Financial Performance - In 2024, the company reported a revenue of HKD 1,335,623,000, a decrease of 18% compared to HKD 1,629,059,000 in 2023[19]. - The net loss after tax for 2024 was HKD 281,652,000, compared to a profit of HKD 63,259,000 in 2023[23]. - Total revenue for the year ended December 31, 2024, was approximately HKD 1,335,623,000, a decrease of 18.0% compared to HKD 1,629,059,000 in 2023[36]. - EBITDA for the year was approximately HKD 14,843,000, a significant decrease of 94.0% from HKD 255,878,000 in 2023[36]. - The net loss after tax for the year was approximately HKD 281,652,000, compared to a profit of HKD 63,259,000 in 2023[39]. - The net profit attributable to the owners for the year ended December 31, 2024, was HKD 17,053,000, down HKD 17,921,000 or 51.2% from HKD 34,974,000 in 2023[45]. - The loss attributable to the company's owners for the year ended December 31, 2024, was HKD 254,072,000, compared to a profit of HKD 45,100,000 for the year ended December 31, 2023[107]. Assets and Liabilities - Total assets for 2024 amounted to HKD 17,963,825,000, while equity attributable to owners was HKD 3,614,423,000[17]. - Total assets as of December 31, 2024, were approximately HKD 17,963,825,000, an increase of 8.7% from HKD 16,531,006,000 in 2023[36]. - Total liabilities increased by 16.6% to approximately HKD 14,181,780,000 from HKD 12,165,712,000 in 2023[36]. - The group's total assets increased to HKD 17,963,825,000 as of December 31, 2024, up from HKD 16,531,006,000 a year earlier[85]. - The asset-liability ratio as of December 31, 2024, was 21.98%, a slight improvement from 22.9% a year earlier[81]. - Total liabilities increased to HKD 14,181,780,000 as of December 31, 2024, from HKD 12,165,712,000 as of December 31, 2023, mainly due to an increase in customer payables[101]. Market and Business Environment - The performance of the domestic self-owned watch brand business was weaker than the previous year due to cautious consumer behavior and geopolitical instability affecting global supply chains[25]. - The company faced multiple pressures in the traditional watch market, including demand contraction and intensified competition[22]. - The overall demand for international self-owned watch brands remains weak and has not yet recovered[25]. - E-commerce sales revenue decreased from HKD 113,098,000 in 2023 to HKD 78,477,000 in 2024, representing a decline of 30.6%[47]. - The number of distribution stores for Ebo Boutique Group decreased from 2,161 in 2023 to 1,991 in 2024[49]. - The company plans to expand into potential markets while focusing on its core markets, particularly in Asia[31]. Strategic Initiatives - The company is actively exploring collaborations in smart watch projects and expanding precision component processing to mitigate the weak demand for traditional self-owned watch brands[26]. - The company plans to focus on product model updates and invest more R&D resources in new product development for overseas markets in the coming year[58]. - Ebolu Group aims to expand its overseas business, particularly in North America, to diversify sales channels and market coverage[58]. - The company is committed to enhancing its ESG performance and will prepare an ESG report in accordance with the latest listing rules[28]. - The company has established an asset management company in Hong Kong to enhance its brand influence in Asia[31]. Corporate Governance - The company has a strong leadership team with extensive experience in finance and management, including members with over 25 years in accounting and financial management[130]. - The company has established a risk management committee to ensure effective oversight of financial and operational risks[126]. - The company emphasizes corporate governance and compliance, with members actively participating in various committees to uphold standards[130]. - The board of directors is responsible for overseeing the financial performance and internal controls of the group[155]. - The company has adopted the corporate governance code and complies with all applicable provisions, with some deviations noted[146]. Audit and Compliance - The audit committee reviewed the internal audit reports and activities annually, finding no significant deficiencies in the internal control and risk management systems for the year ending December 31, 2024[193]. - The company paid a total of HKD 4,900,000 for audit and non-audit services to its external auditor, with audit services costing HKD 4,600,000 and non-audit services costing HKD 300,000 for the year ending December 31, 2024[195]. - The board is responsible for evaluating the effectiveness of the internal control and risk management systems annually to protect shareholder interests and assets[192]. - The company encourages employees and stakeholders to report misconduct and fraud, ensuring fair and independent investigations[196]. - The company has adopted a high standard anti-corruption policy, emphasizing compliance with applicable anti-corruption laws in all markets[196].

