Financial Performance - For the fiscal year ending December 31, 2024, the total revenue from continuing operations was HKD 21,176,027 thousand, a decrease of 15% compared to HKD 25,013,339 thousand in 2023[4] - The profit attributable to the owners of the company from continuing operations was HKD 772,144 thousand, down 27% from HKD 1,060,359 thousand in the previous year[4] - Basic and diluted earnings per share for the year were 119.1 cents, a decline of 20% from 149.5 cents in 2023[6] - The company declared a total annual dividend of 51.0 cents per share, down from 60.0 cents in the previous year, with a payout ratio of 43%[4] - The company reported a total comprehensive income of HKD 617,331 thousand, compared to HKD 537,068 thousand in 2023[7] - The group reported a pre-tax profit from continuing operations of HKD 14,180,462,000 for 2024, a decrease of 20.5% compared to HKD 17,850,262,000 in 2023[25] - The profit attributable to the company's owners decreased by 20% to HKD 806 million, with profit from continuing operations down 27% to HKD 772 million[44] Assets and Liabilities - Total non-current assets decreased to HKD 3,644,262 thousand from HKD 3,882,913 thousand in 2023[8] - Current assets increased to HKD 16,005,470 thousand, compared to HKD 15,273,243 thousand in the previous year[8] - The company's total liabilities increased to HKD 6,085,351 thousand from HKD 5,634,951 thousand in 2023[8] - Non-current liabilities decreased to HKD 1,179,905 thousand in 2024 from HKD 1,351,011 thousand in 2023, representing a reduction of approximately 13%[9] - The total equity for the company was HKD 12,384,476 thousand in 2024, compared to HKD 12,170,194 thousand in 2023, indicating an increase of around 1.75%[9] - The company's trade receivables decreased from HKD 996,557 thousand in 2023 to HKD 815,694 thousand in 2024[36] - The company's trade payables decreased from HKD 134,917 thousand in 2023 to HKD 111,623 thousand in 2024[40] Revenue Segments - Revenue from external customers for the year ended December 31, 2024, was HKD 21,176,027, a decrease from HKD 25,013,339 in 2023, representing a decline of approximately 15.5%[20] - The total revenue from the jewelry and watch retail segment was HKD 20,697,125 in 2024, down from HKD 24,274,496 in 2023, a decrease of approximately 14.5%[20] - Sales to mainland China decreased to HKD 13,516,757 in 2024 from HKD 15,826,481 in 2023, a decline of approximately 14.6%[21] - The group’s wholesale revenue for precious metals decreased by 37% to HKD 451 million due to a decline in demand for gold and platinum[53] Operational Changes - The company opened 48 new stores and closed 122 stores, primarily in Mainland China, as part of its store network integration[43] - The total number of retail stores decreased from 1,032 to 958, with a net change of -74 stores in 2024, including 43 new and 112 closed jewelry stores in mainland China[48] - The company is consolidating its physical store network while expanding in prime locations in major cities[66] Investments and Expenditures - Capital expenditures for 2024 amounted to HKD 434,794, an increase from HKD 213,947 in 2023, reflecting a significant rise in investment[20] - The group’s capital expenditure was HKD 214 million, with HKD 169 million allocated for new store openings and renovations[59] - The company is investing HKD 50 million in technology development to enhance online sales platforms and customer engagement[79] Market Strategy and Future Outlook - The company plans to expand its market presence in mainland China, targeting a 20% increase in store openings over the next two years[79] - Future guidance estimates a revenue growth of 10% for the upcoming fiscal year, driven by both new product offerings and market expansion[79] - The company has identified potential acquisition targets in the Asia-Pacific region to further strengthen its market position[79] - The company anticipates that demand for jewelry will rise cautiously as economic recovery signs emerge, particularly in the context of supportive monetary policies in mainland China[66] Customer Engagement and Sales Performance - Online sales in mainland China reached HKD 2,967 million in 2024, maintaining a stable performance with a slight decrease of 0% compared to 2023[50] - The percentage of online sales in mainland China accounted for approximately 22% of total sales, up from 19% in 2023[52] - Customer data analytics indicate a 25% increase in online shopping behavior, prompting a shift in marketing strategies[79] - A new loyalty program is set to launch, expected to increase customer retention rates by 15%[79] Dividends and Share Repurchase - The group plans to distribute a final dividend of HKD 0.36 per share for 2024, down from HKD 0.40 per share in 2023, totaling HKD 241,816,000[28] - The company repurchased a total of 4,714,000 shares during the year, with a total purchase price of HKD 30,335,000[70]

Financial Performance - The Group's consolidated turnover from continuing operations for the first half of 2024 decreased by 13% to HK$11,313 million compared to HK$12,999 million in the same period of 2023[8]. - Profit attributable to owners of the Company decreased by 36% to HK$526 million, down from HK$827 million in the first half of 2023[8]. - Profit from continuing operations attributable to owners of the Company decreased by 39% to HK$502 million, compared to HK$828 million in the previous year[8]. - Earnings per share decreased to 77.6 cents from 122.1 cents, reflecting a decline of 36%[3]. - Total revenue for continuing operations reached HK$11,312,744,000, with segment revenue from retail of jewellery and watches at HK$11,049,022,000, and wholesale of precious metals at HK$247,897,000[72]. - The profit before tax for the period was HK$625,526,000, with additional income from dividends amounting to HK$13,671,000[72]. - The profit from continuing operations for the period was HK$501,810,000, while the profit from discontinued operations was HK$24,180,000[93]. Retail Sales Performance - Retail sales in Mainland China dropped by 15% year-on-year, with segment results decreasing by 40%[6]. - Retail sales in Hong Kong and Macau decreased by 9%, with segment results down 14%[6]. - Taiwan's retail sales showed an 18% increase year-on-year, with segment results up 42%[6]. - Same-store sales growth (SSSG) for gold jewellery and products in Mainland China was -3% in Q1 2024, and -24% in Q2 2024 due to rising gold prices[14]. - Diamond jewellery sales in Mainland China and Hong Kong recorded SSSG of -42% and -21% respectively, following a global downtrend[14]. - Watch sales in Mainland China and Hong Kong slowed down with SSSG of -6% and -10% respectively in 2024 1H[14]. Store Operations - The Group opened 25 new stores and closed 47 stores in the first half of 2024, primarily in Mainland China[7]. - The Group opened 22 stores and closed 44 stores in Mainland China during the period, resulting in a net decrease of 22 stores[16]. - The Group plans to optimize store networks and selectively open new stores while undertaking major refits for existing retail stores[32]. Dividends and Shareholder Returns - The interim dividend per share was set at 15.0 cents, with a payout ratio of 19%[3]. - The company declared and paid dividends during the period, maintaining shareholder returns[57]. - Final dividend for 2023 was declared at HK$0.40 per ordinary share, an increase of 166.7% from HK$0.15 per share in 2022[92]. - Interim dividend declared for 2024 is HK$0.15 per ordinary share, a decrease of 25% from HK$0.20 per share in 2023[92]. Financial Position and Assets - As of June 30, 2024, the Group had cash and cash equivalents of HK$1,399 million, an increase from HK$1,096 million as of December 31, 2023[27]. - The total unutilized banking facilities amounted to HK$6,798 million as of June 30, 2024, compared to HK$6,111 million as of December 31, 2023[27]. - The Group's total bank borrowings and bullion loans were HK$1,723 million and HK$2,715 million respectively, with a gearing ratio of 36.4%[27]. - The current ratio of the Group was reported at 2.8 as of June 30, 2024[27]. - The Group holds various investment properties with a total carrying value of HK$431 million for rental purposes as of June 30, 2024, generating rental income of HK$5 million during the period[26][28]. Credit and Receivables Management - As of June 30, 2024, the Group's accounts receivable totaled HK$716,300,000, down from HK$996,557,000 as of December 31, 2023, indicating a reduction of about 28.2%[94]. - The expected credit loss for accounts receivable as of June 30, 2024, was HK$24,413,000, compared to HK$27,198,000 as of December 31, 2023, reflecting a decrease of approximately 10.5%[95]. - The impairment loss allowance for accounts receivable decreased from HK$27,198,000 at the end of 2023 to HK$24,413,000 at mid-2024, showing a positive trend in credit management[94]. - The ageing analysis of accounts receivable showed that overdue balances were regularly reviewed by senior management, indicating proactive credit risk management[94]. Compliance and Governance - The Group maintains a strong corporate governance structure, with compliance to applicable code provisions throughout the review period[35]. - The Board has not identified any control weaknesses in the Group's risk management and internal control systems for the six months ended June 30, 2024[38]. - The Group's financial reporting is in compliance with the Hong Kong Financial Reporting Standards as issued by the Hong Kong Institute of Certified Public Accountants[67]. Future Outlook and Strategic Initiatives - The Group aims to expand product offerings through existing brands and launch new collections tailored to customer needs[32]. - Future outlook remains positive with ongoing investments in property for rental income and capital appreciation potential[71]. - The company plans to continue focusing on market expansion in Mainland China, Hong Kong, Macau, and Taiwan for its retail operations[71].

