Chow Sang Sang to Grow China Network

RAPAPORT... Hong Kong-based jeweler Chow Sang Sang will open around 60 new stores in mainland China by the end of the year following strong sales in the countryin the first half. "There is room forgrowth by means of product, services and brand differentiation," the companysaid Wednesday.  Improvements in China for the six months ending June 30 helped offset lower sales in the Hong Kong market. Total sales decreased 0.2% to HKD 9.54 billion ($1.22 billion). Revenue from the jewelry-retail segment grew 1%to HKD 8.77 billion ($1.12 billion). The group's other revenue comes from businesses suchas wholesaling and real estate. Profit rose 2% to HKD 615 million ($78.4 million).Compared with the previous quarter, sales in China grew 4% to HKD 5.16 billion ($657.4 million), while those in Hong Kong fell 2%. Demonstrations in Hong Kong in June against a proposedextradition bill by the government dampened consumer sentiment, the jewelerexplained. Same-store sales - at branches open for at least a year - in  the municipality dropped by a double-digit figure for that month, the company added,noting that sales were likely to be slow for the remainder of the year. "Well into the third quarter, there is still no end in sightfor the civil unrest in Hong Kong," Chow Sang Sang continued. "Much has beenreported on the dearth of tourists and how the retail sector has suffered. Itwill take hard work to match the high base achieved in the second half of2018." Image: A Chow Sang Sang store in Hong Kong.