Financial Performance - Revenue for the six months ended September 30, 2024, was HK$1,800,461, a decrease of 2.6% from HK$1,848,126 in the same period of 2023[4] - Gross profit for the period was HK$560,423, down from HK$572,185, reflecting a gross margin of approximately 31.1%[4] - Profit for the period attributable to owners of the company was HK$119,384, a decrease of 13.9% compared to HK$138,704 in 2023[6] - Earnings per share for the period was 24.50 HK cents, down from 28.32 HK cents in the previous year[6] - Profit before taxation for the Group was HK$186,016, down 13.4% from HK$214,676 in the previous year[32] - Operating profit fell by 13.5% year-on-year to HK$186 million, compared to HK$215 million in 2023[132] - Profit before taxation for the six months ended 30 September 2024 was HK$119,398,000, a decrease from HK$138,041,000 in 2023, representing a decline of approximately 13.5%[54] Comprehensive Income - Total comprehensive income for the period was HK$148,307, significantly higher than HK$70,503 in the same period last year[6] - The total comprehensive income for the period included a profit of HK$119,398, contributing to the overall equity increase[12] Cash Flow and Liquidity - Cash and cash equivalents increased to HK$1,089,388 from HK$898,634, indicating improved liquidity[8] - The Group's net cash from operating activities for the six months ended September 30, 2024, was HK$235,901,000, an increase from HK$222,760,000 in the same period of 2023, representing a growth of approximately 5.1%[18] - The net cash used in investing activities was HK$5,324,000, compared to a net cash outflow of HK$19,044,000 in the previous year, indicating a significant improvement[18] - The net cash used in financing activities decreased to HK$67,493,000 from HK$77,311,000, reflecting a reduction of approximately 12.4%[18] - Cash and cash equivalents at the end of the period amounted to HK$1,089,388,000, down from HK$1,175,925,000 in the previous year, a decrease of about 7.3%[18] Assets and Liabilities - As of September 30, 2024, net current assets increased to HK$1,340,318, up from HK$1,207,736 as of March 31, 2024, representing an increase of approximately 10.95%[10] - Total assets less current liabilities decreased slightly to HK$1,941,216 from HK$1,958,525, a decline of about 0.88%[10] - Net assets rose to HK$1,832,181, compared to HK$1,795,967, reflecting an increase of approximately 2.02%[10] - Current liabilities increased to HK$623,847 from HK$428,950, reflecting a rise in trade and other payables[8] Inventory and Management - Inventories rose to HK$506,592, up from HK$442,997, suggesting potential challenges in inventory management[8] - The Group strategically increased its inventory level to HK$507 million as of September 30, 2024, representing a 14.4% increase from HK$443 million as of March 31, 2024[140] Dividends - The Company declared a special dividend of HK$83,826 for 2024, impacting the retained earnings[12] - The interim dividend proposed for 2025 is expected to be HK$29,729, reflecting ongoing shareholder returns[12] - The final dividend declared for the year ended 31 March 2024 was 5.8 HK cents per share, totaling HK$28,267,000, down from 7.5 HK cents per share and HK$36,552,000 in 2023[51] - An interim dividend of 6.1 HK cents per share, totaling HK$29,729,000, was declared for the six months ended 30 September 2024, compared to 7.0 HK cents per share and HK$34,115,000 in 2023, reflecting a decrease of approximately 13.0%[51] - Special dividend for the six months ended 30 September 2024 was 18.5 HK cents per share, totaling HK$90,161,000, down from 21.5 HK cents per share and HK$104,782,000 in 2023, indicating a decline of about 13.9%[51] Segment Performance - Revenue from the Hong Kong segment was HK$423,882, down 12.1% from HK$482,655 in 2023[32] - The PRC segment generated revenue of HK$1,322,763, an increase of 1.9% compared to HK$1,302,486 in 2023[32] - The Macau segment reported revenue of HK$53,816, a decrease of 14.6% from HK$62,985 in 2023[32] - Segment profit for Hong Kong was HK$6,847, a decrease of 49.7% from HK$13,607 in 2023[32] - The PRC segment's profit was HK$212,328, down 3.5% from HK$220,096 in 2023[32] Shareholder Information - The Group's issued and fully paid ordinary shares remain at 487,358,224 shares, maintaining a stable capital structure[93] - Mr. Yeung Him Kit, Dennis holds 4,084,000 shares, representing 0.84% of the issued share capital of the Company[116] - Madam Yeung Man Yee, Shirley owns 1,421,161 shares, which is approximately 0.29% of the issued share capital[116] - Mr. Sun Dai Hoe, Harold has a beneficial interest in 3,200,000 shares, accounting for 0.66% of the issued share capital[116] Corporate Governance - The Audit Committee consists of three independent non-executive directors, and its terms of reference have been updated in compliance with the CG Code[163] - All directors confirmed compliance with the standard code of conduct for securities trading as of September 30, 2024[165] - The Board comprises executive directors including Mr. Yeung Him Kit, Dennis (Chairman), Madam Yeung Man Yee, Shirley, and Mr. Lam Hing Lun, Alain, along with independent non-executive directors[168]

Financial Performance - Revenue for the six months ended September 30, 2024, was HKD 1,800,461 thousand, a slight decrease of 2.6% compared to HKD 1,848,126 thousand in the same period last year[1] - Gross profit for the same period was HKD 560,423 thousand, down 2.5% from HKD 572,185 thousand year-on-year[1] - Profit before tax decreased to HKD 186,016 thousand, a decline of 13.4% from HKD 214,676 thousand in the previous year[2] - Net profit for the period was HKD 119,384 thousand, down 13.9% compared to HKD 138,704 thousand in the prior year[2] - Basic and diluted earnings per share decreased to HKD 24.50, down from HKD 28.32 year-on-year[3] - Operating profit fell by 13.5% year-on-year to HKD 186,000,000, down from HKD 215,000,000 in 2023[37] - Profit attributable to owners decreased by 13.8% year-on-year to HKD 119,000,000, compared to HKD 138,000,000 in 2023[37] Revenue Breakdown - Revenue from the China segment increased to HKD 1,322,763,000, up 1.8% from HKD 1,302,486,000 in the same period last year[12] - The Hong Kong segment reported revenue of HKD 423,882,000, a decline of 12.1% from HKD 482,655,000 in the previous year[12] - Revenue from mainland China increased slightly by 1.6% year-on-year to HKD 1,323,000,000, up from HKD 1,302,000,000 in 2023[38] - Revenue from Hong Kong decreased by 12.2% year-on-year to HKD 424,000,000, compared to HKD 483,000,000 in 2023[39] Assets and Liabilities - Current assets totaled HKD 1,964,165 thousand, an increase from HKD 1,636,686 thousand at the end of the previous fiscal year[4] - Total assets as of September 30, 2024, amounted to HKD 2,565,063,000, an increase from HKD 2,387,475,000 as of March 31, 2024[14] - Total liabilities increased to HKD 623,847 thousand, compared to HKD 428,950 thousand in the previous period[5] - Net assets increased to HKD 1,832,181 thousand, up from HKD 1,795,967 thousand as of March 31, 2024[5] - Total equity as of September 30, 2024, reached HKD 1,832,000,000, up from HKD 1,796,000,000 as of March 31, 2024[42] Inventory and Receivables - Inventory increased to HKD 506,592 thousand, up 14.4% from HKD 442,997 thousand as of March 31, 2024[4] - Trade receivables amounted to HKD 83,075,000 as of September 30, 2024, compared to HKD 76,248,000 as of March 31, 2024, showing an increase of about 9%[27] - The company’s trade receivables aging analysis showed that HKD 141,113,000 was within 30 days as of September 30, 2024, compared to HKD 136,433,000 as of March 31, 2024, indicating a slight increase[29] Expenses and Other Income - Other income for the six months ended September 30, 2024, was HKD 13,331,000, a decrease from HKD 12,000,000 in the previous year[16] - The company incurred depreciation expenses of HKD 78,935,000 for property, plant, and equipment for the six months ended September 30, 2024[18] - The company incurred capital expenditures of HKD 12,715,000 for the acquisition of property, plant, and equipment for operational purposes, down from HKD 21,651,000 in the previous year, representing a reduction of about 41%[24] Dividends and Shareholder Information - The company declared an interim dividend of HKD 0.061 per share, totaling HKD 29,729,000, compared to HKD 0.070 per share and HKD 34,115,000 in the previous year[21] - The company reported a profit attributable to shareholders of HKD 119,398,000 for the six months ended September 30, 2024, compared to HKD 138,041,000 for the same period in 2023, indicating a decrease of approximately 13%[23] Corporate Governance - The company has complied with the corporate governance code, with exceptions regarding the separation of roles between the chairman and CEO, and the absence of a dividend policy[48] - The audit committee consists of three independent non-executive directors and has updated its authority in accordance with the corporate governance code[50] - The board of directors includes executive and independent non-executive members, ensuring a diverse governance structure[52] Operational Developments - The company opened three new boutique stores during the period, leading to a 6.2% increase in rental expenses to HKD 103,000,000[40] - The company signed several new lease agreements for store and office properties with terms of two to three years, resulting in the recognition of right-of-use assets of HKD 20,235,000[25] - The company confirmed an increase in right-of-use assets of HKD 20,481,000 due to lease modifications, reflecting ongoing expansion efforts[25] Audit and Reporting - The audit committee has reviewed the unaudited consolidated financial statements for the six months ending September 30, 2024[46] - The mid-term results announcement will be published on the Hong Kong Stock Exchange and the company's website, with a mid-term report sent to shareholders[51] - No purchase, redemption, or sale of the company's listed securities occurred during the six months ending September 30, 2024[47]