Financial Performance - For the six months ended June 30, 2024, the total revenue from continuing operations was HKD 11,312,744, a decrease of 13% compared to HKD 12,999,778 for the same period in 2023[2] - Retail revenue was HKD 11,049,022, down 13% from HKD 12,671,833 in the previous year[3] - The profit attributable to the owners of the company for continuing operations was HKD 501,810, a decline of 39% from HKD 828,969 in the same period last year[2] - Basic and diluted earnings per share decreased to 77.6 cents, down 36% from 122.1 cents in the prior year[4] - The total comprehensive income for the period was HKD 268,209, a decrease from HKD 311,101 in the same period last year[5] - The adjusted profit before tax for the continuing operations was HKD 649,706, compared to HKD 1,061,669 for the same period in 2023, indicating a decrease of approximately 38.73%[17] - The total profit before tax for the continuing operations was HKD 625,526, down from HKD 1,063,429 in the previous year, representing a decline of approximately 41.19%[17] - The group's profit before tax from continuing operations for the six months ended June 30, 2024, was HKD 501,810,000, compared to HKD 828,969,000 for the same period in 2023, representing a decrease of approximately 39.4%[31] Dividends and Payouts - The interim dividend per share was set at 15.0 cents, with a payout ratio of 19%, compared to 20.0 cents and a 16% payout ratio in the previous year[2] - The group recognized a dividend of HKD 270,974,000 for the year-end dividend per share of HKD 0.40, an increase from HKD 101,615,000 for the interim dividend per share of HKD 0.15[30] - The board declared an interim dividend of HKD 0.15 per share for the six months ended June 30, 2024, down from HKD 0.20 per share in 2023[54] Assets and Liabilities - Total non-current assets as of June 30, 2024, amounted to HKD 3,747,266, down from HKD 3,882,913 as of December 31, 2023, reflecting a decrease of 3.5%[6] - Current assets totaled HKD 15,150,465 as of June 30, 2024, compared to HKD 15,273,243 as of December 31, 2023, indicating a decline of 0.8%[6] - Total current liabilities decreased to HKD 5,391,008 as of June 30, 2024, from HKD 5,634,951 as of December 31, 2023, a reduction of 4.3%[6] - Total non-current liabilities were HKD 1,339,294 as of June 30, 2024, slightly down from HKD 1,351,011 as of December 31, 2023, a decrease of 0.9%[7] - The company's equity attributable to owners was HKD 12,207,595 as of June 30, 2024, compared to HKD 12,204,072 as of December 31, 2023, showing a marginal increase[7] Revenue Sources - The company reported a total of HKD 12,999,778 in rental income from investment properties for the six months ended June 30, 2024, compared to HKD 11,312,744 for the same period in 2023[11] - The jewelry and watch retail segment generated revenue of HKD 11,049,022, while the precious metals wholesale segment contributed HKD 247,897 for the same period[15] - Revenue from the wholesale precious metals segment decreased by 21% to HKD 248 million, while the segment recorded a profit of HKD 2 million compared to a loss of HKD 1 million in the same period last year[45] Market and Operational Insights - The company plans to focus on market expansion and new product development to drive future growth[2] - Same-store sales growth in Hong Kong and Macau jewelry business increased by 4%, but declined by 9% in mainland China due to a high base from the previous year[38] - The company opened 25 new stores and closed 47 stores, primarily in mainland China, resulting in a net decrease of 22 stores[41] - Online sales in mainland China for the first half of 2024 amounted to HKD 1,485 million, a decrease of 7% compared to HKD 1,594 million in the same period of 2023[43] - The company’s same-store sales growth for gold jewelry and products in mainland China recorded a decline of 12% in the first half of 2024[40] - The company’s retail segment performance in Taiwan showed an 18% year-on-year growth, contrasting with declines in other major markets[39] Financial Instruments and Investments - The company reported a net loss from designated financial instruments was HKD (35,627), a significant decline from a gain of HKD 90,316 in the previous year[18] - The net loss from the sale of derivative financial instruments was HKD 24,827,000 for the six months ended June 30, 2024, compared to HKD 1,833,000 in the same period of 2023, indicating a significant increase in losses[20] - The group reported other income of HKD 5,044 from the sale of derivative financial instruments, down from HKD 20,480 in the previous year, indicating a decrease of approximately 75.40%[18] Employee and Operational Costs - As of June 30, 2024, the group employed 11,784 staff, with total employee expenses amounting to HKD 1,086 million for the six-month period[52] - The group's depreciation of property, plant, and equipment for the six months ended June 30, 2024, was HKD 170,559,000, slightly down from HKD 175,554,000 in the same period of 2023[19] Compliance and Governance - The company has complied with the applicable code provisions during the review period, with an exception noted regarding the roles of the Chairman and CEO[56] - The board of directors includes both executive and independent non-executive members, ensuring a balanced decision-making process[58]

Financial Performance - The company recorded a profit of HK$1,013 million in 2023, a 124% increase compared to the previous year[7] - The company's profit level in 2023 is roughly equivalent to that of 2018, indicating a recovery from the pandemic impact[7] - Total jewellery and watch sales in the first half of 2023 rebounded significantly by 31% year-on-year, with the second half slowing to 15% year-on-year, driven by strong consumer demand for gold despite rising prices[20] - The company's consolidated turnover from continuing operations increased by 22% to HK$25,013 million in 2023, with profit attributable to owners of the company rising by 124% to HK$1,013 million[21] - Gross profit margin increased slightly by 0.1 percentage point from 26.3% to 26.4%, supported by the rising trend in gold prices[21] - Retail turnover for 2023 reached HK$24,274,496 thousand, a 22.9% increase compared to HK$19,751,940 thousand in 2022[58] - Total profit before tax for 2023 was HK$1,357,452 thousand, a 129.0% increase from HK$592,764 thousand in 2022[58] - Profit for the year from continuing operations in 2023 was HK$1,046,862 thousand, up 120.1% from HK$475,761 thousand in 2022[58] - Total assets as of December 31, 2023, amounted to HK$19,156,156 thousand, a 2.7% increase from HK$18,650,857 thousand in 2022[65] Growth Strategies and Market Expansion - The company is focusing on enhancing logistics, marketing, merchandising, and cost control to drive future growth[8] - The company is selectively and judiciously expanding its store networks and markets[8] - The company anticipates growth from mainland China due to relaxed travel schemes and government policies[7] - The company is hopeful for economic revival efforts by the Hong Kong government to make progress[7] - The company is seeking relief from labor shortages and rental increases in Hong Kong[7] - The company is preparing to welcome new guests from mainland China under relaxed travel schemes[7] - Retail networks in key markets expanded with a net increase of 55 stores, primarily located in Mainland China[20] - Mainland China segment revenue grew by 15% to HK$15,818 million, with segment results increasing by 64% to HK$872 million[23] - Hong Kong and Macau segment revenue increased by 40% to HK$8,175 million, with segment results rising by 87% to HK$598 million[23] - Taiwan segment revenue grew by 22% to HK$282 million, with segment results increasing by 45% to HK$29 million[23] - Total jewellery and watch sales in 2023 grew by 23% year-on-year, driven by strong demand for gold in Mainland China, Hong Kong, and Macau[23] - The company expanded online sales into countries like the United States, Britain, Malaysia, and Australia, though key markets remain Mainland China, Hong Kong, Macau, and Taiwan[20] - The group's retail of jewellery and watches segment results improved by 72% year-on-year, benefiting from positive same-store sales growth across all key markets[23] - Mainland China's same-store sales growth (SSSG) for gold jewellery and products increased by 21% in 2023, while Hong Kong and Macau saw a 47% increase[29] - Gem-set jewellery SSSG in Mainland China declined by 23% in 2023, but Hong Kong and Macau recorded a 21% increase, driven by the "PROMESSA" and "Infini Love