China underpins TSL Jewellery growth
Steady growth in business in China underpinned a buoyant first half for Tse Sui Luen Jewellery (International), commonly known as TSL.
China contributed 62 per cent of consolidated turnover for the six months to the end of August, the company’s interim results show, up slightly from 60.3 per cent for the same period last year.
E-business turnover grew by 33.3 per cent.
Overall, the group’s turnover rose by 11.8 per cent to HK$1.733 billion (US$222 million), while the profit attributable to the owners of the company increased by 48.9 per cent to $17.5 million.
While retail conditions in Hong Kong continued to be challenging, a slight year-on-year increase in the number of tourists finally brought to an end the string of declines experienced in previous years, says the company. This increased tourist traffic helped stabilise the retail market, ultimately translating into a modest lift in sales for Tse Sui Luen.
“Given the gradual drop in retail rentals over the past 12 to 24 months, the group has taken the opportunity to expand its retail network by moving into high-traffic shopping arcades in the New Territories,” says TSL. It opened two chain stores, one at New Town Plaza in Sha Tin and the other at Yoho Mall in Yuen Long.
Business in Macau was stable thanks to customers spending more since the first quarter.
Taking all these factors into account, the turnover of the group’s retail businesses in Hong Kong and Macau grew by 5.3 per cent, while same-store sales growth for all businesses eased by 2.5 per cent.
TSL says it will continue to focus on improving its sales by reinforcing its market position as a wedding expert.
Meanwhile, retail business in Mainland China accounted for 39.4 per cent of total turnover but with the impact of the devaluation of the renminbi, there was a 1.7 per cent decline in sales while same-store sales slipped 3.1 per cent.
“The main growth engine for this business at the moment is its franchise network,” says TSL. The group opened 31 franchised stores during the period, taking the total from 132 to 151. When combined with 198 self-run stores, the total number of Mainland China outlets reached 349, extending the group’s footprint to 120 cities.
First-half retail sales in Malaysia rose by 20.6 per cent.
Chinese Valentine’s Day (August 28) saw sales surge by 30 per cent this year on the group’s major e-business platforms.