Financial Performance - Total revenue increased by 11.5% to HKD 2,597 million for the six months ended June 30, 2024, compared to HKD 2,330 million in 2023[3] - Gross profit rose by 7.6% to HKD 780 million, up from HKD 725 million in the previous year[4] - Adjusted EBITDA increased by 2.9% to HKD 282 million, compared to HKD 274 million in 2023[3] - Net profit remained stable at HKD 185 million, slightly down from HKD 186 million in 2023, resulting in basic earnings per share of HKD 2.72[4] - Revenue for the six months ended June 30, 2024, was HKD 2,597 million, an increase of 11.5% from HKD 2,330 million in the same period of 2023[16] - The profit for the period was HKD 185,919,000, contributing to a total comprehensive income of HKD 184,159,000 after accounting for dividends paid[19] - The pre-tax profit for the six months ended June 30, 2024, was HKD 224,739,000, compared to HKD 223,314,000 for the same period in 2023, indicating a marginal growth[31] - The company reported a segment profit of HKD 341,971,000 for the six months ended June 30, 2024, compared to HKD 348,146,000 for the same period in 2023, showing a decrease of approximately 1.5%[31] Revenue Segmentation - Revenue from the jewelry segment surged by 77.4% to HKD 965 million, accounting for 37.2% of total revenue, compared to 23.3% in 2023[4] - Revenue from external sales in Hong Kong was HKD 1,456,042,000, while sales in China amounted to HKD 665,038,000[27] Dividends and Equity - The board declared an interim dividend of HKD 0.65 per share, down from HKD 0.76 per share in 2023[4] - The board declared an interim dividend of HKD 0.65 per share for 2024, down from HKD 0.76 per share in 2023, amounting to HKD 44,066,000 compared to HKD 51,524,000 in the previous year[37] - The total equity of the group increased to HKD 5,187 million as of June 30, 2024, from HKD 5,047 million as of December 31, 2023[18] - The company’s total equity as of June 30, 2024, was HKD 5,186,911,000, an increase from HKD 4,987,185,000 at the beginning of the year[19] Cash Flow and Financial Position - As of June 30, 2024, the group's bank balance and cash on hand increased to HKD 733 million, up from HKD 620 million as of December 31, 2023[13] - The group maintained a net cash position with a net debt ratio of zero as of June 30, 2024[13] - The company’s cash and cash equivalents at the end of the period increased to HKD 688,720,000, compared to HKD 455,338,000 at the end of the previous year[20] - The net cash generated from operating activities for the six months ended June 30, 2024, was HKD 321,790,000, a decrease from HKD 368,996,000 in the same period last year[20] - The company reported a decrease in cash flow from investing activities, with a net cash used of HKD 92,894,000 compared to HKD 217,772,000 in the prior year[20] Costs and Expenses - Total employee costs for the period amounted to HKD 185 million, an increase from HKD 161 million in 2023[15] - Employee costs, including director remuneration, totaled HKD 184,969,000 for the six months ended June 30, 2024, compared to HKD 160,690,000 in 2023, reflecting an increase of about 15.1%[33] - The cost of sales for the six months ended June 30, 2024, was HKD 1,812,224,000, an increase from HKD 1,599,267,000 in 2023, representing a rise of approximately 13.3%[32] - The company incurred financing costs of HKD 3,842,000 for the six months ended June 30, 2024, compared to HKD 12,258,000 in the previous period, indicating a significant reduction[31] - The company incurred interest expenses of HKD 2,482,000 for the six months ended June 30, 2024, significantly higher than HKD 993,000 in the previous period, indicating increased borrowing costs[45] Assets and Liabilities - The group's current assets and current liabilities were approximately HKD 3,981 million and HKD 526 million, respectively, resulting in a current ratio of 7.6, compared to 7.3 as of December 31, 2023[14] - Total liabilities as of June 30, 2024, were HKD 175,040,000, a decrease of 35% from HKD 269,059,000 as of December 31, 2023[42] - The company reported a decrease in accrued bonuses from HKD 23,601,000 as of December 31, 2023, to HKD 12,750,000 as of June 30, 2024, reflecting a reduction of 46%[42] - The aging analysis of trade receivables shows that 30 days overdue receivables were HKD 41,962,000, down from HKD 73,036,000 in the previous period, indicating a significant reduction in short-term receivables[41] Strategic Initiatives - The company plans to enhance its e-commerce business by leveraging online shopping platforms to capture the potential of internet and mobile users[10] - New jewelry collections have been launched to cater to the preferences of millennials and Generation Z, focusing on customization and diversity[9] - The company aims to strengthen its market position in the wedding jewelry sector by expanding product diversity and enhancing brand exposure through wedding events[9] - The group plans to enhance brand promotion and customer relationship management to increase brand exposure in the Chinese and Southeast Asian markets[12] Corporate Governance - The company has complied with all corporate governance codes as per the listing rules during the reporting period[56] - The interim financial statements for the period were reviewed by the company's audit committee, consisting of three independent non-executive directors[57] - The company has not disclosed any unannounced price-sensitive information violations by relevant employees during the reporting period[56] Shareholder Information - As of June 30, 2024, Ms. Yang Nuo Si holds 4,298,630,000 shares, representing 63.41% of the voting shares of the company[48] - Ms. Yang Nuo Si also has significant holdings in affiliated companies, including 2,747,611,223 shares (74.71%) in Emperor International Holdings Limited and 851,353,645 shares (71.63%) in Emperor Entertainment Hotel Limited[50] - Brandes Investment Partners, L.P. holds 339,017,288 shares, accounting for 5.00% of the voting shares[53] - There were no changes in the interests of directors or senior management in the company or its affiliates as of June 30, 2024, apart from those disclosed[51] Related Party Transactions - Related party transactions included sales of goods to directors and their close relatives amounting to HKD 1,326,000 for the six months ended June 30, 2024, compared to HKD 1,277,000 in the same period of 2023[45] - The total amount of deposits paid to related companies decreased from HKD 16,679,000 as of December 31, 2023, to HKD 13,991,000 as of June 30, 2024, a reduction of 16.3%[47] - The company has recognized lease liabilities related to transactions with related companies amounting to HKD 88,325,000 as of June 30, 2024, up from HKD 53,213,000 as of December 31, 2023, reflecting a 66% increase[47] Miscellaneous - The company has not granted any stock options under its stock option plan since its adoption on May 23, 2018, with an authorized limit of 687,308,812 options available for grant[56] - No purchases, sales, or redemptions of the company's listed securities were made by the company or its subsidiaries during the reporting period[57]

