Rapaport News




Advanced search
Latest Articles
Rough Markets
Polished Markets

Hong Kong’s Tse Sui Luen Suffers Heavy Losses

Tourism slowdown and US-China tensions hit sales in six months ending September 30.
Nov 19, 2020 6:45 AM   By Rapaport News
Print Print Facebook Facebook Twitter Twitter Share Share

 Hong Kong-based jeweler Tse Sui Luen (TSL) fell into the red in its first fiscal half as the coronavirus and tensions between the US and China battered its business across the region.

The retailer recorded a loss of HKD 41.6 million ($5.4 million) for the six months ending September 30, compared with a profit of HKD 1.5 million ($197,360) in the same period of 2019, it reported Wednesday. Revenue dropped 29% to HKD 1.18 billion ($151.9 million).

Measures to curb the virus’s spread “have turned the retail industry into one of the largest casualties of the Covid-19 pandemic, with our sales performance in our major operating regions having been hit hard during the period,” the company explained.

Sales in mainland China, TSL’s biggest market, slid 10% to HKD 966.9 million ($124.7 million) as escalating trade disputes with the US devalued the Chinese yuan currency and dented consumer sentiment, the company noted. This was despite the mainland’s broad recovery from the effects of the pandemic, it added.

In Hong Kong, however, revenue plummeted 65% to HKD 185.3 million ($23.9 million) as tourism dried up, high gold prices deterred customers, and couples canceled weddings, the jeweler continued.

“The economic situation is expected to get worse before it starts to get better” as countries across the world battle the current impact of the pandemic and prepare for additional waves this winter, the company said. “The group will strive to overcome obstacles ahead and weather the storm by continuing to adjust its business scale and costs to match the reality of the current market situation.”

Mainland China’s economy has improved, with consumer spending rebounding quickly, but the market remains uncertain, TSL added.

Image: Tse Sui Luen store in Gurney Plaza, Penang, Malaysia. (Shutterstock)
Tags: China, Coronavirus, COVID-19, Greater China, Hong Kong, mainland china, pandemic, Rapaport News, tourism, Tse Sui Luen, TSL, US, Yuan
Similar Articles
Chow Tai Fook store Wuhan ChinaChow Tai Fook Sales Rise as China Recovers
Jan 11, 2021
Sales at Hong Kong-based jeweler Chow Tai Fook grew almost...
LVMH Replaces Tiffany CEO as Deal Closes
US Online Holiday Jewelry Sales Jump
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First

Call Us: 1-702-893-9400
Member License Agreement   RapNet Trading Rules & Code of Conduct    Privacy Policy  
twitter twitter
About Rapaport
Advertise with us