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Chow Sang Sang's 1H Revenue +55%, Profit +40%
Sep 2, 2013 8:19 AM
By Deena Taylor
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RAPAPORT... Chow Sang Sang reported that revenue rose 55 percent year on year to $1.81 billion (HKD 14.1 billion) in the first half of 2013. Sales were driven by strong gold and jewelry sales. Group profit grew 40 percent to $79.9 million (HKD 619.88 million).
Chow Sang Sang’s jewelry retail sales rose 50 percent to $1.41 billion (HKD 10.88 billion) during the first half of 2013. Sales in Hong Kong and Macau were largely driven by tourism, accounting for 61 percent of jewelry sales and Mainland China accounted for 54 percent. The company added 15 new shops during the period in line with its strategy of being more selective in opening new stores.
Chow Sang Sang noted that the recent anti-corruption drive dampened the overall growth of sales of luxury goods. However, the impact on the company's sales was not significant as high-end gift items account for only a small portion of sales.
The sharp drop in gold prices in April and June triggered the demand for gold in Hong Kong by visitors from Mainland China, as well as local consumers. On the mainland, gold jewelry sales surged. The company noted that in both markets, demand was focused more on gold jewelry, such as bridal bangles rather than on collector items such as 1,000 gram slabs and 50 gram wafers.
Sales from the Chow Sang Sang's other business, including its wholesale of precious metals division, jumped 76 percent to $412.6 million (HKD 3.2 billion).
The group closed the first half 2013 with cash of $147 million (HKD 1.14 billion), up from $86.9 million (HKD 674 million) as of December 31, 2012. The value of its inventory fell 8 percent from the previous year to $779.5 million (HKD 6.04 billion).
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Tags:
Chow Sang Sang, Deena Taylor, diamonds, gold, Hong Kong, Jewelry
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