香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對 因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損 失承擔任何責任。 ERNEST BOREL HOLDINGS LIMITED 依 波 路 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1856） 2022年 年 度 業 績 公 告 年度業績 依波路控股有限公司（「本公司」或「依波路」）董事（「董事」）會（「董事會」）謹 此 公 佈 本 公 司 及 其 附 屬 公 司（統 稱「本 集 團」）於 截 至2022年12月31日 止 年 度的經審核綜合業績，連同截至2021年12月31日止年度的比較數字。 財務及營運摘要 • 截 至2022年12月31日 止 財 政 年 度（「2022財 政 年 度」）的 營 業 額 較 截 至 2021年12月31日止財政年度（「2021財政年度」）減少，由約149.3百萬港 元減至約137.4百萬港元。 ...

Financial Performance - For the first half of the 2022 fiscal year, the company's revenue decreased by approximately 25.9% to about HKD 59.4 million, down from approximately HKD 80.1 million in the same period of 2021[12][25]. - Gross profit for the first half of 2022 was approximately HKD 39.1 million, resulting in a gross margin of about 65.8%, compared to a gross profit of approximately HKD 55.8 million and a gross margin of about 69.6% in the first half of 2021[13][18]. - The company reported a loss attributable to equity holders of approximately HKD 9.7 million for the first half of 2022, compared to a loss of approximately HKD 4.8 million in the same period of 2021[13][18]. - Gross profit decreased from approximately HKD 55.8 million in the first half of the 2021 fiscal year to approximately HKD 39.1 million in the first half of the 2022 fiscal year, a reduction of about HKD 16.7 million or approximately 30.0%[29]. - Gross margin fell from approximately 69.6% in the first half of the 2021 fiscal year to approximately 65.8% in the first half of the 2022 fiscal year[29]. - The company incurred a loss before tax of HKD 9,885,000 for the six months ended June 30, 2022[97]. - The net loss attributable to shareholders for the period was HKD 9,730,000, resulting in a basic and diluted loss per share of HKD 0.10[97]. - The company reported a net loss attributable to shareholders of HKD 9,730,000 for the six months ended June 30, 2022, compared to a loss of HKD 4,761,000 for the same period in 2021[133]. Market Performance - The number of sales points in China as of June 30, 2022, was 683, with revenue from this segment decreasing by approximately 27.6% to about HKD 57.0 million, accounting for approximately 96.0% of total revenue[23][27]. - The Hong Kong and Macau markets saw an increase in sales from approximately HKD 0.6 million to about HKD 1.5 million, representing a growth of approximately 151.9%[24][27]. - Other markets, primarily in Southeast Asia and Europe, experienced a revenue increase from approximately HKD 0.7 million to about HKD 0.9 million, reflecting a growth of approximately 19.9%[24][27]. - Revenue from external customers in China for the six months ended June 30, 2022, was HKD 57,026 thousand, down 27.7% from HKD 78,793 thousand in the same period of 2021[118]. Cost Management - Distribution expenses decreased by approximately HKD 8.3 million or about 26.6% to approximately HKD 23.1 million in the first half of the 2022 fiscal year, representing about 38.9% of total revenue[31]. - Administrative expenses decreased by approximately HKD 3.8 million or about 16.6% to approximately HKD 19.2 million in the first half of the 2022 fiscal year[32]. - The total employee cost for the first half of the 2022 fiscal year was approximately HKD 22.9 million, down from approximately HKD 28.0 million in the first half of the 2021 fiscal year[51]. - Employee costs totaled HKD 22,868,000 for the six months ended June 30, 2022, down from HKD 28,007,000 in the same period of 2021, reflecting a decrease of approximately 18.5%[131]. - The company is implementing effective cost control strategies to reduce unnecessary operating expenses while closely monitoring inventory levels to mitigate risks[62]. Inventory and Assets - Inventory as of June 30, 2022, was approximately HKD 357.6 million, a decrease of about HKD 15.0 million from approximately HKD 372.7 million as of December 31, 2021[37]. - As of June 30, 2022, total assets decreased to HKD 419,912 thousand from HKD 427,082 thousand as of December 31, 2021, representing a decline of approximately 1.4%[98]. - The company's non-current assets decreased from HKD 40,301 thousand to HKD 34,737 thousand, a reduction of about 13.8%[98]. - Total trade receivables amounted to HKD 60,978,000 as of June 30, 2022, an increase from HKD 55,353,000 as of December 31, 2021[136]. - The net amount of trade receivables after impairment provisions was HKD 41,902,000 as of June 30, 2022, compared to HKD 35,803,000 as of December 31, 2021[136]. Debt and Liabilities - The