Hong Kong-based Tse Sui Luen Jewellery (TSL) is expecting to swing to a loss of about $6.39 mn for the six months ended September 30 amid the weakening yuan and interest rate hikes. This is in contrast to the group’s $255612 profit earned in the same period of the previous year.
The company noted that despite the Chinese government’s efforts to boost recovery, it would still take time to stir up demand for luxury products, especially natural diamonds. TSL observed a gradual improvement in overall sales performance in mainland China, primarily due to the rise in 24 karat gold jewellery sales but with lower profit margins.
The company also saw an increase in turnover in Hong Kong, Macau, and Malaysia as visitor arrivals and foot traffic grew. TSL said it will maintain caution amid macroeconomic and geopolitical uncertainties, but will exploit opportunities presented by the post-pandemic era.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
