Financial Performance - Total revenue increased by 122.4% to HKD 2,071 million for the six months ended June 30, 2021, compared to HKD 931 million in 2020[4] - Gross profit rose to HKD 638 million, with a gross margin of 30.8%, down from 32.8% in 2020[7] - Net profit reached HKD 132 million, a turnaround from a net loss of HKD 114 million in 2020[6] - Revenue for the six months ended June 30, 2021, was HKD 2,070.96 million, a significant increase from HKD 930.59 million in the same period of 2020[27] - The gross profit for the period was HKD 637.5 million, compared to HKD 305.2 million in the previous year, reflecting a substantial improvement[27] - The profit for the period was HKD 132.2 million, a turnaround from a loss of HKD 113.7 million in the first half of 2020[27] - The total comprehensive income attributable to the owners of the company was HKD 159.6 million, compared to a loss of HKD 129.1 million in the previous year[27] - The group reported a segment profit of HKD 266,587,000 for the six months ended June 30, 2021, compared to a segment loss of HKD 19,881,000 for the same period in 2020[58] - The group incurred a tax expense of HKD 30,581,000 for the six months ended June 30, 2021, compared to HKD 3,046,000 for the same period in 2020[64] - The group reported a pre-tax profit of HKD 162,780,000 for the six months ended June 30, 2021, compared to a pre-tax loss of HKD 110,674,000 for the same period in 2020[54] Revenue Breakdown - Revenue from mainland China surged by 189.5% to HKD 704.7 million, accounting for 34.0% of total revenue[6] - Hong Kong market revenue grew by 70.3% to HKD 857.9 million, representing 41.4% of total revenue[6] - Revenue breakdown: Hong Kong contributed HKD 857,864,000, Macau HKD 224,324,000, China HKD 704,701,000, and other Asia-Pacific regions HKD 283,992,000[54] - The sales revenue of watches and jewelry segments increased to HKD 1,746.6 million and HKD 324.4 million, respectively, comprising 84.3% and 15.7% of total revenue[6] Dividends and Earnings - The company declared an interim dividend of HKD 0.55 per share, compared to zero in 2020[7] - The board declared an interim dividend of HKD 0.55 per share, totaling approximately HKD 37.3 million, compared to no dividend in 2020[25] - The basic earnings attributable to the company's owners for the six months ended June 30, 2021, were HKD 132,199,000, a significant recovery from a loss of HKD 113,720,000 in the same period of 2020[72] Cash and Debt Management - As of June 30, 2021, the group's bank balance and cash on hand increased to HKD 872.8 million, up from HKD 405.1 million on December 31, 2020[20] - The total bank borrowings amounted to approximately HKD 715.9 million, compared to HKD 638.7 million as of December 31, 2020, resulting in a net debt ratio of 0%[20] - The cash and cash equivalents at the end of June 30, 2021, were HKD 872,772,000, up from HKD 251,099,000 at the end of June 30, 2020, reflecting a substantial increase of 247.5%[39] - Trade receivables from customer contracts as of June 30, 2021, amounted to HKD 53,573,000, down from HKD 63,830,000 as of December 31, 2020[74] - The company reported a total of HKD 119,842,000 in payables and accrued expenses as of June 30, 2021, a decrease from HKD 123,697,000 at the end of 2020[79] - Bank borrowings as of June 30, 2021, totaled HKD 715,878,000, an increase from HKD 638,693,000 as of December 31, 2020[84] Employee Costs - Total employee costs for the period were approximately HKD 137.3 million, an increase from HKD 95.6 million in the first half of 2020[23] - The group’s employee costs, including directors' remuneration, amounted to HKD 137,278,000 for the six months ended June 30, 2021, up from HKD 95,581,000 in the same period in 2020[62] - The group’s total short-term employee benefits increased to HKD 4,144,000 for the six months ended June 30, 2021, compared to HKD 4,025,000 in the same period of 2020, reflecting a growth of 2.9%[92] Corporate Governance - The company has complied with all provisions of the Corporate Governance Code during the period, except for deviation from rule A.2.1 regarding the separation of the roles of Chairman and CEO[105] - Ms. Yang Nuo Si continues as Chairman while Mr. Wu Guan Qiang has been appointed as CEO effective July 1, 2021, enhancing corporate governance standards[107] - The company has adopted its own securities trading code for directors, which meets or exceeds the standards set by the Listing Rules[108] Future Plans and Market