CHOW SANG SANG(HK:00116) Chang Jiang Shang Bao·2026-02-04 23:50Core Viewpoint - The gold jewelry brand Chow Sang Sang (00116.HK) is embroiled in a controversy regarding the gold content of its products, raising questions about consumer trust and the company's reputation [1][2][5] Group 1: Incident Overview - A consumer reported that a gold pendant purchased from Chow Sang Sang had a significant discrepancy in gold content, with differences exceeding 35 percentage points between the highest and lowest measurements [1][2] - The company has stated that its products meet national standards and has conducted its own tests, which confirmed compliance [4][6] - The situation has escalated to involve third-party testing to resolve the dispute [1][2] Group 2: Financial Performance - Chow Sang Sang's net profit for 2024 was 718 million RMB, a decrease of approximately 20% year-on-year [1] - In the first half of 2025, the company reported a net profit of over 800 million RMB, a significant increase of 71.44% compared to the previous year, despite a 2.45% decline in revenue [1][7] - The company has experienced fluctuating financial performance over the years, with net profits showing alternating growth and decline [6][7] Group 3: Marketing and Sales Strategy - Chow Sang Sang has consistently spent over 3 billion RMB annually on marketing from 2021 to 2024, with sales expenses reaching 3.572 billion RMB in 2024, accounting for 18.96% of revenue [1][8] - The company has implemented multiple price adjustments in 2025, citing rising raw material costs as the reason for these changes [8] - Despite the increase in net profit, the company's net profit margin remains low at 8.15%, significantly below competitors like Chow Tai Fook [8]