Hong Kong-listed jewellery retailer Chow Sang Sang Holdings International reported a 54 percent increase in net profits for the first half of 2018 (ending June 30) at HK$606 million (US$77.2 million). Revenue rose 19 percent to HK$9.56 billion (US$1.22 billion), with income from jewellery sales alone rising 23 percent to HK$8.65 billion (US$1.1 billion).
The company cautioned that the escalating Sino-US trade war and rising interest rates could adversely impact second half performance, but added that it would maintain its target of opening 50 new stores this year.
The company commented that despite the trade war and increasing volatility of equity markets, consumer sentiment seemed to be holding up. Mainland visitors to Hong Kong registered an increase of 12.7 percent for the first five months comparing to the same period last year. China’s economic growth, though having slowed down, still registered more than 6 percent growth in the first half of 2018.
Macau also benefited from improved tourists visit.
Mainland China total turnover rose 23 percent to HK$5 billion (US$637 million). In Renminbi terms, the rise was 13 percent, while same store sales growth (SSSG) was 2 percent.
Online sales in Mainland China continued to grow and accounted for about 14 percent of the company’s China sales. Gold products dominated the sales mix. At the end of June, there were a total of 442 shops located in 121 cities. New shops numbered 34, of which 12 were set up in shopping malls. There were 14 shops closed.