China’s largest jewellery retailer Chow Tai Fook Jewellery Group Ltd. saw revenue plunge 20.4% in the half year ended September, the biggest drop for the period since 2016 as the world’s No. 2 economy slows and record high gold prices dent luxury spending.

Revenue for the group, the biggest listed arm of billionaire Henry Cheng’s business empire, was HK$39.4 billion ($5.1 billion) for the period, the company said in a statement Tuesday. Profit fell 44.4% drop to HK$2.6 billion, mainly due to losses from revaluation of gold loan contracts amid volatile prices.

Operating profit, which reflects the jeweller’s core operational performance, was up 4% to HK$6.8 billion. The group declared an interim dividend of HK$0.2 per share, compared with HK$0.25 a year before.

Chow Tai Fook also announced a plan to buy back up to HK$2 billion of shares from its internal resources to show its confidence in the long-term business prospect.

The jeweller is facing significant headwinds in mainland China, which accounts for more than 80% of its revenue, with consumer confidence remaining weak amid plunging property prices and high unemployment rate. Surging gold prices have further dented demand for the commodity. In Hong Kong, the group’s second largest market, slow tourism recovery — in both visitor arrivals and travel spending — also led to steep sales drop.

Same-store sales fell 25.4% in self-operated shops in mainland China and 30.8% in Hong Kong and Macau in the six months ended September. The company also reduced its sales network by 239 stores — mainly franchised ones — to cut cost and improve profitability.

Jointly led by Henry Cheng’s daughter Sonia Cheng, Chow Tai Fook and the family’s other two listed companies have been under increasing spotlight amid the family’s succession saga after the elder Cheng said he’s still looking for a heir. Sonia’s brother Adrian, who was widely seen as the strongest candidate, fell out of favor recently, stepping down as the chief executive officer of New World Development Co. in September after the company became embroiled by heavy debt and losses.