Chow Sang Sang is expecting a decrease in its profit for the first half of this year due to higher gold prices and reduced consumer demand.
According to a preliminary announcement on Monday, the Hong Kong jeweler forecasts a profit of between HKD 500 million ($64.1 million) and HKD 550 million ($70.5 million) for the six months ending June 30. This reflects a decline of 33% to 40% from the HKD 827 million ($106.1 million) reported in the same period last year.
The company attributes this downturn to lower revenue from jewelry and watches, influenced by dampened consumer sentiment amid record-high gold prices and challenging economic conditions such as inflation and increased unemployment rates. Chow Sang Sang also incurred losses due to the reevaluation of bullion loans, which were impacted by rising gold prices.
Comparatively, the jeweler faced a tough comparison with last year when increased tourism in Hong Kong following the reopening of its border with China bolstered sales.
Chow Sang Sang plans to release its detailed first-half results by the end of this month.
