Earnings release
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2026 Interim Results Page 1 of 29 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. CHOW SANG SANG HOLDINGS INTERNATIONAL LIMITED 周生生集團國際有限公司* (Incorporated in Bermuda with limited liability) Stock code: 116 INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2026 The Board announces the unaudited interim results of the Group for the six months ended 30 June 2026. The interim results have been reviewed by the Audit Committee of the Board. FINANCIAL HIGHLIGHTS Unaudited Six months ended 30 June 2026 2025 HK$’000 HK$’000 Change CONTINUING OPERATIONS Turnover Retail 12,713,088 10,762,505 +18% Other businesses 165,002 273,034 -40% __________ _________ 12,878,090 11,035,539 +17% __________ _________ Profit/(loss) for the period attributable to owners of the Company Continuing operations 2,192,565 909,789 +141% Discontinued operation (39,925) (8,054) +396% __________ _________ 2,152,640 901,735 +139% __________ _________ Earnings per share - Basic and diluted For profit for the period 320.5 cents 134.2 cents +139% For profit from continuing operations 326.4 cents 135.4 cents +141% First interim dividend per share 28.0 cents 21.0 cents +33% Dividend payout ratio 9% 16% Equity attributable to owners of the Company 16,277,927 14,463,544^ +13% Equity per share $24.2 $21.5^ +13% ^ Audited as at 31 December 2025 * For identification purpose only
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2026 Interim Results Page 2 of 29 CONSOLIDATED STATEMENT OF PROFIT OR LOSS For the six months ended 30 June 2026 Unaudited Six months ended 30 June 2026 2025 Note HK$’000 HK$’000 CONTINUING OPERATIONS Turnover 3 Retail 12,713,088 10,762,505 Other businesses 165,002 273,034 __________ __________ 12,878,090 11,035,539 Cost of sales (8,608,086) (7,336,530) __________ __________ Gross profit 4,270,004 3,699,009 Other income and gains/(losses), net 5 1,172,331 (127,128) Selling and distribution costs (1,980,210) (1,912,960) Administrative expenses (500,086) (452,546) Foreign exchange differences, net 50,273 37,520 Finance income 6,872 12,526 Finance costs (57,710) (61,572) __________ __________ Profit before tax from continuing operations 6 2,961,474 1,194,849 Income tax 7 (768,909) (287,766) __________ __________ Profit for the period from continuing operations 2,192,565 907,083 DISCONTINUED OPERATION 8 Loss for the period from discontinued operation (39,925) (8,054) __________ __________ Profit for the period 2,152,640 899,029 __________ __________ __________ __________ Profit/(loss) for the period attributable to: Owners of the Company 2,152,640 901,735 Non-controlling interests - (2,706) __________ __________ 2,152,640 899,029 __________ __________ __________ __________ Profit/(loss) for the period attributable to owners of the Company: Continuing operations 2,192,565 909,789 Discontinued operation (39,925) (8,054) __________ __________ 2,152,640 901,735 __________ __________ __________ __________ continued/…
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2026 Interim Results Page 3 of 29 CONSOLIDATED STATEMENT OF PROFIT OR LOSS For the six months ended 30 June 2026 Unaudited Six months ended 30 June 2026 2025 Note HK$’000 HK$’000 Earnings per share attributable to owners of the Company 10 Basic and diluted - For profit for the period 320.5 cents 134.2 cents __________ __________ __________ __________ - For profit from continuing operations 326.4 cents 135.4 cents __________ __________ __________ __________
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2026 Interim Results Page 4 of 29 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the six months ended 30 June 2026 Unaudited Six months ended 30 June 2026 2025 HK$’000 HK$’000 PROFIT FOR THE PERIOD 2,152,640 899,029 _________ _________ OTHER COMPREHENSIVE INCOME/(LOSS) Item that may be reclassified subsequently to profit or loss: Exchange differences on translation 340,770 268,703 _________ _________ Items that will not be reclassified subsequently to profit or loss: Changes in fair value of financial assets designated at fair value through other comprehensive income (148,375) 412,523 Revaluation upon transfer of a building to an investment property - 670 _________ _________ Other comprehensive income/(loss) that will not be reclassified subsequently to profit or loss (148,375) 413,193 _________ _________ Other comprehensive income for the period 192,395 681,896 _________ _________ TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 2,345,035 1,580,925 _________ _________ _________ _________ Total comprehensive income/(loss) for the period attributable to: Owners of the Company 2,345,035 1,583,603 Non-controlling interests - (2,678) _________ _________ 2,345,035 1,580,925 _________ _________ _________ _________ Total comprehensive income/(loss) for the period attributable to owners of the Company: Continuing operations 2,384,960 1,591,657 Discontinued operation (39,925) (8,054) _________ _________ 2,345,035 1,583,603 _________ _________ _________ _________
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2026 Interim Results Page 5 of 29 CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 30 June 2026 Unaudited Audited 30 June 31 December 2026 2025 Note HK$’000 HK$’000 NON-CURRENT ASSETS Property, plant and equipment 834,932 882,248 Investment properties 413,218 413,020 Right-of-use assets 810,298 850,262 Trading licences 3,195 3,195 Other assets 195,412 199,578 Financial assets designated at fair value through other comprehensive income 1,237,628 1,386,004 Deferred tax assets 4,792 170,683 _________ _________ Total non-current assets 3,499,475 3,904,990 _________ _________ CURRENT ASSETS Inventories 18,511,096 17,503,750 Accounts receivable 11 855,686 879,601 Receivables arising from securities and futures broking 12 105,830 161,306 Prepayments, other receivables and other assets 840,503 1,092,586 Financial assets at fair value through profit or loss 15,257 16,574 Derivative financial instruments 4,207 114 Tax recoverable 503 5,112 Cash held on behalf of clients 397 383 Cash and cash equivalents 1,592,762 978,288 _________ _________ Total current assets 21,926,241 20,637,714 _________ _________ CURRENT LIABILITIES Accounts payable 13 85,221 132,765 Payables arising from securities and futures broking 13 397 383 Other payables and accruals 492,963 631,476 Derivative financial instruments 503 4,037 Interest-bearing bank borrowings 1,684,071 1,391,003 Bullion loans 4,060,622 5,657,607 Lease liabilities 406,859 419,088 Tax payable 731,259 607,681 _________ _________ Total current liabilities 7,461,895 8,844,040 _________ _________ NET CURRENT ASSETS 14,464,346 11,793,674 _________ _________ TOTAL ASSETS LESS CURRENT LIABILITIES 17,963,821 15,698,664 _________ _________ continued/…
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2026 Interim Results Page 6 of 29 CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 30 June 2026 Unaudited Audited 30 June 31 December 2026 2025 HK$’000 HK$’000 NON-CURRENT LIABILITIES Interest-bearing bank borrowings 589,234 362,384 Lease liabilities 423,799 442,447 Pillar Two tax liability 3,949 1,973 Deferred tax liabilities 668,912 428,316 _________ _________ Total non-current liabilities 1,685,894 1,235,120 _________ _________ Net assets 16,277,927 14,463,544 _________ _________ _________ _________ EQUITY Equity attributable to owners of the Company Issued capital 167,928 167,928 Reserves 16,109,999 14,295,616 _________ _________ Total equity 16,277,927 14,463,544 _________ _________ _________ _________
