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]