Chow Sang Sang Holdings International reported an increase of 38% year-on-year in revenue to $ 3.24 billion (HK $ 25.14 billion) for the fiscal year ended December 31, 2013, Rapaport reported. Sales growth is explained by the increased purchasing power of consumers in Hong Kong and Macao, these regions accounted for 79% of the group's total sales, Rapaport reports.
Meanwhile, sales in mainland China declined as a result of economic slowdown, complications in credit policy and the introduction of anti-corruption measures initiated by the new administration in Beijing and had an impact on the luxury goods market. The profit of Chow Sang Sang in the reporting period increased by 24% on a year-on-year basis and amounted to $ 157.7 million (HK $ 1.22 billion).
Last year, Chow Sang Sang continued to expand its network of retail jewelry stores in mainland China, Hong Kong, Macao and Taiwan.
The share of wholesale sales of precious metals and the trading of securities and futures in the company's total profit remained insignificant.
Retail sales of Chow Sang Sang jewelry rose 34% to $ 2.57 billion (HK $ 19.94 billion), and this division accounted for 79% of the company's total profit.
At the same time, the share of sales in Hong Kong and Macao amounted to 62% of total jewelry sales.
The company said that due to consumer hype due to the fall in gold prices between April and June, its sales revenue in Hong Kong and Macao jumped 36% to $ 1.6 billion (HK $ 12.36 billion). At the same time, sales of expensive jewelry showed very little growth compared to the previous year.