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2026 Interim Results Page 7 of 29 NOTES: 1. Basis of preparation The unaudited condensed consolidated interim financial statements have been prepared in accordance with Hong Kong Accounting Standard (“HKAS”) 34 Interim Financial Reporting as issued by the Hong Kong Institute of Certified Public Accountants and Appendix D2 of the Listing Rules. The unaudited condensed consolidated interim financial statements should be read in conjunction with the Annual Report 2025. The accounting policies and basis of preparation used in the condensed consolidated interim financial statements are the same as those used in the Group’s audited financial statements for the year ended 31 December 2025, except for the adoption of amended HKFRS Accounting Standards (which include all Hong Kong Financial Reporting Standards, HKASs and Interpretations) for the first time for the current period’s condensed consolidated interim financial statements as disclosed in note 2 below. 2. Changes in accounting policies and disclosures The Group has adopted the following amended HKFRS Accounting Standards for the first time for the current period’s condensed consolidated interim financial statements: Amendments to HKFRS 9 Amendments to the Classification and Measurement of and HKFRS 7 Financial Instruments Amendments to HKFRS 9 Contracts Referencing Nature- dependent Electricity and HKFRS 7 Annual Improvements to Amendments to HKFRS 1, HKFRS 7, HKFRS 9, HKFRS 10 HKFRS Accounting and HKAS 7 Standards - Volume 11 The nature and impact of amended HKFRS Accounting Standards are described below. Amendments to HKFRS 9 and HKFRS 7 Amendments to the Classification and Measurement of Financial Instruments clarify that a financial asset is derecognised when the entity’s rights to the contractual cash flows expire or are transferred, while a financial liability is derecognised on the settlement date. The amendments introduce an accounting policy option to derecognise a financial liability that is settled through an electronic payment system before the settlement date if specified criteria are met. The amendments clarify how to assess the contractual cash flow characteristics of financial assets with environmental, social and governance and other similar contingent features. Moreover, the amendments clarify the requirements for classifying financial assets with non -recourse features and contractually linked instruments. The amendments also include additional disclosures for investm ents in equity instruments designated at fair value through other comprehensive income and financial instruments with contingent features. Prior to the initial application of the amendments, the Group derecognised trade payables that were settled by cheques upon the issuance of cheques to creditors. Upon applying the amendments, trade payables that were settled by cheques are derecognised on the settlement date which is the date when the cheques are cleared by banks. The change in accounting policy did not have a material impact on the condensed consolidated interim financial statements. The change in accounting policy will be reflected in the Group’s consolidated financial statements for the year ending 31 December 2026.
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2026 Interim Results Page 8 of 29 2. Changes in accounting policies and disclosures (continued) Amendments to HKFRS 9 and HKFRS 7 Contracts Referencing Nature- dependent Electricity clarify the application of the “own -use” requirements for in -scope contracts and amend the designation requirements for a hedged item in a cash flow hedging relationship for in- scope contracts. The amendments also include additional disclosures that enable users of financial statements to understand the effects these contracts have on an entity’s financial performance and future cash flows. As the Group did not have any contracts that are in the scope of the amendments, the amendments did not have any impact on the condensed consolidated interim financial statements. Annual Improvements to HKFRS Accounting Standards – Volume 11 set out narrow scope amendments to HKFRS 1, HKFRS 7 (and the accompanying Guidance on implementing HKFRS 7), HKFRS 9, HKFRS 10 and HKAS 7. The amendments include clarifications, simplifications, corrections or changes to improve consistency in the corresponding HKFRS Accounting Standards. The amendments did not have any impact on the condensed consolidated interim financial statements. 3. Turnover Revenue from the following activities has been included in turnover from continuing operations: Six months ended 30 June 2026 2025 HK$’000 HK$’000 Revenue from contracts with customers 12,871,553 11,030,207 Revenue from other sources Gross rental income from investment properties operating leases: Other lease payments, including fixed payments 6,537 5,332 _________ _________ 12,878,090 11,035,539 _________ _________ _________ _________
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2026 Interim Results Page 9 of 29 4. Operating segment information For management purposes, the Group is organised into business units based on their products and services and the Group’s reportable operating segments are as follows: Continuing operations • the retail of jewellery and watches segment produces and sells jewellery products and distributes watches for the Group’s retail business and operates retail stores mainly in Chinese Mainland, Hong Kong, Macau and Taiwan • the wholesale of precious metals segment trades precious metals to wholesale customers • the trading of laboratory-grown diamond and gemstones (“LGD”) products segment trades jewellery set with LGD • the other businesses segment comprises, principally, the investment in properties for their rental income and capital appreciation potential, and other jewellery related businesses Discontinued operation • the securities and futures broking segment provides brokering and dealing services for securities and futures Management monitors the results of the Group’s operating segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on reportable segment profit, which is a measure of adjusted profit before tax from continuing operations. The adjusted profit before tax for reportable operating segments from continuing operations is measured consistently with the Group’s profit before tax from continuing operations except that dividend income, fair value gain or loss on investment properties, fair value gain or loss on bullion loans designated as at fair value through profit or loss, fair value gain or loss on derivative financial instruments - transactions not qualifying as hedges, fair value gain or loss on financial assets at fair value thr ough profit or loss, finance income, finance costs and foreign exchange differences, net are excluded from such measurement. Intersegment sales and transfers are transacted with reference to the selling prices used for sales made to third parties at the then prevailing market prices.
