Chow Sang Sang FY 2025 Profit Jumps 115%, Lifts Dividend to HK$1.00 per Share

Bulletin Express03-26

Chow Sang Sang Holdings International announced record results for the year ended 31 December 2025, driven by margin expansion and cost discipline.

Revenue and Margins • Turnover from continuing operations rose 6% year on year to HK$22.45 billion, with retail of jewellery and watches contributing HK$21.66 billion (+5%). • Gross profit climbed 22% to HK$7.32 billion, lifting the gross margin by 4.3 ppts to 32.6%. The improvement was attributed to higher gold prices and a greater mix of fixed-price jewellery, which generated 26% of Chinese Mainland sales and 14% in Hong Kong–Macau. • Selling & distribution and administrative expenses fell 6% to HK$4.69 billion, reflecting ongoing retail-network optimisation.

Earnings • Profit attributable to owners from continuing operations surged 115% to HK$1.66 billion; including the discontinued securities-broking unit, total attributable profit reached HK$1.72 billion (+113%). • Basic and diluted earnings per share doubled to 255.7 cents. • Retail segment profit leapt 141% to HK$2.70 billion, offsetting a HK$475 million fair-value loss on bullion loans booked under other income.

Dividend and Capital Management • The board shifted to a two-interim dividend schedule, declaring a second interim dividend of 79.0 cents, bringing full-year payouts to 100.0 cents per share (2024: 51.0 cents). Dividend payout ratio stands at 39%. • During 2025 the company repurchased 1.01 million shares for HK$6.51 million, all of which were cancelled.

Segment & Geographic Performance • Chinese Mainland revenue edged up 2% to HK$13.82 billion; segment profit climbed 167% to HK$1.70 billion. • Hong Kong & Macau sales increased 8% to HK$7.39 billion with profit up 111% to HK$905.46 million, aided by robust gold demand. • Taiwan revenue advanced 37% to HK$454.31 million; profit rose 73% to HK$88.35 million. • Wholesale of precious metals revenue expanded 70% to HK$766.37 million. • The laboratory-grown diamonds unit (“The Future Rocks”) recorded HK$6.99 million in sales.

Store Network • Net closures of 118 outlets cut the total footprint to 840 stores, primarily through the shutdown of 146 Mainland locations that no longer met strategic criteria; 37 new stores opened in targeted areas.

Balance Sheet & Liquidity • Equity attributable to owners increased 16% to HK$14.46 billion. • Cash and cash equivalents stood at HK$978.29 million; net gearing was 44.5% with HK$1.75 billion in bank borrowings and HK$5.66 billion in bullion loans. • Unutilised banking facilities totalled HK$6.18 billion; current ratio was 2.3.

Post-year-end Trading Same-store sales growth from 1 January to 15 March 2026 was +4% in the Chinese Mainland and +42% in Hong Kong–Macau, buoyed by heightened consumer interest amid volatile gold prices.

Outlook Management will maintain a disciplined store strategy, prioritising high-end expansion, experiential formats and productivity improvements while navigating cautious consumer sentiment on the Mainland and capitalising on robust tourism-driven demand in Hong Kong.

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