Financial Performance - Revenue for the six months ended September 30, 2019, was HK$1,167,795, a decrease of 1.1% compared to HK$1,181,133 for the same period in 2018[3]. - Gross profit for the period was HK$318,194, representing a gross margin of approximately 27.2%[3]. - Profit for the period was HK$60,430, down 5.7% from HK$63,735 in the previous year[4]. - Total comprehensive income for the period was HK$18,968, significantly higher than HK$4,900 in the same period last year[4]. - Earnings per share (basic and diluted) for the period were 10.82 HK cents, compared to 11.22 HK cents in the previous year[4]. - Profit before taxation was HK$77,313, an increase from HK$74,924 in the previous year[3]. - The Group's profit before taxation for the six months ended September 30, 2019, was HK$77,313,000, compared to HK$74,924,000 in the same period of 2018, reflecting a growth of 3.2%[43]. - Net profit attributable to owners of the Company decreased by 3.6% to HK$61.7 million from HK$64.0 million in 2018[104]. Expenses and Costs - Distribution and selling expenses amounted to HK$122,001, compared to HK$113,757 in the same period last year[3]. - Administrative expenses were HK$122,223, slightly higher than HK$116,878 in the previous year[3]. - Finance costs for the period were HK$7,869, compared to HK$2,202 in the same period last year[3]. - The total income tax expense for the six months ended 30 September 2019 was HK$16,883,000, an increase of 53.5% from HK$11,189,000 in the same period of 2018[45]. - The allowance for slow-moving watches was HK$46,248,000 for the six months ended September 30, 2019, compared to HK$10,005,000 in the same period of 2018[43]. - Unallocated corporate expenses for the period included auditor's remuneration and directors' remuneration, totaling HK$6,999,000, up from HK$5,799,000 in 2018[40]. Assets and Liabilities - As of September 30, 2019, total assets less current liabilities amounted to HK$2,349,831,000, an increase from HK$2,215,602,000 as of March 31, 2019[6]. - Net current assets were reported at HK$1,653,052,000, down from HK$1,885,778,000 in the previous period[6]. - The company's non-current assets totaled HK$696,779,000, compared to HK$329,824,000 in the prior audited period[5]. - Total equity attributable to owners of the company was HK$2,110,370,000, a decrease from HK$2,212,733,000[6]. - Current liabilities increased to HK$330,635,000 from HK$192,627,000, indicating a rise in short-term obligations[5]. - The Group's total liabilities increased to HK$570,524,000 as of September 30, 2019, from HK$194,628,000 as of March 31, 2019[42]. Cash Flow and Investments - Net cash from operating activities increased to HK$293,731,000 for the six months ended 30 September 2019, compared to HK$177,442,000 in the same period of 2018, representing a growth of 65.5%[12]. - Net cash used in investing activities was HK$11,516,000, a significant increase from HK$2,797,000 in the previous year[12]. - Net cash used in financing activities rose to HK$227,683,000, compared to HK$133,476,000 in the prior period, indicating a 70.7% increase[13]. - Cash and cash equivalents at the end of the period amounted to HK$1,117,693,000, up from HK$1,094,210,000 in the previous year, showing a growth of 2.2%[13]. - The Group incurred expenditure of HK$36,813,000 for property, plant, and equipment acquisition, a significant increase from HK$7,383,000 in the same period last year[55]. Dividends and Shareholder Returns - The company proposed an interim special dividend of HK$49,621,000 for 2020, indicating a commitment to returning value to shareholders[8]. - The company declared an interim dividend of 2.8 HK cents per share, totaling HK$15,970,000, which remained unchanged from the previous year[48]. - A special dividend of 8.7 HK cents per share, totaling HK$49,621,000, was also declared for the six months ended 30 September 2019, consistent with the previous year's special dividend[50]. - The company approved a final dividend of 8.0 HK cents per share, totaling HK$45,629,000, for the year ended 31 March 2019, slightly lower than the previous year's total of HK$45,649,000[47]. Accounting Policies and Standards - The application of new accounting standards did not have a material impact on the Group's financial positions and performance for the current and prior periods[14]. - The Group applied HKFRS 16 for the first time, superseding HKAS 17 "Leases" in the current interim period[22]. - The Group recognized right-of-use assets at the commencement date of the lease, measured at cost, less accumulated depreciation and impairment losses[23]. - Lease payments for short-term leases amounting to HK$3,033,000 are recognized as expenses on a straight-line basis over the lease term[22]. - The Group's transition to HKFRS 16 resulted in significant changes in accounting policies affecting the financial statements[36]. Market and Operational Insights - The Group operates 61 retail and wholesale points in the Greater China region as of 30 September 2019, with 46 in China, 11 in Hong Kong, 3 in Taiwan, and 1 in Macau[105]. - Same-store sales growth in China achieved 11% during the Period[106]. - The Group's strong positioning in the high-end luxury market contributed to maintaining profitability despite challenging conditions[104]. - The Group aims to strengthen its foothold and seek greater presence in the Chinese market going forward[106]. - The Group's overall inventory level decreased by 14.5% to HK$704.2 million as of September 30, 2019, from approximately HK$823.7 million as of March 31, 2019[108]. Governance and Corporate Structure - The Company has adhered to the Corporate Governance Code throughout the six months ended September 30, 2019, with some deviations explained, including the appointment of non-executive directors not for a specific term[124]. - The Board of Directors consists of both executive and independent non-executive directors, ensuring a diverse governance structure[137]. - The Group invests significant resources in employee training programs to enhance service quality for customers[121].