Strategy - The company plans to expand its retail network in mainland China and enhance online sales platforms in response to changing consumer behavior[19] - The company aims to benefit from the anticipated rebound in tourist numbers and the recovery of the Hong Kong retail market[19] - The group plans to continue expanding its market presence in Asia-Pacific regions, focusing on enhancing product offerings and customer engagement strategies[54] Miscellaneous - The company did not report any significant new product launches or technological advancements during the period[37] - There were no significant mergers or acquisitions reported during the period[37] - The company is currently evaluating the potential impacts of new and revised Hong Kong Financial Reporting Standards on its financial performance[46] - The interim financial statements have not been reviewed or audited by the company's auditor but have been reviewed by the audit committee composed of three independent non-executive directors[111]

Financial Performance - Revenue for the year ended December 31, 2020, was HK$2,627 million, a decrease of 36.1% compared to HK$4,110 million in 2019[7] - Gross profit for 2020 was HK$840 million, down 33.5% from HK$1,264 million in 2019, with a gross profit margin of 32.0%, an increase of 1.2 percentage points[7] - Adjusted EBIT for 2020 was HK$160 million, a decline of 40.3% from HK$268 million in 2019[7] - Net profit for 2020 was HK$34 million, representing a decrease of 62.2% compared to HK$90 million in 2019[7] - Earnings per share for 2020 were HK0.50 cents, down 62.4% from HK1.33 cents in 2019[7] - The Group's total revenue decreased by 36.1% to HK$2,626.6 million in 2020, down from HK$4,110.1 million in 2019[11] - Gross profit decreased to HK$840.1 million, while gross profit margin increased by 1.2 percentage points to 32.0%[11] - Net profit decreased to HK$34.0 million, with a turnaround noted in the second half of the year after a net loss of HK$113.7 million in the first half[11] Market Performance - Revenue from the Hong Kong market dropped significantly to HK$1,256.6 million, accounting for 47.8% of total revenue, compared to 67.2% in 2019[11] - Revenue from the mainland China market increased by 39.7% to HK$783.3 million, representing 29.8% of total revenue, up from 13.6% in 2019[11] - The luxury sector in Hong Kong saw a 54.0% year-on-year decrease in retail sales of jewellery, watches, and valuable gifts due to COVID-19[14] - Mainland China's GDP grew by 2.3% during the year, indicating a recovery in domestic consumption despite the pandemic[15] - The total number of visitor arrivals to Hong Kong and Macau declined by 93.6% and 85.0% respectively, while the Group's segmental revenue in these markets decreased by 54.5% and 47.2%, indicating resilience in local luxury consumption demand[32] - The Group's mainland China business recorded a strong rebound with a year-on-year revenue growth of 39.7% as COVID-19 was substantially contained[33] Strategic Initiatives - The company plans to continue focusing on market expansion and enhancing investor relations strategies[9] - The Group's core strategy focuses on maintaining its leading position in Greater China while expanding beyond the region[20] - The Group plans to strengthen its strategic coverage in the mainland China market, which is expected to be a significant growth driver due to strong pent-up demand[41] - The Group launched the "Fortune Bracelet" product, enhancing engagement with local consumers through promotional and VIP events[31] - The Group is enhancing its online platforms for jewellery products and has established a presence on popular platforms such as JD.com, Tmall.com, and Zalora[37] Financial Position - Bank balances and cash on hand as of December 31, 2020, amounted to HK$405.1 million, an increase from HK$239.9 million in 2019[45] - Total bank borrowings as of December 31, 2020, were approximately HK$638.7 million, down from HK$790.9 million in 2019, resulting in a net gearing ratio of 5.1% compared to 12.3% in 2019[45] - As of December 31, 2020, the Group's current assets were approximately HK$3,585.3 million, an increase from HK$3,539.4 million in 2019, while current liabilities rose to HK$1,027.3 million from HK$659.3 million[46] - The current ratio decreased to 3.5 in 2020 from 5.4 in 2019, and the quick ratio also declined to 0.5 from 0.6[46] - The Group's distributable reserves as of December 31, 2020, amounted to HK$1,059,066,000, an increase