Group 1 - The core viewpoint of the news is that Tianwo Technology (002564) reported a significant decline in revenue for the year 2024, with a total revenue of 2.464 billion yuan, representing a year-on-year decrease of 34.66% [2] - The company reported a net profit attributable to shareholders of 24.04 million yuan for 2024, while the net profit excluding non-recurring items showed a loss of 23.21 million yuan [2] - Tianwo Technology announced that it would not distribute cash dividends, issue bonus shares, or increase capital from reserves for the 2024 fiscal year [2] Group 2 - As of April 27, 2023, the company has received 108 notifications of litigation claims from minority shareholders, with a total amount involved of 13.84 million yuan [2] - The company has also received written claims or lawyer letters from 68 minority shareholders, totaling 13.73 million yuan in claims [2] - The company has made necessary accounting adjustments in accordance with relevant accounting standards regarding the litigation claims [2] Group 3 - In the first quarter of 2025, Tianwo Technology achieved a revenue of 605.2 million yuan, a year-on-year decrease of 4.07% [3][4] - The net profit attributable to shareholders for Q1 2025 was 18.39 million yuan, showing a year-on-year increase of 23.83% [3][4] - The company reported a net cash flow from operating activities of -22.74 million yuan, which improved by 88.95% compared to the previous year [4]

Core Viewpoint - Crown City Watch and Jewelry Group Limited reported a significant decline in revenue and a substantial net loss for the fiscal year 2024, indicating severe challenges across its business segments [2][4]. Financial Performance - Total revenue for 2024 was HKD 1.336 billion, a decrease of 18% year-on-year [2]. - The company experienced a net loss of HKD 282 million, an increase of 545.8% compared to the previous year [4]. - The gross profit from non-banking operations plummeted by 50.4% to HKD 309 million [2]. Business Segment Analysis - The watch business saw a revenue decline of 26.9%, with local brand revenues halved and Rosini's revenue down by 21.3% [2][4]. - The property business revenue decreased by 6%, while the banking business had the smallest decline at 0.3% [2]. - The contribution from joint ventures shrank by 76% [4]. Financial Health - The asset-liability ratio reached 78.8%, an increase of 6.1 percentage points year-on-year [4]. - Short-term borrowings amounted to HKD 410 million, with a risk of default [4]. - Cash reserves stood at HKD 3.78 billion at the end of 2024 [4]. Operational Developments - The company is focusing on digital transformation, with e-commerce revenue rising to 30% and live sales increasing by 41% [5]. - The introduction of an AI customer service system aims to enhance online conversion rates [5]. - The light smart watch has entered mass production, expected to launch in Q2 2025 [5]. Global Expansion - The automation upgrade of the European production base has been completed, and a new center in North America is set to cover all 50 states by 2025 [5].

Group 1 - The controlling shareholder and chairman of the company, Qian Zhida, plans to reduce his stake by up to 3% of the total shares outstanding, which amounts to a maximum of 31.91 million shares [1][2] - The reduction will occur within three months after a 15 trading day period following the announcement, utilizing both centralized bidding and block trading methods [2] - The reason for the share reduction is personal funding needs, with the shares being sourced from those acquired before the company's initial public offering [2] Group 2 - The company has revised its plan for a private placement of A-shares five times, aiming to raise no more than 43.675 million yuan for a project to produce 1,150 tons of iodine contrast agent raw materials [3] - The issuance will involve no more than 35 specific investors, with the share price set at no less than 80% of the average trading price over the previous 20 trading days [3] - Following the issuance, the company's earnings per share and weighted average return on net assets may decline in the short term, indicating a potential dilution of immediate returns [3] Group 3 - The company forecasts a net profit attributable to shareholders of between 36 million yuan and 52 million yuan for the year 2024 [4]

Financial Performance - For the fiscal year ending December 31, 2024, the total revenue was HKD 1,335,623,000, a decrease from HKD 1,629,059,000 in 2023, representing a decline of approximately 18.06%[3] - The company reported a net loss of HKD 281,652,000 for the year, compared to a profit of HKD 63,259,000 in 2023, marking a significant turnaround in performance[3] - The earnings per share (EPS) for the year was a loss of HKD 5.84, compared to a profit of HKD 1.04 in 2023[4] - The company reported a total loss of HKD 281,652,000 for the year, with a notable loss in the banking and financial services segment amounting to HKD 189,435,000[20] - The net profit attributable to the company from Zhuhai Rossini for the year ending December 31, 2024, was HKD 17,053,000, a decrease of HKD 17,921,000 or 51.2% from HKD 34,974,000 in 2023[65] - The net loss attributable to shareholders after tax was HKD 27,389,000, compared to a net profit of HKD 8,982,000 in 2023[82] Revenue Breakdown - Non-banking and financial business sales revenue was HKD 813,952,000, down from HKD 1,113,945,000 in the previous year, reflecting a decrease of approximately 27.0%[3] - Total revenue from non-banking operations decreased to HKD 63,095,000 in 2024, down from HKD 78,242,000 in 2023, reflecting