Hong Kong jeweller Tse Sui Luen Jewellery (International) Ltd reported a whopping 94 percent drop in profit in the first half of its fiscal year, which it attributed to the impact of the US-China trade war and the social unrest in Hong Kong.

Earnings for the six-month period ending September 30, 2019 was down to HK$1.57 million from HK$24.27 million year on year. Revenues fell 14 percent to HK$1.65 billion from HK$1.91 billion a year ago.

Annie Tse, chairman and CEO of TSL, also traced the company’s lacklustre performance to a weaker renminbi, which affected the spending power of Chinese visitors. 

“Domestically, Hong Kong has been gripped by large-scale social unrest since late June. The weak local consumer sentiment due to city-wide protests has made it challenging for retailers to operate, which influenced our performance in the first half of the financial year,” noted Tse.

TSL has a total of 448 shops in more than 130 cities.

Tse said the situation is unlikely to improve owing to ongoing protests in Hong Kong as well as the lack of a trade consensus between China and the US. Amid difficulties however, the company is committed to further strengthening its products and services. 

She said TSL will implement cost-saving initiatives, including seeking reduced rental fees from landlords as well as cutting down operating expenses. The company will also expand its reach in the Greater Bay Area.