Hong Kong-based jeweler Tse Sui Luen (TSL) is expecting a net loss of nearly $9 million in its latest fiscal year, pointing to the Covid-19 outbreak in mainland China as a reason for the steep decline in business.
Preliminary results put the company approximately HKD 70 million ($8.9 million) in the red for the 12 months that ended March 31, TSL warned shareholders last week. This was in stark contrast to its HKD 15 million ($1.9 million) profit the year before.
The retailer primarily suffered during its third quarter, when China still had stringent restrictions in place that kept shoppers away. The mainland is a “significant contributor” to TSL’s revenue, the company explained.
An easing of the rules in Hong Kong and Macau during the fourth quarter allowed for a gradual recovery, the company reported. However, it was not enough to offset the “sharp decline” in China.
TSL also expressed concern about the uncertain global economy, which it said could make consumers more cautious about purchasing.
The jeweler will issue its full results for the period in June, it added.
Image: A Tse Sui Luen store in Gurney Plaza, Penang, Malaysia. (Shutterstock)
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