Zhou Shengsheng Made 15% More Profits Last Year And Exceeded 1 Billion Hong Kong Dollars.

Zhou Shengsheng, a local jeweller, earns more than 15.5% to HK $1 billion 12 million 300 thousand or earnings per share of HK $149.4 in 2017, compared with HK $876 million 400 thousand or HK $149.4 per share in 2017.

Excluding HK $114 million in HK Stock Exchange in 2017 and HK $27 million in 2018, the net profit of continuing operations in 2018 was HK $985 million, an increase of 29% over 2017.

The Group intends to send 44 Hong Kong cents interest at the end of 2017, a slight increase of 4.8% over the 42 Hong Kong cents in 2017, a year-on-year increase of 59 Hong Kong cents, an increase of 15.7% over the previous year, and a dividend payout ratio of 39%.

During the reporting period, Zhou Shengsheng's income was HK $18 billion 806 million 300 thousand, an increase of 13.1% compared with HK $16 billion 633 million 400 thousand in 2017. As a result of the rapid downturn in Hongkong's retail industry in the second half of the year, the company failed to maintain a growth rate of only 20% in the first half of this year.

In 2018, the turnover of the group's core jewelry retail business increased by 18% to HK $17 billion 130 million 400 thousand per year, compared with HK $14 billion 516 million 300 thousand in the same period in 2017, accounting for 91%.

The business profits of jewelry business increased by 33.6% from 902 million yuan to 1 billion 205 million 200 thousand yuan.

Jewelry retail business, Hong Kong and Macao market rose 20% last year, mainly benefited from the same store sales surged 18%, only the second half of this year also slowed down, especially in the four quarter of the weak performance.

The Hong Kong and Macao markets closed a Zhou Shengsheng store and five watch shops last year. The last watch shop in the Hong Kong and Macao stores closed in February this year.

Zhou Shengsheng said that the reduction of stores in China helps to strengthen the inventory and supply of 11 watch stores. During the reporting period, a new Zhou Shengsheng store opened in Yuen Long, and a new store in Macao opened at the Elgin Silver Oaks Kalimpong Hotel.

In 2018, the total rental cost of the group was reduced by HK $87 million, while the renewal rent was adjusted from +12% to -40%. The group's annual capital expenditure was 54 million, mainly for new store opening and shop decoration.

The mainland market grew by 16.1% to HK $9 billion 328 million 600 thousand last year, up from HK $8 billion 31 million 800 thousand in 2017.

In terms of RMB, the mainland market increased by 13% last year, while the same store sales increased by 3%, while the same store sales increased by 7%.

Sales growth was mainly stimulated by 8% of gold products and same store sales, while jewellery products fell 7% in the same store.

In 2018, the sales of electricity suppliers in the mainland continued to grow, accounting for 15% of the mainland's business.

As at the end of December, the number of shops in the mainland was 506, with a net increase of 84 during the period.

The group plans to open more stores in the mainland, mainly in shopping malls, and the new brand MINTYGREEN, which focuses on young customers, plans to open 60 stores this year.

At the close of 28, Chow Sang Sang Holdings International Ltd. (0116.HK) Zhou Shengsheng shares reported HK $11.90, and the company's market value was HK $8 billion 61 million.

Author: Chen Yifei