Chow Sang Sang Reports 2024 Earnings Decline Amid Economic Challenges

Chow Sang Sang Holdings International ( (CHOWF) ) has released its Q4 earnings. Here is a breakdown of the information Chow Sang Sang Holdings International presented to its investors.

Chow Sang Sang Holdings International Limited is a Bermuda-incorporated company primarily engaged in the retail of jewellery and watches, with operations spanning Mainland China, Hong Kong, Macau, and Taiwan. The company also has interests in the wholesale of precious metals and the trading of laboratory-grown diamonds and gemstones.

In its 2024 financial report, Chow Sang Sang Holdings reported a 15% decline in turnover from continuing operations, amounting to HK$21,176 million, primarily due to challenging economic conditions and high gold prices affecting jewellery demand. The company’s profit attributable to owners decreased by 20% to HK$806 million, with a notable 27% drop in profit from continuing operations.

Key financial metrics highlighted in the report include a gross profit margin improvement to 28.3%, despite a decline in retail revenue across major markets such as Mainland China and Hong Kong. The company also reported a decrease in earnings per share and a reduction in total dividend per share, reflecting the overall decline in profitability. The company continued to optimize its store network, opening 48 new stores while closing 122, primarily in Mainland China.

Looking forward, Chow Sang Sang Holdings remains cautiously optimistic about domestic consumption in Mainland China, supported by recent monetary-easing measures and property market support. However, the company anticipates continued volatility in gold product sales due to fluctuating gold prices, while demand for gem-set jewellery may require stronger economic signals for recovery.