Financial Performance - Total revenue increased by 11.5% to HKD 2,597 million for the six months ended June 30, 2024, compared to HKD 2,330 million in 2023[2] - Gross profit rose by 7.6% to HKD 780 million, while net profit remained stable at HKD 185 million, down 0.5% from HKD 186 million in 2023[3] - Adjusted EBITDA increased by 2.9% to HKD 282 million, reflecting the company's core operational performance[2] - The group reported a revenue of HKD 2,597 million for the six months ended June 30, 2024, compared to HKD 2,330 million for the same period in 2023, representing an increase of approximately 11.5%[14] - The gross profit for the same period was HKD 780 million, up from HKD 725 million in 2023, indicating a growth of about 7.6%[14] - The company reported a pre-tax profit of HKD 224,739,000 for the six months ended June 30, 2024, compared to HKD 223,314,000 for the same period in 2023, reflecting a slight increase of about 0.6%[27] - The company reported a basic earnings per share of HKD 0.0272 for the six months ended June 30, 2024, compared to HKD 0.0274 for the same period in 2023, reflecting a slight decrease in profitability[31] Sales and Market Performance - Jewelry sales surged by 77.4% to HKD 965 million, accounting for 37.2% of total revenue, compared to 23.3% in 2023[3] - The total external sales from Hong Kong amounted to HKD 1,456,042,000, while sales from China and other Asia-Pacific regions were HKD 665,038,000 and HKD 307,638,000, respectively[24] - The segment profit for Hong Kong was HKD 137,223,000, while Macau and China reported segment profits of HKD 28,923,000 and HKD 119,146,000, respectively, contributing to a total segment profit of HKD 341,971,000[25] Store Operations and Expansion - The company operates a total of 90 stores across Hong Kong, Macau, mainland China, Singapore, and Malaysia as of June 30, 2024[4] - Over 75% of the stores in mainland China are located in first-tier and new first-tier cities, aligning with the company's target customer base[5] - The company plans to continue expanding its market presence in Hong Kong, Macau, and China, focusing on retail sales of watches and jewelry[22] Product Development and Marketing - The company launched new jewelry collections aimed at millennials and Generation Z, enhancing its product diversity and personalization in the wedding jewelry market[7] - The company aims to enhance brand recognition and value to increase market share in the wedding market and strengthen customer relationships[7] - The group plans to enhance brand promotion and customer relationship management to increase brand exposure and capture market opportunities in China and Southeast Asia[9] Financial Position and Liquidity - As of June 30, 2024, the group's bank balance and cash on hand increased to HKD 733 million, up from HKD 620 million on December 31, 2023[10] - The net cash position of the group was zero, with a net debt ratio of zero as of June 30, 2024, maintaining a strong financial position[10] - The current ratio improved to 7.6 from 7.3, and the quick ratio increased to 1.6 from 1.5, reflecting enhanced liquidity[10] - The company has approximately HKD 1,043 million in available but undrawn bank financing, providing additional financial flexibility[10] - The total equity of the group as of June 30, 2024, was HKD 5,187 million, an increase from HKD 5,047 million at the end of 2023, reflecting a solid capital structure[17] Employee and Operational Costs - The total employee cost for the period was HKD 185 million, an increase from HKD 161 million in 2023, indicating a rise in workforce expenses[11] - Employee costs, including director remuneration, totaled HKD 170,699,000 for the six months ended June 30, 2024, up from HKD 147,223,000 in the same period of 2023, representing an increase of approximately 15.9%[27] Dividend and Taxation - The board declared an interim dividend of HKD 0.65 per share, down from HKD 0.76 per share in 2023[3] - The total tax expense for the six months ended June 30, 2024, was HKD 38,606,000, slightly lower than HKD 38,820,000 for the same period in 2023[5] - The company has no tax provisions for Malaysia as its subsidiaries did not generate taxable profits during the periods[29] Inventory and Receivables Management - The company reported a significant inventory cost of HKD 1,135,000,000 included in the cost of sales for the six months ended June 30, 2024, compared to zero inventory write-downs in the same period of 2023[27] - Trade receivables decreased to HKD 43,199,000 as of June 30, 2024, from HKD 73,437,000 as of December 31, 2023, indicating improved collection efficiency[33] - Trade payables decreased significantly to HKD 59,629,000 as of June 30, 2024, from HKD 122,063,000 as of December 31, 2023, suggesting better cash management[37] Corporate Governance and Compliance - The company has adopted its own securities trading code for directors, which complies with the standards set out in the Listing Rules Appendix C3[40] - No purchases, sales, or redemptions of the company's listed securities were made by the company or any of its subsidiaries during the period[41] - The interim results announcement has been published on the Hong Kong Stock Exchange website and the company's website, with the interim report to be issued at an appropriate time[42] - The board announced a change in the composition of the remuneration committee, effective October 1, 2024, with Ms. Fan Min Cheung appointed as a member[43] - The company secretary and authorized representative will change, with Ms. Zhong Hao Ying resigning and Ms. Feng Pei Ling appointed effective September 2, 2024[44]

Customer and Supplier Dynamics - The Group's sales to its five largest customers accounted for approximately 1.5% of total turnover in the Year, down from 2.6% in 2022[9] - The Group's five largest suppliers contributed approximately 86.8% of total purchases during the Year, a decrease from 93.2% in 2022[9] Market Expansion and Strategy - The Group plans to continue expanding its market presence in Hong Kong and mainland China, leveraging its brand reputation[39] - The Group anticipates benefiting from domestic consumption trends in China as the RMB continues to fluctuate[39] - Economists have lowered global growth forecasts, but the Group aims to leverage its brand reputation in China to expand in Hong Kong and mainland China markets[65] - The Group's strategy includes analyzing user data and internet behavior to formulate effective product strategies[63] - The Group aims to strengthen its brand presence through various online platforms in response to changing consumer behaviors due to the pandemic[173] Financial Performance and Position - The Group's financial performance analysis is detailed in the Five-year Financial Summary on page 152 of the annual report[2] - As of December 31, 2023, the Group's bank balances and