capital debt ratio as of June 30, 2022, was approximately 273.6%, up from approximately 250.9% as of December 31, 2021[41]. - Total liabilities increased slightly from HKD 324,490 thousand to HKD 328,218 thousand, an increase of approximately 1.1%[98]. - The company's equity attributable to owners decreased from HKD 112,775 thousand to HKD 102,969 thousand, a decline of about 8.7%[102]. - The group's bank loans with collateral amounted to HKD 17,109,000 as of June 30, 2022, compared to HKD 15,707,000 as of December 31, 2021, representing an increase of 8.96%[150]. - The scheduled repayment of bank loans includes HKD 14,028,000 due within one year as of June 30, 2022, compared to HKD 12,217,000 as of December 31, 2021, an increase of 14.83%[150]. Strategic Initiatives - The company anticipates that the long-term resilience of the Chinese consumer market will support stable growth despite short-term fluctuations due to economic instability[19]. - The company is actively expanding its market share in first and second-tier cities while targeting third-tier cities with a new sales model aimed at distributors in these areas[58]. - E-commerce sales are expected to grow steadily, with the company optimizing its platform investments and exploring potential partnerships beyond traditional platforms like Tmall, JD, and Vipshop[61]. - Future strategies include optimizing operations to capture a larger market share, particularly in third-tier cities, and transforming challenges into opportunities[63]. - The company aims to diversify revenue streams and maintain tight control over sales, distribution, and administrative expenses to achieve cost-saving goals[63]. - The company is committed to enhancing its profitability and delivering sustainable returns to shareholders through strategic preparations for future opportunities[63]. Corporate Governance - The company has established an audit committee to oversee financial reporting and internal controls, consisting of three independent non-executive directors[88]. - The company remains compliant with the corporate governance code as of June 30, 2022[86]. - The company has no significant future plans for major investments or acquisitions of capital assets as of June 30, 2022[46]. - The company did not declare or recommend any dividends for the periods ended June 30, 2022, and 2021[132].

Financial Performance - Revenue for the fiscal year ended December 31, 2021, increased from approximately HKD 122.6 million to approximately HKD 149.3 million, representing a growth of about 21.9%[10] - The company reported a loss attributable to owners of approximately HKD 31.8 million for the fiscal year 2021, compared to a profit of approximately HKD 1.3 million in the fiscal year 2020[11] - The loss per share for the fiscal year 2021 was approximately HKD 0.0916, compared to earnings per share of approximately HKD 0.0038 in the fiscal year 2020[12] - The company did not recommend the payment of a final dividend for the fiscal year 2021[13] - The company's revenue increased by approximately 21.7% from about HKD 122.6 million in 2020 to approximately HKD 149.3 million in 2021[49] - Gross profit rose by about 24.5% to approximately HKD 90.8 million in 2021, with a gross margin of approximately 60.9%, up from 59.5% in 2020[54] Market Performance - Sales performance in the Chinese market showed significant improvement, with sales revenue increasing compared to the previous year[19] - Revenue from the Chinese market increased by approximately 22.9% to about HKD 146.0 million, accounting for approximately 97.8% of total revenue in 2021[44] - Sales in the Hong Kong and Macau markets rose by approximately 88.1% to about HKD 1.9 million, representing approximately 1.3% of total revenue[45] - Revenue from other markets decreased by approximately 52.0% to about HKD 1.3 million, making up approximately 0.9% of total revenue[46] Operational Strategies - The company is strategically expanding its sales network in lower-tier cities in China to enhance sales revenue and operational efficiency[19] - The group is actively evaluating the performance of all sales points and closing underperforming locations to optimize resource allocation and improve profitability[19] - The company plans to explore various channels to expand sales revenue while closely controlling operational costs related to sales, distribution, and administrative expenses to achieve the goal of "increasing revenue and reducing expenditure"[24] - The group maintains a cautiously optimistic outlook for the retail