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2026 Interim Results Page 10 of 29 4. Operating segment information (continued) Discontinued Continuing operations operation ____________________________________________________ ___________ Retail Wholesale Trading Total for Securities of jewellery of precious of LGD Other continuing and futures and watches metals products businesses operations broking Total HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 Six months ended 30 June 2026 Segment revenue (note 3) Sales to external customers 12,713,088 155,886 2,578 1 12,871,553 - 12,871,553 Intersegment sales - - - 313 313 - 313 Other revenue - - - 6,537 6,537 - 6,537 __________ _________ _________ _______ _________ __________ __________ 12,713,088 155,886 2,578 6,851 12,878,403 - 12,878,403 __________ _________ _________ _______ __________ __________ _________ _________ _______ __________ Reconciliation: Elimination of intersegment sales (313) (313) _________ __________ 12,878,090 12,878,090 _________ __________ _________ __________ Segment results 1,827,988 704 (4,563) 2,977 1,827,106 (39,925) 1,787,181 Reconciliation: Dividend income 22,013 - 22,013 Net fair value gain/(loss) on: Bullion loans designated as at fair value through profit or loss 1,108,489 - 1,108,489 Derivative financial instruments - transactions not qualifying as hedges 5,975 - 5,975 Financial assets at fair value through profit or loss (1,544) - (1,544) Finance income 6,872 - 6,872 Finance costs (57,710) - (57,710) Foreign exchange differences, net 50,273 - 50,273 _________ __________ __________ Profit/(loss) before tax 2,961,474 (39,925) 2,921,549 _________ __________ __________ _________ __________ __________
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2026 Interim Results Page 11 of 29 4. Operating segment information (continued) Discontinued Continuing operations operation ____________________________________________________ ___________ Retail Wholesale Trading Total for Securities of jewellery of precious of LGD Other continuing and futures and watches metals products businesses operations broking Total HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 Six months ended 30 June 2025 Segment revenue (note 3) Sales to external customers 10,762,505 264,252 3,447 3 11,030,207 - 11,030,207 Intersegment sales - - - 264 264 - 264 Other revenue - - - 5,332 5,332 - 5,332 __________ _________ _________ _______ _________ __________ __________ 10,762,505 264,252 3,447 5,599 11,035,803 - 11,035,803 __________ _________ _________ _______ __________ __________ _________ _________ _______ __________ Reconciliation: Elimination of intersegment sales (264) (264) _________ __________ 11,035,539 11,035,539 _________ __________ _________ __________ Segment results 1,397,441 2,735 (13,444) 2,631 1,389,363 (8,060) 1,381,303 Reconciliation: Dividend income 16,927 - 16,927 Net fair value gain/(loss) on: Bullion loans designated as at fair value through profit or loss (198,404) - (198,404) Derivative financial instruments - transactions not qualifying as hedges 616 - 616 Financial assets at fair value through profit or loss (2,127) - (2,127) Finance income 12,526 6 12,532 Finance costs (61,572) - (61,572) Foreign exchange differences, net 37,520 - 37,520 _________ __________ __________ Profit/(loss) before tax 1,194,849 (8,054) 1,186,795 _________ __________ __________ _________ __________ __________
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2026 Interim Results Page 12 of 29 5. Other income and gains/(losses), net An analysis of other income and gains/(losses), net from continuing operations is as follows: Six months ended 30 June 2026 2025 HK$’000 HK$’000 Dividend income from listed investments 21,998 16,595 Dividend income from unlisted investments 15 332 Government grants* 8,835 10,382 Impairment of accounts receivable, net (6,615) (1,751) Net fair value gain/(loss) on: Bullion loans designated as at fair value through profit or loss 1,108,489 (198,404) Derivative financial instruments - transactions not qualifying as hedges 5,975 616 Financial assets at fair value through profit or loss (1,544) (2,127) Net gain/(loss) on disposal of derivative financial instruments: Foreign currency forward contracts 24,037 22,827 Cross currency swaps (2,800) 282 Others 13,941 24,120 ________ _______ 1,172,331 (127,128) ________ _______ ________ _______ * Government grants mainly represent subsidies received from municipal governments in Chinese Mainland. There are no unfulfilled conditions or contingencies relating to these subsidies. 6. Profit before tax from continuing operations The Group’s profit before tax from continuing operations is arrived at after charging/(crediting): Six months ended 30 June 2026 2025 HK$’000 HK$’000 Write-down of inventories to net realisable value1 4,411 9,109 Depreciation of property, plant and equipment 125,460 150,423 Depreciation of right-of-use assets 268,830 276,689 Lease payments not included in the measurement of lease liabilities 438,170 390,066 Net loss on bullion loans designated as at fair value through profit or loss2 904,609 682,619 Net loss/(gain) on disposal of derivative financial instruments2 (58,745) 25,677 Net loss on disposal of items of property, plant and equipment 6,079 9,541 _________ _________ _________ _________ 1 This balance is included in “Cost of sales” on the face of the consolidated statement of profit or loss. 2 The net loss on bullion loans designated as at fair value through profit or loss of HK$904,609,000 (2025: HK$682,619,000) and the net gain on disposal of derivative financial instruments included a net gain on bullion contracts of HK$37,508,000 (2025: net loss of HK$48,786,000), which are included in “Cost of sales” on the face of the consolidated statement of profit or loss. The purpose of the above bullion transactions entered into by the Group is to manage the Group’s bullion price risk. Such loans and contracts did not meet the criteria for hedge accounting. The net gain on disposal of derivative financial instruments also included a net gain on foreign currency forward contracts of HK$24,037,000 and a net loss on cross currency swaps of HK$2,800,000 (202 5: net gain on foreign currency forward contracts of HK$22,827,000 and a net gain on cross currency swaps of HK$282,000) (note 5).