Financial Performance - For the fiscal year ending March 31, 2024, the Group reported revenue of HK$2,571 million from Mainland China, a slight increase from HK$2,560 million in the previous year, demonstrating resilience in a challenging economic environment[9] - The Group's revenue for the year ended 31 March 2024 was HK$3,639 million, a slight decrease of 1.8% year-on-year from HK$3,705 million[25] - Gross profit decreased by 3.2% year-on-year to HK$1,151 million, with a gross profit margin of 31.6% compared to 32.1% in the previous year[25] - Profit attributable to owners of the Company dropped by 15.3% year-on-year to HK$250 million, down from HK$295 million[25] - Sales in Hong Kong decreased by 6.3% year-on-year to HK$944 million, down from HK$1,008 million[31] - The Greater China region's retail sales performance remained stagnant, influenced by macroeconomic uncertainties and a troubled real estate industry[25] - The Group's established brand profile and stringent cost control measures helped maintain revenue levels despite market challenges[25] Dividends and Equity - A final dividend of HK$0.058 per share and a special dividend of HK$0.172 per share were proposed, down from HK$0.075 and HK$0.220 respectively in the previous year, indicating confidence in long-term prospects despite a decrease in dividends[9] - The Board recommended a final dividend of 5.8 HK cents per share and a special dividend of 17.2 HK cents per share, reflecting confidence in the Group's long-term prospects[27] - Total equity as of March 31, 2024, reached HK$1,796 million, down from HK$1,896 million as of March 31, 2023[39] - The Company does not have a formal dividend policy, with future dividends decided based on various factors including market conditions and financial position[150] Retail Expansion and Strategy - The Group plans to continue expanding its retail presence in prime shopping areas across Hong Kong, Macau, and Mainland China, targeting a younger demographic to enhance market position[11] - The Group operates 44 retail points in the Greater China region, including one online store in Mainland China and one in Hong Kong, reflecting a strategic focus on expanding its retail network[9] - The relocation of the Causeway Bay store to a more vibrant area aims to capture changing consumer preferences and attract a broader customer base[11] - The Group's strategic initiatives include opening multiple boutique stores in Mainland China with lower capital investment to strengthen relationships with brand owners[9] - The Group aims to expand its network with limited capital input while diversifying its product mix[37] Inventory Management - The Group's inventory increased by 5.0% year-over-year to HK$443 million, up from HK$422 million in 2023, reflecting proactive measures to align inventory with market demand[14] - The Group has implemented a stringent inventory policy to optimize management and reduce carrying costs, ensuring a healthy financial position[14] Corporate Governance - The Board of Directors comprises five members, including the Chairman and Group Managing Director, with a balanced composition ensuring relevant expertise in the Group's business[49] - The Company is committed to providing good corporate governance practices and procedures, ensuring accountability to shareholders[50] - The company complied with the Corporate Governance Code throughout the year ended March 31, 2024, with some deviations explained in relevant paragraphs[74] - The Board meets regularly, at least four times a year, to oversee the management of the business and ensure effective corporate governance practices[56] - The Company Secretary is responsible for ensuring that Board procedures are followed and activities are conducted efficiently[94] Risk Management - The Group's risk management framework is consistent with the COSO framework, providing a clear governance structure and reporting mechanism[153] - Risk management reports are submitted to the Audit Committee and the Board at least once a year, with internal control reports submitted semi-annually[157] - The Group has established an internal audit function to assist the Board and Audit Committee in monitoring risk management and internal control systems[158] - The Board evaluates and determines the nature and extent of risks the Company is willing to accept in pursuit of strategic objectives[152] - The Group's risk management policy is reviewed at least annually to identify and prioritize significant risks[156] Employee Development - The Group has developed training programs for senior executives to enhance management skills and foster innovative ideas within the organization[19] - The Group's training programs for employees are tailored based on the results of a "Mystery Shoppers Programme" to improve customer service[40] - Approximately 62% of the Group's 596 employees are located in Mainland China as of March 31, 2024[39] Audit and Compliance - The Audit Committee met four times during the year, with all members in attendance, to oversee financial reporting and compliance with statutory requirements[113] - The Directors acknowledge their responsibility for preparing financial statements that present a true and fair view in accordance with applicable accounting standards[104] - The Audit Committee reviews the Group's financial statements and meets with external auditors to ensure compliance with accounting principles[114] - The Audit Committee holds meetings with Deloitte to discuss the scope of their audit and fees, ensuring appropriate non-audit services are provided[168] Future Outlook - The luxury watch industry is expected to face ongoing challenges in the second half of 2024, with Swiss watch exports to Mainland China and Hong Kong dropping significantly by 22.7% and 25.6% year-on-year, respectively, in Q1 2024[62] - The decline in Swiss watch exports indicates a slowdown in inventory turnover among distributors and a reluctance towards inventory replenishment, reflecting a challenging luxury retail market in 2024[63] - 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]

[Financial Summary](index=1&type=section&id=Financial%20Summary) This section provides a concise overview of the company's key financial performance indicators for the fiscal year 2024 2024 Key Financial Data Summary | Indicator | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | | Turnover | 3,639,000 | Down 1.8% | | Profit attributable to owners of the Company | 250,000 | | | Earnings per share | 51.40 HK cents | | | Final dividend | 5.8 HK cents/share | | | Special dividend | 17.2 HK cents/share | | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the group's financial performance, including revenue, gross profit, and profit attributable to owners Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Indicator | 2024 (HKD thousands) | 2023 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue | 3,638,758 | 3,704,677 | -1.8% | | Gross profit | 1,150,730 | 1,188,710 | -3.2% | | Profit before tax | 396,474 | 440,058 | -10.0% | | Profit for the year | 251,150 | 295,524 | -15.0% | | Profit attributable to owners of the Company | 250,488 | 295,432 | -15.2% | | Basic and diluted earnings per share | 51.40 HK cents | 60.62 HK cents | -15.2% | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) This statement provides a snapshot of the group's assets, liabilities, and equity, reflecting its financial health Consolidated Statement of Financial Position Key Data | Indicator | 2024 (HKD thousands) | 2023 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Non-current assets | 750,789 | 762,567 | -1.5% | | Current assets | 1,636,686 | 1,856,691 | -11.9% | | Current liabilities | 428,950 | 466,768 | -8.2% | | Net current assets | 1,207,736 | 1,389,923 | -13.1% | | Total assets less current liabilities | 1,958,525 | 2,152,490 | -9.0% | | Non-current liabilities | 162,558 | 256,559 | -36.7% | | Net assets | 1,795,967 | 1,895,931 | -5.3% | | Total equity | 1,795,967 | 1,895,931 | -5.3% | [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) This section details accounting policies and financial metrics, providing essential supplementary information [1. General Information](index=6&type=section&id=1.