from HK$936,114,000 in 2019[83] Corporate Governance - The Company is led by a Board responsible for strategic direction and monitoring financial performance to promote shareholder interests[1] - The Executive Committee, comprising all Executive Directors, manages day-to-day operations and formulates business policies[1] - Independent Non-executive Directors (INEDs) are confirmed independent based on annual reviews, ensuring impartial judgment in Board discussions[1] - The Board has established a formal schedule for matters reserved for Board decision, including approving annual results and major capital restructuring[1] - The Company has arranged appropriate insurance coverage for Directors against potential legal actions[1] - The Company has established a remuneration committee to recommend director remuneration based on performance and market benchmarks[158] - The company fully complied with the Corporate Governance Code provisions except for the separation of the roles of chairman and chief executive officer[170] Employee and Director Remuneration - Total staff costs for the year were HK$192.2 million, significantly reduced from HK$313.9 million in 2019, reflecting a decrease in the number of employees from 1,053 to 865[50] - The remuneration policy for directors is aligned with business strategy and shareholder interests, ensuring no individual determines their own remuneration[154] - Employees' remuneration is based on individual performance and market pay levels, including various benefits such as discretionary bonuses and share options[155] Shareholder Information - The annual results announcement is scheduled for March 24, 2021, with a final dividend of HK0.15 cents per share[5] - No interim dividend was paid during the Year, while a final dividend of HK$0.15 per share is recommended for the Year, compared to HK$0 in 2019[72][73] - The Directors recommended the final dividend payment is subject to approval at the upcoming annual general meeting on May 27, 2021[73] Related Party Transactions - The Group's total rental payments to Emperor International and Emperor E Hotel during the year were HK$73,297,000 and HK$2,834,000, respectively[135] - Transactions with connected persons constituted continuing connected transactions under Chapter 14A of the Listing Rules[135] - The auditor issued an unqualified letter regarding the Group's Disclosed Continuing Connected Transactions, confirming compliance with the relevant listing rules[145] - Independent non-executive directors confirmed that the disclosed transactions were conducted in the ordinary course of business and on normal commercial terms[146]

Financial Performance - Total revenue decreased by 61.3% to HKD 930.6 million compared to HKD 2,402.7 million in 2019[3] - Gross profit fell to HKD 305.2 million, with a gross margin increase of 1.3 percentage points to 32.8%[9] - Net loss recorded at HKD 113.7 million, compared to a net profit of HKD 117.6 million in 2019[9] - The group reported revenue of HKD 930,586,000 for the six months ended June 30, 2020, a decrease of 61.2% compared to HKD 2,402,664,000 in the same period of 2019[23] - The gross profit for the same period was HKD 305,184,000, down 59.7% from HKD 757,946,000 in 2019[23] - The group incurred a loss of HKD 113,720,000 for the period, compared to a profit of HKD 117,586,000 in the previous year[23] - The total comprehensive income for the period was HKD (129,118) thousand, compared to HKD 114,611 thousand in the previous period, indicating a significant decline[30] - The company reported a loss of HKD 113,720 thousand for the six months ended June 30, 2020, compared to a profit of HKD 117,586 thousand in the same period of 2019[30] - The company reported a pre-tax loss of HKD 110,674,000 for the six months ended June 30, 2020, compared to a pre-tax profit of HKD 147,342,000 in the same period of 2019[46][53] Revenue Breakdown - Revenue from Hong Kong market dropped significantly to HKD 503.7 million, accounting for 54.1% of total revenue[8] - Revenue from mainland China decreased by only 14.7% to HKD 243.4 million, representing 26.2% of total revenue[8] - External sales in Hong Kong were HKD 503,711,000, down from HKD 1,749,892,000 in 2019, indicating a decrease of about 71.2%[50][62] Cost Management - The total employee cost for the period was approximately HKD 95,600,000, a reduction of 46.5% from HKD 178,400,000 in the first half of 2019[20] - The total employee costs, including directors' remuneration, were