TSL Warns Full-Year Loss to Be Greater Than Expected

Hong Kong jeweler Tse Sui Luen (TSL) expects the loss for its full fiscal year to be even steeper than originally predicted.  

The company believes it will lose between HKD 370 million ($47.4 million) and HKD 380 million ($48.7 million) for the 12 months ending March 31, it said Monday. That compares with its March 17 warning that the loss was set to reach at least HKD 220 million ($28.2 million).  

In the previous fiscal year, the company reported a loss of HKD 71 million ($9.1 million). 

The original forecast was due to a decrease in demand for diamond jewelry in China, the company explained. However, the additional amount is attributable to an impairment of no less than HKD 130 million ($16.7 million) on its retail shops and inventory, it noted. 

“The estimated loss… approximately HKD 220 million was arrived at before any annual assessment on impairment of property, plant and equipment and provision for inventory,” the jeweler said.  

TSL expects to publish its full fiscal year results on June 28. 

Image; A TSL store in Kuala Lumpur, Malaysia. (Shutterstock)