout. Next, to anchor the long-term goal of global expansion, Shangshan Gold is expected to further accelerate the in-depth layout of global business with the support of newly injected external strategic capital.

What is intriguing is that Shangshan Gold's idea of reconstructing the gold and jewelry channel pattern using smart retail as the core, and the vision of global development coincides with the strategic ideas and expansion paths of Bubble Mart, Michelle Group, and Lucky Coffee in recent years. Take Bubble Mart as an example. Its core advantage is that it uses smart terminals to break geographical and scenario restrictions and achieve a “small investment and wide coverage” global layout. This is the same as Shangshan Gold's strategy of relying on smart recycling terminals to quickly penetrate the empty market — both reduce expansion costs through “hardware standardization + operation digitalization”. The only difference is the scenario.

Successful use of technical means and novel models to start a “frontline battle” to reshape the gold recycling industry. According to Zhitong Finance, there is only one key trigger point left: in the future, once Shangshan Gold's main gold business actually “takes over” and becomes a new growth point for the company, its investment value will inevitably be systematically re-evaluated by capital. Looking back then, the current low stock price of Shangshan Gold is just a typical “value depression” before its value was discovered and returned.