HKD 87,527,000 for the six months ended June 30, 2020, down from HKD 165,283,000 in 2019[55][56] - The company incurred administrative expenses of HKD 50,048,000 during the reporting period, compared to HKD 79,761,000 in the previous year[46][55] Cash Flow and Liquidity - The company maintained a cash balance of HKD 251.1 million as of June 30, 2020, compared to HKD 239.9 million at the end of 2019[12] - Cash and cash equivalents at the end of the period were HKD 251,099 thousand, a decrease from HKD 623,135 thousand at the end of June 30, 2019, reflecting a decline of approximately 59.7%[32] - The net cash generated from operating activities for the six months ended June 30, 2020, was HKD 166,998 thousand, down from HKD 253,283 thousand in the same period of 2019, representing a decrease of about 34%[32] Store and Workforce Changes - The total number of retail stores decreased to 102 from 104 as of December 31, 2019[13] - The company has 713 sales staff as of June 30, 2020, down from 893 a year earlier, indicating a reduction in workforce[20] Strategic Initiatives - The company aims to expand its business beyond Greater China while maintaining its leading position in the luxury retail market[5] - The group plans to enhance online sales platforms and social media engagement to adapt to changing consumer behavior due to public health concerns[19] - The group aims to strengthen its jewelry business by launching unique product lines and enhancing customer interaction through promotional activities[17] Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code during the period, except for deviation from rule A.2.1 regarding the separation of the roles of Chairman and CEO[100] - The company’s management has indicated a focus on maintaining strong governance and compliance with related party transactions[86] Dividends and Shareholder Returns - The board has decided not to declare any interim dividend for the fiscal year ending December 31, 2020, compared to HKD 0.35 per share in 2019[21] - The company did not declare any interim dividend for the fiscal year ending December 31, 2020, compared to HKD 23,728,000 declared for the same period in 2019[62] Asset and Liability Management - Non-current assets decreased to HKD 2,305,958,000 as of June 30, 2020, from HKD 2,547,185,000 at the end of 2019[25] - Current liabilities decreased to HKD 1,153,912,000 as of June 30, 2020, from HKD 659,302,000 at the end of 2019[27] - Trade payables decreased to HKD 17,742,000 as of June 30, 2020, from HKD 44,357,000 as of December 31, 2019[71] - Bank borrowings as of June 30, 2020, totaled HKD 766,149,000, a decrease from HKD 790,934,000 as of December 31, 2019[78] Related Party Transactions - Related party transactions included sales to directors and their close relatives amounting to HKD 571,000 for the six months ended June 30, 2020, compared to HKD 1,724,000 in the same period of 2019[83] - The company’s other payables and accrued expenses totaled HKD 67,742,000 as of June 30, 2020, compared to HKD 72,631,000 as of December 31, 2019[71] Management Compensation - The total compensation paid to key management personnel for the six months ended June 30, 2020, was HKD 4,199,000, a decrease of 34.5% from HKD 6,447,000 in the same period of 2019[85]

Financial Performance - Revenue for the year ended December 31, 2019, was HK$4,110 million, a decrease of 13.0% from HK$4,722 million in 2018[9] - Gross profit for 2019 was HK$1,264 million, down 3.1% from HK$1,305 million in 2018, with a gross profit margin of 30.8%[9] - Net profit reported for 2019 was HK$90 million, a significant decline of 65.9% compared to HK$264 million in 2018[9] - Earnings per share decreased to HK3.87 cents, down 65.6% from HK1.33 cents in 2018[9] - The Group's total revenue decreased by 13.0% to HK$4,110.1 million in 2019, down from HK$4,722.2 million in 2018[24] - Net profit decreased by 65.9% to HK$90.0 million, while net profit before depreciation charges decreased by 32.3% to HK$182.1 million[26] Market and Operational Insights - Revenue from the Hong Kong market dropped to HK$2,760.7 million, accounting for 67.2% of total revenue, compared to 77.1% in 2018[24] - Revenue from mainland China and Southeast Asia markets increased by 36.8% and 26.4%, respectively, while Macau's revenue rose by 6.6% year-on-year[24] - The watch segment generated sales of HK$3,158.2 million, accounting for 76.8% of total revenue, while jewellery revenue decreased by 10.0% to HK$951.9 million[25] - The