Chow Sang Sang Holdings International (116) H1 2025 earnings summary

Executive summary

• Turnover for the six months ended 30 June 2025 was HK$11,036M, down 2% year-over-year, with retail revenue down 3% and wholesale of precious metals up 7% to HK$264M.

• Profit attributable to owners rose 71% to HK$902M, with profit from continuing operations up 81% to HK$910M.

• Basic and diluted EPS increased 73% to 134.2 HK cents; EPS from continuing operations rose 83% to 135.4 HK cents.

• Interim dividend per share increased 40% to 21.0 HK cents, with a payout ratio of 16%.

Financial highlights

• Gross profit margin improved by 5.2 percentage points to 33.5%, driven by higher gold prices and cost controls.

• Total segment results from continuing operations surged 89% to HK$1,389M.

• Net cash flows from operating activities were HK$1,174.7M; cash and cash equivalents stood at HK$1,320M.

• Equity attributable to owners increased 11% to HK$13,766M.

• Net gearing ratio remained stable at 29.3%; current ratio was 2.8.

Outlook and guidance

• Strategic focus on cultivating the high-end segment, expanding premium retail locations, and leveraging omni-channel and AI-driven operational efficiency.

• Store network in Mainland China is being repositioned, with a projected 10% reduction in store count by year-end.

• Diamond jewellery sales recovery is expected to take longer; focus remains on gold jewellery and high-margin products.

• Expectation of further growth in Mainland China’s luxury market, despite global headwinds.