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2026 Interim Results Page 13 of 29 7. Income tax Hong Kong profits tax has been provided at the rate of 16.5% (2025: 16.5%) on the estimated assessable profits arising in Hong Kong during the period, except for one subsidiary of the Group which is a qualifying entity under the two- tiered profits tax rates regime. The first HK$2,000,000 (2025 : HK$2,000,000) of assessable profits of this subsidiary are taxed at 8.25% (202 5: 8.25%) and the remaining assessable profits are taxed at 16.5% (2025: 16.5%). Under the Law of the People ’s Republic of China on Corporate Income Tax (the “ CIT Law ”) and Implementation Regulation of the CIT Law, the tax rate of the Chinese Mainland subsidiaries is 25% (2025: 25%). Taxes on profits assessable in other jurisdictions have been calculated at the rates of tax prevailing in the jurisdictions in which the Group operates. Six months ended 30 June 2026 2025 HK$’000 HK$’000 Current - Hong Kong profits tax Charge for the period 85,460 68,280 Current - Chinese Mainland corporate income tax Charge for the period 254,162 191,118 Underprovision in prior periods 12 1,073 Current - other jurisdictions - income taxes (excluding Pillar Two income taxes) Charge for the period 18,899 10,754 Pillar Two income tax - current tax 1,976 - Deferred 408,400 16,541 _________ _________ Total tax charge for the period from continuing operations 768,909 287,766 Total tax charge for the period from the discontinued operation - - _________ _________ 768,909 287,766 _________ _________ _________ _________ 8. Discontinued operation On 29 January 2021, the Board came to the decision to wind down the operation of the securities and futures broking business. The operation of the securities and futures broking business, which had ceased in M ay 2021, was classified as a discontinued operation. The results of the discontinued operation for the period are presented below: Six months ended 30 June 2026 2025 HK$’000 HK$’000 Other gains, net 20 8 Administrative expenses (226) (220) Impairment of receivables arising from securities and futures broking (39,719) (7,848) Finance income - 6 _________ _________ Loss for the period from the discontinued operation (39,925) (8,054) _________ _________ _________ _________
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2026 Interim Results Page 14 of 29 8. Discontinued operation (continued) The major classes of assets and liabilities associated with the discontinued operation at the end of the reporting period are as follows: 30 June 31 December 2026 2025 HK$’000 HK$’000 Assets Receivables arising from securities and futures broking (note 12) 105,830 161,306 Prepayments, other receivables and other assets 409 409 Cash held on behalf of clients 397 383 Cash and cash equivalents 13,335 12,817 _________ _________ Assets associated with the discontinued operation 119,971 174,915 _________ _________ Liabilities Payables arising from securities and futures broking (note 13) 397 383 Other payables and accruals 71 55 _________ _________ Liabilities associated with the discontinued operation 468 438 _________ _________ Net assets directly associated with the discontinued operation 119,503 174,477 _________ _________ _________ _________ The net cash flows incurred by the discontinued operation are as follows: Six months ended 30 June 2026 2025 HK$’000 HK$’000 Net cash inflow from operating activities 518 2,363 _________ _________ _________ _________ Loss per share: Basic and diluted, from the discontinued operation (5.9) cents (1.2) cents _________ _________ _________ _________ The calculation of the basic loss per share amounts from the discontinued operation is based on the loss for the period attributable to owners of the Company from the discontinued operation of HK$39,925,000 (2025: HK$8,054,000) and the weighted average number of ordinary shares outstanding of 671,712,000 (2025: 671,741,335, after taking into account the effect of shares repurchased) during the period. There were no potentially dilutive ordinary shares in issue during the current and prior periods.
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2026 Interim Results Page 15 of 29 9. Dividends Six months ended 30 June 2026 2025 HK$’000 HK$’000 Dividends recognised as distribution during the period: Second interim dividend for 2025: HK79.0 cents 530,652 - (2024: Nil) per ordinary share Final dividend for 2025: Nil (2024: HK36.0 cents per ordinary share) - 241,816 _________ _________ 530,652 241,816 _________ _________ _________ _________ Dividends declared after the end of the reporting period: First interim dividend declared for 2026: HK28.0 cents (2025: HK21.0 cents) per ordinary share 188,079 141,060 _________ _________ _________ _________ The first interim dividend has not been recognised as a liability as at 30 June 20 26 because it was declared after the end of the reporting period. 10. Earnings per share attributable to owners of the Company The calculation of the basic earnings per share amounts is based on the profit for the period attributable to owners of the Company and the weighted average number of ordinary shares outstanding of 671,712,000 (2025: 671,741,335, after taking into account the effect of shares repurchased) during the period. The Group had no potentially dilutive ordinary shares in issue during the current and prior periods. The calculations of basic and diluted earnings per share are based on: Six months ended 30 June 2026 2025 HK$’000 HK$’000 Earnings: Profit/(loss) for the period attributable to owners of the Company, used in the basic and diluted earnings per share calculation From continuing operations 2,192,565 909,789 From the discontinued operation (39,925) (8,054) _________ _________ 2,152,640 901,735 _________ _________ _________ _________
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2026 Interim Results Page 16 of 29 11. Accounts receivable 30 June 31 December 2026 2025 HK$’000 HK$’000 Trade and credit card receivables 892,331 908,441 Impairment (36,645) (28,840) _________ _________ Accounts receivable 855,686 879,601 _________ _________ _________ _________ The Group’s trading terms with its retail and LGD product trading customers are mainly on cash and credit card settlement while trading terms with corporate clients and wholesale customers are on credit with credit period generally up to 60 days. Overdue balances are reviewed regularly by senior management. Trade receivables are non-interest-bearing. An ageing analysis of the accounts receivable at the end of the reporting period, based on the invoice date and net of loss allowance, is as follows: 30 June 31 December 2026 2025 HK$’000 HK$’000 Within 1 month 725,092 774,130 1 to 2 months 68,998 46,237 2 to 3 months 12,662 14,080 Over 3 months 48,934 45,154 _________ _________ 855,686 879,601 _________ _________ _________ _________ 12. Receivables arising from securities and futures broking 30 June 31 December 2026 2025 HK$’000 HK$’000 Receivables arising from securities and futures broking conducted in the ordinary course of business: Loans to margin clients # 712,136 727,893 Impairment (606,306) (566,587) _________ _________ Receivables arising from securities and futures broking 105,830 161,306 _________ _________ _________ _________ # The loans to margin clients were secured by the underlying pledged securities, repayable on demand and bore interest at commercial rates. No ageing analysis was disclosed as, in the opinion of the Directors, an ageing analysis was not relevant in view of the nature of the business of securities margin financing. As at 30 June 202 6, the total market value of securities pledged as collateral and securities held by guarantors in respect of the loans to margin clients was HK$105,830,000 (31 December 2025: HK$161,306,000). Receivables from margin clients arising from the business of dealing in securities and futures broking are repayable on demand subsequent to settlement date.