%20General%20Information) Oriental Watch Holdings Limited, a Bermuda-incorporated investment holding company, primarily trades watches and is listed - The Company is an exempted company incorporated in Bermuda, an investment holding company, and engages in watch trading[25](index=25&type=chunk) - The consolidated financial statements are presented in Hong Kong dollars, which is also the Company's functional currency[50](index=50&type=chunk) [2. Application of New and Revised Hong Kong Financial Reporting Standards](index=6&type=section&id=2.%20Application%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The group adopted new and revised HKFRSs this year, including HKAS 12 amendments, with no material financial impact - The group first applied several new and revised Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants this year, including HKFRS 17, HKAS 8 (Revised), and HKAS 12 (Revised)[26](index=26&type=chunk)[51](index=51&type=chunk) - The amendments to HKAS 12 (Revised) "Deferred Tax related to Assets and Liabilities arising from a Single Transaction" narrowed the scope of recognition exemption for deferred tax liabilities and deferred tax assets[28](index=28&type=chunk)[52](index=52&type=chunk) - Despite adjustments to deferred tax recognition scope, the amendments had no material impact on the group's financial position and performance, only disclosing related deferred tax assets and liabilities of **HKD 8,316,000** as of April 1, 2022[29](index=29&type=chunk) [3. Revenue and Segment Information](index=8&type=section&id=3.%20Revenue%20and%20Segment%20Information) The group's primary business is watch sales, with revenue recognized upon transfer of control across Hong Kong, China, and Macau - The group primarily engages in the sale of watches, with revenue recognized when control of the goods is transferred (i.e., when customers purchase goods at retail stores)[32](index=32&type=chunk)[34](index=34&type=chunk)[55](index=55&type=chunk) - The group has three operating segments: Hong Kong, Mainland China, and Macau, with all segment revenue derived from external customers[33](index=33&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) Revenue and Profit by Operating Segment | Segment | 2024 Segment Revenue (HKD thousands) | 2023 Segment Revenue (HKD thousands) | 2024 Segment Profit (HKD thousands) | 2023 Segment Profit (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 943,518 | 1,008,210 | 35,644 | 80,030 | | China | 2,570,663 | 2,559,988 | 471,223 | 475,505 | | Macau | 124,577 | 136,479 | 17,327 | 24,673 | | **Total** | **3,638,758** | **3,704,677** | **524,194** | **580,208** | Assets and Liabilities by Operating Segment | Segment | 2024 Segment Assets (HKD thousands) | 2023 Segment Assets (HKD thousands) | 2024 Segment Liabilities (HKD thousands) | 2023 Segment Liabilities (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 552,601 | 661,075 | 242,313 | 354,847 | | China | 592,454 | 565,555 | 155,920 | 129,931 | | Macau | 72,698 | 86,072 | 48,339 | 64,896 | | **Total Segments** | **1,217,753** | **1,312,702** | **446,572** | **549,674** | Carrying Amount of Non-current Assets by Geographical Area | Region | 2024 Carrying Amount of Non-current Assets (HKD thousands) | 2023 Carrying Amount of Non-current Assets (HKD thousands) | | :--- | :--- | :--- | | Hong Kong | 349,450 | 455,369 | | China | 124,899 | 76,103 | | Macau | 46,927 | 63,945 | | Other | 35,155 | 8,261 | | **Total** | **556,431** | **603,678** | [4. Other Income](index=12&type=section&id=4.%20Other%20Income) Total other income significantly increased to HKD 49,223 thousand in 2024, primarily from bank interest and loans Other Income Details | Income Source | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Bank interest income | 20,793 | 12,452 | | Interest income from loans receivable at amortised cost | 9,528 | 1,608 | | Interest income from rental deposits | 1,096 | 888 | | Government grants | 9,487 | 9,644 | | Rental income | 1,179 | 100 | | Others | 7,140 | 5,846 | | **Total** | **49,223** | **30,538** | - Government grants in 2023 included **HKD 4,440,000** from the Hong Kong Government's Employment Support Scheme, with no such grants in 2024[3](index=3&type=chunk) [5. Other Gains and Losses](index=12&type=section&id=5.%20Other%20Gains%20and%20Losses) The group reported a net loss of HKD 3,854 thousand in other gains and losses for 2024, a shift from a 2023 gain Other Gains and Losses Details | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Fair value change of loans receivable at fair value through profit or loss | 3,442 | 3,384 | | Fair value change of financial assets at fair value through profit or loss | (2,038) | (1,710) | | Fair value change of investment properties | 259 | 65 | | Loss on partial disposal of interest in an associate | (7,554) | — | | Gain on lease termination | 2,696 | — | | (Loss) gain on disposal/write-off of property, plant and equipment | (396) | 1,616 | | Net exchange gain | 282 | 996 | | **Total** | **(3,854)** | **4,367** | [6. Finance Costs](index=13&type=section&id=6.%20Finance%20Costs) Total finance costs decreased to HKD 13,663 thousand in 2024, mainly due to reduced bank loan interest Finance Costs Details | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Interest on bank loans | — | 102 | | Interest on lease liabilities | 13,663 | 14,510 | | **Total** | **13,663** | **14,612** | [7. Profit Before Tax](index=13&type=section&id=7.%20Profit%20Before%20Tax) Profit before tax for 2024 was HKD 396,474 thousand, a decrease from 2023, with significant deductions Major Deductions from Profit Before Tax | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Auditor's remuneration | 3,600 | 3,500 | | Cost of inventories recognized as expense (including inventory provision) | 2,488,028 | 2,515,967 | | Depreciation of property, plant and equipment | 50,489 | 43,611 | | Depreciation of right-of-use assets | 122,014 | 136,662 | | Directors' emoluments | 111,787 | 121,548 | | Other staff costs | 169,648 | 163,180 | | Contributions to retirement benefit schemes for other staff | 4,547 | 4,255 | | **Total staff costs** | **285,982** | **288,983** | [8. Income Tax Expense](index=14&type=section&id=8.%20Income%20Tax%20Expense) Total income tax expense for 2024 was HKD 145,324 thousand, slightly higher than 2023, with varying tax rates Income Tax Expense Details | Tax Type | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Hong Kong current tax | 1,788 | 512 | | PRC Enterprise Income Tax | 119,864 | 120,626 | | Other jurisdictions | 2,556 | 2,347 | | Withholding tax on dividends from associates | 2,337 | 2,554 | | Withholding tax on dividends from subsidiaries | 15,017 | 20,779 | | **Total current tax** | **141,562** | **146,818** | | Under (over) provision in prior years | 3,686 | 2,242 | | Deferred tax expense (credit) | 76 | (4,526) | | **Total income tax expense** | **145,324** | **144,534** | - Hong Kong profits tax is calculated at 16.5% of the estimated assessable profit for the year, with certain qualifying subsidiaries paying 8.25% on the first **HKD 2,000,000**[68](index=68&type=chunk) - PRC subsidiaries are subject to a tax rate of **25%**, and Macau SAR supplementary income tax is **12%**[98](index=98&type=chunk)[170](index=170&type=chunk) [9. Dividends](index=15&type=section&id=9.%20Dividends) Total dividends declared for 2024 amounted to HKD 282,668 thousand, a decrease from 2023 Dividend Distribution Details | Dividend Type | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Interim dividend (7.0 HK cents/share) | 34,115 | 38,014 | | Interim special dividend (21.5 HK cents/share) | 104,782 | 114,529 | | 2023 final dividend (7.5 HK cents/share) | 36,552 | 48,736 | | 2023 special dividend (22.0 HK cents/share) | 107,219 | 148,644 | | **Total dividends declared for the year** | **282,668** | **349,923** | | Proposed final dividend (5.8 HK cents/share) | 28,267 | 36,552 | | Proposed special dividend (17.2 HK cents/share) | 83,826 | 107,219 | | **Total proposed dividends after year-end** | **112,093** | **143,771** | - The Board proposes to declare a final dividend and a special dividend for the year ended March 31, 2024, subject to shareholders' approval at the upcoming Annual General Meeting[100](index=100&type=chunk) [10. Earnings Per Share](index=16&type=section&id=10.%20Earnings%20Per%20Share) Basic and diluted earnings per share attributable to owners for 2024 decreased to 51.40 HK cents Earnings Per Share Calculation Data | Indicator | 2024 | 2023 | | :--- | :--- | :--- | | Profit attributable to owners of the Company (HKD thousands) | 250,488 | 295,432 | | Weighted average number of ordinary shares (thousands) | 487,358 | 487,358 | | **Basic and diluted earnings per share (HK cents)** | **51.40** | **60.62** | [11. Right-of-use Assets](index=16&type=section&id=11.