cash on hand amounted to HK$619.6 million, a decrease from HK$664.4 million in 2022, with no bank borrowings reported[42] - The Group maintained a net cash position with a net gearing ratio of zero, consistent with the previous year[42] - The Group has unutilised banking facilities of approximately HK$1,043.6 million available[42] - As of December 31, 2023, the Group's current assets were approximately HK$3,859.1 million, an increase from HK$3,505.9 million in 2022, while current liabilities rose to HK$531.1 million from HK$433.5 million[183] - The current ratio decreased to 7.3 in 2023 from 8.1 in 2022, and the quick ratio fell to 1.5 from 1.9[183] Corporate Governance and Compliance - The Group has complied with relevant laws and regulations, as discussed in the 2023 Environmental, Social and Governance Report[2] - The independent auditor issued an unqualified conclusion regarding the Group's non-exempt connected transactions[38] - The company maintains a sufficient public float of at least 25% as required by listing rules[72] - The company has fully complied with all code provisions of the Corporate Governance Code during the year[93] - The Board consists of seven Directors, including four Executive Directors and three Independent Non-Executive Directors (INEDs)[81] - The company has adopted a Board Diversity Policy to ensure a balanced composition of skills and perspectives[104] - The Company aims to maintain a high level of corporate governance to ensure accountability and transparency for shareholders and stakeholders[118] - The Board has established mechanisms to ensure effective governance, which were reviewed and deemed effective during the year[129] Employee and Management Structure - The Group's employee remuneration is determined based on individual performance and market pay levels, including various competitive benefits[67] - The Company has a total workforce comprising 69% female and 31% male, with senior management including 70% female and 30% male[142] - The Board consists of 57% female directors, with a target of maintaining at least 25% female representation[158] - The Nomination Committee will continue to review the Board's composition to maintain diversity without proposing further enhancement targets at this time[112] - The management is responsible for shaping the corporate culture and strategic direction of the Group, focusing on employee engagement and compliance[97] - Independent Non-executive Directors (INEDs) have not served on the Board for more than 9 years, ensuring independence[124] Product Offerings and Collections - The "Auspicious Dragon and Phoenix" collection symbolizes harmony and includes various jewelry pieces, emphasizing craftsmanship and detail[86] - The "Spotlight" light luxury collection features 10 diamonds per piece, designed for both weddings and everyday wear[87] - The "CORE & ENCORE" collection draws inspiration from music and aims to resonate with current fashion trends, promoting casual luxury[88] - The Group's official website features a diverse range of luxury watch brands, including Patek Philippe, Rolex, Tudor, and Cartier, with plans for further collaborations[64] Market Conditions and Consumer Sentiment - The market faced disruptions in the second half of the year due to a global economic slowdown, with factors such as inflation and geopolitical tensions affecting consumer confidence[196] - Despite the challenges, consumption sentiment in the Hong Kong and Macau markets remained stable[196] - The total number of visitors to Hong Kong for the year was 34 million, approximately 61% of the 2019 levels, indicating a recovery in retail activities[195] - The Group's performance was positively impacted by the normalization of global outbound travel and the recovery of consumer demand in the first half of the year[195] Dividends and Financial Announcements - The final dividend declared is HK$0.56 per share, with the payment date set for June 20, 2024[189] - The annual results announcement was made on March 19, 2024, detailing the audited consolidated results for the year ended December 31, 2023[190] Strategic Initiatives - The Group has established a jewellery presence on multiple online shopping platforms, including HKTV Mall, Tmall, and jd.com, to enhance customer experience and expand revenue sources[63] - The Group launched multiple jewelry promotional events during the year to showcase products and enhance sales opportunities[174] - The Group plans to seek collaboration opportunities with other watch brands to expand its offerings[175] - The Company has implemented new strategies to navigate the volatile economic environment and maintain stable operations[196]

Financial Performance - The group's revenue for the year ended December 31, 2023, was HKD 4,823,223,000, representing a 30.8% increase from HKD 3,684,261,000 in 2022[9] - The gross profit for the same period was HKD 1,450,281,000, up 23.1% from HKD 1,177,262,000 in 2022[9] - The net profit for the year was HKD 299,219,000, an increase of 34.7% compared to HKD 222,125,000 in 2022[9] - Total revenue for the year increased by 30.9% to HKD 4,823,200,000, compared to HKD 3,684,300,000 in 2022[33] - Gross profit rose by 23.2% to HKD 1,450,300,000, up from HKD 1,177,300,000 in the previous year[34] - Net profit increased by 34.7% to HKD 299,200,000, compared to HKD 222,100,000 in 2022[34] - Basic earnings per share improved by 34.5% to HKD 4.41, up from HKD 3.28 in the prior year[34] - The adjusted EBITDA increased by 25.0% to HKD 470,000,000 from HKD 376,000,000 in 2022[36] Dividend Information - The company plans to pay a final dividend of HKD 0.56 per share, down from HKD 0.62 per share in 2022, pending shareholder approval[3] - The company declared a total dividend of HKD 93,557,000 for the year 2023, compared to HKD 42,033,000 for the previous year, reflecting a substantial increase[101] - The company proposed a final dividend of HKD 0.56 per share for 2023, down from HKD 0.62 per share in 2022, reflecting a decrease of 9.7%[116] Operational Expansion - The group has established a strategic sales network in prime locations in Hong Kong and mainland China, with over 80% of stores located in tier-one and new tier-one cities[11] - The company has expanded its e-commerce business by establishing jewelry operations on several online shopping platforms, including HKTV Mall, Tmall, and JD.com[14] - The company plans to continue expanding its retail network in Hong Kong and major cities in mainland China[26] - The company aims to leverage its brand reputation in China to expand its market presence in Hong Kong and mainland China amid uncertain economic conditions[15] Employee and Cost Information - The total employee cost for the year was HKD 340,000,000, an increase from HKD 262,900,000 in 2022, with a workforce of 1,008 employees[17] - The company reported a total employee cost of HKD 339,996,000 in 2023, up from HKD 262,910,000 in 2022, which is an increase of approximately 29.3%[96] Asset and Liability