Hong Kong-based Tse Sui Luen Jewellery (International) Ltd reported a more solid performance in the six months ended August 31, citing a more favourable business environment in mainland China and Hong Kong.
Data from the company’s interim results of 2017 and 2018 showed that total sales were up 11.8 percent to HK$1.73 billion (around US$222 million) compared to last year. TSL attributed the growth to a stronger wholesale business in mainland China and a more stable retail sector in Hong Kong.
Profit attributable to owners of the company, meanwhile, registered a hefty increase of 48.9 percent to HK$17.5 million (US$2.24 million).
Sales turnover was up 5.3 percent in Hong Kong and Macau but dropped 1.7 percent in mainland China due to the devaluation of the RMB. In spite of the slight drop, the mainland China market, which accounted for 62 percent of total revenues, remains as the main growth driver of TSL’s business.
Citing the growing popularity of online shopping, the company revealed that it also expanded its online presence to six platforms, and recorded a continued growth of 33.3 percent in its e-business.
The number of TSL outlets in Hong Kong and Macau, meanwhile, rose to 32. The group said it took advantage of lower rents in Hong Kong, while implementing its “store-for-store” strategy to penetrate high-traffic shopping areas. Two new retail chain stores were opened in key shopping areas in Sha Tin New Town Plaza and Yuen Long YOHO Mall. A total of 357 outlets covering 121 cities are in mainland China, including 197 self-operated chain stores and 160 franchised stores.
TSL is expected to regulate the ratio of self-operated stores and franchised stores to 7:3 in order to provide better service and a more enjoyable shopping experience.
“The retail market in Hong Kong and Macau has stabilised but no immediate rebound is in sight. An L-shaped trend is expected to remain. The company will optimise market presence, improve financial capability and enhance customer experiences to reinforce our position as the ‘Wedding Expert’ in the industry,” said Annie Tse, chairman and CEO of TSL.