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2026 Interim Results Page 17 of 29 13. Accounts payable/Payables arising from securities and futures broking An ageing analysis of the accounts payable and payables arising from securities and futures broking at the end of the reporting period, based on the invoice date, is as follows: 30 June 31 December 2026 2025 HK$’000 HK$’000 Within 1 month 84,495 127,442 1 to 2 months 66 1,119 Over 2 months 660 4,204 _________ _________ Accounts payable 85,221 132,765 Payables arising from securities and futures broking * 397 383 _________ _________ 85,618 133,148 _________ _________ _________ _________ The accounts payable are non-interest-bearing and are normally due for settlement on 30 days. The payables arising from securities and futures broking are repayable on demand and bear interest at commercial rates. * No ageing analysis is disclosed as, in the opinion of the Directors, an ageing analysis is not meaningful in view of the nature of such business.
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2026 Interim Results Page 18 of 29 MANAGEMENT DISCUSSION AND ANALYSIS Financial Highlights and Overview * From continuing operations The Group’s consolidated turnover from continuing operations for the first half of 2026 increased by 17% to HK$12,878 million. The turnover of the core business of retail of jewellery and watches increased by 18% year-on-year. In all our key markets, Chinese Mainland, Hong Kong and Macau, and Taiwan, we chalked up sales increase. The retail segment results increased by 31%. The Group’s first half gross profit margin from continuing operations was 33.2%, dropping slightly from that of last year. Gross margin performance continued to be affected by gold price movements, with the impact varying across markets depending on sales mix and inventory flow. While the high gold price environment buoyed the margin, heightened price volatility moderated the effect. Profit attributable to owners of the Company from continuing operations amounted to HK$2,193 million for the six months ended 30 June 2026, supported by stronger retail performance and unrealised gain on mark-to-market revaluation of bullion loans at the period end. During the period, we continued to adhere to our policies of maintaining a broad and balanced product offerings across different categories and price points, fine -tuning the retail store network and keeping a firm hand on costs.
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2026 Interim Results Page 19 of 29 Retail of Jewellery and Watches Revenue and Results Overall segment results for retail of jewellery and watches increased by 31% year-on-year with all key geographic markets registered revenue growth as compared to the same period of 2025. Amid gold price volatility and changes in sales mix across markets, the Group remained focused on margin discipline and quality growth. SSSG and Sales Mix SSSG of key markets • SSSG maintained positive momentum in the first half of 2026, extending the positive trend observed over recent quarters, with both Chinese Mainland, and Hong Kong and Macau recording growth. • Hong Kong and Macau remained robust, with the Group’s extensive store network in both tourist areas and community locations continuing to support SSSG growth. • In Chinese Mainland, the Group’s premium store strategy and ongoing focus on key tier 1 and tier 2 cities continued to support SSSG growth, demonstrating the benefits of ongoing retail network optimisation. Segment revenue Segment results 2026 1H 2025 1H 2026 1H 2025 1H HK$’000 HK$’000 Change HK$’000 HK$’000 Change Chinese Mainland 7,866,858 7,248,500 +9% 1,360,640 869,059 +57% Hong Kong and Macau 4,571,658 3,303,848 +38% 383,660 490,740 -22% Taiwan 274,572 210,157 +31% 83,688 37,642 +122% Total 12,713,088 10,762,505 +18% 1,827,988 1,397,441 +31%
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2026 Interim Results Page 20 of 29 Retail of Jewellery and Watches (continued) SSSG and Sales Mix (continued) Chinese Mainland Sales Mix Sales Mix in Calculated-price Jewellery and Products 2026 1H 2025 1H Gold and platinum jewellery and products 91% 94% Gold ingots 9% 6% Sales Mix in Fixed-price Jewellery and Products 2026 1H 2025 1H Gem-set jewellery and products 43% 36% Non gem-set jewellery and products 57% 64% SSSG of Products 2026 1H 2025 1H 2025 2H Calculated-price jewellery and products +34% -15% +30% Fixed-price jewellery and products -20% +15% +13% Watches +9% -1% -6% Overall +11% -5% +19% • Overall SSSG in Chinese Mainland recorded an upward trend in the first half of 2026, increasing by 11% year-on-year. • Amid gold price volatility, calculated-price jewellery and products remained a key customer choice during the period. Key collections including “Cultural Blessings” and “Noir” recorded robust growth, reflecting continued customer appreciation of products with distinctive craftsmanship. • Premium stores located in key shopping destinations continued to perform strongly, demonstrating the attractiveness of the Group’s differentiated products and the effectiveness of its ongoing retail network optimisation efforts. • The Group’s broader brand offerings, including “EMPHASIS” and “MARCO BICEGO”, also recorded growth, reflecting continued customer demand for jewellery suited to daily wear and designs that blend Eastern and Western aesthetics. Fixed-price jewellery and products Watches Calculated-price jewellery and products 2026 1H 2025 1H Products