a decline of approximately 19.3%[31] - Revenue from external customers for 2024 reached HKD 1,335,623 thousand, a decrease from HKD 1,629,059 thousand in 2023, representing a decline of approximately 18%[25] - The subsidiary Zhuhai Rossini Watch Co., in which the group holds a 91% stake, recorded revenue of HKD 260,795,000 for the year ending December 31, 2024, a decrease of HKD 70,594,000 or 21.3% from HKD 331,389,000 in 2023[65] - The watch and timing products business of EPO Group reported revenue of HKD 155,642,000, a decrease of 25.2% from HKD 208,131,000 in 2023[73] Assets and Liabilities - The company's total assets increased to HKD 17,963,825,000 in 2024, up from HKD 16,531,006,000 in 2023, representing a growth of approximately 8.66%[5] - Total liabilities increased to HKD 14,181,780,000 in 2024 from HKD 12,165,712,000 in 2023, representing a growth of approximately 16.5%[6] - Total equity decreased to HKD 3,782,045,000 in 2024 from HKD 4,365,294,000 in 2023, a decline of about 13.3%[6] - The company’s total borrowings decreased from HKD 681,254,000 in 2023 to HKD 595,082,000 in 2024, a reduction of approximately 12.6%[6] - The company’s cash and deposits stood at HKD 3,387,000, indicating liquidity for future investments[22] Expenses and Cost Management - The company incurred total sales and distribution expenses of HKD 301,850,000, down from HKD 376,358,000 in the previous year, indicating a reduction of about 19.8%[3] - The financial expenses for non-banking operations were HKD 63,095,000, a decrease from HKD 78,242,000 in 2023, reflecting a reduction of approximately 19.3%[3] - The company’s administrative expenses were HKD 672,722,000, slightly up from HKD 667,762,000 in the previous year, showing an increase of about 0.9%[3] - Operating expenses for the year ending December 31, 2024, were approximately HKD 974,572,000, a reduction of HKD 69,548,000 or 6.7% from HKD 1,044,120,000 in 2023[60] - The company implemented strategic cost control measures, resulting in a 20% reduction in general administrative expenses compared to the previous year[92] Impairment and Goodwill - The company recorded a significant impairment loss on goodwill amounting to HKD 115,917,000, reflecting challenges in the financial services sector[21] - The company recognized a significant impairment loss on goodwill amounting to HKD 115,917,000 in 2024, compared to HKD 13,389,000 in 2023, indicating a substantial increase in impairment[6] - The company's goodwill as of December 31, 2024, is HKD 973,406,000, down from HKD 1,150,672,000 as of December 31, 2023, primarily due to foreign exchange differences[136] Market Strategy and Future Outlook - The company has plans for market expansion and new product development, focusing on enhancing its watch and financial service offerings[20] - The group plans to diversify its market strategy and expand overseas to reduce risks associated with over-reliance on a single market[83] - The company aims to improve operational efficiency and reduce costs in response to the financial losses reported[20] - The company is focusing on optimizing resource allocation and enhancing data analysis to improve operational efficiency and support new product development[66] Corporate Governance and Compliance - The company has adopted the corporate governance code and has complied with all applicable provisions, except for the absence of two independent non-executive directors at the 2024 Annual General Meeting[151] - The company has established an Audit Committee to review and supervise the financial reporting process and internal controls, consisting of two independent non-executive directors[159] - The Audit Committee has reviewed the consolidated financial statements for the year ending December 31, 2024, and confirmed that they are prepared in accordance with applicable accounting standards[164] - The company has established a Risk Management Committee to assist the Board in reviewing and ensuring the effectiveness of the risk management system[162]

Financial Performance - Total revenue for the six months ended June 30, 2024, was approximately HKD 710,313,000, a decrease of 12.3% from HKD 810,244,000 in the same period last year[4]. - Operating expenses for the same period were approximately HKD 484,046,000, down 3.6% from HKD 502,030,000 year-on-year[4]. - Gross profit from non-banking and financial operations was approximately HKD 224,068,000, a decrease of 28.1% from HKD 311,493,000 in the previous year[4]. - EBITDA for the six months ended June 30, 2024, was approximately HKD 83,843,000, down 31.7% from HKD 122,763,000 in the prior year[4]. - Net profit after tax for the period was approximately HKD 3,708,000, a significant decrease of 85.9% from HKD 26,237,000 year-on-year[4]. - The revenue for the first half of 2024 was HKD 40,068,000, a decrease of approximately 50.5% compared to HKD 80,979,000 in the same period of 2023[19]. - The net loss for the first half of 2024 was HKD 3,049,000, compared to a net profit of HKD 797,000 in the same period of 2023[19]. - The company reported a profit of HKD 3,708,000 for the period, a significant decline of 85.8% from HKD 26,237,000 in the same period last year[89]. - The profit attributable to owners of the company for the six months ended June 30, 2024, was HKD 7,024,000, a decrease of 64.8% from HKD 19,921,000 in the same period of 2023[127]. Revenue Breakdown - Revenue from the subsidiary Zhuhai Rossini Watch Industry Co., Ltd. was HKD 148,373,000, a decrease of 5.9% from HKD 157,638,000 in the previous year[8]. - Rosini's physical store sales amounted to