Jeweller Luk Fook Holdings International is expecting a 35-45 per cent drop in profit for its latest financial year.

This has been announced to the Hong Kong Stock Exchange by the company’s board, with the results yet to be finalised. It attributes the decline primarily to weaker mainland tourist spending, including such factors as a strong Hong Kong dollar/weak renminbi, the economic slowdown on the mainland, the adjustment to the Individual Visit Scheme and the increased popularity of other tourist destinations.

The group also notes a decrease in the gross margin of gem-set jewellery products, an increase in overall rental expenses to revenue ratio, and an expansion of losses in investments in relation to Hong Kong Resources Holdings Company and its subsidiaries.

Chairman and CEO Wong Wai Sheung says the annual results will be published on June 23.