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2026 Interim Results Page 21 of 29 Retail of Jewellery and Watches (continued) SSSG and Sales Mix (continued) Hong Kong and Macau Sales Mix Sales Mix in Calculated-price Jewellery and Products 2026 1H 2025 1H Gold and platinum jewellery and products 53% 64% Gold bars and ingots 47% 36% Sales Mix in Fixed-price Jewellery and Products 2026 1H 2025 1H Gem-set jewellery and products 61% 64% Non gem-set jewellery and products 39% 36% SSSG of Products 2026 1H 2025 1H 2025 2H Calculated-price jewellery and products +55% -13% +27% Fixed-price jewellery and products +7% +17% +17% Watches +14% -12% +2% Overall +38% -7% +22% • Overall SSSG in Hong Kong and Macau maintained positive momentum in the first half of 2026, increasing by 38% year-on-year. • Growth was supported by sustained local demand, improving customer traffic in tourist districts and stable contribution from community malls, reflecting the strength of the Group’s extensive retail network. • Demand for gold jewellery remained robust, while fixed- price jewellery and products also contributed positively to overall performance. • Signature collections, including “YUYU”, “Noir” and “Charme”, recorded growth, supported by new product offerings and strong customer engagement. Watches Fixed-price jewellery and products Calculated-price jewellery and products 2026 1H 2025 1H Products
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2026 Interim Results Page 22 of 29 Retail of Jewellery and Watches (continued) Store Network Store Network by Products As at 31.12.2025 Opening Closure Net Change As at 30.6.2026 Retail of Jewellery Chinese Mainland Chow Sang Sang 678 +16 -60 -44 634 MINTYGREEN 41 - -5 -5 36 EMPHASIS 4 - - - 4 PROMESSA 2 - -2 -2 - MARCO BICEGO 2 +1 - +1 3 Sub-total: 727 +17 -67 -50 677 Hong Kong Chow Sang Sang 51 - - - 51 EMPHASIS 3 - - - 3 Sub-total: 54 - - - 54 Macau 點睛品 7 - - - 7 Sub-total: 7 - - - 7 Taiwan 點睛品 32 +1 - +1 33 PROMESSA 5 - - - 5 Sub-total: 37 +1 - +1 38 Total for retail of jewellery: 825 +18 -67 -49 776 Retail of Watches Total for retail of watches: 15 +2 - +2 17 Total stores: 840 +20 -67 -47 793 • The Group continued to refine its retail network with disciplined openings and closures, focusing on store productivity, location quality and brand experience. In Chinese Mainland, the Group continued to prioritise premium and high-traffic locations, mainly in key tier 1 and tier 2 cities. • Selected store openings and upgrades included second stores at Beijing Hopson, Wuxi MixC and Shenyang MixC, a new “MARCO BICEGO” store at Chengdu SKP, and new or upgraded locations such as Hangzhou Westlake 66 and Shenzhen Uniwalk.
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2026 Interim Results Page 23 of 29 Retail of Jewellery and Watches (continued) Chow Sang Sang Omni-Channel Retailing Omni-Channel Sales Omni-Channel Sales as a % of Total Retail Sales 2026 1H 2025 1H Overall 20% 25% Chinese Mainland 27% 33% Hong Kong and Macau, Taiwan and Others 6% 7% • The Group continued its omni -channel strategy which include d online sales as well as Star Concierge Service and other remote sales concluded out of in- person branch environment or with remote inventory. Online Sales Online Sales by Market 2026 1H 2025 1H HK$’M HK$’M Change Chinese Mainland 1,787 1,909 -6% Hong Kong, Taiwan and Others 287 201 +43% • Online sales in Chinese Mainland accounted for approximately 23% of total Chinese Mainland sales, compared with 26% in 2025 1H. During the period, the Group maintained a disciplined online channel strategy, with greater focus on margin quality and brand consistency. • Gold jewellery and products remained the key category for online demand in Chinese Mainland. The Group continued to support customer engagement through third- party e-commerce platform partners, its own channels, live-streaming and other digital initiatives, complementing the broader omni-channel retail strategy. • Online sales in Hong Kong, Taiwan and other markets grew strongly, supported by robust demand in Hong Kong and continued development of established online channels, partner platforms and local market collaborations. Wholesale of Precious Metals Turnover decreased by 41% to HK$ 156 million during the six months ended 30 June 2026, mainly reflecting softer demand for pr ecious metals wholesale amid changes in market conditions during the period. Trading of Laboratory-grown Diamond and Gemstones Products Our subsidiary, The Future Rocks Company Limited, specialises in the trading of laboratory- grown diamonds and gemstones ( “LGD”) products under the brand name “The Future Rocks ”. During the period, “The Future Rocks” continued to develop its positioning in LGD-set fine and lifestyle jewellery, with an increasing focus on fashion, lifestyle and daily wear applications. The business further expanded its product offerings beyond fine jewellery through the launch of the “ N O VA” collection, introducing selected lifestyle products incorporating LGD elements. The business continued to engage customers through selected online and offline channels, including its Hong Kong pop- up store, supported by marketing activities and brand collaborations. In 2025, “The Future Rocks” was awarded the “Butterfly Mark” sustainability certification by Positive Luxury, affirming its commitment to sustainable practices and responsible business operations.