market in 2022, anticipating a gradual restart of economic activities as vaccination rates increase, despite uncertainties such as variant viruses[24] E-commerce and Marketing - The group's e-commerce sales have shown a strong upward trend, becoming a major revenue driver, with active participation in platforms like Tmall and JD.com, as well as exploring influencer marketing and short video promotions[24] - Marketing strategies have shifted focus to online promotions through various e-commerce and social media platforms to maintain brand visibility[23] - E-commerce sales performance remains strong, with plans to explore new local and overseas platforms and optimize pricing strategies to attract a broader consumer base[83] Financial Management - Distribution expenses increased by approximately 48.0% to about HKD 67.1 million in 2021[59] - Administrative expenses rose by approximately 12.7% to about HKD 44.7 million in 2021[60] - The company is focused on effective inventory management to ensure stable cash flow and a healthy financial position, aiming to optimize inventory structure[24] - Cash and bank balances decreased to approximately HKD 7.6 million in 2021 from about HKD 18.4 million in 2020[64] - The group's debt-to-equity ratio as of December 31, 2021, was approximately 250.9%, up from 173.9% in 2020[65] Corporate Governance - The board consists of two executive directors, one non-executive director, and three independent non-executive directors[90] - The company has adopted the corporate governance code as per the listing rules, ensuring accountability and performance improvement[87] - All directors confirmed compliance with the standard code for securities trading during the fiscal year 2021, except for two non-executive directors who conducted transactions without prior notice[88] - The board is responsible for overseeing the group’s overall strategy, operational performance, and risk management systems[89] Environmental, Social, and Governance (ESG) Initiatives - The group focuses on sustainable development and has identified key environmental, social, and governance (ESG) issues, including employee rights, safety and health, and product quality and safety[150] - The report covers significant ESG matters faced by the group from January 1, 2021, to December 31, 2021[154] - The group emphasizes the importance of good ESG strategies to enhance investment value and provide long-term returns to stakeholders[164] - The total greenhouse gas emissions for the reporting period amounted to 135.96 tons of CO2 equivalent, with a density of 0.0027 tons of CO2 equivalent per watch produced[174] Sustainability Goals - The company aims to reduce carbon emission density by 10% by 2027[198] - The company plans to decrease energy consumption density by 10% by 2027[198] - The total water consumption dropped significantly to 138.64 cubic meters in 2021 from 691.69 cubic meters in 2020, a reduction of approximately 80%[195] - The company promotes a "reduce, reuse, and recycle" philosophy to protect the environment and contribute to society[200]

Financial Performance - For the first half of the 2021 fiscal year, revenue increased by approximately 109.5% to about HKD 80.1 million, up from approximately HKD 38.2 million in the same period of 2020[9]. - Gross profit rose to approximately HKD 55.8 million, with a gross margin of about 69.6%, compared to a gross profit of approximately HKD 20.9 million and a margin of about 54.6% in the previous year[9]. - The net loss after tax decreased from approximately HKD 10.1 million in the first half of 2020 to approximately HKD 4.8 million in the first half of 2021[9]. - The basic loss per share for the first half of 2021 was approximately HKD 1.37 cents, compared to approximately HKD 2.91 cents in the same period of 2020[9]. - The company reported revenue of HKD 80,113,000 for the six months ended June 30, 2021, a significant increase of 109.5% compared to HKD 38,236,000 for the same period in 2020[80]. - Gross profit for the same period was HKD 55,798,000, representing a gross margin of approximately 69.7%[80]. - The company incurred a loss before tax of HKD 4,612,000, an improvement from a loss of HKD 15,017,000 in the prior year, indicating a reduction in losses by 69.3%[80]. - The net loss attributable to shareholders for the period was HKD 4,761,000, compared to HKD 10,115,000 in the previous year, reflecting a 52.9% decrease in losses[80]. - The company’s total comprehensive loss for the period was HKD 12,454,000, compared to HKD 6,317,000 in the same