%20Right-of-use%20Assets) Right-of-use assets decreased to HKD 238,132 thousand as of March 31, 2024 Right-of-use Assets Carrying Amount and Depreciation | Indicator | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Carrying amount | 238,132 | 314,213 | | Depreciation for the year | 122,014 | 136,662 | - The group leases various retail stores and offices with lease terms ranging from one to seven years, including renewal options[104](index=104&type=chunk) [12. Interests in Associates](index=17&type=section&id=12.%20Interests%20in%20Associates) Interests in associates decreased to HKD 64,873 thousand as of March 31, 2024, including goodwill Interests in Associates Details | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Investment cost in unlisted associates | 46,157 | 59,192 | | Exchange adjustments | (3,900) | 904 | | Share of post-acquisition profit, net of dividends received | 22,616 | 21,456 | | **Total** | **64,873** | **81,552** | - The investment in associates includes goodwill of **HKD 19,270,000** (2023: **HKD 25,842,000**) arising from the acquisition of associates[105](index=105&type=chunk) [13. Equity Instruments at Fair Value Through Other Comprehensive Income](index=18&type=section&id=13.%20Equity%20Instruments%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) Equity instruments at fair value through OCI significantly increased to HKD 27,835 thousand Equity Instruments at Fair Value Through Other Comprehensive Income | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Unlisted investments | 27,835 | 13,359 | - The Directors elected to designate these investments as at fair value through other comprehensive income because their short-term fluctuations are inconsistent with the group's long-term holding strategy[6](index=6&type=chunk)[184](index=184&type=chunk) [14. Inventories](index=18&type=section&id=14.%20Inventories) Total inventories slightly increased to HKD 442,997 thousand as of March 31, 2024 Inventories Details | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Watches | 438,663 | 411,148 | | Accessories and components | 4,334 | 11,054 | | **Total** | **442,997** | **422,202** | [15. Loans Receivable](index=18&type=section&id=15.%20Loans%20Receivable) Total loans receivable increased to HKD 76,248 thousand as of March 31, 2024 Loans Receivable Maturity Profile | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Repayable after one year | 54,260 | 20,038 | | Repayable within one year | 21,988 | 41,364 | | **Total** | **76,248** | **61,402** | [16. Trade and Other Receivables](index=19&type=section&id=16.%20Trade%20and%20Other%20Receivables) Trade and other receivables decreased to HKD 254,065 thousand, with trade receivables (net of allowance) at HKD 219,242 thousand Trade and Other Receivables Details | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Trade receivables (net of allowance for credit losses) | 219,242 | 262,508 | | Property rental and other deposits | 21,869 | 21,198 | | Advances to suppliers | 5,433 | 6,772 | | Others | 7,521 | 4,881 | | **Total** | **254,065** | **295,359** | Ageing Analysis of Trade Receivables | Trade Receivables Ageing | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | 0 to 30 days | 136,433 | 217,860 | | 31 to 60 days | 14,920 | 20,246 | | 61 to 90 days | 19,012 | 17,708 | | Over 90 days | 48,877 | 6,694 | | **Total** | **219,242** | **262,508** | - As of March 31, 2024, trade receivables overdue by **90 days or more** amounted to **HKD 48,877,000**, but are not considered in default based on past experience of recoverability[110](index=110&type=chunk) [17. Financial Assets at Fair Value Through Profit or Loss](index=20&type=section&id=17.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) Total financial assets at fair value through profit or loss slightly increased to HKD 30,921 thousand Financial Assets at Fair Value Through Profit or Loss Details | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Listed investments (Hong Kong) | 10,915 | 13,436 | | Listed investments (Overseas) | 1,311 | 1,228 | | Unlisted investments | 18,695 | 15,007 | | **Total** | **30,921** | **29,671** | | Current portion | 12,226 | 14,664 | | Non-current portion | 18,695 | 15,007 | Currency Composition of Financial Assets at Fair Value Through Profit or Loss | Currency | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | USD | 20,006 | 16,235 | | CHF | 24,588 | — | [18. Trade and Other Payables and Contract Liabilities](index=21&type=section&id=18.%20Trade%20and%20Other%20Payables%20and%20Contract%20Liabilities) Trade and other payables decreased to HKD 253,132 thousand, while contract liabilities for watch sales significantly reduced Trade and Other Payables Details | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Trade payables | 34,927 | 38,184 | | Accrued wages and benefits | 110,957 | 120,174 | | Accrued commissions | 53,639 | 42,330 | | Accrued renovation works | 6,237 | 5,610 | | PRC VAT and other taxes payable | 24,142 | 43,886 | | Rental payables | 11,339 | 13,130 | | Others | 11,891 | 14,399 | | **Total** | **253,132** | **277,713** | Ageing Analysis of Trade Payables | Trade Payables Ageing | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | 0 to 60 days | 32,626 | 35,557 | | 61 to 90 days | 39 | — | | Over 90 days | 2,262 | 2,627 | | **Total** | **34,927** | **38,184** | Contract Liabilities Details | Contract Liabilities | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Contract liabilities for sales of watches | 6,868 | 20,677 | [19. Lease Liabilities](index=22&type=section&id=19.%20Lease%20Liabilities) Total lease liabilities amounted to HKD 266,425 thousand as of March 31, 2024 Lease Liabilities Maturity Profile | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Lease liabilities payable: within one year | 132,560 | 121,724 | | Lease liabilities payable: after one year but within two years | 67,501 | 113,966 | | Lease liabilities payable: after two years but within five years | 66,364 | 116,431 | | **Total** | **266,425** | **352,121** | | Less: Amounts due within 12 months shown under current liabilities | (132,560) | (121,724) | | Amounts due after 12 months shown under non-current liabilities | 133,865 | 230,397 | [20. Share Capital](index=22&type=section&id=20.%20Share%20Capital) As of March 31, 2024, authorized share capital was 1,000,000,000 shares at HKD 0.10 each Share Capital Composition | Item | Number of Shares | Amount (HKD thousands) | | :--- | :--- | :--- | | Authorized share capital (as at March 31, 2024) | 1,000,000,000 | 100,000 | | Issued and fully paid share capital (as at March 31, 2024) | 487,358,224 | 48,736 | [21. Share-based Payment Transactions](index=23&type=section&id=21.%20Share-based%20Payment%20Transactions) The group operates a 2022 Share Award Scheme and a 2013 Share Option Scheme (expired) - The 2013 Share Option Scheme expired on November 2, 2023, aiming to attract and retain talent and incentivize contributions to the group's business and operations[116](index=116&type=chunk)[186](index=186&type=chunk)[144](index=144&type=chunk) - As of March 31, 2024, and March 31, 2023, there were no unexercised share options under the 2013 Share Option Scheme[87](index=87&type=chunk) - The 2022 Share Award Scheme was adopted on June 27, 2022, to recognize and incentivize eligible persons' contributions and attract new employees, with a total of **48,735,822** shares available for awards[117](index=117&type=chunk)[88](index=88&type=chunk)[196](index=196&type=chunk)[147](index=147&type=chunk) - No share-based payment expenses were recognized for the above share option scheme and share award scheme during the years ended March 31, 2024, and 2023[118](index=118&type=chunk) [22. Capital Commitments](index=24&type=section&id=22.