Financial Performance - The Group's turnover for the year ended March 31, 2019, decreased by 15.7% to HK$2,437 million, down from HK$2,892 million in 2018[5] - Gross profit slightly decreased by 0.7% to HK$603 million, with a gross profit margin increase to 24.7% from 21.0% in 2018[5] - Net profit attributable to owners of the Company decreased by 0.7% to HK$138 million, compared to HK$139 million in 2018[5] - The Group's total equity reached HK$2,214 million as of March 31, 2019, down from HK$2,317 million in the previous year[16] - The Group's net current assets amounted to HK$1,886 million, with bank and cash balances of HK$1,085 million as of March 31, 2019, compared to HK$2,009 million and HK$1,082 million respectively in the previous year[16] - The Group's overall inventory level decreased by 17.7% to HK$824 million as of March 31, 2019, from HK$1,001 million a year earlier[13] - The Group's aggregate rental cost decreased by 4.1% to HK$162 million, accounting for 34.0% of overall operating expenses[12] - The Group's bank loans were HK$63 million as of March 31, 2019, down from HK$75 million the previous year[16] Dividends - The Board recommended a final dividend of 8.0 HK cents per share and a special dividend of 13.5 HK cents per share for the year ended March 31, 2019[6] - The Company lacks a predetermined dividend policy, with future dividends to be decided by the Board based on market conditions, operating results, and financial position[120] Market and Economic Conditions - The ongoing China-US trade dispute and fluctuations in the Chinese Yuan have impacted consumer sentiment and spending[5] - Domestic consumption contributed 76.2% of China's GDP growth, despite a slower growth rate of 6.6% year-on-year in 2018[10] - The openings of new infrastructure, such as the Guangzhou-Shenzhen-Hong Kong Express Rail Link, are expected to stimulate Hong Kong's tourism and retail market[10] - The number of visitors to Hong Kong rose by 11.4% to over 65 million, with mainland tourists increasing by 14.8% to 51 million[10] Business Strategy - The Group aims to strengthen its leading position in the luxury watch market and generate greater returns to shareholders[10] - The Group aims to enhance brand presence and sales through the relocation of its flagship store to a premium location[12] - The Group has implemented inventory management policies to ensure stable cash flow and maintain a healthy financial position[13] - The primary objective of the Company is to enhance long-term total return for shareholders, focusing on sustainable recurring earning growth and maintaining a strong financial profile[49] Human Resources and Employee Development - Approximately 600 employees were employed across HK, Macau, China, and Taiwan as of March 31, 2019, with about 70% located in Mainland China[19] - The Group has invested significantly in employee training and development to enhance service quality, aligning with its philosophy of providing "Service Excellence" to customers[26] - The Group's leadership development training for management has focused on skills such as leadership, personal development, and team management, contributing to innovative ideas within the company[24] - The Group's commitment to employee performance evaluation and compensation adjustments reflects its strategy to maintain a motivated workforce[24] - Recruitment and promotion are based on performance and merit, emphasizing diligence, initiative, responsibility, and integrity[197] Corporate Governance - The Company has complied with the corporate governance code provisions, with a noted deviation from Code Provision A.4.1[45] - The Board is accountable to shareholders for long-term performance and oversees the management of the business[51] - The Company emphasizes effective risk management and internal control as part of its corporate governance practices[44] - The Audit Committee comprises all Independent Non-executive Directors and is responsible for overseeing the relationship with external auditors and reviewing financial statements[100] - The Company Secretary ensures that Board procedures are followed and that activities are conducted efficiently[76] Risk Management - The Group has adopted an Enterprise Risk Management (ERM) framework consistent with COSO, facilitating a systematic approach to risk management across its operations[129] - The Board of Directors is responsible for determining the nature and extent of risks to be taken in achieving strategic objectives and monitoring the effectiveness of risk management systems[130] - Risk management reports are submitted to the Audit Committee and Board at least annually, with the Board considering the risk management systems effective[136] - The risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatement or loss[137] Environmental, Social, and Governance (ESG) Initiatives - The ESG taskforce has been established to monitor and manage ESG-related risks, evaluate the effectiveness of the Group's ESG management systems, and report achievements to the Board regularly[169] - The Group has established long-term ESG goals and missions to ensure sustainable development and green operations[169] - The company prioritizes material ESG issues, including product responsibility and data privacy, as part of its commitment to environmental, social, and governance standards[178] - The company adheres to various laws and regulations, including the Personal Data (Privacy) Ordinance and Trade Description Ordinance, with no material non-compliance identified during the reporting period[186] Customer Experience and Service Quality - The company has been awarded the "Service Industry Leader – Silver Award" by the Hong Kong Retail Management Association, reflecting its commitment to customer service[183] - The company has a specially designed VIP lounge at flagship stores to enhance customer experience and facilitate professional exchanges[182] - The company regularly reviews customer feedback from multiple channels to improve products and services[183] - The management has emphasized the importance of exceeding customer expectations in the luxury goods sector, necessitating ongoing investment in service quality[24]