Group operates over 100 stores across Hong Kong, Macau, mainland China, Singapore, and Malaysia, employing over 1,000 staff[15] - As of December 31, 2019, the Group operated 104 stores, an increase from 95 stores in 2018, across various regions including Hong Kong, Macau, and mainland China[33] Strategic Initiatives - The Group's core strategy focuses on a balanced and comprehensive watch dealership list targeting middle to high-income groups worldwide[15] - The Company aims to maintain its position as the leading watch and jewellery retailing group in Greater China while expanding beyond the region[15] - The Group opened several "Emperor Jewellery" stores in emerging shopping areas in Hong Kong and two dedicated watch boutiques in first-tier cities in mainland China during the year[41] - The Group continues to expand its watch and jewellery store plans in Singapore, leveraging the significant tourist effect and local consumption[46] - The Group plans to closely monitor inventory levels and adjust the product portfolio based on market responses to optimize capital usage[52] Challenges and Risks - The Group anticipates a tough business environment to persist due to the ongoing coronavirus pandemic, which may materially affect consolidated results, cash flows, and financial condition for the year ending December 31, 2020[57] - The public health crisis is expected to hinder global economic development and may lead to stagnant global luxury consumption in the near term[57] - The duration of the pandemic remains uncertain, making it challenging for the Group to quantify its financial impact accurately[57] Corporate Governance - The Company has adopted various policies to ensure compliance with corporate governance standards[172] - The Company fully complied with the Corporate Governance Code provisions, except for the separation of roles between the Chairman and the Chief Executive Officer[172] - The Company has received confirmation of independence from each of the Independent Non-executive Directors (INEDs), and the Board considers them independent based on the factors set out in Rule 3.13 of the Listing Rules[1] - The Executive Committee is responsible for day-to-day management and has been delegated powers to formulate business policies and make decisions on key business issues[1] - The Company has established procedures for Directors to seek independent professional advice at the Company's expense when necessary[3] Employee and Remuneration Policies - The Group's employee remuneration is determined based on individual responsibility, competence, skills, experience, performance, and market pay levels[57] - The Group's total staff costs reflect a commitment to competitive remuneration and employee benefits, including medical and life insurance[57] - The Group has adopted a share option scheme to incentivize and reward staff[57] Dividends and Financial Reserves - The Group paid an interim dividend of HK$0.35 per share for the Year, totaling approximately HK$23.7 million, a decrease from HK$47.5 million in 2018[78] - No final dividend was recommended for the Year, compared to HK$0.55 per share amounting to approximately HK$37.3 million in 2018[79] - The Company's distributable reserves as of December 31, 2019, amounted to HK$936,114,000, an increase from HK$856,999,000 in 2018[91] Shareholding and Ownership Structure - As of December 31, 2019, Ms. Cindy Yeung holds 4,290,850,000 shares, representing 63.29% of the issued voting shares of the Company[110] - The Company has a significant ownership structure with private trusts holding substantial shares on behalf of the Directors[112] - The Company did not engage in the purchase, sale, or redemption of any listed securities during the Year[97] Charitable Contributions - The Group made charitable donations amounting to approximately HK$883,099 during the year[168]