Diamond" brands[29] - Watch sales SSSG in Mainland China and Hong Kong/Macau both grew by 9% in 2023, despite a slowdown in the second half of the year[29] - The company opened 101 new Chow Sang Sang stores in Mainland China in 2023, with 72 located in shopping malls[31] - Omni-channel retailing accounted for 31% of total sales in Mainland China in 2023, slightly down from 34% in 2022[34] - Online sales in Mainland China grew by 12% to HK$2.974 billion in 2023, maintaining a 19% share of total Mainland China sales[35] - The company invested in over 22,000 hours of live-streaming in 2023, up from 19,000 hours in 2022, to drive online sales[35] - The company expanded its presence in Hong Kong with 3 new Chow Sang Sang stores and 1 new PROMESSA store, while maintaining 8 點睛品 stores in Macau[32] - The Group plans to open 50 new stores in Mainland China, primarily in second-tier cities and above, as part of its expansion strategy[49] - The Group's gold sales are increasing, putting downward pressure on gross profit margins, prompting a focus on higher-margin products like gemstone-set jewelry and gold pieces with higher design value[49] - The Group is planning a series of marketing events in 2024, including an exhibition in Chengdu showcasing the "Infini Love Diamond" collection, to strengthen its brand image[49] Leadership and Governance - Mr. Stephen TING Leung Huel, aged 70, has over 40 years of experience in accounting, auditing, and management, and serves as a Non-executive Director and member of the Audit, Remuneration, and Nomination Committees[14] - Mr. CHUNG Pui Lam, aged 83, is a Non-executive Director and member of the Audit, Remuneration, and Nomination Committees, with extensive legal and corporate governance experience[14] - Mr. Winston CHOW Wun Sing, aged 66, has been with the Group since 1984 (except 1988-1992) and serves as the Group Deputy General Manager, focusing on product development and staff training in the Greater China jewellery business[14] - Mr. LEE Ka Lun, aged 68, is an Independent Non-executive Director with over 25 years of experience in banking and auditing, and currently serves as an independent non-executive director for two other listed companies in Hong Kong[15] - Dr. LO King Man, aged 86, is an Independent Non-executive Director with extensive experience in higher education management and public service, and currently serves as the Chairman of the Hong Kong Arts Festival Programme Committee[15] - Mr. Stephen LAU Man Lung, aged 78, is an Independent Non-executive Director with over 30 years of management and marketing experience, particularly in the textile and apparel field[16] - Ms. Genevieve CHOW Karwing, aged 39, is an Executive Director and the Group's General Manager of Omni-channel Development, leading the e-Commerce business and overseeing the branding and product management of EMPHASIS and PROMESSA since 2018[17] - Ms. Genevieve CHOW holds a dual Bachelor of Arts Degree in Science of Earth Systems and Economics from Cornell University and is a GIA Applied Jewellery Professional (A.J.P.) and GIA Diamonds Graduate[17] - The company's executive directors include Mr. Vincent CHOW Wing Shing, Dr. Gerald CHOW King Sing, Mr. Winston CHOW Wun Sing, and Ms. Genevieve CHOW Karwing[73] - The company's independent non-executive directors include Dr. CHAN Bing Fun, Mr. LEE Ka Lun, Dr. LO King Man, Mr. Stephen LAU Man Lung, and Mr. HSU Rockson (appointed on 1 June 2023)[73] - The company's directors' interests in shares are recorded as per the Securities and Futures Ordinance, with long positions noted as of 31 December 2023[83] - Mr. Vincent CHOW Wing Shing holds 136,271,595 shares, representing 20.12% of the company's total shareholding[85] - Dr. Gerald CHOW King Sing holds 76,026,394 shares, representing 11.22% of the company's total shareholding[85] - Mr. Winston CHOW Wun Sing holds 75,594,220 shares, representing 11.16% of the company's total shareholding[85] - Everwin Company Limited holds 120,000,000 shares, representing 17.71% of the company's total shareholding[89] - Speed Star Holdings Limited holds 74,995,996 shares, representing 11.07% of the company's total shareholding[89] - Schroders plc holds 54,276,447 shares, representing 8.01% of the company's total shareholding[89] - Happy Family Limited holds 53,909,932 shares, representing 7.96% of the company's total shareholding[89] - Pandanus Associates Inc., Pandanus Partners L.P., and FIL Limited each hold 34,009,000 shares, representing 5.02% of the company's total shareholding[89][92] - The company has maintained the prescribed public float under the Listing Rules throughout the year and up to the date of this report[94] - Pandanus Partners L.P. holds a 38.71% stake in FIL Limited, which in turn holds 34,009,000 shares of the company[95] - The company has maintained the required public float throughout the year and as of the report date[96] ESG and Sustainability - The Environmental Sustainability Department was established to define and promote sustainability strategies, expanding the reporting boundary to include Greater China (Hong Kong, Mainland China, Macau, and Taiwan) from 2023 onwards[99] - The number of retail stores included in the ESG report has increased due to the company's continued expansion[99] - The company established a Carbon Neutrality Task Force in 2023, comprising senior management from key operational units across all business locations, to define and execute the company's carbon neutrality strategy[102] - The company has set a series of environmental targets to decarbonize its business portfolio, covering greenhouse gas emissions and resource consumption[102] - The Board oversees the company's ESG strategy, material ESG-related risks, and the effectiveness of ESG risk management and internal control systems[102] - The ESG Working Group is responsible for monitoring important ESG trends, targets, and associated risks and opportunities, as well as assessing the adequacy and effectiveness of the company's ESG-related implementations[102] - The company has implemented relevant policies and procedures to manage ESG-related risks, with clearly delegated roles and responsibilities to all relevant parties[105] - The company maintains close communication with stakeholders including employees, customers, shareholders, and suppliers through various channels such as company websites, meetings, and online communications to align business practices with stakeholder expectations[108][110] - The company has implemented systems to monitor product quality, ensuring materials meet national standards for fineness, absence of toxic elements, and workmanship levels[113] - The company conducts product testing using surface spectrometric and destructive methods at externally-accredited laboratories in Hong Kong and Shunde[113] - The company's subsidiary, Hong Kong Gemological Research and Authentication Centre Company Limited, has been designated as a "Designated Local Research Institution" by the Hong Kong Innovation and Technology Commission[113] - The company has established a Quality Standard for Incoming Goods to ensure products are free from harmful elements such as lead, mercury, and hexavalent chromium[113] - The company has policies in place to ensure advertising and labeling comply with applicable laws and regulations, and respects intellectual property rights in business dealings[116] - The company has a dedicated customer relations team to address inquiries and complaints through various channels including service hotlines, emails, and social media platforms[116] - All store staff are trained to handle product-related queries, maintenance, and repair, with all customer correspondence logged and documented[117] - The company evaluates risks and initiates recall procedures for defective or substandard products, notifying relevant parties promptly and developing action plans for recalls[115] - The company reviews stakeholder feedback periodically to identify and prioritize material ESG issues, ensuring alignment with business practices[108][110] - The company was awarded the "Customer Service Power Brand Award" by the Hong Kong Institute of Marketing (HKIM) in July 2023[120] - The company received the "Excellence in Personalisation Marketing – Gold" and "Excellence in Loyalty Marketing – Bronze" awards from MARKETING-INTERACTIVE[120] - The company was commended as a long-term participating retailer member of the "No Fakes Pledge" Scheme at the 25th Anniversary Celebration[121] - The company was awarded the "Most Valuable Brand Award in Greater Bay Area" at the Third Navigator "9+2" Greater