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2026 Interim Results Page 24 of 29 Securities and Futures Broking - the Discontinued Operation The securities and futures broking business has since early May 2021 ceased operation. We have been processing unclaimed assets and are progressing the remaining steps to return such assets or place them into court custody . Complete shutdown will follow upon completion of these procedures . Since the commencement of legal actions against the customers who defaulted on the repayment of margin loans, the payment of commission fees and margin facility interests, and their respective guarantors in the Court of First Instance of the High Court of Hong Kong in February 2021, the Group has obtained judgments in certain actions and is now in the process of enforcing the judgments with bankruptcy orders granted on certain individuals based on the relevant judgement debts as appropriate. Total loans due from the customers in default, net of total credit loss allowance, amounted to HK$106 million as at 30 June 2026. Investments Investment Properties The Group holds various properties with a total carrying value of HK$413 million for rental purpose as at 30 June 2026. During the period, rental income from investment properties amounted to HK$7 million. Shares in HKEX The Group’s investment in 3,326,800 shares or 0.26% of HKEX is of strategic nature and is the remaining part of the distribution received from the reorganisation of the then exchanges in the year 2000. Such investment was carried at fair value of HK$ 1,208 million as at 3 0 June 2026, representing 5% of the Group’s total assets. During the period, the Group received dividends of HK$22 million and recorded a loss of HK$148 million recognised in other comprehensive income in respect of a fair value change of the shares held. Capital Expenditure The Group incurred capital expenditure of HK$65 million of which HK$53 million was spent on new openings and refitting of stores. Finance Financial Position and Liquidity The Group generates strong recurring cashflow from its retailing business and continues to enjoy a solid cash position. As at 30 June 2026, the Group had cash and cash equivalents of HK$1,593 million (31 December 2025: HK$978 million). Cash is mostly held in Renminbi or Hong Kong dollar and deposited in leading banks with maturity dates falling within one year. The Group was well supported by approximately HK$16,391 million in banking facilities including bank borrowings and bullion loans, out of which HK$ 1,421 million are committed facilities. As at 3 0 June 2026, the total unutilised banking facilities amounted to HK$9,911 million ( 31 December 2025: HK$6,183 million).
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2026 Interim Results Page 25 of 29 Finance (continued) Financial Position and Liquidity (continued) As at 3 0 June 2026, total bank borrowings and bullion loans amounted to HK$2,273 million and HK$4,061 million respectively, which were unsecured in accordance with the Group’s policy. The weighted average tenure of bank borrowings is around three years. The net gearing ratio, expressing total bank borrowings and bullion loans, net of cash and cash equivalents, of HK$4,741 million as a percentage of equity attributable to owners of the Company of HK$16,278 million, was 29.1%. The current ratio was 2.9. The Group manages risk of credit cost and availability by several means: cultivating relationship with a number of lending banks; diversifying the funding sources by engaging a number of local and overseas banks; putting some loans on a term basis; and fixing interest costs on loans as appropriate. The Group had 26% of its bank borrowings at fixed rates as at 30 June 2026, decreased from 33% as at 31 December 2025. As at 30 June 2026, outstanding derivatives on the books were mainly bullion contracts for hedging the bullion price exposure. Management monitors the hedging policy closely and the hedging level of the Group is approximately 40% of the total gold inventories. Foreign Exchange Risk Management The Group’s assets and liabilities, revenue and expenses are mostly denominated in Hong Kong dollar, Renminbi and US dollar. As such, the risk is easily manageable and slight. Simultaneously, the Group maintains an appropriate level of foreign currency bor rowings for natural hedge, foreign currency forward contracts and cross currency swaps, to mitigate foreign exchange exposure. As at 30 June 2026, the bank borrowings denominated in Renminbi and New Taiwan dollar amounted to RMB 175 million and NT$281 million respectively. Charge on Assets, Lease Liabilities and Contingent Liabilities As at 30 June 2026 and 31 December 2025, there was no asset pledged to secure banking facilities granted to certain subsidiaries of the Company. As at 3 0 June 2026, the Group had lease liabilities of HK$831 million (31 December 2025: HK$ 862 million) and had no material contingent liabilities. Human Resources The Group maintains its long-established performance-based remuneration policies with a discretionary annual performance bonus. Training has been provided to support and enhance the competencies of all employees across levels or roles. A share option scheme is in place to provide incentives or rewards to eligible participants for their contribution to the Group and enabling the Group to attract and retain valuable employees. So far no share option has been granted. As at 30 June 2026, the total number of employees of the Group was 9,621, of whom 7,856 in Chinese Mainland, 1,499 in Hong Kong and Macau, and 266 in Taiwan. During the six months ended 30 June 2026, total staff costs amounted to HK$1,068 million.
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2026 Interim Results Page 26 of 29 Review of Operations The operating environment during the period was shaped by significant movements in gold prices, evolving consumer sentiment and a changing retail landscape. Gold prices experienced exceptional volatility, reaching historical highs before undergoing a notable correction. Against this backdrop, the Group remained focused on disciplined execution, effective inventory management and maintaining operational flexibility, while continuing to invest in strategic initiatives to enhance brand relevance, product competitiveness and customer engagement. Brand Positioning and Customer Engagement The Group further strengthened its brand positioning through initiatives targeting both emerging and established customer segments. The Group engaged new consumers by adding pet companionship and active living themes to its existing “Charme” line -up, responding to evolving lifestyle trends and broadening the collection’s customer appeal. The Group also expanded the market reach of its signature line -up “YUYU”, defined by a distinctive artistic vision that blends Eastern symbolism of blessings with Western aesthetics, amplified by an integrated Chinese New Year campaign launched across the region. The Group also engaged t aste-makers through curated customer events and differentiated product offerings. During the period, salon events and hotel collaborations were held to extend our reach beyond premium customers, alongside the debut of the “Bamboo” collection under the established “Cultural Blessings” line-up and the launch of the new “Weave” collection, both rooted in the shared motif of bamboo as a Chinese symbol of resilience and blessings. These initiatives i ntroduced a fresh cultural expression to t aste-makers, while adding depth to the Group’s premium jewellery narrative and strengthening brand relevance through contemporary presentation. Product Mix Management The Group enhanced its product portfolio across multiple categories to address evolving customer preferences and strengthen its position as a full-category jewellery retailer. Customer demand remained broad-based across both calculated-price products and fixed-price products, with calculated-price products gaining stronger traction in key markets during the period. The Group further expanded its offering of distinctive, high- craftsmanship collections across both categories, reinforcing its ability to serve different customer preferences, price points and wearing occasions. Collections such as “Cultural Blessings”, “Essence” and “Noir”, which span both calculated -price and fixed-price segments, registered growth and contributed to a broader product mix. “Noir”, a distinctive black gold collection curated with fine detailing a nd unique style, continued to resonate with new consumer groups, reflecting the Group’s ability to broaden its customer reach while strengthening its differentiated product offerings. The Group also enhanced its customer service through trade -in programmes and sell -back services, providing customers with a more convenient one-stop experience and greater flexibility in managing and refreshing their jewellery.