Financial Performance - Total revenue for the six months ended June 30, 2019, was HKD 2,403 million, a decrease of 2.1% compared to HKD 2,454 million for the same period in 2018[3] - Gross profit increased by 12.0% to HKD 758 million, with a gross margin of 31.5%, up 3.9 percentage points from 27.6% in the previous year[3] - Net profit reported was HKD 118 million, down 24.8% from HKD 157 million in the first half of 2018, while adjusted net profit rose by 3.8% to HKD 163 million[3] - The group reported revenue of HKD 2,402,664,000 for the six months ended June 30, 2019, a decrease of 2.1% compared to HKD 2,453,978,000 in the same period of 2018[23] - Gross profit for the same period was HKD 757,946,000, reflecting an increase of 11.9% from HKD 677,270,000 in 2018[23] - The net profit for the period was HKD 117,586,000, a decrease from HKD 157,184,000 in the same period of 2018[23] - Basic earnings per share for the period were HKD 1.73, down from HKD 2.29 in 2018[23] - The pre-tax profit for the six months ended June 30, 2019, was HKD 147,342, compared to HKD 185,159 for the same period in 2018, indicating a decrease of approximately 20.4%[70] - The basic earnings per share attributable to the company's owners decreased to HKD 0.0173 for the first half of 2019, down from HKD 0.0229 in the same period of 2018, representing a decline of about 24.5%[79] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.35 per share, reduced from HKD 0.70 per share in the previous year[8] - The board declared an interim dividend of HKD 0.35 per share, totaling approximately HKD 23,700,000, down from HKD 47,500,000 in 2018[21] - The total dividend declared for the first half of 2019 was HKD 23,728,000, a decrease of 50% compared to HKD 47,456,000 in the first half of 2018[77] Cash Flow and Financial Position - As of June 30, 2019, the group had cash and cash equivalents of HKD 623 million, with total bank borrowings of HKD 1,127 million, resulting in a net debt ratio of 11.1%[9] - The net cash generated from operating activities for the six months ended June 30, 2019, was HKD 253,283 thousand, compared to a net cash used of HKD 49,979 thousand for the same period in 2018[30] - The cash and cash equivalents at the end of June 30, 2019, were HKD 623,135 thousand, down from HKD 1,348,588 thousand at the end of June 30, 2018[30] - The company’s bank borrowings as of June 30, 2019, were HKD 639,232 thousand, an increase from HKD 594,673 thousand as of December 31, 2018[27] - The company’s total assets net value was HKD 2,838,735 thousand as of June 30, 2019, compared to HKD 2,988,148 thousand as of December 31, 2018[27] - The company’s total liabilities decreased to HKD 1,071,895 thousand as of June 30, 2019, from HKD 1,071,895 thousand as of December 31, 2018[27] - The company’s retained earnings increased to HKD 1,474,885 thousand as of June 30, 2019, from HKD 1,402,463 thousand as of January 1, 2019[28] Store and Market Expansion - The retail network consists of over 95 stores across Hong Kong, Macau, mainland China, Singapore, and Malaysia, with a total of 97 stores as of June 30, 2019[11] - The watch business contributed HKD 1,884 million in revenue, accounting for 78.4% of total revenue, while jewelry revenue slightly increased to HKD 519 million[6] - The company opened one watch specialty store each in mainland China and Singapore during the period to enhance market penetration[13] - The group opened one new "Emperor Jewelry" store in Tsuen Wan, Hong Kong, and two stores in mainland China and one in Singapore during the reporting period[15] - The company continues to focus on strategic locations in Hong Kong, benefiting from high tourist traffic in prime retail areas[12] - The group aims to expand its coverage to capture opportunities from different customer segments globally[18] Employee and Operational Costs - The total employee cost for the group was approximately HKD 178,400,000, an increase from HKD 150,700,000 in the first half of 2018[19] - Employee costs, including director remuneration, totaled HKD 165,283, an increase from HKD 139,614 in the previous year[70] Compliance and Governance - The company has complied with all provisions of the Corporate Governance Code, except for the separation of the roles of Chairman and CEO[115] - The interim financial statements have not been audited or reviewed by the company's auditors but have been reviewed by the audit committee[119] - The company has adopted its own code of conduct for securities transactions by directors, which meets the standards set out in the Listing Rules[117] Lease Liabilities and Accounting Standards - The company adopted HKFRS 16, resulting in a recognition of lease liabilities amounting to HKD 462,174,000 and right-of-use assets of HKD 442,974,000 as of January 1, 2019[51] - The company recognized a significant increase in lease liabilities amounting to HKD 462,174 due to the application of HKFRS 16[62] - The weighted average incremental borrowing rate applied by the company was 3% for the calculation of lease liabilities[51] - The company applied exemptions for short-term