Overview - The group reported a cash balance of HKD 619,600,000 as of December 31, 2023, down from HKD 664,400,000 in 2022, with no bank borrowings[16] - Total non-current assets decreased slightly to HKD 1,849,216,000 in 2023 from HKD 1,875,927,000 in 2022, reflecting a decline of 1.4%[39] - Current assets increased significantly to HKD 3,859,148,000 in 2023, up 10.1% from HKD 3,505,902,000 in 2022[39] - Inventory levels rose sharply to HKD 3,060,276,000 in 2023, a 13.2% increase from HKD 2,703,418,000 in 2022[39] - The company's total equity increased to HKD 5,046,688,000 in 2023, up 4.2% from HKD 4,845,059,000 in 2022[39] - The company reported a significant increase in trade payables and accrued expenses, which rose to HKD 269,059,000 in 2023 from HKD 159,505,000 in 2022, marking a 68.8% increase[39] - Cash and cash equivalents slightly decreased to HKD 458,750,000 in 2023 from HKD 466,192,000 in 2022, a decline of 1.0%[39] Market and Economic Conditions - The total number of visitors to Hong Kong reached 34,000,000, approximately 61% of the 2019 levels, boosting retail activity[38] - The company will continue to monitor market trends and adjust strategies and product offerings to maintain stable business performance[15] Segment Performance - Revenue from Hong Kong and mainland China accounted for 52.0% and 28.5% of total revenue, respectively[33] - The segment profit for Hong Kong was HKD 232,908,000, while Macau and China reported segment profits of HKD 48,680,000 and HKD 210,017,000 respectively, contributing to a total segment profit of HKD 609,402,000[71] - Revenue from watch sales increased to HKD 3,465,488,000 in 2023, up from HKD 3,008,968,000 in 2022, representing a growth of approximately 15.2%[95] - Revenue from jewelry sales surged to HKD 1,342,848,000 in 2023, compared to HKD 666,618,000 in 2022, marking a significant increase of about 101.3%[95] Compliance and Governance - The company confirmed compliance with all corporate governance codes as per the listing rules during the year[128] - The audit committee, along with Deloitte, reviewed the consolidated financial statements for the year, ensuring they were prepared in accordance with applicable accounting standards[127]

Financial Performance - Total revenue increased by 41.6% to HKD 2,330 million for the six months ended June 30, 2023, compared to HKD 1,646 million in 2022[9] - Gross profit rose by 38.1% to HKD 725 million, up from HKD 525 million in the previous year[9] - Adjusted EBITDA surged by 77.9% to HKD 274 million, compared to HKD 154 million in 2022[6] - Net profit more than doubled, increasing by 116.3% to HKD 186 million, up from HKD 86 million in 2022[9] - Earnings per share increased to HKD 2.74, a rise of 115.7% from HKD 1.27 in the previous year[6] - The profit before tax for the period was HKD 224.7 million, significantly up from HKD 104.3 million in the previous year[30] - The total comprehensive income attributable to owners for the period was HKD 184.2 million, compared to HKD 68.0 million in 2022[30] - The company reported a pre-tax profit of HKD 224,739 for the six months ended June 30, 2023, compared to HKD 104,261 for the same period in 2022, indicating a growth of approximately 115.0%[57] - The company's profit before tax for the six months ended June 30, 2023, was HKD 185,919,000, compared to HKD 85,932,000 for the same period in 2022, representing a growth of 116.5%[76] Revenue Breakdown - Revenue from mainland China grew by 64.8% to HKD 712 million, while Hong Kong revenue increased by 49.7% to HKD 1,153 million[9] - The jewelry segment saw sales increase by 86.3% to HKD 544 million, while watch sales rose by 31.9% to HKD 1,786 million[9] - The revenue breakdown shows that sales from Hong Kong amounted to HKD 1,220,007, while sales from China reached HKD 712,064, marking substantial contributions from both regions[57] Store Expansion and Market Presence - The number of stores expanded to 91 across Hong Kong, Macau, mainland China, Singapore, and Malaysia, with a focus on prime retail locations[12] - The company plans to continue expanding its market presence in the Asia-Pacific region, particularly in Hong Kong and China, to leverage growth opportunities[57] - The retail network spans Hong Kong, Macau, mainland China, Singapore, and Malaysia, with a focus on expanding business outside Greater China[96] Financial Position - As of June 30, 2023, the group's bank balance and cash on hand increased to HKD 843 million, up from HKD 664 million as of December 31, 2022[24] - The group reported a net cash position with a net debt ratio of zero, consistent with December 31, 2022[24] - Current assets and current liabilities were approximately HKD 3,696 million and HKD 445 million, respectively, resulting in a current ratio of 8.3 and a quick ratio of 2.2[24] - The company's total equity increased to HKD 4,987.2 million from HKD 4,845.1 million at the end of 2022[34] - The company’s total assets decreased from HKD 214,782,000 at the end of 2022 to HKD 191,580,000 as of June 30, 2023, a decline of 10.8%[78] - The company’s total liabilities increased from HKD 159,505,000 at the end of 2022 to HKD 165,369,000 as of June 30, 2023, an increase of 3.4%[83] Employee Costs and Dividends - Total employee costs for the period were approximately HKD 161 million, an increase from HKD 128 million in 2022[25] - The board declared an interim dividend of HKD 0.76 per share, totaling approximately HKD 51.5 million, compared to HKD 25.8 million in 2022[28] - The company declared an interim dividend of HKD 0.76 per share for 2023, up from HKD 0.38 per share in 2022, amounting to HKD 51,524,000 compared to HKD 25,762,000 in the previous year[74] Economic Outlook and Management Strategy - The management remains cautious about potential economic challenges, including interest rate hikes and inflation, while focusing on maintaining operational efficiency and profitability[20] - The company plans to enhance its online business and has established a presence on multiple e-commerce platforms to capture internet and mobile user potential[18] Corporate Governance and Compliance - The company has adhered to all corporate governance codes as outlined in the listing rules during the reporting period[104] - The company’s independent non-executive directors reviewed the interim financial report, ensuring compliance with corporate governance standards[119] Related Party Transactions - The company reported sales to directors and related parties of HKD 1,277,000 for the six months ended June 30, 2023, down 44.9% from HKD 2,318,000 in the same period of 2022[125] - The company incurred service fees of HKD 8,430,000 to related companies, an increase of 36.3% compared to HKD 6,185,000 in the previous year[125] - The company paid HKD 2,453,000 in variable lease payments to related companies, an increase of 88.2% from HKD 1,303,000 in the previous year[125] - The company has deposits paid to related companies amounting to HKD 17,463,000 as of June 30, 2023, up from HKD 17,009,000 as of December 31, 2022[127] Asset Management - Non-current assets as of June 30, 2023, were valued at HKD 1,812.3 million, down from HKD 1,875.9 million as of December 31, 2022[32] - Trade receivables as of June 30, 2023, were HKD 43,049,000, down from HKD 52,393,000 at the end of 2022, indicating a decrease of 17.8%[81] - Trade payables increased to HKD 71,729,000 as of June 30, 2023, compared to HKD 51,362,000 at the end of 2022, marking an increase of 39.5%[83] - The company has capital commitments for property, machinery, and equipment amounting to HKD 9,681,000 as of June 30, 2023, compared to HKD 6,922,000 as of December 31, 2022, reflecting a 39.5% increase[87] Product Development and Marketing - The company actively participates in promotional activities with major brands to enhance product visibility and customer engagement[94] - The new product line "The Spotlight" features a light luxury pendant designed for modern weddings, showcasing ten diamonds[98]