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2026 Interim Results Page 27 of 29 Review of Operations (continued) Retail Network and Channel Execution The Group refined its retail network and channel execution across markets, with a focus on serving different customer segments through the appropriate product offerings, service models and engagement experiences. Across different city tiers and customer profiles, the Group tailored product assortment, store presentation and service approach to local customer preferences, while leveraging online platforms, omni -channel services and targeted marketing activities to complement the physical retail network. Premium stores in key shopping destinations continued to outperform, reflecting the effectiveness of the Group’s premiumisation strategy and the resilience of demand from customers seeking differentiated products, elevated service experiences and higher-quality engagement. Through the delivery of more relevant products, services and engagements tailored to different needs and occasions, the Group aims to deepen customer relationships, enhance brand relevance and strengthen the long-term effectiveness of its integrated retail and channel strategy. Outlook Subsequent to the period end, the Group continued to observe a positive sales trend going into third quarter of 2026. Chinese Mainland recorded modest growth, while Hong Kong and Macau continued to deliver relatively strong performance. Looking ahead, the Group remains mindful of evolving retail market conditions and changing consumer preferences across its key markets. To support sales momentum, the Group will focus on targeted marketing initiatives, omni-channel promotions and customer engagement. In parallel, store network upgrades will be implemented across Chinese Mainland, Hong Kong, Macau and Taiwan as part of Group- wide initiatives. The Group will also further advance its premiumisation strategy and enhance its one -stop customer experience thr ough broader product offerings and service capabilities. FIRST INTERIM DIVIDEND The Board has declared a first interim dividend of HK28.0 cents (2025: HK21.0 cents) per ordinary share for the year ending 31 December 2026 payable to shareholders whose names appear on the register of members of the Company on Monday, 14 September 2026. The dividend will be paid on Tuesday, 29 September 2026. CLOSURE OF REGISTER OF MEMBERS The register of members of the Company will be closed from Thursday, 10 September 2026 to Monday, 14 September 2026, both dates inclusive, during such period no transfer of shares will be registered. The record date will be Monday, 14 September 2026. To establish the entitlement to the first interim dividend, all transfer documents accompanied by the relevant share certificates must be lodged for registration with the Company’s branch share registrar in Hong Kong, Tricor Investor Services Limited, at 17/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong not later than 4:30 p.m. on Wednesday, 9 September 2026.
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2026 Interim Results Page 28 of 29 PURCHASE, REDEMPTION OR SALE OF LISTED SECURITIES OF THE COMPANY Neither the Company nor any of its subsidiaries purchased, redeemed or sold any of the Company’s listed securities during the period. CORPORATE GOVERNANCE The Company has complied throughout the period under review with the applicable code provisions as set out in Part 2 of the Code, except for the deviation from code provision C.2.1 of the Code which is explained below. The code provision C.2.1 stipulates that the roles of chairman and chief executive should be separate and should not be performed by the same individual. Mr. Vincent CHOW Wing Shing holds both positions of the Chairman and the Group General Manager of the Company. The Board is of the opinion that the present board structure provides the Group with strong and consistent leadership and allows for effective and efficient planning and implementation of business decisions and strategies. The composition of the Board, with a strong complement of Independent Non-executive Directors and Non- executive Director, already ensures checks and balances in decision-making. PUBLICATION OF INTERIM RESULTS AND INTERIM REPORT This interim results announcement is published on the websites of the Company at w ww.chowsangsang.com and HKEX at www.hkexnews.hk. The 2026 interim report of the Company will be published on the above websites (and will be despatched to the shareholders of the Company, where applicable) in due course. B OARD OF DIRECTORS As at the date of this announcement, the Executive Directors of the Company are Mr. Vincent CHOW Wing Shing, Dr. Gerald CHOW King Sing, Mr. Winston CHOW Wun Sing and Ms. Genevieve CHOW Karwing; the Non- executive Director is Mr. Stephen TING Leung Huel; and the Independent Non- executive Directors are Dr. CHAN Bing Fun, Mr. LEE Ka Lun, Dr. LO King Man, Mr. Stephen LAU Man Lung, Mr. HSU Rockson and Ms. PI Fang. Hong Kong, 26 August 2026 By order of the Board Vincent CHOW Wing Shing Chairman
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2026 Interim Results Page 29 of 29 GLOSSARY Board the board of Directors Calculated-price jewellery and products gold and platinum goods sold by weight, with prices derived from current international market prices Chinese Mainland PRC excluding, for the purpose of this announcement (unless otherwise indicated), Hong Kong, Macau and Taiwan Code Corporate Governance Code contained in Appendix C1 to the Listing Rules Company Chow Sang Sang Holdings International Limited Director(s) the director(s) of the Company Gem-set jewellery and products jewellery and products designed with diamonds and/or other gemstones Group the Company and its subsidiaries HKEX Hong Kong Exchanges and Clearing Limited Hong Kong the Hong Kong Special Administrative Region of the PRC Listing Rules Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited Macau the Macao Special Administrative Region of the PRC PRC the People’s Republic of China SSSG same store sales growth Taiwan Taiwan region of the PRC 1H the first half of a year, six months ended 30 June 2H the second half of a year, six months ended 31 December % percent