Once Lao Ku portrayed his cultivation, he proceeded to gather an intense amount of chi and wanted to show the audience that he was all powerful by crushing these panda puppets into pieces. In actual fact, he already knew about Dungeons and Panda's procedures and their strict policy and zero tolerance of cultivators breaking the rules.
Before coming to this store, he previously noticed that those who broke the rules were cultivation grades significantly lower than him and he felt those cultivators definitely deserve it for going against someone who they were not prepared for. But for Lao Ku, who had recently broken into the realm of Grade 12, believed that he had the upper hand for this particular situation.
And if he were to be successful against this Dungeon and Pandas store, he would be able to gain some popularity, notoriety…and most importantly money.