According to Vincent Chow, general manager for the Hong Kong-based jewelry company Chow Sang Sang, the company plans to invest about HKD50 million this year in opening new stores in mainland China.
Chow told local media because its business network in Hong Kong is almost complete, the company plans to focus on the development of the mainland market. At present, its mainland business accounts for 30% of the company's total businesses.
He also pointed out that in Hong Kong, the company's revenue from mainland tourists accounts for 35% to 40% of its total revenue. However, due to H1N1 flu, the number of tourists decreased in May.
Due to cost increases and a decrease in securities profits, Chow Sang Sang reported that its net profit decreased by 8.8% to HKD470 million in 2008 while its revenue increased by 25.5% to HKD9.881 billion, with the revenue from the jewelry retail sector increasing by 30% to HKD5.359 billion.