%20Capital%20Commitments) Capital commitments for property, plant, and equipment increased to HKD 3,045 thousand Capital Commitments Details | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Capital expenditure for the acquisition of property, plant and equipment contracted but not provided for in the consolidated financial statements | 3,045 | 2,215 | [Management Discussion and Analysis](index=25&type=section&id=Management%20Discussion%20and%20Analysis) Despite a challenging market, the group maintained revenue through brand portfolio, store network, and cost control [Group Performance](index=25&type=section&id=Group%20Performance) Group turnover slightly decreased by 1.8% to HKD 3.639 billion in 2024, with gross profit margin stable Group Performance Overview | Indicator | 2024 (HKD thousands) | 2023 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Turnover | 3,639,000 | 3,705,000 | -1.8% | | Gross profit margin | 31.6% | 32.1% | -0.5% | | Gross profit | 1,151,000 | 1,189,000 | -3.2% | | Profit attributable to owners of the Company | 250,000 | 295,000 | -15.3% | [Dividends](index=25&type=section&id=Dividends) The Board recommends a final dividend of 5.8 HK cents and a special dividend of 17.2 HK cents for 2024 - The Board resolved to recommend a final dividend of **5.8 HK cents** per share (2023: **7.5 HK cents**) and a special dividend of **17.2 HK cents** per share (2023: **22.0 HK cents**) for the year ended March 31, 2024[123](index=123&type=chunk)[149](index=149&type=chunk)[187](index=187&type=chunk) - The proposed dividends highlight the Board's continued confidence in the group's long-term prospects and commitment to rewarding shareholders[123](index=123&type=chunk) [Business Review](index=26&type=section&id=Business%20Review) Mainland China revenue reached HKD 2.571 billion through boutique expansion, while Hong Kong sales declined by 6.3% - Mainland China business revenue reached **HKD 2,571,000,000**, with the group expanding its network through opening multiple boutiques and strengthening relationships with brand owners with lower capital investment[153](index=153&type=chunk)[152](index=152&type=chunk) - Hong Kong market sales decreased by **6.3%** year-on-year to **HKD 944,000,000**, with the group responding to the challenging retail environment by strengthening its network coverage and implementing a series of cost control measures[125](index=125&type=chunk) - The group comprehensively revamped and expanded its store network in prime shopping districts across Hong Kong, Macau, and Mainland China, strategically relocating its Causeway Bay store in Hong Kong to a central area frequented by younger generations[176](index=176&type=chunk) - Total lease-related expenses decreased by **5.6%** to **HKD 202,000,000**, primarily due to optimized rental costs in Hong Kong, although basic rents in Mainland China increased[154](index=154&type=chunk) - Inventories slightly increased by **5.0%** year-on-year to **HKD 443,000,000**, but showed significant improvement compared to mid-2022, reflecting the group's proactive market-demand-driven inventory management[155](index=155&type=chunk) - The Greater China consumer market growth in 2023 was weaker than expected, with macroeconomic uncertainties such as real estate sector difficulties and high youth unemployment leading to more conservative consumer behavior, particularly impacting high-end products like luxury watches[197](index=197&type=chunk) [Prospects](index=28&type=section&id=Prospects) Challenges in the luxury watch sector are expected to persist in H2 2024, with the group focusing on low-capital network expansion - Challenges in the luxury watch industry are expected to continue in the second half of 2024, with Swiss watch exports to Mainland China and Hong Kong significantly decreasing by **22.7%** and **25.6%** respectively, reflecting slower inventory turnover[127](index=127&type=chunk)[198](index=198&type=chunk) - The group will continuously review and refine its operating strategies, on one hand expanding its network with lower capital investment, and on the other hand exploring strategic collaborations with more brands to diversify its product portfolio[156](index=156&type=chunk) - The group will leverage digital platforms to reach more customers and enhance service quality, aiming to attract new customers, foster existing customer loyalty, and maintain its competitive advantage[156](index=156&type=chunk) [Financial Review](index=29&type=section&id=Financial%20Review) As of March 31, 2024, the group's total equity was HKD 1.796 billion, with net current assets of HKD 1.208 billion Key Financial Position Data | Indicator | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Total equity | 1,796,000 | 1,896,000 | | Net current assets | 1,208,000 | 1,390,000 | | Bank and cash balances | 899,000 | 1,079,000 | - The group maintains a robust financial position with ample funds and unutilized bank facilities, having no bank loans and a zero debt-to-asset ratio[129](index=129&type=chunk)[158](index=158&type=chunk) [Liquidity and Financial Resources](index=29&type=section&id=Liquidity%20and%20Financial%20Resources) The group possesses a robust financial position with ample liquidity, net current assets of HKD 1.208 billion - The group maintains a robust financial position with ample funds and unutilized bank facilities[158](index=158&type=chunk)[11](index=11&type=chunk) Liquidity and Financial Resources Overview | Indicator | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Net current assets | 1,208,000 | 1,390,000 | | Bank and cash balances | 899,000 | 1,079,000 | - As of March 31, 2024, and March 31, 2023, the group had no bank loans, resulting in a zero debt-to-asset ratio[129](index=129&type=chunk) [Foreign Exchange Risk](index=29&type=section&id=Foreign%20Exchange%20Risk) The group's trading transactions are primarily denominated in HKD and RMB, with no significant foreign exchange fluctuation risk - The group's trading transactions are primarily denominated in Hong Kong dollars and Renminbi[130](index=130&type=chunk)[189](index=189&type=chunk) - The group does not face any significant foreign exchange fluctuation risk[130](index=130&type=chunk) [Human Resources](index=29&type=section&id=Human%20Resources) As of March 31, 2024, the group employed approximately 596 staff across Greater China, with 62% in Mainland China - As of March 31, 2024, the group employed approximately **596** staff across Hong Kong, Macau, and Mainland China, with about **62%** being Mainland China employees[131](index=131&type=chunk)[159](index=159&type=chunk) - The group invests significant resources in providing employee training programs to enhance customer service, utilizing "mystery shopper program" results to design targeted training[160](index=160&type=chunk) - The group has developed a series of training programs for senior executives, covering leadership, personal development and efficiency, and work and team management, to improve management capabilities and foster innovative ideas[199](index=199&type=chunk)[177](index=177&type=chunk) [Corporate Governance](index=30&type=section&id=Corporate%20Governance) The group is committed to good corporate governance, adhering to the CG Code, with past deviations now rectified [Corporate Governance Code](index=30&type=section&id=Corporate%20Governance%20Code) The group generally complies with the Corporate Governance Code, with past deviations concerning chairman/CEO roles, dividend policy, and INED composition now rectified - The group complies with the code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules, but there was a deviation regarding the non-segregation of the roles of Chairman and Chief Executive Officer[190](index=190&type=chunk)[135](index=135&type=chunk) - The Company does not have a dividend policy, and future dividend declarations will consider market conditions, operating results, business plans, financial position, and working capital requirements[164](index=164&type=chunk) - The number of Independent Non-executive Directors and the composition of committees previously did not comply with Listing Rules requirements, but compliance was achieved after the appointment of Mr. Sin Nga Yan as an Independent Non-executive Director on June 12, 2024[136](index=136&type=chunk) [Standard of Dealings in Securities by Directors](index=31&type=section&id=Standard%20of%20Dealings%20in%20Securities%20by%20Directors) The company adopted the Standard Code for Securities Transactions by Directors as per Appendix C3 of the Listing Rules - The Company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules as its code of conduct for directors' dealings in securities[165](index=165&type=chunk)[178](index=178&type=chunk) - All Directors have complied with the required standards set out in the Standard Code throughout the year ended March 31, 2024[165](index=165&type=chunk) [Audit Committee](index=31&type=section&id=Audit%20Committee) The Audit Committee reviewed the group's accounting principles, internal controls, financial reporting, and the audited consolidated financial statements for 2024 - The Audit Committee has reviewed the accounting principles and practices adopted by the group and discussed matters relating to internal controls and financial reporting[137](index=137&type=chunk)[200](index=200&type=chunk) - The Audit Committee has reviewed the audited consolidated financial statements for the year ended March 31, 2024[137](index=137&type=chunk)[162](index=162&type=chunk) [Other Information](index=30&type=section&id=Other%20Information) This section covers the review of financial statements, trading activities of listed securities, share transfer registration closure, AGM notice, annual report publication, and the Board of Directors list [Review of Consolidated Financial Statements](index=30&type=section&id=Review%20of%20Consolidated%20Financial%20Statements) Deloitte Touche Tohmatsu reviewed the group's consolidated financial statements for 2024 - Deloitte Touche Tohmatsu has reconciled the figures presented in the group's consolidated