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Hong Kong’s Tse Sui Luen Suffers Heavy Losses
Nov 19, 2020 6:45 AM
By Rapaport News
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RAPAPORT... 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)
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Tags:
China, Coronavirus, COVID-19, Greater China, Hong Kong, mainland china, pandemic, Rapaport News, tourism, Tse Sui Luen, TSL, US, Yuan
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