approximately HKD 62,324,000 in the first half of 2024, a decrease of 29.1% compared to the same period last year[11]. - E-commerce sales for Rosini decreased from HKD 53,886,000 to approximately HKD 42,999,000, representing a decline of about 20.2% year-on-year[11]. - The revenue for EBO Group in the first half of 2024 was HKD 92,869,000, down 17.8% from HKD 113,029,000 in the same period last year[14]. - EBO Group reported a net loss of HKD 16,905,000 for the first half of 2024, compared to a net profit of HKD 13,034,000 in the previous year[14]. - EBO Group's e-commerce sales revenue was approximately HKD 28,880,000 in the first half of 2024, showing a slight decline compared to the previous year[17]. - EBO Group's total property rental income for the first half of 2024 was HKD 6,856,000, a decrease of 0.6% from HKD 6,900,000 in the same period last year[17]. - The total revenue for other foreign brands, including Kunlun and The Dreyfuss Group Limited, was HKD 102,779,000, a slight decrease from HKD 106,983,000 in the same period of 2023[21]. Assets and Liabilities - Total assets as of June 30, 2024, were HKD 17,545,644,000, an increase of 6.1% from HKD 16,531,006,000 at the end of 2023[5]. - Total liabilities increased by 11.1% to HKD 13,517,434,000 from HKD 12,165,712,000 at the end of 2023[5]. - The total equity decreased by 7.7% to HKD 4,028,210,000 from HKD 4,365,294,000 year-on-year[5]. - The bank's total assets increased to HKD 12,600,383,000, up HKD 1,304,350,000 from December 31, 2023[27]. - The bank's interest and dividend income decreased by 1.0% to HKD 138,236,000 due to a slight decline in key interest rates[26]. - Total liabilities increased to HKD 13,517,434,000 as of June 30, 2024, from HKD 12,165,712,000 as of December 31, 2023, primarily due to an increase in accounts payable[54]. Operational Strategies - Rosini is focusing on product refinement and optimizing operations through data-driven strategies to enhance efficiency[12]. - Rosini is collaborating with external influencers to enhance e-commerce marketing effectiveness and reach target audiences more efficiently[13]. - EBO Group is adjusting its e-commerce strategy to focus on sustainable growth and high-quality shopping experiences[17]. - The company is focusing on cost control by reducing administrative and operational expenses, including advertising costs and streamlining personnel[20]. - The company is actively expanding its overseas market presence through exhibitions and online platforms to enhance brand promotion[20]. - Kunlun aims to reduce its global sales points from over 400 at the end of 2022 to 250 by the end of 2024, aligning with its brand value and production capacity[22]. Investments and Financial Instruments - The group’s investment in equity instruments listed in Hong Kong amounts to HKD 179,826,000, related to Minxin, and HKD 17,212,000 related to Guancheng Datong[53]. - The group’s investment policy includes strict adherence to investment procedures, regularly reviewed by the investment committee[43]. - The fair value of financial assets and liabilities is determined based on market prices at the reporting date, ensuring accurate valuation[165]. - The fair value of financial assets measured at fair value through profit or loss was HKD 32,410,000 as of December 31, 2023, with no initial balance reported for June 30, 2024[173]. - The fair value of derivative financial assets was HKD 4,244,000 as of June 30, 2024, reflecting current forward exchange rates[167]. Corporate Governance - The company has maintained compliance with corporate governance codes, although two independent non-executive directors were absent from the annual general meeting held on May 28, 2024[79]. - The Audit Committee has reviewed the unaudited financial statements for the six months ending June 30, 2024, ensuring adherence to accounting standards and internal controls[81]. - The company’s remuneration committee is responsible for establishing transparent policies regarding the compensation of all directors and senior management[82]. - The company has adopted a standard code for securities trading by directors, ensuring compliance with ethical trading practices[80]. Cash Flow and Financing - The net cash used in operating activities for the six months ended June 30, 2024, was HKD (684,330,000), a significant improvement from HKD (2,946,989,000) in the same period of 2023[97]. - The net cash used in investing activities amounted to HKD (1,284,184,000), compared to HKD (540,004,000) in the previous year, indicating increased investment outflows[97]. - The net cash used in financing activities was HKD (68,260,000), down from HKD (153,694,000) in the prior year, reflecting a reduction in financing costs[97]. - The company provided a corporate guarantee for bank financing up to HKD 55,000,000 as of June 30, 2024, unchanged from December 31, 2023[160]. Employee and Shareholder Information - The company employed approximately 2,280 full-time employees in Hong Kong and mainland China as of June 30, 2024[68]. - As of June 30, 2024, the total issued share capital of the company is 4,351,888,206 shares, with major shareholders holding significant stakes: 31.71% by Xin Jing International Limited and 37.83% by Chao Feng Limited[75]. - The largest shareholder, Han Guolong, holds 69.65% of the total shares, which includes 3,500,000 shares directly owned and substantial interests through related entities[75]. - The company has a family ownership structure, with Han Guolong and his spouse Lin Shuying collectively owning 3,030,979,515 shares, representing 69.65% of the total equity[76].