Financial Performance - Total revenue increased by 41.6% to HKD 2,330 million, up from HKD 1,646 million in 2022[4] - Gross profit rose by 38.1% to HKD 725 million, compared to HKD 525 million in 2022[4] - Net profit increased by 116.3% to HKD 186 million, up from HKD 86 million in 2022[19] - Basic earnings per share rose by 115.7% to HKD 2.74, compared to HKD 1.27 in 2022[19] - The profit before tax increased to HKD 224,739,000, compared to HKD 104,261,000 in the previous year, reflecting a growth of 115.0%[56] - The net profit for the period was HKD 185,919,000, which is a significant increase of 116.5% from HKD 85,932,000 in 2022[56] - The company reported a basic earnings attributable to shareholders of HKD 185,919,000 for the six months ended June 30, 2023, compared to HKD 85,932,000 for the same period in 2022, representing an increase of 116%[98] Revenue Breakdown - Jewelry segment sales surged by 86.3% to HKD 544 million, while watch segment sales grew by 31.9% to HKD 1,786 million[4] - Revenue from mainland China and Hong Kong increased by 64.8% and 49.7%, reaching HKD 712 million and HKD 1,153 million respectively, accounting for 30.6% and 49.5% of total revenue[21] Cash and Assets - Cash and cash equivalents increased to HKD 843 million, up from HKD 664 million as of December 31, 2022[4] - The group maintains a net cash position with bank balances and cash increasing to HKD 843 million, and no bank borrowings as of June 30, 2023[29] - Current assets increased to HKD 3,696,014,000 from HKD 3,505,902,000, showing a growth of 5.4%[57] - Non-current assets as of June 30, 2023, were valued at HKD 1,812,290,000, a slight decrease from HKD 1,875,927,000 at the end of 2022[57] - The total equity of the company rose to HKD 4,987,185,000 from HKD 4,845,059,000, indicating a positive trend in shareholder value[58] Store Expansion and Market Presence - The group opened one jewelry store in Hong Kong and two in mainland China during the period[7] - The group plans to continue expanding its presence in key markets, particularly in Hong Kong and mainland China[10] - The group has a total of 91 retail stores across Hong Kong, Macau, mainland China, Singapore, and Malaysia, with approximately 75% of stores located in tier-one and new tier-one cities in mainland China[22] Online and E-commerce Strategy - The online shopping platform for jewelry and watches has been strengthened, with a focus on expanding e-commerce operations[10] - The group is leveraging online shopping platforms to expand its jewelry business and enhance customer experience[26] Employee and Operational Costs - Total employee costs for the period amounted to HKD 161 million, with an increase in sales personnel from 633 to 715[30] Dividends - The board declared an interim dividend of HKD 0.76 per share, up from HKD 0.38 per share in the previous year[21] - The interim dividend declared is HKD 0.76 per share for the fiscal year ending December 31, 2023, up from HKD 0.38 per share in 2022, totaling HKD 51,524,000 compared to HKD 25,762,000 in the previous year[77] Financial Challenges and Caution - The group is cautious about expansion due to potential economic challenges, including interest rate hikes and inflation, and aims to maintain operational efficiency[28] Compliance and Governance - The company maintained compliance with all corporate governance codes as per the listing rules during the reporting period[86] - The interim financial statements have been reviewed by the company's audit committee, consisting of three independent non-executive directors[105] - There were no known violations of the standard code of conduct by employees who may possess price-sensitive information during the reporting period[106]

Shareholding and Directors - As of December 31, 2022, Ms. Cindy Yeung held 2,747,611,223 shares, representing 74.71% of the voting shares of the company[10]. - As of December 31, 2022, none of the Directors or chief executives had any interests or short positions in any shares or debentures of the company or its associated corporations[15]. - Mr. Wong Chi Fai has an interest in debentures amounting to HK$2,000,000[13]. - Ms. Fan Man Seung held 10,500,000 shares, representing 0.29% of the voting shares[13]. - The Directors Ms. Cindy Yeung, Ms. Chan Sim Ling, and Ms. Chan Wiling will retire by rotation at the 2023 AGM and are eligible for re-election[19]. - The company has no arrangements to enable Directors or chief executives to acquire benefits through the acquisition of shares or debentures[18]. - The company has no unexpired service contracts with Directors that are not determinable within one year without compensation[20]. Financial Performance - The Group's total revenue for the year ended December 31, 2022, was HK$3,684.3 million, a decrease from HK$3,926.6 million in 2021, representing a decline of approximately 6.2%[45]. - The Group's net profit increased to HK$222 million in 2022, up from HK$205 million in 2021, reflecting a growth of approximately 8.3%[43]. - Basic earnings per share rose to HK3.28 cents from HK3.02 cents, indicating an increase of about 8.6%[43]. - Gross profit for the year was HK$1,177.3 million, a slight decrease from HK$1,229.5 million in 2021, while gross profit margin increased to 31.9% from 31.3%[69]. - The Group's effective cost-saving measures contributed to the increase in net profit despite a slight decline in gross profit[69]. - The total dividends for the year increased to HK1.0 cent per share from HK0.9 cent in 2021, reflecting improved financial performance[69]. Dividends - The final dividend per share was increased to HK0.62 cent from HK0.35 cent, representing a rise of approximately 77.1%[43]. - The Group recommended a final dividend of HK0.62 cent per share, up from HK0.35 cent in 2021, bringing total dividends for the year to HK1.0 cent per share[69]. - An interim dividend of HK$0.38 per share was paid during the year, totaling approximately HK$25.8 million, down from HK$0.55 per share in 2021[196]. - The proposed final