Bay Area Navigation Award Ceremony[121] - The company's Chow Sang Sang Precious Metal Laboratory was awarded the Gold Award of the "Testing and Certification Manpower Development Award Scheme" 2023-2024[122] - The company has policies and procedures in place to ensure compliance with data privacy laws, including the Personal Data (Privacy) Ordinance of Hong Kong, the Personal Information Protection Law of China, and the General Data Protection Regulation of the European Union[123] - The company only collects and retains the minimum amount of personal data of customers in its database, which is well-protected both in policy and technological terms[123] - The company regularly reviews the impact of updates in data privacy regulations on its business operations and enhanced its Privacy Policies and internal guidelines in 2023[123] - The company provides provisions in relevant guidelines, operation manuals, and customer data management codes for frontline staff regarding the collection, use, retention, processing, and management of customer data[126] - The company has implemented comprehensive procurement and supply chain management policies, prioritizing suppliers with responsible and sustainable operations, and conducts background checks and ESG evaluations on new suppliers[127] - Diamond suppliers are required to provide documented proof of ethical provenance, and all materials and finished goods are monitored, with only those passing tests being accepted[127] - The company maintains relationships with multiple suppliers to mitigate risks of over-reliance and promotes fair competition during supplier selection[127] - The company has a zero-tolerance policy on bribery and corruption, with employees required to comply with anti-corruption policies and undergo regular training[130] - The company's operating subsidiaries in Hong Kong registered as Dealers in Precious Metals and Stones (DPMS) under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance since December 2023[131] - Over 200 staff members attended pilot training on statutory requirements such as customer due diligence and record-keeping prior to DPMS registration[131] - The company has a total of 12,175 employees as of 31 December 2023, with detailed employment data provided in the ESG Data Table[138] - The company strictly prohibits child and forced labor in all business operations, including suppliers, and no cases were identified in 2023[137] - The company won the title of "Foshan Harmonious Labour Relations Enterprises" in 2023, awarded by the Foshan Municipal Human Resources and Social Security Bureau[132] - The company ensures diversity in its workforce and prohibits discrimination in recruitment and promotion based on ethnicity, age, gender, marital status, and other factors[136] - The company had a total of 12,175 employees as of December 31, 2023[139] - In 2023, there were 1,924 lost days due to work-related injuries, compared to 1,308 in 2022[144] - The company achieved ISO 45001 certification in 2023 to improve occupational health and safety performance[144] - The company has a Management Trainee Programme in Mainland China, launched in 2020, to align with its omni-channel retailing strategy[148] - The company subsidizes employees requiring professional qualifications or advanced studies for specific positions[148] - The company conducts a significant portion of its training virtually via platforms like Zoom, "WeCom," and "Channel T"[148] - The company has zero work-related fatalities in the last three years[144] - General staff accounted for 58.2% of total working hours, middle management for 37.4%, and upper management for 4.4%[151] - The company has set a target to reduce electricity consumption and greenhouse gas emissions intensity by 7% at jewelry manufacturing factories by 2030[156] - The company aims to increase the use of e-receipts to 70% of transaction records issued to customers by 2030 as part of its paper waste reduction program[156] - The company has developed a roadmap towards decarbonization, with medium-term goals to enhance emission reduction disclosure and long-term goals to achieve decarbonization beyond regulatory requirements[158] - The company has won the "2023 Green Sustainable Development Contribution Award" for its contributions to carbon neutrality and environmental protection[158] - The company's Manufacturing Technology and Production Centre in Hong Kong has implemented energy-saving measures, including replacing lighting systems with energy-saving LEDs and upgrading air conditioners[158] - The company has signed up for the "Charter on External Lighting" and "Energy Saving Charter" organized by the Hong Kong Government, committing to reducing energy use in stores[159] - The company is upgrading lighting in offices and stores to LED lights, with replacement works in four factories expected to be completed by 2024[159] - The company has implemented multiple energy and water efficiency measures, including controlling billboard lighting with timers and replacing conventional vehicles with electric vehicles[160] - The company has adopted green building design and materials in the construction of the Xian flagship store, including solar panels for electricity generation[161] - The company aims to reduce water consumption and intensity by 7% at jewelry manufacturing factories by 2030[163] - The company is upgrading air conditioners to Grade 1 energy efficiency at its Hong Kong factory[163] - The company plans to complete the upgrade of lighting to LED in four factories by 2024[162] - The company implemented a lights-off initiative during lunch hours to conserve energy, reducing electricity consumption[163] - The company has set water and energy consumption reduction targets for its factories to enhance climate resilience[165] - The company is developing an automated planting area in its Taiwan office using LED lights and soil condition detection technology[163] - The company observed higher energy consumption in 2023 due to resumed operations and business growth[163] - The company is monitoring energy efficiency performance to reduce environmental impact and comply with relevant laws[166] - The company has established emergency response plans for flooding and placed production equipment above ground level in factories[165] - The company is incorporating sustainability as a key priority in supplier screening and assessment[166] - The company faces physical risks from extreme weather events such as cyclones, floods, and water shortages in mainland China and Hong Kong, which could disrupt operations and supply chains[167] - The company has implemented measures to mitigate climate change impacts, including emergency plans, flood prevention, and energy/water conservation targets for its factories[167] - The company identified market risks from increasing customer environmental and social awareness, which could harm its reputation if sustainability expectations are not met[168] - The company is sourcing recycled gold to reduce

Financial Performance - The total revenue for the year ended December 31, 2023, was HKD 25,013,339, representing a 22% increase from HKD 20,556,516 in 2022[2] - Retail revenue reached HKD 24,274,496, up 23% from HKD 19,751,940 in the previous year[2] - Profit attributable to owners of the company from continuing operations was HKD 1,060,359, a significant increase of 118% compared to HKD 486,365 in 2022[2] - Basic and diluted earnings per share increased to HKD 1.495 from HKD 0.668, marking a 124% rise[4] - The company reported a net profit of HKD 999,183 for the year, compared to HKD 441,722 in 2022[5] - Total revenue for the year ended December 31, 2023, was HKD 25,013,339, with external sales contributing HKD 25,003,417[17] - The gross profit from continuing operations was HKD 7,163,077, compared to HKD 5,555,179 in 2022, reflecting an increase of approximately 29%[23] - The company reported a pre-tax profit of HKD 592,764 from continuing operations, compared to HKD 558,725 in 2022, marking an increase of approximately 6.1%[23] Dividends and Equity - The total dividend for the year was HKD 0.60 per share, up from HKD 0.30 per share in 2022, with a payout ratio of 40%[2] - The company’s total equity attributable to owners increased to HKD 12,204,072, up 3% from HKD 11,890,543 in 2022[2] - Total equity increased to HKD 12,170,194 thousand in 2023, up from HKD 11,870,228 thousand in 2022, representing a growth of approximately 2.53%[7] - The proposed final dividend for 2023 is HKD 270,974,000, compared to HKD 101,615,000 for the previous year[27] - The proposed final