statement of comprehensive income, consolidated statement of financial position, and their related notes for the year ended March 31, 2024, with the amounts contained in the group's audited consolidated financial statements for the current year[166](index=166&type=chunk)[179](index=179&type=chunk) - The work performed by Deloitte Touche Tohmatsu does not constitute an assurance engagement, and therefore no assurance opinion has been issued on the preliminary announcement[166](index=166&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=30&type=section&id=Purchase%2C%20Redemption%20or%20Sale%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, redeemed, or sold any listed securities - During the year, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[134](index=134&type=chunk)[12](index=12&type=chunk) [Closure of Register of Members](index=25&type=section&id=Closure%20of%20Register%20of%20Members) The company will suspend share transfer registration from October 8 to October 14, 2024 - The Company's register of members will be closed from October 8, 2024, to October 14, 2024 (both dates inclusive), during which no share transfers will be effected[175](index=175&type=chunk)[120](index=120&type=chunk) - To be eligible for the proposed final and special dividends, all transfer documents, accompanied by the relevant share certificates, must be lodged with the Company's share registrar by 4:30 p.m. on October 7, 2024[175](index=175&type=chunk) [Annual General Meeting](index=32&type=section&id=Annual%20General%20Meeting) The company plans to hold its Annual General Meeting on August 28, 2024 - The Company intends to hold its Annual General Meeting on August 28, 2024[167](index=167&type=chunk)[180](index=180&type=chunk) - The notice of the Annual General Meeting will be published and dispatched to shareholders in due course[167](index=167&type=chunk) [Publication of Final Results and Despatch of Annual Report](index=32&type=section&id=Publication%20of%20Final%20Results%20and%20Despatch%20of%20Annual%20Report) The final results announcement has been published on the HKEX and company websites - The final results announcement has been published on the website of The Stock Exchange of Hong Kong Limited (www.hkex.com.hk) and the Company's website (www.orientalwatch.com)[181](index=181&type=chunk)[139](index=139&type=chunk) - The 2024 Annual Report, containing all information required by the Listing Rules, will be dispatched to the Company's shareholders and published on the aforementioned websites in due course, as per the Listing Rules[181](index=181&type=chunk) [Board of Directors](index=32&type=section&id=Board%20of%20Directors) As of the announcement date, the Board comprises Executive Directors Mr. Yeung Yan Kit (Chairman), Ms. Yeung Man Yee, and Mr. Lam Hing Lun, along with Independent Non-executive Directors Mr. Choi Man Chau, Mr. Suen Tak Ho, and Mr. Sin Nga Yan - As of the date of this announcement, the Board members include Executive Directors Mr. Yeung Yan Kit (Chairman), Ms. Yeung Man Yee, and Mr. Lam Hing Lun[168](index=168&type=chunk)[191](index=191&type=chunk) - Independent Non-executive Directors include Mr. Choi Man Chau, Mr. Suen Tak Ho, and Mr. Sin Nga Yan[168](index=168&type=chunk)

Financial Performance - The Group achieved a revenue of HK$1,848 million for the six months ended 30 September 2023, representing a year-on-year increase of 10.4% from HK$1,674 million in 2022[61]. - Gross profit increased by 6.5% to HK$572 million, with a gross profit margin slightly decreasing by 1.1 percentage points to 31.0%[61]. - Operating profit rose by 0.9% to HK$215 million, indicating the Company's business resilience despite macro challenges[61]. - Net profit decreased by 7.9% year-on-year to HK$139 million, down from HK$151 million in 2022, primarily due to an increase in the effective tax rate[61]. - Revenue from Mainland China operations increased by 18.3% year-on-year to HK$1,302 million, up from HK$1,101 million in 2022[69]. - Hong Kong operations recorded revenue of HK$483 million, representing a decrease of 4.2% year-on-year from HK$504 million in 2022[70]. - For the six months ended September 30, 2023, the profit for the period was HK$1,820,874, a decrease from HK$2,035,007 in the same period last year, representing a decline of approximately 10.5%[104]. - Total comprehensive income for the period was HK$70,503,000, up from HK$42,523,000 in the same period last year[81]. Shareholder Information - Major shareholders include Yeung Ming Biu with 31.96% and Datsun Holdings Limited with 26.22% of the issued share capital[54]. - The directors' personal interests in shares included 4,084,000 shares held by Mr. Yeung Him Kit, representing 0.84% of the issued share capital[41]. - Madam Yeung Man Yee held 1,200,000 shares personally and 221,161 shares through family interest, totaling 1,421,161 shares or 0.29% of the issued share capital[41]. - Mr. Sun Dai Hoe held 3,200,000 shares, representing 0.66% of the issued share capital[41]. - The 2013 Share Option Scheme had a total of 57,061,022 shares available for issue, representing about 11.7% of the issued share capital as of November 2, 2023[49]. Employee Compensation and Schemes - The total remuneration for key management personnel during the period was HK$54,526,000, an increase from HK$44,790,000 in the same period last year, reflecting a growth of approximately 21.7%[25][30]. - The 2022 Share Award Scheme aims to motivate and retain employees, valid for 10 years from its adoption date[13]. - No options were granted or exercised under the 2013 Share Option Scheme during the reporting period[13]. - The total number of awards available for grant under the 2022 Share Award Scheme was 48,735,822 shares as of both 1 April 2023 and 30 September 2023[51]. - No share awards were granted under the 2022 Share Award Scheme since its adoption date[51]. Financial Position - As of September 30, 2023, the Group's total equity was HK$1,823 million, down from HK$1,896 million as of March 31, 2023[94]. - The Group's net current assets were HK$1,285 million, including bank and cash balances of HK$1,176 million, compared to HK$1,390 million and HK$1,079 million respectively as of March 31, 2023[94]. - The Group had no bank loans as of September 30, 2023, resulting in a gearing ratio of nil[94]. - The Group's net assets were HK$1,822.7 million as of September 30, 2023, compared to HK$1,895.9 million as of March 31, 2023[101]. Cash Flow and Investments - For the six months ended September 30, 2023, net cash from operating activities was HK$222,760,000, a decrease of 16.8% compared to HK$267,927,000 for the same period in 2022[124]. - Net cash used in investing activities amounted to HK$19,044,000, significantly higher than HK$2,483,000 in the previous year, indicating increased investment activity[111]. - Cash and cash equivalents at the end of the period were HK$1,175,925,000, down from HK$1,360,144,000 year-over-year, showing a decline in liquidity[111]. Inventory and Expenses - Overall inventory level decreased by 4.3% to HK$404 million as of September 30, 2023, down from HK$422 million as of March 31, 2023[74]. - Lease-related expenses increased by 21.3% year-on-year to HK$97 million, accounting for 24.8% of overall operating expenses[73]. - Rental expenses increased by 21.3% year-on-year to HK$97,000,000, accounting for 24.8% of total operating expenses[89]. Market Conditions and Strategies - The Company faced macro challenges such as interest rate hikes and supply chain disruptions, impacting customer sentiment and purchasing decisions[60]. - The Hong Kong government launched initiatives like consumer vouchers to attract tourists and drive consumption[59]. - The Group's strategies and rising brand profile contributed to satisfactory results despite a competitive environment[61]. - The Group plans to strengthen brand awareness through brand rejuvenation efforts and explore collaboration opportunities with branded partners[93]. Compliance and Governance - The Audit Committee has reviewed the unaudited consolidated financial statements for the six months ended September 30, 2023, ensuring compliance and accuracy[119]. - The Company has adhered to the Corporate Governance Code throughout the six months ended September 30, 2023, with some deviations noted[135]. - The Company does not have a formal dividend policy, with future dividends to be decided based on various factors including market conditions and operating results[122].

| --- | --- | --- | |------------------------------------|----------|-----------| | | | | | 其他全面（開支）收益 | | | | 將不會重新分類至損益之項目： | | | | 按公平值計入其他全面收益 | | | | 之股本工具之公平值變動 | (740) | (667) | | 其後可能重新分類至損益之項目： | | | | 換算海外業務所產生之匯兌差額 | (67,461) | (108,032) | | 按公平值計入其他全面收益之債務工具 | | | | 之公平值變動 | — | (57) | | 贖回按公平值計入其他全面收益 | | | | 之債務工具時撥回 | — | 18 | | --- | --- | --- | --- | |--------------|-------|--------------|--------------| | | | （未經審核） | （經審核） | | | | 二零二三年 | 二零二三年 | | | 附註 | 九月三十日 | 三月三十一日 | | | | 千港元 | 千港元 ...