dividend is HK$0.62 per share for the year, an increase from HK$0.35 per share in 2021, subject to shareholder approval[195]. - The Company's reserves available for distribution to shareholders as of December 31, 2022, amounted to HK$1,277,112,000, an increase from HK$1,175,756,000 in 2021[200]. Store Expansion and Strategy - The Group opened three jewellery stores in Hong Kong and five stores (four jewellery and one Rolex) in mainland China during the year[57]. - The Group plans to focus on store rollouts in residential areas of Hong Kong and prominent cities in mainland China in 2023[57]. - The Group plans to open new jewellery stores in Tai Wai and Kwun Tong, Hong Kong, as well as Chengdu and Hebei, mainland China in 2023[90]. - Approximately 75% of the Group's stores in mainland China are located in first-tier and new first-tier cities, aligning with its customer targeting and market positioning[106]. - The Group has established a retail network across Hong Kong, Macau, mainland China, Singapore, and Malaysia, focusing on maintaining its leading position in Greater China[75]. Market Conditions - The pandemic has stabilized globally, but geopolitical tensions and interest hikes continue to hinder macroeconomic development[48]. - The resurgence of the pandemic in mainland China during the last quarter of the year affected consumer spending recovery[49]. - Visitor arrivals to Hong Kong increased by 562% year-on-year to approximately 600,000, indicating a recovery in luxury consumption[72]. - Following the reopening of borders, an increase in visitor arrivals to Hong Kong is expected, positively impacting the retail industry[118]. Online Presence and E-commerce - The Group expanded its online shopping platform to include watches, launching a Tudor online sales platform to enhance brand promotion and sales[115]. - The Group will continue to enhance its online shopping presence and capture market opportunities, recognizing the lasting importance of e-commerce[119]. - The Group aims to enhance its brand image and capitalize on online market opportunities as consumer behavior shifts post-pandemic[121]. Financial Position and Assets - As of December 31, 2022, the Group's current assets were approximately HK$3,505.9 million, and current liabilities were HK$433.5 million, resulting in a current ratio of 8.1[96]. - The Group's bank balance and cash increased to HK$664.4 million as of December 31, 2022, with no bank borrowings, resulting in a net debt ratio of zero[99]. - The Group had no bank borrowings as of December 31, 2022, compared to HK$165.5 million in 2021, resulting in a net gearing ratio of zero[123]. - The Group's un-utilised banking facilities amounted to approximately HK$942.6 million as of December 31, 2022[123]. Employee Costs and Governance - Total staff costs for the year were HK$262.9 million, a decrease from HK$288.5 million in 2021, with 638 salespersons and 201 office staff as of December 31, 2022[125]. - The Group's total employee costs reflect a compensation structure based on individual responsibility, competence, and market pay levels[125]. - The remuneration of directors is determined by the board based on a written remuneration policy linked to business strategy and shareholder interests[189]. - The Group's corporate governance report outlines principal risks and uncertainties faced by the Group[197]. Awards and Recognition - The Group has received multiple awards for investor relations and service excellence in 2022, highlighting its commitment to stakeholder engagement[169]. Miscellaneous - The Group has not engaged in any purchase, sale, or redemption of its listed securities during the year[183]. - There are no significant events affecting the Group since the end of the year up to the date of the report[198]. - A fair review of the Group's business and performance analysis is detailed in the Management Discussion and Analysis section of the report[197]. - The Group's management team has extensive experience in various sectors, including retail and financial services, enhancing strategic planning and operational oversight[161][162]. - The Group's performance summary and financial results for the last five years are detailed on page 180 of the annual report[180].

Financial Performance - Total revenue for the year ended December 31, 2022, was HKD 3,684 million, a decrease from HKD 3,927 million in 2021[5] - Gross profit for the year was HKD 1,177 million, with a gross margin of 31.9%, slightly up from 31.3% in 2021[6] - Net profit increased to HKD 222 million, compared to HKD 205 million in 2021, with basic earnings per share rising to HKD 3.28 from HKD 3.02[6] - The group reported total revenue of HKD 3,684,261,000, a decrease of 6.2% from HKD 3,926,608,000 in 2021[29] - The group achieved a gross profit of HKD 1,177,262,000, down from HKD 1,229,505,000, resulting in a gross margin of approximately 31.9%[29] - The net profit for the year was HKD 222,125,000, representing an increase of 8.5% compared to HKD 204,695,000 in 2021[29] - The operating profit for the year ended December 31, 2022, was HKD 256,269,000, compared to HKD 277,244,000 for the previous year, showing a decline of about 7.5%[63] - The company reported segment profit of HKD 481,037,000 for the year ended December 31, 2022, compared to HKD 504,142,000 in 2021, indicating a decrease of about 4.6%[63] - The company's profit before tax for 2022 was HKD 222,125,000, an increase from HKD 204,695,000 in 2021, representing a growth of approximately 8.3%[87] Revenue Breakdown - The jewelry and watch segments accounted for 81.9% and 18.1% of total revenue, respectively, with sales of HKD 3,018 million and HKD 667 million[5] - Revenue from watch sales was HKD 3,008,968,000 in 2022, down from HKD 3,265,202,000 in 2021, indicating a decrease of about 7.9%[70] - Revenue from the Macau segment was HKD 370,731,000 in 2022, up from HKD 216,137,000 in 2021, reflecting an increase of approximately 71.6%[62] - Revenue from the China segment was HKD 1,227,807,000 in 2022, compared to HKD 1,186,332,000 in 2021, showing a growth of about 3.5%[62] Store Expansion and E-commerce - The company opened three jewelry stores in Hong Kong and four in mainland China during the year, with plans for further expansion in 2023[11] - The retail network consists of 93 stores across Hong Kong, Macau, mainland China, Singapore, and Malaysia, with 75% of mainland stores located in first-tier and new first-tier cities[10] - The company launched several new jewelry collections, including designs featuring diamonds and jade, aimed at different customer segments[13] - E-commerce initiatives were strengthened, expanding online sales to include watches and collaborating with Tudor for online promotion[16] - The company plans to open new jewelry stores in locations such as Tai Wai and Kwun Tong in Hong Kong, and Chengdu and Hebei in mainland China in 2023[17] - The company plans to continue expanding its market presence in the Asia-Pacific region, particularly in