dividend for the year ending December 31, 2023, is HKD 0.40 per share, up from HKD 0.15 in 2022, resulting in a total annual dividend of HKD 0.60 per share, compared to HKD 0.30 in 2022[53] Assets and Liabilities - Non-current assets totaled HKD 3,882,913, a slight decrease from HKD 3,990,316 in 2022[6] - Current assets increased to HKD 15,273,243 from HKD 14,660,541, driven by higher inventory and receivables[6] - Non-current liabilities decreased to HKD 1,351,011 thousand in 2023 from HKD 1,423,819 thousand in 2022, reflecting a reduction of about 5.08%[8] - The total receivables amounted to HKD 818,472,000 after impairment adjustments, compared to HKD 875,695,000 in 2022[33] - The company’s total assets related to discontinued operations were HKD 83,823,000 in 2023, down from HKD 131,459,000 in 2022[29] - The company’s total liabilities related to discontinued operations were HKD 645,000 in 2023, compared to HKD 2,616,000 in 2022[29] Revenue Sources and Segments - Revenue from continuing operations reached HKD 25,003,417 thousand in 2023, a significant increase of 21.88% compared to HKD 20,544,680 thousand in 2022[15] - The jewelry and watch retail segment remains a key business unit, primarily operating in mainland China, Hong Kong, Macau, and Taiwan[16] - Revenue from mainland China was HKD 15,826,481 in 2023, up from HKD 13,700,246 in 2022, indicating a growth of about 15.5%[19] - Jewelry and watch retail sales grew by 23% year-on-year, with significant demand for gold in mainland China, Hong Kong, and Macau[39] - The wholesale revenue for precious metals decreased by 7% to HKD 711 million due to a drop in demand for platinum metals[45] Operational Challenges and Losses - The company experienced a foreign exchange loss of HKD 223,819, compared to a loss of HKD 651,647 in the previous year[5] - The company reported a net loss of HKD 505,390 from precious metal lending, indicating significant challenges in this segment[17] - The company incurred a net loss of HKD 7,351 from the sale of property, machinery, and equipment, indicating potential asset management issues[17] - The company experienced a net impairment of HKD 9,003 on accounts receivable, suggesting potential credit risk concerns[17] - The company reported a net loss of HKD 14,499 from foreign exchange differences, impacting overall profitability[17] Strategic Initiatives and Future Outlook - The company is preparing to disclose potential impacts related to international tax reforms as they become applicable, demonstrating proactive risk management[14] - The company aims to enhance its brand image in 2024, marking its 90th anniversary, with a series of marketing activities including an exhibition in Chengdu showcasing the "Infini Love Diamond" collection[52] - The company plans to open 50 new stores primarily in second-tier cities and above in mainland China to counteract the decline in embedded jewelry sales[52] - The company is focusing on high-margin products such as gemstone jewelry and design-driven gold accessories to maintain profitability amid rising gold sales[52] - The company is investing in new technology development to enhance operational efficiency[60] Market and Consumer Trends - The company has observed a cautious consumer sentiment in mainland China, reflected in the decline of wedding jewelry purchases, indicating economic uncertainty and demographic changes[52] - The same-store sales growth for gold products was +21% in mainland China and +47% in Hong Kong and Macau[40] - The group's omnichannel retail strategy accounted for 31% of total sales in mainland China, down from 34% in 2022[42] - Online sales in mainland China reached HKD 2,974 million in 2023, a 12% increase from HKD 2,666 million in 2022, representing approximately 19% of total sales[43] Governance and Compliance - New accounting standards adopted this year did not significantly impact the financial statements, indicating compliance with updated regulations[10] - The overall financial reporting is conducted in accordance with Hong Kong Financial Reporting Standards, ensuring transparency and accuracy in financial disclosures[9] - The board emphasized the importance of adhering to corporate governance codes to maintain investor confidence[60]

Sales Performance - The Group's total jewellery and watch sales in the first half of 2023 increased by 31% year-on-year, with turnover in Hong Kong and Macau up 59% and Mainland China up 22%[6] - Consolidated turnover from continuing operations for the first half of 2023 increased by 29% to HK$13,000 million, while profit attributable to owners of the Company rose by 75% to HK$827 million[6] - Segment revenue for Mainland China was HK$8,714,780 thousand, reflecting a 22% increase compared to the previous year[8] - Segment results for Hong Kong and Macau showed a profit increase of 156% to HK$365,610 thousand[8] - In Hong Kong and Macau, turnover increased by 59% year-on-year, with segment results jumping 156%[14] - Overall same-store sales growth (SSSG) was +19% in the first half of 2023 compared to the first half of 2022[12] - In Mainland China, the overall SSSG was +19% in the first half of 2023 compared to the first half of 2022[12] - SSSG for gold jewellery and products rebounded with an increase of 78% in the first half of 2023[14] - SSSG for gem-set jewellery recorded an increase of 34%, driven by the "Infini Love Diamond" collection[14] - In Taiwan, sales grew by 32% year-on-year, with segment results increasing by 89%[18] - SSSG for watches in Hong Kong and Macau recorded steady growth of +16% compared to the first half of 2022[14] - The overall SSSG for the first quarter of 2023 was +93% compared to the same period in 2022, while the second quarter recorded +33%[14] - Sales of Rolex and Tudor watches in Mainland China recorded SSSG of +37% over the low base in 2022 due to disrupted supplies during the pandemic[10] Store Expansion - The Group added a net total of 39 stores to its retail network in the first half of 2023[6] - The total number of stores increased from 977 at the end of 2022 to 1,016 by June 30, 2023, reflecting a net change of +39 stores[19] - The company opened 47 new stores in the first half of 2023, while closing 17, resulting in a net increase of 30 stores in Taiwan[19] - Chow Sang Sang opened 53 new stores during the period, including 6 in Mainland China, while closing a total of 21 stores[21] - Chow Sang Sang Holdings plans to expand its market presence in Mainland China, targeting a 20% increase in store openings by the end of 2024[131] Financial Performance - The Group's profit attributable to owners from continuing operations increased by 72% to HK$829 million[6] - The interim dividend per share was set at 20.0 cents, with a dividend payout ratio of 16%[3] - The Group's turnover for the six months ended June 30, 2023, was HK$12,671,833, an increase of 31.0% compared to HK$9,668,795 for the same period in 2022[41] - Gross profit for the same period was HK$3,636,988, representing a 26.4% increase from HK$2,878,514 in 2022[41] - Profit before tax from continuing operations was HK$1,063,429, up 68.3% from HK$631,775 in the previous year[41] - Profit for the period from continuing operations was HK$822,004, a significant increase of 72.2% compared to HK$476,935 in 2022[41] - Basic earnings per share attributable to owners of the Company for profit for the period was 122.1 cents, compared to 69.6 cents in the previous year, reflecting a 75.8% increase[43] - Total comprehensive income for the period was HK$311,101, compared to a loss of HK$141,907 in the same period last year[45] - The Group's finance costs increased to HK$62,932 from HK$33,352 in the previous year, indicating a rise of 88.8%[41] - The Group's profit before tax from continuing operations was impacted by various charges, including a significant net loss on bullion contracts[76] Cash Flow and Liquidity - As of June 30, 2023, the Group had cash and cash equivalents of HK$1,258 million, up from HK$749 million as of December 31, 2022, indicating strong cash flow from retail operations[29][30] - The Group's total unutilized banking facilities amounted to HK$4,249 million as of June 30, 2023, compared to HK$3,879 million as of December 31, 2022[31] - Net cash flows from operating activities for the six months ended June 30, 2023, were HK$1,603,059, compared to HK$746,693 for the same period in 2022, representing a significant increase[61] - Cash and cash equivalents significantly increased to HK$1,257,816 from HK$748,628, a growth of 68%[47] - The Group's lease liabilities increased to HK$1,116 million as of June 