Financial Performance - The Group's financial results for the year ended March 31, 2023, are detailed in the consolidated statement of profit or loss and other comprehensive income[71]. - Monthly management reports on financial results and key operating statistics are reviewed by Executive Directors to discuss business performance against budgets and forecasts[141]. - The Group's dividend policy is aligned with its financial performance and market conditions[36]. Audit and Compliance - The audit fees charged by Deloitte for audit services amounted to HK$3,600,000, while taxation and non-audit services totaled HK$634,000, leading to a total of HK$4,234,000[20]. - The Audit Committee reviews the Group's interim and annual financial results to ensure compliance with accounting principles[23]. - The Audit Committee has confirmed compliance with applicable code provisions of the CG Code during the year, with some deviations explained in relevant paragraphs[146]. - Reports from external auditors on internal controls are reviewed by the Group Finance Director and relevant management teams[144]. - Significant internal control deficiencies are reported to the Audit Committee and the Board in a timely manner to ensure prompt remediation actions[101]. Risk Management - The Board has overall responsibility for the Group's systems of risk management, internal control, and legal and regulatory compliance[37]. - The Group's risk management policy is designed to identify, evaluate, and manage significant risks, with annual assessments conducted by the Risk Management Taskforce[74]. - The Group Managing Director and Group Finance Director are responsible for developing and implementing risk mitigation strategies, including insurance coverage[75]. - The internal audit function assists the Board and Audit Committee in monitoring risk management and internal control systems on an ongoing basis[101]. - The Board conducted a review of the effectiveness of the Group's risk management and internal control systems for the year ended March 31, 2023, and concluded that these systems are effective and adequate[149]. Corporate Governance - The Board has overall responsibility for monitoring the operations of the Group's business, with Executive Directors appointed to oversee material operating subsidiaries[107]. - The Board is committed to maintaining effective corporate governance and continuously improving governance practices to meet evolving regulatory requirements[145]. - The Company has implemented a communication policy to provide shareholders with clear and comprehensive information regarding the Group's operations[129]. - The shareholders' communication policy has been reviewed and deemed effective during the year ended March 31, 2023[154]. - The Board emphasizes the importance of maintaining effective communication with shareholders and investors through various channels[151]. Environmental, Social, and Governance (ESG) Initiatives - The Company has established long-term carbon emissions reduction targets to mitigate climate change impacts and reduce its carbon footprint[65]. - The Company has set long-term management goals for reducing greenhouse gas emissions, energy consumption, waste, and improving water efficiency[168]. - The Company has established long-term ESG goals and missions, with a commitment to monitor and manage ESG-related risks[169]. - The ESG taskforce is responsible for evaluating the effectiveness of the Company's ESG management systems and reporting achievements to the Board regularly[169]. - The Company continues to monitor various environmental data and aims for continuous progress in ESG performance[188]. Diversity and Inclusion - The Board has adopted a diversity policy to enhance the diversity of board members, considering factors such as gender, age, and professional experience[56]. - As of March 31, 2023, the total workforce comprised of 63% female and 37% male, with senior management consisting of 48% female and 52% male, indicating good gender diversity[150]. Employee Welfare - Employee compensation and benefits are a key focus area, emphasizing the importance of recruitment, promotion, and dismissal practices[196]. - The Company is committed to improving workplace health and safety as part of its social responsibility initiatives[196]. - The Company aims to enhance employee training and development as part of its labor practices[196]. Stakeholder Engagement - The Company conducted annual stakeholder engagement to identify material ESG issues, which were confirmed by management and the Board[137]. - Stakeholder engagement methods include meetings, email communications, and performance appraisals, ensuring active communication with suppliers, customers, employees, investors, and government authorities[170]. - The Company engages stakeholders through various methods, including public consultation and press releases, to inform decision-making[193].

Financial Performance - Revenue increased by 1.8% to HKD 3,705,000,000[2] - Profit attributable to owners of the company was HKD 295,000,000, down from HKD 362,574,000 in the previous year[7] - Earnings per share decreased to HKD 0.6062 from HKD 0.7440[7] - Total comprehensive income for the year was HKD 209,687,000, compared to HKD 403,339,000 in the previous year[3] - The company reported a net profit of 295,432 thousand HKD for 2023, a decrease of 18.5% compared to 362,574 thousand HKD in 2022[27] - The total tax expenses for the year were 144,534 thousand HKD, slightly down from 150,461 thousand HKD in the previous year[23] - The company’s total revenue from other income and losses was 30,538 thousand HKD in 2023, down from 42,750 thousand HKD in 2022[32] - Gross profit slightly increased by 0.8% to HKD 1,189,000,000, maintaining a stable gross margin of 32.1% compared to 32.4% in the previous year[95] - Profit attributable to shareholders decreased by 18.7% to HKD 295,000,000 from HKD 363,000,000 in the previous year[95] - The group reported a pre-tax profit of HKD 440,058,000 in 2023, down from HKD 513,437,000 in 2022, indicating a decrease of about 14.3%[193] Dividends - Final dividend declared at HKD 0.075 per share, with a special dividend of HKD 0.220 per share[2] - The company declared an interim dividend of 7.5 HKD per share for 2023, down from 10.0 HKD per share in 2022, resulting in a total dividend payout of 36,552 thousand HKD[26] - The company plans to distribute a final dividend of HKD 0.075 per share and a special dividend of HKD 0.220 per share, down from HKD 0.100 and HKD 0.305 respectively in the previous year[91] - The company proposed a final dividend of HKD 0.075 per share and a special dividend of HKD 0.22 per share, down from HKD 0.10 and HKD 0.305 respectively in the previous year[123] Assets and Liabilities - Non-current liabilities decreased to HKD 256,559,000 from HKD 357,039,000[4] - Net asset value decreased to HKD 1,895,931,000 from HKD 2,036,167,000[4] - Total assets for the group in 2023 were HKD 2,619,258,000, a decrease from HKD 2,879,275,000 in 2022, representing a decline of approximately 9.0%[195] - The group’s total liabilities decreased to HKD 723,327,000 in 2023 from HKD 843,108,000 in 2022, a reduction of approximately 14.2%[195] - The total lease liabilities due within one year increased to HKD 121,724,000 in 2023 from HKD 114,744,000 in 2022, a rise of 6.9%[79] Inventory and Receivables - Inventory decreased to HKD 422,202,000 from HKD 483,625,000[14] - Inventory for watches decreased from HKD 465,647,000 in the previous year to HKD 411,148,000 in the current year, a decline of approximately 11.6%[48] - Trade receivables increased to HKD 262,508,000 from HKD 179,615,000, representing a growth of approximately 46%[51] - The group's total receivables, after deducting credit loss provisions, stood at HKD 262,508,000 in 2023, compared to HKD 179,615,000 in 2022, indicating a growth of 46%[72] - The provision for credit losses increased to HKD 4,653,000 in 2023 from HKD 2,821,000 in 2022, representing a rise of 65%[72] Employee Costs and Incentives - The company’s employee costs increased to 288,983 thousand HKD in 2023 from 277,256 thousand HKD in 2022[36] - The company has adopted a share option scheme effective for ten years from November 3, 2003, with a total of 32,300,000 options granted on April 6, 2011[81] - The company has adopted an employee share incentive plan effective from June 27, 2022, with a maximum share award not exceeding 10% of the issued share capital[117] - The company aims to attract and retain qualified personnel through the share incentive plan, which is valid for 10 years[117] Market and Operational Insights - The company aims to expand its network in Hong Kong and mainland China by opening boutique stores in collaboration with brands, leveraging the economic recovery[100] - The company will continue to enhance its marketing strategies, cost control measures, and inventory management to drive better financial performance[100] - The company’s management remains cautious in its operational approach while seeking opportunities for growth amid market uncertainties[100] - The retail market in Hong Kong saw a 0.9% year-on-year decline in total sales in 2022, with a 3.4% decrease in volume, reflecting weak consumer sentiment[165] - The group reported a decline in overall market sentiment, with the GDP in Hong Kong showing a real year-on-year decrease of 3.5% in 2022[165] Government Support and Subsidies - The group recognized government subsidies related to COVID-19, including HKD 4,440,000 from the Hong Kong government's "Employment Support Scheme" in 2023, while no such subsidies were recorded in 2022[199] Other Financial Metrics - The company’s interest income from bank loans decreased to 102 thousand HKD in 2023 from 627 thousand HKD in 2022[38] - The total lease cash outflow for the year is HKD 216,579,000, compared to HKD 171,417,000 in the previous year, reflecting an increase[45] - The company had no bank loans as of March 31, 2023, compared to HKD 29,000,000 in bank loans a year earlier, resulting in a debt-to-equity ratio of zero[152] - The company operates 43 retail points in the Greater China region, including one online store in mainland China and one in Hong Kong[151]

