Ailing Tse Sui Luen Jewellery (International) plans to sell non-core properties worth HK$25 million as part of its debt reduction exercise. Properties to be offered for sale included its industrial premises in Hunghom, said chairman Tommy Tse Tat-fung. The company has debts of HK$294 million and, according to its debt restructuring agreement, must repay HK$24 million to creditors this year. It must also redeem HK$231 million worth of preference shares on February 28 next year. Mr Tse said the company was in talks with preference shareholders to redeem the shares in return for an interest in subsidiaries of the company. He believed the company was unlikely to convert the shares into cash. Tse Sui Luen has about HK$30 million in cash. Although sales plummeted 10 per cent in the first half, Mr Tse said the company planned to invest up to HK$7 million to renovate its retail outlets and open three new ones. It also planned to expand its mainland franchises from 87 to 98, he said. China contributed about 30 per cent to the company's total turnover. Mr Tse said the SAR retail industry would not recover in the second half of this year, hence the focus on the mainland. The company narrowed its net loss to HK$68.28 million in the year to February 28, from HK$285.56 million the previous year.