leases, resulting in a reduction of lease liabilities by HKD 74,004,000[54] - The company recognized a decrease in retained earnings of HKD 7,877 as a result of the initial application of HKFRS 16[62] Related Party Transactions - Related party transactions for the six months ended June 30, 2019, totaled HKD 11,049,000, a significant decrease from HKD 105,582,000 in the same period of 2018[101] - The company has recognized lease liabilities of approximately HKD 188,694,000 as of June 30, 2019, related to leases with related companies[104] Shareholder Information - As of June 30, 2019, the company’s major shareholder, Ms. Yang, held 63.29% of the voting shares, amounting to 4,290,850,000 shares[106] - The beneficial owner of Emperor Watch and Jewellery Holdings holds 4,290,850,000 shares, representing 63.29% of the issued voting shares[111] - The total issued and paid-up ordinary shares as of June 30, 2019, remained at 6,779,458,129, unchanged from the previous year[98] - The company repurchased and cancelled 102,990,000 shares, with a total cost of HKD 51,194,000 deducted from retained earnings[98]

Financial Performance - Revenue for the year ended December 31, 2018, increased by 15.9% to HK$4,722 million from HK$4,075 million in 2017[10] - Gross profit rose by 19.8% to HK$1,305 million, with a gross profit margin of 27.6%, up from 26.7%[10] - Net profit per reported increased by 65.0% to HK$264 million, while adjusted net profit rose by 68.1% to HK$269 million[10] - Basic earnings per share increased by 66.8% to HK$3.87 from HK$2.32 in the previous year[10] - Total dividends per share increased by 66.7% to HK$1.25 from HK$0.75[10] - The adjusted net profit margin improved to 5.7%, up from 3.9% in the previous year[10] - Net profit rose by 65.5% to HK$264.3 million, with adjusted net profit growing by 68.5% to HK$269.1 million after accounting for a depreciation charge of HK$4.8 million[20] - Revenue from Hong Kong increased by 19.6% to HK$3,642.9 million, accounting for 77.1% of total revenue[24] - Revenue from the jewellery segment recorded a growth of 26.5% to HK$1,058.2 million, driven by an expanded store network and successful marketing strategies[24] Awards and Recognition - The company received multiple awards, including the Hong Kong Service Awards 2018 for Luxury Watch Retailer and the Outstanding Brand Awards 2018[12] - The company has been recognized as a Caring Company for over 10 years, highlighting its commitment to corporate social responsibility[12] Market Expansion and Strategy - The company plans to continue expanding its market presence and enhancing investor relations strategies[12] - The company aims to leverage new product developments and technology to drive future growth[12] - The Group is adopting a two-pronged strategy focusing on further penetration in Greater China and expanding into new cities in Southeast Asia, including Malaysia[59] - The Group aims to optimize cost structures and remain vigilant regarding macro-economic challenges such as the Sino-US trade dispute and currency fluctuations[55] - The luxury market in China is expanding, driven by rising income levels and improving quality of life, which supports the Group's long-term growth prospects[55] - The Group plans to enhance its marketing efforts and strengthen its presence in strategic locations to cater to the growing female consumer base in the jewellery sector[55] - Collaborations with pop stars and celebrities are utilized to enhance brand reputation and visibility in Chinese-speaking communities[49] Store Operations and Acquisitions - The Group operated 95 stores as of December 31, 2018, an increase from 80 stores in 2017, with a distribution across Hong Kong, Macau, mainland China, Singapore, and Malaysia[32] - In December 2018, the Group acquired a self-owned store on Canton Road, enhancing its strategic sales network in a prime retail location[37] - During the year, the Group launched one multi-watch store and three dedicated watch boutiques in Beijing and Chongqing, reinforcing its market penetration in mainland China[38] - Six new "Emperor Jewellery" stores were opened in Hong Kong during the year, located in high-traffic shopping malls[42] - The Group completed the acquisition of a retail space for HK$1,800 million, with HK$1,200 million paid in cash[25] - The acquisition of Perfect Raise Holdings Limited was completed on December 12, 2018, for a cash consideration of HK$1,151,472,008.69, after shareholder approval on December 5, 