Financial Performance - Revenue for the six months ended September 30, 2022, was HK$1,673,846, a decrease of 10% compared to HK$1,859,457 for the same period in 2021[2]. - Gross profit for the same period was HK$536,759, down from HK$577,477, reflecting a gross margin of approximately 32%[2]. - Profit for the period was HK$151,261, a decrease of 9.5% from HK$167,117 in the previous year[2]. - Total comprehensive income for the period was HK$42,523, significantly lower than HK$186,668 in the same period last year[3]. - Basic and diluted earnings per share decreased to 31.03 HK cents from 34.19 HK cents year-on-year[3]. - The Group's profit before taxation for the six months ended September 30, 2022, was HK$212,587,000, compared to HK$247,763,000 in 2021, reflecting a decline of approximately 14%[29]. - Profit before taxation for the six months ended 30 September 2022 was HK$151,241,000, compared to HK$166,615,000 for the same period in 2021, representing a decrease of approximately 9.2%[37]. - Profit attributable to owners of the Company decreased by 9.6% to HK$151 million, compared to HK$167 million in the previous year[109]. Assets and Liabilities - Non-current assets as of September 30, 2022, totaled HK$810,127, down from HK$843,872 as of March 31, 2022[4]. - Current assets increased to HK$2,101,796 from HK$2,035,403, driven by an increase in bank balances and cash to HK$1,360,144[4]. - Current liabilities rose to HK$717,676, up from HK$486,069, primarily due to an increase in dividend payable to HK$197,380[4]. - Total assets less current liabilities decreased to HK$2,194,247 from HK$2,393,206, reflecting a decrease of about 8.3%[6]. - Net assets as of September 30, 2022, were HK$1,881,196, down from HK$2,036,167, indicating a reduction of approximately 7.7%[6]. - The Group's total liabilities as of September 30, 2022, were HK$1,030,727,000, an increase from HK$843,108,000 as of March 31, 2022[32]. - The Group's total liabilities increased to HK$317,948,000 as of 30 September 2022 from HK$257,611,000 as of 31 March 2022[58]. Cash Flow - The Group's net cash from operating activities for the six months ended 30 September 2022 was HK$267,927,000, a decrease from HK$342,720,000 in the same period of 2021, representing a decline of approximately 21.8%[13]. - Net cash used in investing activities was HK$2,483,000 for the six months ended 30 September 2022, significantly improved from HK$47,202,000 in the same period of 2021[14]. - The Group's net cash used in financing activities totaled HK$111,004,000 for the six months ended 30 September 2022, compared to HK$32,973,000 in the same period of 2021, indicating an increase of approximately 236.5%[14]. - Cash and cash equivalents at the end of the period were HK$1,360,144,000, slightly up from HK$1,334,548,000 at the end of the same period in 2021[14]. Dividends - The company declared a special dividend of HK$148,644,000 for 2023, alongside a proposed interim dividend of HK$38,014,000[8]. - The interim dividend for the six months ended 30 September 2022 was set at 7.8 HK cents per share, totaling HK$38,014,000, compared to 8.6 HK cents per share, totaling HK$41,913,000 in 2021, indicating a decrease of approximately 9.8%[40]. - The company declared a final dividend of 10.0 HK cents per share, totaling HK$48,736,000, and a special dividend of 30.5 HK cents per share, totaling HK$148,644,000 for the year ended 31 March 2022[40]. Inventory and Receivables - The company reported a decrease in inventories to HK$467,621 from HK$483,625, indicating improved inventory management[4]. - The Group's inventories as of 30 September 2022 totaled HK$467,621,000, a decrease of 3.1% from HK$483,625,000 as of 31 March 2022[46]. - As of 30 September 2022, trade receivables amounted to HK$192,475,000, an increase from HK$182,436,000 as of 31 March 2022[49]. - The Group's total receivables, including trade and other receivables, amounted to HK$222,068,000 as of 30 September 2022, up from HK$205,097,000 as of 31 March 2022[49]. Market and Operational Insights - The Group continues to explore market expansion opportunities and new product development strategies to enhance future growth[1]. - The Group faced challenges due to COVID-19 pandemic and supply chain disruptions, leading to temporary store closures in Mainland China[109]. - The Group's performance was significantly impacted by the lockdown policies in Mainland China, affecting revenue generation[109]. - As of September 30, 2022, the Group operated a total of 44 stores, including 29 in Mainland China, 12 in Hong Kong, 1 in Macau, and 2 in Taiwan[110]. Share Capital and Options - The total number of issued and fully paid shares remained at 487,358,224 as of 30 September 2022, with an authorized share capital of 1,000,000,000 shares[64]. - The Company has share option schemes for eligible participants, with 32,300,000 options granted on 6 April 2011 and 23,000,000 options granted on 29 August 2011[66]. - The total number of share options outstanding as of 30 September 2021 was 28,560,000, with no options remaining unexercised[75]. - No options were granted, exercised, or lapsed under the 2013 Share Option Scheme during the six months ended September 30, 2022, and September 30, 2021[77]. Governance and Compliance - The Audit Committee has reviewed the unaudited consolidated financial statements for the six months ended September 30, 2022[132]. - The Company does not have a dividend policy, and future dividends will be decided based on various factors including market conditions and operating results[135]. - The roles of the chairman and chief executive are held by the same individual, Mr. Yeung Him Kit, Dennis, since February 10, 2021[134]. - The Board consists of three executive directors and three independent non-executive directors as of the report date[145].

Financial Performance - The Group achieved a revenue of HK$3,640 million for the year ended March 31, 2022, representing a year-on-year growth of 3.9% from HK$3,504 million in 2021[3] - Gross profit increased by 22.7% to HK$1,180 million, with a gross profit margin rising to 32.4%, up 4.9 percentage points from 27.5% in 2021[3] - Profit attributable to owners surged by 55.8% to HK$363 million, compared to HK$233 million in the previous year[3] - Revenue from the Group's Mainland China operations increased by 2.4% to HK$2,415 million, up from HK$2,359 million in 2021[5] - The Group's Hong Kong operations generated revenue of HK$1,063 million in 2021, an increase of 8.5% from HK$980 million in 2020[7] Retail Operations - The Group operated 44 retail points in Greater China as of March 31, 2022, including 30 in Mainland China and 11 in Hong Kong[5] - Total retail sales in Hong Kong rose by 8.1% year-on-year in value and 6.5% in volume, with jewelry and watch sales growing by 27.3%[7] - The Group launched e-commerce platforms for the Mainland China and Hong Kong markets to enhance brand awareness and capture rising opportunities in e-commerce[3] Dividends and Equity - The Board recommended a final dividend of 10.0 HK cents per share and a special dividend of 30.5 HK cents per share for the year ended March 31, 2022[3] - The Group's total equity reached HK$2,036 million as of March 31, 2022, up from HK$1,991 million a year earlier[12] Inventory and Expenses - The Group's inventory level decreased by 22.3% to HK$484 million as of March 31, 2022, down from HK$623 million[9] - Lease-related expenses increased to HK$174 million, with lease expenses as a percentage of overall expenses stable at 22.9%[8] Human Resources - The Group employed approximately 587 employees as of March 31, 2022, with about 63% located in Mainland China[13] - The group invests significant resources in employee training programs to enhance service quality, utilizing results from a "mystery shopper program" to tailor training for individual stores or employees[18] Corporate Governance - The Company aims to enhance long-term total return for shareholders by achieving sustainable recurring earning growth and maintaining a strong financial profile[36] - The Company has complied with the corporate governance code provisions throughout the year ended March 31, 2022, with some deviations explained in relevant paragraphs[32] - The Board is responsible for directing the strategic objectives of the Company and overseeing business management[37] - The Company emphasizes effective risk management and internal control as part of its corporate governance principles[36] Risk Management - The Group adopts an Enterprise Risk Management (ERM) framework consistent with the COSO framework to manage risks across its operations[98] - The Risk Management Taskforce identifies and prioritizes significant risks at least annually, establishing mitigation plans for those deemed significant[100] - The Group has an internal audit function to monitor risk management and internal control systems, reporting significant deficiencies to the Audit Committee and the Board[101] Environmental, Social, and Governance (ESG) - The Company engaged in annual stakeholder engagement to identify material ESG issues during the Reporting Period, confirmed by management and the Board[137] - The ESG taskforce is responsible for establishing long-term ESG goals, monitoring ESG-related risks, and reporting achieved ESG objectives to the Board regularly[144] - The Company has established a strict code of conduct to prevent corruption and ensure compliance with relevant laws[164] Compliance and Reporting - The Company acknowledges its responsibility for the preparation of financial statements to ensure they present a true and fair view in accordance with Hong Kong Companies Ordinance and applicable accounting standards[63] - The Audit Committee met four times during the year, with all members attending every meeting, ensuring oversight of the financial reporting process[71] - The Company ensures compliance with Listing Rules by publishing annual and interim results in a timely manner[61] Product Quality and Safety - The company has a zero-tolerance policy for selling counterfeit products and has joined the "Hong Kong Q-Mark Scheme" to attest to the quality of its products and services[169] - The company has implemented systematic internal recall procedures to handle potential product recalls, with no recalls reported during the reporting period due to safety and health reasons[172] - The Company aims to improve product safety and quality assurance as part of its product responsibility strategy[157]