Singapore and Malaysia[58] Financial Position and Liquidity - The group’s cash and cash equivalents increased to HKD 664,400,000 from HKD 556,300,000 in 2021, with no bank borrowings as of December 31, 2022[24] - The current ratio improved to 8.1 from 6.4 in 2021, indicating enhanced liquidity[25] - The group has approximately HKD 942,600,000 in undrawn bank financing available for future use[24] - Employee costs for the year totaled HKD 262,900,000, a decrease from HKD 288,500,000 in 2021, reflecting a strategic focus on cost control[24] - Trade receivables as of December 31, 2022, were HKD 52,393,000, down from HKD 54,589,000 in 2021, a decrease of approximately 4.0%[89] - Trade payables as of December 31, 2022, amounted to HKD 51,362,000, a slight decrease from HKD 51,394,000 in 2021[93] Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.62 per share, up from HKD 0.35 per share in 2021, subject to shareholder approval[26] - The total dividend declared for 2022 was HKD 49,490,000, slightly higher than HKD 47,456,000 in 2021, showing a year-on-year increase of about 4.3%[86] Compliance and Governance - The company has complied with all corporate governance codes as per the listing rules during the year[97] - The company has not early adopted any new or revised standards that have been issued but are not yet effective[43] - The company has maintained a credit period of 30 to 60 days granted by creditors[93] Auditing and Reporting - The company’s auditors issued an unqualified opinion on the financial statements for the two years, indicating no significant issues were raised[40] - The audited financial statements for the year ended December 31, 2022, were approved by the auditors and the board on March 23, 2023[95] - The company plans to publish its annual report and has made the annual performance announcement available on the stock exchange website[101]

Financial Performance - Total revenue for the six months ended June 30, 2022, decreased to HKD 1,645.6 million, down from HKD 2,071 million in 2021, representing a decline of approximately 20.5%[6] - Gross profit for the same period was HKD 524.8 million, with a gross margin of 31.9%, compared to HKD 637.5 million and 30.8% in 2021[7] - Net profit decreased to HKD 85.9 million, down from HKD 132.2 million in 2021, resulting in basic earnings per share of HKD 1.27, compared to HKD 1.95 in the previous year[7] - The interim dividend declared was HKD 0.38 per share, down from HKD 0.55 per share in 2021[7] - The profit for the period was HKD 85.9 million, compared to HKD 132.2 million in the previous year, indicating a decline of 35%[25] - The interim dividend declared was HKD 0.38 per share for the fiscal year ending December 31, 2022, totaling HKD 25,762,000, compared to HKD 37,287,000 in the previous year[60] Revenue Breakdown - Revenue from mainland China and Hong Kong was HKD 431.6 million and HKD 769.9 million, respectively, accounting for 26.2% and 46.8% of total revenue[6] - Total revenue for the six months ended June 30, 2022, was HKD 1,645,564,000, with external sales from Hong Kong, Macau, China, and other Asia-Pacific regions contributing HKD 787,129,000, HKD 121,440,000, HKD 431,567,000, and HKD 322,100,000 respectively[43] Operational Strategy - The company operates 87 stores across Hong Kong, Macau, mainland China, Singapore, and Malaysia, with a focus on strategic locations in first-tier and new first-tier cities in mainland China[12] - The company plans to enhance its retail network and operations in mainland China through cautious expansion, targeting major cities and residential areas[18] - The company anticipates market recovery as social distancing measures ease and consumer demand rebounds, particularly in the Hong Kong market[18] - The company will optimize its online sales platforms and enhance customer engagement through mobile applications and social media[18] Financial Position - As of June 30, 2022, the group's bank balance and cash on hand amounted to HKD 609 million, an increase from HKD 556.3 million as of December 31, 2021[20] - The total bank borrowings were approximately HKD 36.4 million, down from HKD 165.5 million as of December 31, 2021, resulting in a net debt ratio of zero[20] - The current assets and current liabilities were approximately HKD 3.38 billion and HKD 429.1 million, respectively, leading to a current ratio of 7.9 and a quick ratio of 1.8[20] - The total equity as of June 30, 2022, was HKD 4.765 billion, an increase from HKD 4.721 billion as of December 31, 2021[29] - The company has unutilized bank financing of approximately HKD 942.9 million available for future operations and development plans[20] Cash Flow - For the six months ended June 30, 2022, the company reported a net cash inflow from operating activities of HKD 356,266,000, a decrease of 34.6% compared to HKD 545,208,000 for the same period in 2021[33] - The net increase in cash and cash equivalents for the period was HKD 55,112,000, bringing the ending balance to HKD 609,015,000[33] - The company recorded a cash outflow from investing activities of HKD 16,667,000 and a cash outflow from financing activities of HKD 284,487,000 for the six months ended June 30, 2022[33] Employee and Management Costs - The employee cost for the period was approximately HKD 128.3 million, a decrease from HKD 137.3 million in 2021, with a total workforce of 813 employees[21] - The total remuneration paid to key management personnel increased from HKD 4,258,000 in 2021 to HKD 5,869,000 in 2022, an increase of about 36%[84] - The group’s accrued bonuses and incentives decreased from HKD 16,605,000 in 2021 to HKD 9,393,000 in 2022, a decline of approximately 43.5%[71] Compliance and Governance - The company’s financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and have not been audited[35] - The company has not disclosed any significant impacts from the application of revised Hong Kong Financial Reporting Standards during the reporting period[38] - The company’s board of directors confirmed compliance with the corporate governance code during the period[102] - The company’s audit committee consists of three independent non-executive directors[106] Shareholding and Securities - The company reported a total of 4,298,610,000 shares held by Emperor Watch and Jewellery Holdings, representing 63.41% of the issued voting shares[98] - The company has a significant shareholding by Ms. Yang, who holds 74.71% in Emperor International Holdings[92] - Brandes Investment Partners, L.P. holds 339,017,288 shares, representing 5.00% of the issued voting shares[98] - No share options have been granted under the share option scheme since its adoption on May 23, 2018[101] - The company did not purchase, sell, or redeem any of its listed securities during the period[108] Other Financial Metrics - The company recorded a pre-tax profit of HKD 104,261,000 for the six months ended June 30, 2022, compared to a pre-tax loss of HKD 162,780,000 in the previous period[43] - The company incurred a