Hong Kong jeweler Tse Sui Luen (TSL) will report a profit for the first fiscal half following improvement in the China market and gains from the fluctuation in gold prices.
The company expects a profit of at least HKD 90 million ($11.5 million) for the six months that ended September 30, it said last week. That compares with a loss of HKD 35.3 million ($4.5 million) for the same period a year earlier.
The turnaround is primarily attributable to the successful implementation of the company’s transformation initiatives, it said. Those included improved same-store sales from TSL’s franchise business in China, cost-optimization strategies, and lower restructuring costs. Gains on inventory monetization thanks to fluctuations in gold prices and a reduction in an impairment on the company’s assets also contributed to the increase, TSL added.
However, the jeweler noted that the figures it provided were only a “preliminary assessment by the board,” and that final numbers had not been audited or reviewed yet. The company will report its full results for the first fiscal half at the end of the month.
Image: A TSL store in Malaysia. (Shutterstock)
