China Sentiment Boosts Chow Sang Sang Sales

RAPAPORT... Hong Kong-based jeweler Chow Sang Sang saw a 3% rise insales in 2017, brought about by a stronger Chinese currency and an improvementin consumer sentiment. Sales were $2.12 billion (HKD 16.63 billion) for the year,with jewelry-retail revenue  increasing by the same percentage to $1.85 billion (HKD14.52 billion). Revenue from other businesses, including property, also grew 3% to $269.8 million (HKD 2.12 billion). Profit jumped 18% to $111.7million (HKD 876.4 million), the company said Tuesday. Revenue from mainland China grew 9% to $1.02 billion (HKD8.03 billion), as the Chinese yuan strengthened against the Hong Kong dollar,boosting local spending power. Online commerce improved, accounting forapproximately 14% of total sales. In the local Chinese currency, revenue rose11%, with same-store sales up 5%. "In the second half of the year, both the property marketand stock market picked up momentum, bringing forth positive consumersentiment," the company said. Sales in Hong Kong and Macau slid 3%, due to the effects ofshop closures, the jeweler said. Same-store sales for the region slipped 2%,a decline Chow Sang Sang attributed to the lower price of gold in the fourthquarter. Revenue from gem-set jewelry increased in that quarter,after a year-long downward trend. Even as Hong Kong sales declined, the municipality became amore attractive destination for tourists from mainland China, due to thestrengthening of the yuan. The number of tourists visiting Hong Kong went up by3.2% in 2017, with those coming from mainland China climbing 3.9%, according todata from the Hong Kong Tourism Board.Image: Chow Sang Sang