Financial Performance - For the six months ended June 30, 2024, total revenue decreased to HKD 710,313,000 from HKD 810,244,000, representing a decline of approximately 12.3% year-over-year[2]. - Net profit for the period was HKD 3,708,000, down from HKD 26,237,000 in the same period last year, indicating a decrease of about 85.8%[2]. - The company's basic and diluted earnings per share for the period were both HKD 0.16, compared to HKD 0.46 for the same period in 2023[3]. - The group reported a loss of HKD 19,287 thousand for the current period, compared to a profit of HKD 11,729 thousand in the previous year, indicating a substantial decline in profitability[12]. - EBITDA for the six months ended June 30, 2024, was approximately HKD 83,843,000, down 31.7% from HKD 122,763,000 in the same period last year[44]. - The group reported a basic and diluted earnings per share of HKD 7,024 for the six months ended June 30, 2024, down from HKD 19,921 in the same period of 2023, reflecting a decrease of approximately 64.8%[24]. Assets and Liabilities - Total assets increased to HKD 17,545,644,000 as of June 30, 2024, compared to HKD 16,531,006,000 at the end of 2023, reflecting a growth of approximately 6.1%[4]. - Total liabilities increased to HKD 13,517,434,000 from HKD 12,165,712,000, representing an increase of approximately 11.1%[6]. - The company's equity attributable to owners decreased to HKD 4,028,210,000 from HKD 4,365,294,000, a decline of about 7.7%[7]. - Total borrowings amounted to HKD 639,941,000 as of June 30, 2024, down from HKD 681,254,000 as of December 31, 2023[37]. Revenue Breakdown - Non-banking and financial business sales amounted to HKD 459,822,000, down from HKD 558,885,000, a decrease of approximately 17.7%[2]. - Financial services revenue for the six months ended June 30, 2024, was HKD 179 million, with interest income of HKD 477 million[18]. - Non-banking and financial services revenue decreased to HKD 471,814 million for the six months ended June 30, 2024, down from HKD 570,149 million in the same period of 2023, representing a decline of approximately 17.2%[18]. - The revenue of Zhuhai Rossini Watch Industry Co., Ltd. for the six months ending June 30, 2024, was HKD 148,373,000, a decrease of HKD 9,265,000 or 5.9% compared to the same period last year[47]. - The revenue of EBO Prestige Group for the six months ending June 30, 2024, was HKD 92,869,000, a decrease of HKD 20,160,000 or 17.8% compared to HKD 113,029,000 in the same period last year[53]. Operational Highlights - Cash and deposits decreased significantly to HKD 1,346,891,000 from HKD 3,761,431,000, a decline of about 64.2%[4]. - The group’s depreciation and amortization expenses for property, plant, and equipment totaled HKD 48,627 million for the six months ended June 30, 2024, compared to HKD 44,935 million in the same period of 2023, reflecting an increase of 8.5%[21]. - Operating expenses for the same period were approximately HKD 484,046,000, down 3.6% from HKD 502,030,000 in the previous year[44]. - The group’s interest expenses for lease liabilities and bank borrowings amounted to HKD 22,045 million for the six months ended June 30, 2024, compared to HKD 38,941 million in the previous year, indicating a decrease of approximately 43.5%[20]. Market and Strategic Initiatives - The company is committed to maintaining its strategic direction while exploring opportunities for market expansion and potential acquisitions in the financial sector[13]. - The company is focusing on expanding its overseas market presence, particularly in Europe, the United States, and Southeast Asia[58]. - The group aims to reduce reliance on the UK market by developing strategic international markets and expanding its presence in China[63]. - The company is negotiating with an overseas electronics manufacturer for new product development, with production expected to commence in Q4 2024[59]. Governance and Compliance - The company has adhered to the corporate governance code, with some exceptions regarding attendance at the annual general meeting by independent non-executive directors[104][105]. - The audit committee reviewed the unaudited financial statements for the six months ended June 30, 2024, and confirmed that they were prepared in accordance with applicable accounting standards[113]. - The remuneration committee is responsible for recommending policies and structures regarding the remuneration of all directors and senior management[108]. - The risk management committee is tasked with assessing the level of risk the group is willing to undertake to achieve strategic objectives[111].

