Chow Sang Sang, a prominent jewelry retailer, saw a substantial increase in revenue, marking a 22% rise in 2023. This surge was attributed to the reopening of the border between Hong Kong and China, accompanied by the resurgence of tourism.
According to the company’s latest announcement, group sales for the fiscal year reached HKD 25.01 billion ($3.2 billion), buoyed by the removal of travel restrictions between the municipality and the mainland at the beginning of the year. The resumption of full-scale business activities further contributed to this notable growth. Hong Kong’s economy heavily relies on Chinese tourists, who flock to the region for luxury shopping, driving up demand for high-end products, including gold items, despite escalating metal prices.
Jewelry retail emerged as the primary revenue generator, witnessing a remarkable 23% increase to HKD 24.27 billion ($3.1 billion). However, revenue from other sectors, such as property, experienced an 8% decline to HKD 738.8 million ($94.4 million). The company’s profit more than doubled, reaching HKD 1.01 billion ($129.4 million), compared to HKD 452.3 million ($57.8 million) in the preceding year.
Notably, mainland China saw a 16% revenue uptick, amounting to HKD 15.83 billion ($2.02 billion), accompanied by a 12% increase in same-store sales. Meanwhile, sales in Hong Kong and Macau soared by 34% to HKD 8.9 billion ($1.12 billion), with same-store sales surging by 35%.
Commenting on the sales performance, the company highlighted a significant rebound in jewelry and watch sales during the first half of 2023, registering a remarkable 31% year-on-year growth post-epidemic restrictions in mainland China, Hong Kong, and Macau. However, the growth pace slightly decelerated in the latter half of the year, particularly in mainland China, achieving a still notable 15% year-on-year increase. The persistent robust demand for gold among consumers drove this growth, despite the upward trajectory of gold prices.
Challenges were noted in China, where sales of diamond jewelry, particularly in higher price segments, witnessed a decline. However, Hong Kong showcased a better performance in this regard, reflecting varying market dynamics between the two regions, as per the company’s statement.
