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Luk Fook’s losses narrow as gold price rises

Hong Kong jeweller Luk Fook Holdings has warned shareholders its profit will be down by as  much as 50 per cent in the first half, to September. 

Earlier this year the company reported sales down about 60 per cent due to the ongoing Covid-19 crisis, which has left the border with the mainland closed for months, preventing the retailer’s traditional client base from shopping its stores. Profit was down about 80 per cent. 

In an update late Friday, Luk Fook chairman and CEO Sheung Wong said that while the pandemic had continued to impact the economy during the second quarter, Hong Kong government subsidies and a boost to the overall gross profit margin due to the rising gold price saw a less-than-expected decline and a narrowed loss compared to the April quarter. 

For the full half year, revenue and net profit will be down by about 50 per cent and 40 per cent, respectively.

Final, audited results are scheduled for release later this week.

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