2018[141] Financial Position - As of December 31, 2018, the Group's bank balances and cash amounted to HK$627.3 million, down from HK$1,613.1 million in 2017[25] - The Group had total bank borrowings of approximately HK$1,156.5 million, resulting in a net gearing ratio of 11.9%[25] - As of December 31, 2018, the Group's current assets were approximately HK$3,896.8 million, down from HK$4,450.3 million in 2017, while current liabilities increased to HK$908.7 million from HK$305.7 million[29] - The current ratio decreased to 4.3 from 14.6 in 2017, and the quick ratio fell to 0.9 from 5.9[30] - The total bank borrowings amounted to approximately HK$1,156.5 million as of December 31, 2018, compared to none in 2017, resulting in a net debt-to-equity ratio of 11.9%[27] Employee and Compensation - Total staff costs for the year amounted to HK$291.7 million, an increase from HK$256.5 million in 2017, with 875 salespersons and 251 office staff as of December 31, 2018[60] - The group employed 875 sales personnel and 251 office staff as of December 31, 2018, compared to 752 and 216 respectively in 2017, indicating a workforce increase of approximately 16.4%[62] - Total employee costs, including director remuneration, amounted to HKD 291.7 million in 2018, up from HKD 256.5 million in 2017, reflecting an increase of about 13.7%[62] - Employee compensation is determined based on individual responsibilities, capabilities, experience, and market salary levels, ensuring competitive benefits including medical and life insurance[62] - The remuneration policy for Executive Directors is linked to the Group's operating results and individual performance, ensuring alignment with shareholders' interests[172] - The remuneration package for employees includes basic salaries, discretionary bonuses, and share options under the Share Option Scheme[172] Corporate Governance - The Company has maintained a sufficient public float of at least 25% of the issued shares as required under the Listing Rules[174] - The Board consists of six Directors, including three Executive Directors and three Independent Non-Executive Directors, as of December 31, 2018[183] - The Company fully complied with the Corporate Governance Code provisions for the year, except for the deviation regarding the segregation of roles of chairman and chief executive officer[182] - The Group's Independent Non-Executive Directors confirmed their independence in accordance with the Listing Rules[171] - The Board is responsible for the leadership, control, and promotion of the Group's success in the interests of shareholders[191] - The Executive Committee manages day-to-day operations and has delegated powers, except for key matters reserved for the Board[192] - The Board conducts annual reviews to ensure the independence of INEDs based on Listing Rules[196] - The Company is committed to good corporate governance practices and compliance with regulatory requirements[199] Share Repurchase and Dividends - The Group's share repurchase amounted to HK$51.2 million, buying back 102,990,000 shares at an average price of HK$0.50 per share, which were subsequently cancelled[27] - The Group's interim dividend for the Year was HK$0.7 cents per share, totaling approximately HK$47.5 million, an increase from HK$11.7 million in 2017[82] - The Directors recommended a final dividend of HK$0.55 cents per share, amounting to approximately HK$37.3 million, down from HK$39.9 million in 2017[82] - The Company's distributable reserves as of December 31, 2018, amounted to HK$856,999,000, an increase from HK$802,153,000 in 2017[92] - During the Year, the Company repurchased a total of 102,990,000 shares at an aggregate consideration of HK$51,193,950[100] Related Party Transactions - The Company entered into master leasing agreements with Emperor International and Emperor E Hotel on May 24, 2018, governing tenancy transactions until March 31, 2021[146] - The total rental payments under the Master Leasing Agreements amounted to HK$175,708,000, constituting non-exempt continuing connected transactions[156] - The aggregate amounts of Tenancy Transactions with Emperor International and Emperor E Hotel were HK$171,567,090 and HK$4,140,961 respectively during the year[151] - The Group complied with the disclosure requirements under Chapter 14A of the Listing Rules regarding related party transactions[159] Charitable Contributions - Charitable donations made by the Group during the year amounted to approximately HK$938,250[180]