Financial Performance - In 2023, the company's revenue was HKD 1,629,059,000, showing a profit of HKD 63,259,000 after tax[5]. - The company reported a significant decrease in revenue from HKD 2,716,265,000 in 2019 to HKD 1,629,059,000 in 2023, reflecting a decline of approximately 40% over the four-year period[5]. - The financial summary indicates a loss of HKD 158,829,000 in 2020, followed by a recovery to a profit in 2023[5]. - In 2023, the company recorded a post-tax profit of HKD 63 million, compared to a post-tax loss of HKD 119 million in 2022, indicating a significant recovery in profitability[8]. - Revenue increased by 1.3% to HKD 1.63 billion in 2023, up from HKD 1.61 billion in 2022[8]. - The profit attributable to the company's owners was HKD 45 million in 2023, compared to a loss of HKD 111 million in 2022[8]. - Total revenue for the year ended December 31, 2023, was approximately HKD 1,629,059,000, an increase of 1.3% from HKD 1,607,388,000 in 2022[18]. - The company reported a profit for the year of HKD 45,000,000, which is a significant component of the total comprehensive income[192]. Assets and Liabilities - Total assets for 2023 were HKD 16,531,006,000, with equity attributable to owners amounting to HKD 4,166,700,000[5]. - Total assets as of December 31, 2023, were HKD 16.53 billion, reflecting a 2.3% increase from HKD 16.16 billion in 2022[16]. - Total liabilities increased by 1.6% to HKD 12.17 billion in 2023, up from HKD 11.98 billion in 2022[16]. - The group's total liabilities to equity ratio improved to 22.9% from 30% year-on-year, indicating a stronger capital structure[41]. - The group's borrowings as of December 31, 2023, were HKD 681,254,000, down from HKD 958,135,000, reflecting a reduction in debt levels[41]. Operational Efficiency and Strategy - The company aims to improve operational efficiency and profitability in the upcoming fiscal year[3]. - The company is focusing on new technology research and development to enhance its product offerings[3]. - Future outlook includes plans for strategic acquisitions to bolster market presence[3]. - The company plans to enhance sales through a marketing strategy focused on "brand strength, channel strength, product strength, and execution strength" in 2024[23]. - The company aims to stabilize direct-operated stores and expand consignment stores while enhancing online sales through various distribution channels[23]. Market Expansion and Development - The company plans to expand its market presence in Asia, with a focus on enhancing brand influence and operational resilience amid external challenges[13]. - The company plans to expand into the Hong Kong and Macau markets, Hainan duty-free market, and Amazon e-commerce platform[27]. - The company is focusing on profitable sales growth opportunities in major markets such as the US, Canada, and Germany for 2024[29]. - The company is exploring market options for online platforms in the US and Germany to enhance online sales and global brand influence[29]. Risk Management and Governance - The board of directors emphasized the importance of risk management in navigating market challenges[3]. - The board emphasizes the importance of governance and risk management to ensure sustainable business success in a challenging environment[14]. - The company has adopted the corporate governance code and complies with all applicable provisions, with some deviations noted[82]. - The company’s risk management committee has been active in overseeing risk management practices during the year ending December 31, 2023[98]. Shareholder Communication and Dividends - The company will not declare a final dividend for the year ending December 31, 2023, to retain sufficient funds for financial needs[8]. - The company aims to provide stable and sustainable returns to shareholders through its dividend policy, which considers retained earnings, future profitability, capital needs, and general financial conditions[106]. - The company maintains high transparency and effective communication with shareholders and investors, providing timely updates on business performance and financial status[109]. - The company emphasizes the importance of shareholder meetings as a platform for direct communication and feedback from shareholders[109]. Employee and Corporate Culture - The company emphasizes a culture of diversity, innovation, and excellence, aiming to provide high-quality products and services[83]. - The company encourages continuous learning and development for its employees to enhance their skills and professional knowledge[83]. - The company supports diversity at all employee levels, ensuring equal training and career development opportunities[90]. Economic Outlook - The macroeconomic outlook for mainland China in 2024 remains challenging due to weak real estate prices and geopolitical tensions[66]. - Consumer confidence is severely impacted by slowing disposable income growth and rising unemployment rates, affecting consumer spending[66]. - The long-term outlook for the Chinese market remains robust despite current challenges[66]. Audit and Compliance - The audit committee ensures the independence of the external auditor and reviews their performance annually[104]. - The internal audit department is responsible for evaluating the effectiveness of the group's risk management and internal control systems, reporting to the audit committee at least annually[102]. - The company has established procedures for handling and disclosing inside information to ensure compliance with the Securities and Futures Ordinance[103].

Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 1,629,059,000, a slight increase from HKD 1,607,388,000 in 2022, representing a growth of 1.3%[2] - The net profit for the year was HKD 63,259,000, a significant recovery from a loss of HKD 119,437,000 in 2022[2] - The company’s basic earnings per share for the year was HKD 1.04, recovering from a loss of HKD 2.55 per share in 2022[3] - Other comprehensive income for the year was HKD 97,197,000, a significant improvement from a loss of HKD 232,571,000 in the previous year[3] - The profit before tax was HKD 83,798 thousand, with a breakdown of HKD 59,220 thousand from watch and clock products, HKD 10,671 thousand from property investment, and HKD 129,793 thousand from banking and financial services[22] - The net profit for the year was HKD 63,259 thousand, with HKD 55,334 thousand from watch and clock products, HKD 10,671 thousand from property investment, and HKD 113,170 thousand from banking and financial services[22] - The company reported a significant interest and dividend income from banking operations amounting to HKD 285,968 thousand[22] - The company reported a net loss of HKD 119,437 thousand for the year, with significant losses attributed to unallocated company expenses of HKD 92,152 thousand[25] - The net profit after tax for the year ended December 31, 2023, was approximately HKD 63,259,000, compared to a net loss of HKD 119,437,000 for the year ended December 31, 2022[77] Revenue Breakdown - Total revenue reached HKD 1,629,059 thousand, with contributions from watch and clock products at HKD 1,113,945 thousand, property investment at HKD 23,275 thousand, and banking and financial services at HKD 491,839 thousand[22] - The company’s revenue from external customers in China was HKD 782,066,000 in 2023, down from HKD 1,009,151,000 in 2022, representing a decline of approximately 22.5%[28] - Non-banking and financial business income decreased to HKD 1,137,220,000 from HKD 1,268,746,000, a decline of 10.4%[37] - The total revenue for Ebo Group's watch and timing products was HKD 208,131,000 for the year ended December 31, 2023, a decrease of HKD 47,267,000 or 18.5% from HKD 255,398,000 in 2022[87] - The total revenue for Kunlun, Qian Nian Hua, and The Dreyfuss Group Limited was HKD 218,379,000 for the year ending December 31, 2023, down from HKD 255,566,000 in 2022, with a net loss of HKD 19,315,000 compared to HKD 30,572,000 in the previous year[93] Assets and Liabilities - Total assets increased to HKD 16,531,006,000 from HKD 16,157,243,000, marking a growth of 2.3%[4] - Total liabilities rose to HKD 12,165,712,000, compared to HKD 11,978,382,000 in the previous year, an increase of 1.6%[5] - The company’s total liabilities included borrowings of HKD 540,375,000 and lease liabilities of HKD 28,849,000[26] - The company’s total liabilities as of December 31, 2023, are HKD 12,165,712,000, up from HKD 11,978,382,000 as of December 31, 2022, primarily due to an increase in payables[131] - The group’s total assets as of December 31, 2023, amount to HKD 16,531,006,000, an increase from HKD 16,157,243,000 in the previous year[114] Cash and Deposits - Cash and deposits as of December 31, 2023, were HKD 3,761,431,000, down from HKD 4,314,638,000 in 2022, indicating a decrease of 12.8%[4] - As of December 31, 2023, the group's cash and bank balances are approximately HKD 3,761,431,000, a decrease of 12.8% from HKD 4,314,638,000 in the previous year[111] Strategic Initiatives and Acquisitions - The company completed the sale of 22.86% of its stake in Xin Heng Financial Holdings Limited for HKD 6,487,000 in February 2023[7] - The acquisition of 100% of the equity of Jin Xi Industrial Limited was completed on April 19, 2023[7] - The company sold all shares of Intelligent Property Limited for HKD 27,500,000 in October 2023[7] - The group acquired the entire equity of the Kam Hei Group for HKD 108,456,000, with payment structured through shares and cash, including a profit guarantee of at least HKD 30,000,000 for the fiscal years ending December 31, 2023, 2024, and 2025[70] Operational Efficiency - The company is focusing on strategic initiatives to improve operational efficiency and reduce unallocated expenses in the upcoming fiscal year[25] - The company plans to expand its market presence and invest in new product development to enhance revenue streams[24] - The company aims to strengthen its presence in Southeast Asia and North America, with a focus on duty-free sales in Singapore and Thailand[92] Corporate Governance - The company has adopted the corporate governance code and complies with all applicable rules, with some deviations noted[143] - The audit committee has reviewed the consolidated financial statements for the year ending December 31, 2023, and confirmed they are prepared in accordance with applicable accounting standards[156] - The company has established various committees, including the remuneration committee and nomination committee, to enhance corporate governance[152][153] Employee and Management - As of December 31, 2023, the company employed approximately 3,050 employees in Hong Kong and mainland China, down from 3,600 employees in the previous year[140] - The company employed about 178 employees in Europe as of December 31, 2023, compared to 250 employees in the previous year[140] Market Trends - The Swiss high-end watch market continued to grow in 2023, reaching pre-pandemic levels, with watch exports increasing by 7.6% compared to 2022[93] - E-commerce sales revenue for Rosini decreased to HKD 113,098,000 in 2023, down HKD 67,865,000 or 37.5% from HKD 180,963,000 in 2022[84] - The Dreyfuss Group plans to focus resources on profitable sales growth opportunities in the US, Canada, and Germany in 2024[96]

