For the six months ended 30 September 2025, Tse Sui Luen Jewellery (International) Limited (TSL, 417) reported a turnover of HK$731.9 million, representing a year-on-year decrease of 15.3% from HK$864.4 million. The net loss attributable to owners of the company narrowed to HK$35.3 million, compared to a HK$43.8 million loss for the same period in 2024.
Gross profit margin dropped from 34.4% to 31.1%, partly due to a higher proportion of 24-karat gold sales, which generally carry a lower margin. The entity’s efforts to optimize operations included streamlining its sales network and relocating certain headquarters functions, contributing to a reduction of approximately 26.2% (or HK$81.3 million) in selling, distribution, and administrative expenses year on year.
As of 30 September 2025, net debt stood at around HK$573.2 million, up from HK$543.9 million at the end of March 2025. The net gearing ratio was 172.2%, compared to 154.0% as of the previous fiscal year-end. Inventory was approximately HK$1.05 billion, reflecting adjustments in inventory mix toward 24-karat gold products.
The retail segment in Hong Kong and Macau saw gradual improvement in sales at active stores, despite ongoing challenges from changing consumer travel patterns and high gold prices. In mainland China, the total number of self-operated stores decreased from 57 to 27 over the past year, while the group maintained around 339 franchised locations. The wholesale segment’s overall profitability improved due to higher margins, despite lower revenue resulting from softer market demand for natural diamond products.
Rising costs in Malaysia affected local consumer spending, with slight declines in operating profit for that region, where eight retail stores were in operation. The e-business segment experienced a drop in turnover after one major sales platform shifted from a self-operated to a franchise model.
No interim dividend was proposed for the period. Management highlighted a continued focus on cautious expansion, particularly in the Mainland, and on maintaining prudent financial and treasury practices. In November 2025, an amendment and restatement of existing bank facilities extended outstanding principal totaling HK$496 million for three years, subject to specific conditions. The group emphasized it would remain focused on cost structure optimization, positioning the brand for gradual market recovery while upholding strict capital management measures.
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