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Hong Kong’s TSL Fears Trade-War Impact
Nov 20, 2018 8:56 AM
By Rapaport News
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RAPAPORT... Hong Kong-based Tse Sui Luen (TSL) raised concerns about the
impact of the US-China tariff war on its business, even after half-year sales improved.
“The recent outbreak and escalation of [a] trade dispute
between China and the US has cast some doubts on the economic outlook for both
the global and local economies going forward,” the company said Tuesday. “One
consequence has been the devaluation of [the Chinese yuan] during
the period, which could bring certain influence to our business in Hong Kong
and mainland China during the remainder of this financial year.”
Revenue rose 10% to HKD 1.91 billion ($243.9 million) in the first fiscal half ending September 30, the retailer reported. Sales in Hong Kong and
Macau climbed 13% to HKD 712.2 million ($90.9 million) amid an increase in
tourist traffic and stronger local demand, while revenue in mainland China grew
9% to HKD 1.17 billion ($149.1 million).
However, the jewelry retailer recorded a loss of HKD 103.1
million ($13.2 million) compared with a profit of HKD 87.7 million ($11.2
million) the previous year due to the impact of currency fluctuation. China’s
yuan currency has dropped 6% against the US and Hong Kong dollars since January 1.
Meanwhile, the recent completion of the Hong
Kong-Zhuhai-Macau Bridge connecting Hong Kong to the mainland, as well as a new
express rail track serving Hong Kong, will help offset the impact of the
potential challenges in the next 12 months, TSL noted.
The year-on-year figures are not an exact comparison because
the first fiscal half this year ran from April to September, whereas last year
it ran from March to August.
Image: A TSL store in Hong Kong. (Prosperity Horizons)
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Tags:
Hong Kong-Zhuhai-Macau Bridge, Rapaport News, Tse Sui Luen, TSL
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