period last year[80]. Market Performance - Revenue from the Chinese market increased by approximately 117.2% to about HKD 78.8 million, accounting for approximately 98.4% of total revenue[15]. - Sales in the Hong Kong and Macau markets decreased by approximately 16.4% to about HKD 0.6 million, representing approximately 0.7% of total revenue[16]. - Sales in other markets, primarily in Southeast Asia and Europe, fell by approximately 41.5% to about HKD 0.7 million, accounting for approximately 0.9% of total revenue[17]. - The overall market conditions and consumer sentiment in mainland China have improved, contributing to the significant revenue growth despite challenges in other regions[12]. Expenses and Costs - Sales cost increased by approximately HKD 6.9 million or 40.0% from HKD 17.3 million in the first half of FY2020 to HKD 24.3 million in the first half of FY2021[21]. - Distribution expenses increased by approximately HKD 14.6 million or 86.9% from HKD 16.8 million in the first half of FY2020 to HKD 31.4 million in the first half of FY2021, representing 39.2% of total revenue[24]. - Administrative expenses rose by approximately HKD 10.9 million or 90.7% from HKD 12.1 million in the first half of FY2020 to HKD 23.0 million in the first half of FY2021[25]. - The total employee costs for the period were HKD 28,007,000, up from HKD 22,029,000 in the previous year, marking an increase of 27.1%[107]. Inventory and Assets - As of June 30, 2021, inventory was approximately HKD 361.1 million, an increase of approximately HKD 1.5 million from HKD 359.6 million as of December 31, 2020[29]. - As of June 30, 2021, total assets amounted to HKD 441,411 thousand, an increase of 1.4% from HKD 433,411 thousand as of December 31, 2020[82]. - Non-current assets decreased slightly to HKD 41,482 thousand from HKD 41,285 thousand, indicating a marginal decline of 0.5%[82]. - The company's cash and cash equivalents at the end of the period were HKD 24,537 thousand, up from HKD 16,371 thousand at the end of June 2020, representing a year-on-year increase of 50.0%[89]. Debt and Liabilities - The capital debt ratio as of June 30, 2021, was approximately 201.0%, up from 173.9% as of December 31, 2020[33]. - Total liabilities increased to HKD 311,088 thousand as of June 30, 2021, compared to HKD 291,328 thousand at the end of 2020, reflecting a rise of 6.8%[82]. - The company’s total non-current liabilities rose to HKD 32,415 thousand, up from HKD 31,524 thousand, marking an increase of 2.8%[84]. - Bank loans with a maturity within one year amounted to HKD 13,000,000 as of June 30, 2021, compared to HKD 19,384,000 as of December 31, 2020, reflecting a decrease of approximately 33%[125]. Strategic Focus - The company is focusing on expanding its e-commerce business in mainland China through major online sales platforms, which has positively impacted revenue[14]. - The company plans to focus on high-quality "Swiss-made" watches and adapt to market trends to design products that cater to target customers[47]. - The company will continue to enhance brand awareness through various marketing strategies, including participation in the China International Import Expo in November[48]. - The company is focusing on expanding its sales network in high-potential markets, particularly in the Hainan Free Trade Zone, to increase sales revenue from strong sales points[49]. - The company plans to enhance its e-commerce operations by introducing exclusive watch styles for online platforms and adjusting pricing strategies to attract a broader consumer base[51]. - Effective cost control strategies are being implemented to reduce unnecessary operating expenses while closely monitoring inventory levels to mitigate risks[52]. - The company maintains a cautious yet optimistic outlook for the future, closely monitoring the pandemic situation and adjusting operational strategies accordingly[53]. Shareholder Information - As of June 30, 2021, the company had a total of 347,437,000 shares issued, with significant shareholdings by International Brand Limited (64.08%) and Anli (10.92%)[61][63]. - The company has a share option plan in place with a maximum issuance limit of 34,700,000 shares, representing approximately 9.99% of the issued share capital as of the report date[69]. - The company did not declare or recommend any dividends for the six months ended June 30, 2021, consistent with the previous year[108]. - The company is focused on sustainable and valuable returns for shareholders through constructive brand development[53].