30, 2023, from HK$983 million as of December 31, 2022[32] Risk Management and Governance - The Group has maintained effective risk management and internal control systems, with no significant weaknesses identified during the review period[39] - The Board is committed to appointing a new independent non-executive director before the 2023 Annual General Meeting to comply with corporate governance standards[37] - The Group's hedging level is approximately 40% of total gold inventories, indicating a proactive approach to managing bullion price exposure[31] - The Group maintains 33% of its bank loans at fixed rates, an increase from 25% as of December 31, 2022, to manage interest cost risks[31] E-commerce and Digital Strategy - Online sales in Mainland China accounted for approximately 18% of total sales, with a growth in gold jewellery sales outpacing other categories[21] - The Group's e-commerce sales have become a significant contributor to revenue, with plans to enhance the integration of online and physical sales[32] - The Group invested over 11,200 hours in live streaming shows to enhance online sales engagement[21] - The company has implemented new digital marketing strategies, resulting in a 25% increase in online sales during the first half of 2023[131] Sustainability and Innovation - Chow Sang Sang Holdings is committed to sustainability, with plans to source 50% of its materials from eco-friendly suppliers by 2025[131] - The company is investing in new product development, with a focus on innovative jewelry designs expected to launch in Q3 2023[131] Shareholder Information - The Company declared an interim dividend of HK20.0 cents per ordinary share for the six months ended 30 June 2023, an increase from HK15.0 cents in 2022[126] - A final dividend of HK15.0 cents per ordinary share for the year ended 31 December 2022 was approved and paid on 21 June 2023[126] - As of June 30, 2023, the largest shareholder, Everwin Company Limited, held 120,000,000 shares, representing approximately 17.71% of the shareholding[119] - Directors' interests included Mr. Vincent Chow with 136,271,595 shares, accounting for 20.12% of the total[116]

Financial Performance - Revenue from continuing operations for retail reached HKD 12,671,833, representing a 31% increase compared to HKD 9,668,795 in the same period last year[2] - Profit attributable to owners from continuing operations was HKD 828,969, a significant increase of 72% from HKD 481,239 in the previous year[3] - Basic and diluted earnings per share for continuing operations rose to 122.4 cents, up 72% from 71.0 cents in the prior year[4] - Total comprehensive income for the period amounted to HKD 311,101, compared to a loss of HKD 141,907 in the same period last year[5] - Adjusted profit before tax for continuing operations was HKD 1,063,429, compared to HKD 631,775 for the same period in 2022, reflecting a significant increase[14] - The company reported a total segment profit of HKD 1,056,365 for the six months ended June 30, 2023, compared to HKD 632,437 for the same period in 2022[14] - The overall performance indicates a positive outlook for the second half of 2023, with expectations of continued growth in revenue and profitability[14] Dividends - The company declared an interim dividend of 20.0 cents per share, with a payout ratio of 16%[2] - The company declared an interim dividend of HKD 0.20 per share for 2023, up from HKD 0.15 per share in 2022[25] - The board declared an interim dividend of HKD 0.20 per share for the six months ended June 30, 2023, compared to HKD 0.15 per share in 2022[54] Sales and Revenue Growth - Revenue from continuing operations for the six months ended June 30, 2023, was HKD 12,994,530, an increase of 28.5% compared to HKD 10,085,728 for the same period in 2022[11] - The jewelry and watch retail segment generated revenue of HKD 12,671,833, while the precious metals wholesale segment contributed HKD 635,706 for the same period[13] - Revenue in Hong Kong and Macau increased by 59% year-on-year after the lifting of travel restrictions, with segment performance soaring by 156%[38] - Online sales in mainland China reached HKD 1,594 million, a 14% increase from HKD 1,395 million in the same period of 2022[43] - Taiwan sales grew by 32% year-on-year, with segment performance increasing by 89%[40] Costs and Expenses - The total sales cost for the period was HKD 12,999,778, up from HKD 10,092,060, reflecting a 29% increase[3] - Total tax expenses for the period amounted to HKD 241,425,000, up from HKD 154,840,000 in the previous year, reflecting a year-on-year increase of approximately 55.8%[19] - The group's total employee expenses for the six months ended June 30, 2023, were HKD 1,060 million, with a total workforce of 11,977 employees[52] Assets and Liabilities - Total non-current assets increased to HKD 4,064,024 thousand as of June 30, 2023, compared to HKD 3,990,316 thousand as of December 31, 2022, reflecting a growth of 1.85%[6] - Current assets rose to HKD 14,797,319 thousand, up from HKD 14,660,541 thousand, indicating an increase of 0.94%[6] - Total non-current liabilities reached HKD 1,593,867 thousand, up from HKD 1,423,819 thousand, marking an increase of 11.95%[7] - The company's net asset value stood at HKD 12,079,714 thousand, compared to HKD 11,870,228 thousand, reflecting a growth of 1.76%[7] - The total equity attributable to owners of the company increased to HKD 11,937,743 thousand from HKD 11,721,184 thousand, showing a rise of 1.84%[7] Inventory and Receivables - Inventory decreased slightly to HKD 11,850,854 thousand from HKD 12,112,349 thousand, a decline of 2.17%[6] - The company reported a decrease in accounts receivable to HKD 791,594 thousand from HKD 818,472 thousand, a reduction of 3.28%[6] - Trade receivables as of June 30, 2023, amounted to HKD 791,594 thousand, a decrease from HKD 818,472 thousand as of December 31, 2022[28] Market Strategy and Operations - The company plans to continue expanding its retail operations in mainland China, Hong Kong, Macau, and Taiwan[12] - The company is focusing on the development of new products, particularly lab-grown diamonds and gemstone jewelry, through its e-commerce platform[12] - The group plans to be more selective and cautious in opening new stores after surpassing 1,000 locations, focusing on improving operational efficiency[53] - The group continues to implement a multi-brand strategy and aims to enhance the integration of online and offline sales channels[53] Financial Instruments and Risks - The group's pre-tax profit from continuing operations was impacted by a net loss of HKD 337,022,000 from designated financial instruments, compared to a loss of HKD 127,611,000 in 2022, representing a significant increase in losses[16][17] - The fair value net gain from designated financial instruments was HKD 90,316,000 in 2023, a substantial increase from HKD 28,723,000 in 2022, highlighting improved market conditions[15] - The company is currently assessing its risks related to the OECD's Pillar Two tax reforms, which may affect future financial reporting[10] Capital Expenditure and Financing - Capital expenditure amounted to HKD 296 million, with HKD 151 million allocated for new store openings and renovations[49] - The total unused bank financing amounted to HKD 4,249 million as of June 30, 2023, compared to HKD 3,879 million on December 31, 2022[50] - The group's capital debt ratio was 36.6%, based on total bank loans and precious metal borrowings of HKD 4,431 million against equity attributable to owners of HKD 12,107 million[50] - The group maintains a diversified funding source by applying for financing from multiple local and overseas banks[50]

