Hong Kong-listed Chinese jeweller Tse Sui Luen is expecting to post a loss of at least HK$220 million (US$28.1 million) for the year ended March 31. 

The net loss attributable to its owners is likely to be three times the HK$71 million (US$9 million) loss of the prior year. 

The group said the loss was mainly due to the significant decline in consumer demand for natural diamond jewellery in Mainland China and the diminishing profit margins from its transition to selling 24 karat gold products at a much higher percentage. 

“The group is still in the process of transforming its business model to fit the drastically changing sales mix, which has involved considerable time and monetary investment before the profitability could be turned around,” the company said in a statement. 

The Hong Kong jeweller reported a loss of HK$58.2 million for the six month period ended September 30. 

The company operates more than 480 boutiques across more than 130 cities in Asia besides Hong Kong.