Chow Sang Sang Expects Profit Slump

Chow Sang Sang anticipates a drop in its profit for the first half of the year amid rising gold prices and weak consumer demand. 

Profit is set to come to between HKD 500 million ($64.1 million) and HKD 550 million ($70.5 million) for the six months that ended June 30, the Hong Kong jeweler said in a preliminary announcement Monday. Those figures represent a decrease of between 33% and 40% from the HKD 827 million ($106.1 million) the company reported in profit for the corresponding six months of 2023. 

The jeweler attributed the decline to a fall in revenue from jewelry and watches due to waning consumer sentiment as gold prices hit record highs, as well as challenging macroeconomic conditions, such as heavy inflation and higher unemployment rates. The company also lost money on the reevaluation of bullion loans during the period, which grew along with gold prices. 

Chow Sang Sang suffered from a weak comparison with the same period a year ago, when the influx of tourism into Hong Kong following the reopening of its border with China at the start of 2023 boosted sales. 

The company will publish its first-half results by the end of the month, it added. 

Image: A Chow Sang Sang store in Beijing, China. (Cathy Tam)