Financial Performance - The Group's profit decreased by 30% from the previous year to HK$452 million due to the pandemic, currency fluctuations, and gold price volatility[6] - Turnover for continuing operations was HK$19,751,940, a 1% decrease from HK$20,556,516 in 2021[5] - Earnings per share for the year dropped to 66.8 cents, down 30% from 95.0 cents in 2021[5] - The total dividend per share for the year was 30.0 cents, a decrease from 42.0 cents in the previous year[5] - The equity attributable to owners of the Company was HK$11,890,543, down 7% from HK$12,753,120 in 2021[5] - The dividend payout ratio increased slightly to 45% from 44% in the previous year[5] - The Group's profit for the year ended December 31, 2022, was HK$441.7 million, a decrease from HK$639.8 million in 2021[82] - The operating profit for the year ended December 31, 2022, was HK$592.8 million, down from HK$1,005.7 million in 2021[82] - The Group's retail turnover for 2022 was HK$20,556.5 million, compared to HK$21,987.6 million in 2021[82] Business Recovery and Challenges - Business performance showed signs of recovery during the Lunar New Year holidays in January 2023, with encouraging results from Mainland China, Macau, and Hong Kong[6] - The Group faces challenges such as labor shortages, rising interest rates, and changing consumer preferences post-pandemic[7] - Encouraging business growth was observed during the Lunar New Year holiday in January 2023 across mainland China, Macau, and Hong Kong[8] - The company faces challenges post-pandemic, including labor shortages, rising interest rates, and changing consumer preferences[8] Digitalization and Automation - The Group plans to enhance digitization and automation to improve employee satisfaction and management efficiency[7] - The company plans to advance digitalization and automation to enhance employee satisfaction and improve management efficiency[8] - The company emphasizes the development of live-streaming marketing and sales platforms as part of its omni-channel retailing strategy[72] Sales and Market Performance - In 2022, the Mainland's jewellery and watch sales declined by 4% year-on-year, with gold jewellery sales increasing by 3% in Renminbi terms, while gem-set jewellery sales decreased by 16% and watch sales increased by 10%[24] - In Hong Kong and Macau, gold jewellery sales grew by 15%, gem-set jewellery increased by 7%, but watch sales decreased by 13%, resulting in a combined jewellery and watch sales increase of 8% year-on-year[25] - Overall, jewellery and watch sales across all territories decreased by 1% year-on-year[25] - The pandemic significantly impacted business operations, leading to store closures and a lack of uninfected staff, particularly in the fourth quarter[24] - The company experienced a rebound in sales from April 2022 onwards, attributed to consumption vouchers in Hong Kong[25] - The third quarter saw a recovery in jewellery and watch sales after a difficult first half of the year[23] - Sales in Taiwan grew by 22% and segment results increased by 96% in 2022, supported by an orderly store expansion strategy and improved same-store sales growth[43][44] Store Expansion and Online Sales - The total number of Chow Sang Sang stores increased from 635 at the end of 2021 to 697 at the end of 2022, with 94 new stores opened in Mainland China[45] - Online sales in Mainland China reached HK$2,666 million, a 22% increase, accounting for approximately 19% of total sales, up from 15% in 2021[53] - MINTYGREEN brand stores increased by 16 to a total of 50 stores in 2022, focusing on affordable daily wear for the younger generation[47] - PROMESSA stores expanded to a total of 30 by the end of 2022, with a net increase of 6 new stores in Mainland China and 1 in Hong Kong[47] - The number of EMPHASIS stores reached 19 in Mainland China and 4 in Hong Kong by the end of 2022, aiming to redefine daily-wear jewelry[50][55] - Online sales for the Personalized Jewellery Service increased by 101% in Mainland China and 32% in Hong Kong year-on-year[59] Governance and Management - Mr. Stephen Ting has over 40 years of experience in public accounting and is a partner at Ting Ho Kwan & Chan, Certified Public Accountants[14] - Mr. Winston Chow has been with the Group since 1984 and is responsible for product development and staff training in the jewellery business in Greater China[14] - The company has a diverse board with members experienced in finance, law, and education, enhancing its governance and strategic direction[15] - The Group's leadership structure supports its strategic initiatives and market positioning in the competitive landscape[15] - The company is actively involved in various committees, including Audit, Remuneration, and Nomination, ensuring robust oversight and governance[15] Environmental, Social, and Governance (ESG) - The Group complies with the HKEx ESG Guide, focusing on social and environmental responsibility[120] - The Group has established an ESG Working Group to enhance awareness of environmental protection and corporate governance among employees[123] - The Board oversees the effectiveness of ESG risk management and internal control systems, including climate-related risks[126] - The Group has implemented policies and procedures to manage ESG-related risks effectively[124] - Stakeholder engagement includes communication with employees, customers, shareholders, and community organizations to evaluate ESG topics' materiality[129] - The Group emphasizes issues considered more material to its business in its ESG disclosures[131] - The Group's commitment to waste reduction includes using recyclable, reusable, and biodegradable packaging materials, earning the Wastewi$e Certificate (Excellence Level) from Hong Kong Green Organisation Certification[200] Employee Management and Welfare - Total staff costs for the year ended December 31, 2022, amounted to HK$1,935 million, with a total employee count of 11,673[71] - The Group actively adopts best practices in human resource management, emphasizing training, development, and employee welfare[147] - The Group has implemented flexible working hours and work-from-home arrangements in response to the ongoing COVID-19 outbreak, along with various safety measures[163] - The Group has established a Management Trainee Programme in Mainland China since 2020 to nurture high-potential talents aligned with its omni-channel retailing strategy[164] - The Group maintains an open and standardized framework for employment, salary review, and promotion, offering performance-based bonuses and benefits that meet or exceed local practices[158] Sustainability Goals - The Group aims to reduce electricity consumption and greenhouse gas emissions intensity by 7% at jewellery manufacturing factories by 2030[173] - The Group targets a 7% reduction in water consumption and intensity at jewellery manufacturing factories by 2030[174] - The Group has committed to sustainable development by opening a sustainable account with a renowned bank in Hong Kong in 2022[175] - The Group has implemented energy-efficient measures, including installing LED lights and controlling billboard lighting, to minimize environmental impact[177] - The Group has made an internal environmental protection pledge, banning shark fins and other endangered species from corporate functions[170]

Financial Performance - The total revenue for the year ended December 31, 2022, was HKD 20,556,516 thousand, a decrease of 7% compared to HKD 21,987,559 thousand in 2021[2] - Retail revenue amounted to HKD 19,751,940 thousand, down 1% from HKD 19,921,938 thousand in the previous year[2] - The profit attributable to owners of the company for continuing operations was HKD 486,365 thousand, a decline of 35% from HKD 743,868 thousand in 2021[2] - Basic and diluted earnings per share for the year were 66.8 cents, a decrease of 30% from 95.0 cents in 2021[4] - The company’s total comprehensive loss for the year was HKD 581,936 thousand, compared to a comprehensive income of HKD 1,103,230 thousand in 2021[5] - The company's profit before tax from continuing operations was HKD 592,764 thousand, a decrease of 41% from HKD 1,005,711 thousand in the previous year[3] - Revenue from continuing operations for 2022 was HKD 20,544,680, a decrease of 6.5% from HKD 21,975,277 in 2021[15] - The net profit before tax from continuing operations was HKD 905,402 for 2022, compared to HKD 1,005,711 in 2021, reflecting a decrease of 9.9%[23] Dividends and Equity - The company declared a total annual dividend of 30.0 cents per share, down from 42.0 cents in the previous year[2] - The proposed final dividend for 2022 is HKD 15.0 cents per share, compared to HKD 28.0 cents per share in 2021[27] - The total equity attributable to owners of the company decreased by 7% to HKD 11,890,543 thousand from HKD 12,753,120 thousand in 2021[2] - The total equity attributable to owners of the company decreased from HKD 12,583,761 thousand in 2021 to HKD 11,721,184 thousand in 2022, a decline of approximately 6.9%[8] Assets and Liabilities - Total non-current assets decreased from HKD 4,269,884 thousand in 2021 to HKD 3,990,316 thousand in 2022, a decline of approximately 6.5%[6] - Current assets increased from HKD 13,818,874 thousand in 2021 to HKD 14,660,541 thousand in 2022, an increase of about 6.1%[6] - Total current liabilities rose from HKD 4,182,059 thousand in 2021 to HKD 5,356,810 thousand in 2022, representing an increase of approximately 28.1%[6] - Total