Financial Performance - Total revenue for the six months ended June 30, 2023, was approximately HKD 810,244,000, a decrease of 5.5% compared to HKD 857,771,000 for the same period in 2022[4]. - Operating expenses for the same period were approximately HKD 502,030,000, down 9.4% from HKD 554,367,000 in the previous year[5]. - Non-banking and financial business gross profit was approximately HKD 311,493,000, a decrease of 12.1% from HKD 354,308,000 year-on-year[6]. - Banking and financial business gross profit increased by 47.6% to approximately HKD 240,095,000, compared to HKD 162,660,000 in the previous year[6]. - EBITDA for the six months ended June 30, 2023, was approximately HKD 122,763,000, an increase of 262.7% from HKD 33,850,000 in the same period last year[6]. - Net profit after tax for the period was approximately HKD 26,237,000, compared to a net loss of HKD 54,650,000 in the previous year[6]. - Ebo Boutique Group's revenue for the first half of 2023 was HKD 113,029,000, a decrease of 25.9% from HKD 152,613,000 in the same period last year, with a net loss of HKD 13,034,000 compared to a loss of HKD 8,122,000 last year[12]. - The company reported a profit attributable to owners of HKD 19,921,000, compared to a loss of HKD 52,094,000 in the same period last year[8]. - The company reported a net loss attributable to shareholders of HKD 19,921,000 for the six months ended June 30, 2023, compared to a loss of HKD 52,094,000 in the same period of 2022[123]. Revenue Sources - The subsidiary Zhuhai Rossini Watch Industry Co., Ltd. recorded revenue of HKD 157,638,000, a decrease of 35.1% from HKD 243,035,000 year-on-year[8]. - Rossini's physical store sales for the first half of 2023 were approximately HKD 87,956,000, showing a slight decrease compared to the previous year[10]. - E-commerce sales for Zhuhai Rossini Watch Industry Co., Ltd. decreased by approximately 37.9% to about HKD 53,886,000 compared to HKD 86,718,000 in the same period last year[11]. - E-commerce sales for Ebo Boutique Group decreased by 28.9% to approximately HKD 28,010,000, primarily due to a decline in new retail (live streaming) sales, which fell by 51.4%[14]. - Non-banking and financial business revenue from product sales was HKD 558,885,000, a decrease from HKD 685,987,000, reflecting a decline of about 18.5%[107]. Asset Management - Total assets as of June 30, 2023, were HKD 15,817,407,000, a decrease of 2.1% from HKD 16,157,243,000 at the end of 2022[4]. - The bank's total assets decreased by HKD 740,238,000 to HKD 10,560,506,000 as of June 30, 2023, compared to HKD 11,300,744,000 at the end of 2022[22]. - The company's cash and deposits as of June 30, 2023, were HKD 705,647,000, a decrease from HKD 4,314,638,000 as of December 31, 2022[76]. - The group's total assets decreased from HKD 16,157,243,000 as of December 31, 2022, to HKD 15,817,407,000 as of June 30, 2023[29]. - The company's total liabilities amounted to HKD 11,624,759,000 as of June 30, 2023, a decrease from HKD 11,978,382,000 as of December 31, 2022, representing a reduction of approximately 3%[77]. Inventory and Receivables - Inventory for Rossini decreased by 12.7% compared to the same period last year, reflecting strict inventory management[10]. - The company's inventory as of June 30, 2023, was HKD 1,792,187,000, down from HKD 1,935,923,000 at the end of 2022, indicating a decrease of about 7.4%[76]. - The total amount of receivables from customers was HKD 2,854,221,000, an increase from HKD 2,678,772,000 as of December 31, 2022[124]. - Accounts receivable increased to HKD 2,854,221,000 from HKD 2,678,772,000 year-over-year, reflecting a growth of approximately 6.5%[76]. - The total amount of bank receivables increased to HKD 4,304,729,000 from HKD 1,929,640,000, showing a substantial growth of 123.1%[124]. Market and Strategic Outlook - The company plans to implement targeted marketing strategies focusing on high-end watch production to rebuild its global reputation and brand awareness in the second half of the year[19]. - The outlook for the second half of 2023 remains optimistic, with expectations of gradual recovery in the watch industry in Hong Kong and mainland China[12]. - Future outlook includes a focus on expanding banking services and enhancing product offerings in the watch and jewelry segment to drive revenue growth[109]. - The company aims to enhance its online influence by focusing on customer needs and pushing exclusive orders to major professional retailers[19]. Corporate Governance and Compliance - The company has complied with the corporate governance code during the six months ending June 30, 2023, with minor exceptions noted[68]. - The audit committee has reviewed the unaudited financial statements for the six months ending June 30, 2023[69]. - The company has adopted a standard code for securities trading by directors, ensuring compliance during the reporting period[69]. Investments and Acquisitions - The acquisition of Jinxi Group contributed approximately HKD 21,203,000 in revenue and HKD 5,257,000 in profit since the acquisition date[17]. - The company completed the acquisition of Kam Hei Industrial Limited for HKD 108,456,000 in April 2023, making it a subsidiary[87]. - The identifiable assets and liabilities of Kin Hee Group at the acquisition date had a fair value of HKD 66,278,000[163]. - The fair value of intangible assets acquired was HKD 68,383,000[163]. Financial Ratios and Metrics - The group's asset-liability ratio improved to 27.9% as of June 30, 2023, down from 30% as of December 31, 2022[26]. - The basic and diluted earnings per share for the period were HKD 0.46, recovering from a loss of HKD 1.20 per share in the same period of the previous year[75]. - The company's total equity as of June 30, 2023, was HKD 4,192,648,000, up from HKD 4,178,861,000 at the end of 2022, indicating a growth of approximately 0.3%[77]. Financial Reporting and Standards - The financial data is presented in HKD, with all values rounded to the nearest thousand (HKD thousands)[88]. - The company has not adopted any new or revised Hong Kong Financial Reporting Standards that are not yet effective[89]. - The group assesses the recoverable amount of goodwill annually, which involves estimating future cash flows and determining an appropriate discount rate[91].