total tax expense of HKD 18,329,000 for the six months ended June 30, 2022, down from HKD 30,581,000 in the previous year[54] - The company recorded a loss on the sale or write-off of property, plant, and equipment of HKD 415,000 for the six months ended June 30, 2022[52] - The company had a credit loss provision of HKD 569,000 for trade receivables as of June 30, 2022, compared to HKD 585,000 in the previous year[64] - Trade receivables aged analysis shows a decrease in amounts within 30 days from HKD 51,939,000 in 2021 to HKD 46,766,000 in 2022, representing a decline of approximately 4.5%[67] - Total trade payables decreased from HKD 51,394,000 in 2021 to HKD 47,634,000 in 2022, a reduction of about 7.3%[70] - Other payables and accrued expenses decreased from HKD 96,776,000 in 2021 to HKD 82,916,000 in 2022, reflecting a decline of approximately 14.3%[70] - Bank borrowings as of June 30, 2022, amounted to HKD 36,432,000, a significant decrease from HKD 165,452,000 in 2021[77] - The capital expenditure contracted but not provided for was HKD 8,575,000 in 2022, compared to HKD 688,000 in 2021, indicating a substantial increase[80] - Related party transactions for sales of goods to directors and their close relatives amounted to HKD 2,318,000 in 2022, down from HKD 3,216,000 in 2021, a decrease of approximately 28%[82]

Financial Performance - The Group's total revenue increased by 49.5% to HK$3,926.6 million for the year ended December 31, 2021, compared to HK$2,626.6 million in 2020[25]. - Revenue from the mainland China market rose by 56.7% to HK$1,227.8 million, accounting for 31.3% of total revenue[29]. - Revenue from the Hong Kong market increased by 38.4% to HK$1,739.3 million, representing 44.3% of total revenue[29]. - Gross profit for the year was HK$1,230 million, up 46.4% from HK$840 million in 2020[25]. - Adjusted EBITD increased by 128.1% to HK$365 million, compared to HK$160 million in the previous year[25]. - Net profit surged by 502.9% to HK$205 million, up from HK$34 million in 2020[25]. - Basic earnings per share rose to HK3.02 cents, a 504.0% increase from HK0.50 cent in 2020[25]. - Final dividend per share increased by 133.3% to HK0.35 cent from HK0.15 cent in the previous year[25]. - Sales revenue from the watch segment reached HK$3,268.9 million, accounting for 83.3% of total revenue[29]. - Sales revenue from the jewellery segment increased to HK$657.7 million, representing 16.7% of total revenue[29]. - Gross profit increased to HK$1,229.5 million, up from HK$840.1 million in 2020, with a gross profit margin of 31.3%[30]. - Net profit surged 502.9% to HK$204.7 million, compared to HK$34.0 million in 2020, with basic earnings per share at HK3.02 cents[30]. - Total revenue increased by 49.5% to HK$3,926.6 million, up from HK$2,626.6 million in 2020[31]. Dividends and Reserves - The total dividends for the Year are HK0.9 cent per share, compared to HK0.15 cent per share in 2020[32]. - The Group paid an interim dividend of HK$0.55 per share, totaling approximately HK$37.3 million for the Year[98]. - The Directors recommended a final dividend of HK$0.35 per share, an increase from HK$0.15 per share in 2020[99]. - The Company's distributable reserves as of December 31, 2021, amounted to HK$1,175.76 million, an increase from HK$1,059.07 million in 2020[108]. Operational Highlights - The Group opened one jewellery store in Hong Kong and six stores in mainland China during the Year[49]. - The Group maintains a retail network of approximately 99 stores across multiple regions, including 55 in mainland China[44]. - Over 70% of the Group's stores in mainland China are located in first-tier and new first-tier cities[46]. - The Group actively participates in co-marketing campaigns with major luxury Swiss watch brands to enhance customer engagement[50]. - The Group plans to enhance its retail network in mainland China through cautious expansion, anticipating it to be a key driver of business growth[59]. - The Group will continue to monitor market trends and consumer behavior to adjust strategies accordingly, maintaining healthy inventory levels[60]. Financial Position - As of December 31, 2021, the Group's bank balances and cash increased to HK$556.3 million, up from HK$405.1 million in 2020[63]. - The Group's total bank borrowings decreased to approximately HK$165.5 million in 2021, down from HK$638.7 million in 2020, resulting in a net cash position with a net gearing ratio of zero[63]. - Current assets were approximately HK$3,435.6 million and current liabilities were HK$535.4 million, leading to a current ratio of 6.4, significantly improved from 3.5 in 2020[64]. Human Resources - Total staff costs for the year amounted to HK$288.5 million, an increase from HK$192.2 million in 2020, reflecting the Group's investment in human resources[68]. - The Group's employee count as of December 31, 2021, was 857, a slight decrease from 865 in 2020, indicating a focus on efficiency[68]. Market Trends and Strategies - The luxury market has been recovering, but local Omicron cases have led to tightened social distancing measures, impacting market sentiment and recovery[58]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12% driven by new product launches and market expansion strategies[79]. - New product development initiatives are underway, focusing on innovative designs and sustainable materials to attract a broader customer base[79]. - Market expansion efforts include entering new geographical regions, particularly in Southeast Asia, aiming for a 25% increase in market share within the next two years[79]. - The company has invested HKD 50 million in technology upgrades to improve operational efficiency and customer experience[79]. - A new marketing strategy has been implemented, focusing on digital channels, which is expected to increase brand visibility and customer acquisition by 30%[79]. - The management team emphasized the importance of corporate governance and sustainability practices in future business operations[79]. Shareholding and Governance - As of December 31, 2021, the interests of directors and chief executives in the company's shares amounted to 4,298,610,000 shares, representing 63.41% of the issued voting shares[134]. - Ms. Cindy Yeung holds a deemed interest in 2,747,610,489 shares of Emperor International, which is 74.71% of the issued voting shares[142]. - The company has not granted, exercised, canceled, or allowed any options under the Share Option Scheme since its adoption on May 23, 2018[170]. - The company maintains indemnity provisions for potential liabilities and costs arising from legal proceedings faced by its directors[131]. - The company has no outstanding management contracts related to the management and operation of its business[130]. - The Group's five largest customers accounted for approximately 2.4% of total turnover, down from 3.6% in 2020[113]. - The Group's five largest suppliers contributed approximately 96.3% of total purchases, slightly up from 95.9% in 2020[113].