non-current liabilities increased from HKD 1,163,238 thousand in 2021 to HKD 1,423,819 thousand in 2022, a rise of about 22.4%[7] - The company's net assets decreased from HKD 12,743,461 thousand in 2021 to HKD 11,870,228 thousand in 2022, a decline of approximately 6.8%[8] Operational Highlights - The jewelry and watch retail segment generated sales of HKD 19,751,940, while the precious metals wholesale segment contributed HKD 765,862[17] - The company anticipates continued focus on market expansion in mainland China, Hong Kong, Macau, and Taiwan for retail operations[16] - New product development efforts are centered around lab-grown diamond jewelry, enhancing the electronic commerce platform[16] - The company reported a net loss from derivative financial instruments of HKD 121,116 in 2022, contrasting with a gain of HKD 16,025 in 2021[22] - The company’s largest customer accounted for less than 10% of total revenue in both the current and prior year, indicating a diversified customer base[21] Market Performance - Revenue from the mainland China market was HKD 13,700,246 in 2022, down from HKD 14,316,314 in 2021, representing a decline of 4.3%[19] - In mainland China, total sales decreased by 4% year-on-year, with same-store sales down by 5%[41] - In Hong Kong and Macau, total sales increased by 8% year-on-year, with a significant 53% increase in segment profit[40] - The company experienced a 15% increase in gold jewelry sales in mainland China, while sales of embedded jewelry dropped by 16%[38] - Online sales in mainland China reached HKD 2,666 million in 2022, a 22% increase from 2021, accounting for approximately 19% of total sales[54] Strategic Initiatives - The company plans to acquire properties in Hong Kong and land in China for a total consideration of approximately HKD 116 million and HKD 11.727 million respectively[36] - The company is focusing on live marketing and sales platforms to enhance its omnichannel retail strategy[63] - The company is leveraging advanced technology for demand forecasting, logistics, distribution, and customer relationship management[63] - The company has maintained a strong and effective self-operated retail network and strict inventory management despite geopolitical challenges[63] Employee and Operational Costs - The group’s total employee expenses for the year amounted to HKD 1,935 million, with a workforce of 11,673 employees as of December 31, 2022[62] - The group held investment properties valued at HKD 508 million as of December 31, 2022, generating rental income of HKD 12 million[58] Future Outlook - The company plans to increase the number of jewelry and watch stores by about 100 in 2023[63] - The PROMESSA store network expanded to 30 locations by the end of 2022, with a net increase of 7 stores[51] - MINTYGREEN brand stores increased to 50, with 16 new stores added in 2022, targeting the younger demographic[52]

Financial Performance - The Group's consolidated turnover from continuing operations for the first half of 2022 decreased by 7% to HK$10,092 million[6]. - Profit attributable to owners of the Company decreased by 12% to HK$472 million[6]. - Profit attributable to owners of the Company from continuing operations decreased by 10% to HK$481 million[6]. - The Group's earnings per share decreased by 12% to 69.6 cents for the period[3]. - Total revenue for the first half of 2022 was HK$9,668,795, a decrease of 1% compared to HK$9,775,832 in the same period of 2021[9]. - Profit before tax from continuing operations was HK$631,775, down 13.1% from HK$727,220 in the prior year[48]. - The profit for the period from continuing operations was HK$476,935, a decrease of 11.1% compared to HK$536,883 in the same period last year[48]. - The total comprehensive loss for the period was HK$141,907, compared to a total comprehensive income of HK$866,666 in the same period of 2021[50]. - The company reported an exchange loss of HK$378,470 for the period, compared to a gain of HK$93,929 in the previous year[50]. Sales and Revenue Breakdown - Total jewellery and watch sales in the first half of 2022 fell 1% year-on-year[6]. - Segment results for Mainland China fell by 14% year-on-year, with revenue of HK$7,164,718 compared to HK$7,163,814 in the first half of 2021[9]. - Hong Kong and Macau revenue declined by 5% year-on-year to HK$2,403,486, while segment results increased by 3%[21]. - Taiwan sales grew by 27% year-on-year, reaching HK$100,591, with segment results increasing by 50% when excluding gold price and currency fluctuations[27]. - Overall same-store sales growth (SSSG) in Mainland China fell by 9% year-on-year in the first half of 2022, with a significant decline in the second quarter[14]. - The overall SSSG for the first half of 2022 was -5%, with a notable recovery in the second quarter[24]. - Revenue from retail of jewellery and watches was HK$9,668,795 for the six months ended June 30, 2022, compared to HK$9,775,832 in the same period of 2021, indicating a slight decrease of about 1.1%[76]. - Revenue from wholesale of precious metals was HK$404,696 for the six months ended June 30, 2022, down from HK$1,030,944 in the same period of 2021, reflecting a significant decline of approximately 60.8%[76]. Store Expansion and Online Sales - The Group opened a net total of 33 stores in the first half of 2022[6]. - Chow Sang Sang opened 40 new stores in Mainland China, with 80% located in shopping malls, while closing 18 stores, resulting in a net increase of 22 stores[31]. - The total number of Chow Sang Sang stores in Mainland China increased from 775 to 803, representing a net change of +28 stores[29]. - Online sales in Mainland China grew by 24% to HK$1,395 million, accounting for approximately 19% of total sales in the region, up from 16% in the previous year[34]. - Online sales in Hong Kong, Taiwan, and other regions increased by 72% to HK$98 million, driven by channel expansion and overseas market exploration[34]. Cost and Margin Analysis - The overall gross margin from continuing operations increased by 6.2 percentage points to 28.5% in the first half of 2022[6]. - The international gold price exhibited an inverted V-shaped trend during the first half of 2022, impacting gross profit margins positively[6]. - Gross profit for the same period increased to HK$2,878,514, representing a 19.5% increase from HK$2,409,948 in the previous year[48]. - The gross profit margin improved to 45% in the first half of 2022, up from 42% in the same period last year[136]. Financial Position and Assets - The Group's investment properties had a total carrying value of HK$473 million as of June 30, 2022, generating rental income of HK$6 million during the period[38]. - The Group's strategic investment in HKEC shares was valued at HK$1,284 million, representing 7.2% of total assets as of June 30, 2022[38]. - Total non-current assets decreased to HK$3,977,570, down from HK$4,269,884, representing a decline of 6.8%[52]. - Total current assets slightly increased to HK$13,840,364 from HK$13,818,874, showing a growth of 0.2%[52]. - Cash and cash equivalents increased to HK$910,777 from HK$671,548, marking a significant rise of 35.6%[52]. Risk Management and Compliance - The board is satisfied with the adequacy and effectiveness of the group's risk management and internal control systems as of June 30, 2022[47]. - The company has maintained compliance with the corporate governance code, with a noted exception regarding the roles of the chairman and CEO being held by the same individual[45]. - There were no significant control weaknesses identified in the risk management and internal control systems during the review period[47]. Future Outlook and Strategic Initiatives - The Group expects to add approximately 100 net new stores in 2022, continuing its retail network expansion strategy[40]. - The company indicated plans for market expansion and new product development, although specific details were not disclosed in the provided content[76]. - Future guidance indicates a projected revenue growth of 12% for the second half of 2022, driven by increased consumer demand[136]. - Chow Sang Sang Holdings is exploring potential acquisitions to strengthen its market position in the luxury goods sector[137]. Dividends and Shareholder Information - The company declared and paid dividends of HK$189,682,000 during the period[63]. - The interim dividend declared for 2022 was HK$15.0 cents per ordinary share, an increase from HK$14.0 cents in 2021[93]. - A final dividend of HK28.0 cents per ordinary share for the year ended 31 December 2021 was approved and paid on 16 June 2022[131].