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].

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]