Hong Kong jeweller Tse Sui Luen sees $40m net loss
The company said the pandemic continues to affect its operations.
The Tse Sui Luen Jewellery has reported that the Group is expected to record a $40m net loss for the year ending 31 March, 2021, based on its preliminary review.
The group attributed the loss to the continuing impact of the pandemic over its operations as it weakened both domestic and external demand.
“While PRC sales have gradually recovered since May 2020 to almost pre-epidemic level and the drop in Hong Kong sales has also started to narrow from September 2020, discount-based promotions have squeezed our profit margin and driven down our pace of recovery,” the group said in its announcement.
The group noted decreases in expenditures from cost saving measures, implemented since August 2019, helped reduce losses. In comparison, the group recorded a net loss worth $90m in the same period last year.
“The Board considers that the group is recovering at a healthy momentum and maintaining a strong financial position,” the group said.