Hong Kong retailer Tse Sui Luen Jewellery (International) Ltd reported hefty losses during the financial year ending March 31, noting that 2020 was one of the most difficult years the business has ever faced. 

Consolidated turnover for the year was down 28.3 per cent from the same period last year, with Hong Kong and Macau recording a 44.6 per cent drop in net sales. China meanwhile saw a year-on-year decline of 20.8 per cent in turnover of self-operated stores.

Losses for the year amounted to HK$89.8 million (around US$11.58 million) compared to a profit of HK$54.2 million (around US$7 million) in 2019.

“The year was undoubtedly one of the most difficult that the group has encountered in a very long time,” revealed TSL Chairman Annie Yau.

Hong Kong, for instance, suffered from a trio of challenges – the US-China trade dispute, anti-government protests and the Covid-19 pandemic – which severely affected tourist arrivals and consumer confidence.

In China, business operations were mainly impacted by the protracted US-China trade war and coronavirus-induced lockdowns and restrictions, which eventually decimated sales. 

TSL’s retail business in Malaysia however saw a 19.3 per cent year-on-year rise in turnover on the back of a successful marketing event last summer, which partially offset the negative effects of the pandemic. 

“The global economy and retail market, particularly for luxury goods, have been devastated by the coronavirus pandemic,” commented Yau. 

Despite minute signs of recovery in some regions, caution is still required since it will take time for consumer confidence to bounce back and recover, she continued.

“The worldwide economy in the upcoming financial year is expected to stay under the shadow of further trade negotiations between the US and China, exerting more pressure on our businesses. In addition, no end is in sight for the social unrest in Hong Kong, which has undermined the local economy and consumer sentiment,” added Yau.

Moving forward, the company said it will adjust business strategies and optimise its retail network. It also vowed to provide customers with new and personalised services and further develop its online business.