1856 ERNEST BOREL HOLDINGS LIMITED 依 波 路 控 股 有 限 公 司 (於開曼群島註冊成立之有限公司) 股份代號 : 1856 年 報 2020 目錄 2 公司資料 3 財務摘要 4 主席報告書 6 董事及高級管理人員履歷詳情 9 管理層討論與分析 14 企業管治報告 24 環境、社會及管治報告 38 董事會報告書 50 獨立核數師報告 54 綜合損益及其他全面收益表 55 綜合財務狀況表 57 綜合權益變動表 58 綜合現金流量表 60 綜合財務報表附註 112 五年財務摘要 公司資料 依波路控股有限公司（「本公司」，連同其附屬公司統稱「本集團」） 董事 執行董事 商建光先生（董事會（「董事會」）主席） Teguh Halim先生（董事會副主席） 熊威先生 林黎女士 非執行董事 熊鷹先生 陶立先生 獨立非執行董事 杜振基先生 許卓傑先生 陳麗華女士 公司秘書 吳建新先生 審核委員會 杜振基先生（主席） 許卓傑先生 陳麗華女士 薪酬委員會 杜振基先生（主席） Teguh Halim先生 熊威先生 許卓傑先生 陳麗華女士 提名委員會 商建光先生（主席） 熊威先生 杜振基先生 ...

Financial Performance - For the six months ended June 30, 2020, the company's revenue decreased by approximately 31.4% to HKD 38.2 million from HKD 55.7 million in the same period of 2019[19]. - The gross profit for the first half of 2020 was HKD 20.9 million, down from HKD 24.7 million in the first half of 2019, while the gross margin increased to 54.7% from 44.3%[19]. - The loss attributable to equity holders decreased to HKD 10.1 million in the first half of 2020, compared to HKD 27.5 million in the same period of 2019[19]. - The basic loss per share for the first half of 2020 was HKD 2.91, compared to HKD 7.90 in the first half of 2019[19]. - Revenue from the China segment decreased to HKD 36.3 million in the first half of 2020, down from HKD 46.9 million in the same period of 2019, accounting for approximately 95.0% of total revenue[27]. - Revenue from the Hong Kong and Macau markets dropped approximately 83.7% to HKD 0.7 million from HKD 4.3 million in the first half of 2019[28]. - Revenue from other markets, primarily in Southeast Asia and Europe, decreased by approximately 73.3% to HKD 1.2 million from HKD 4.5 million in the first half of 2019[29]. - The company reported revenue of HKD 38,236,000 for the six months ended June 30, 2020, a decrease of 31.5% compared to HKD 55,734,000 in the same period of 2019[97]. - Gross profit for the same period was HKD 20,862,000, down 15.1% from HKD 24,698,000 year-on-year[97]. - The company recorded a loss before tax of HKD 15,017,000, an improvement from a loss of HKD 27,336,000 in the previous year[97]. - The net loss attributable to the company's owners was HKD 10,115,000, compared to a loss of HKD 27,458,000 in the prior period, indicating a significant reduction in losses[97]. - Total comprehensive loss for the period was HKD 6,317,000, a decrease from HKD 27,720,000 in the same period last year[97]. Cost Management - Sales cost decreased by approximately 44.2% from about HKD 31.0 million in the first half of the 2019 fiscal year to about HKD 17.3 million in the first half of the 2020 fiscal year[33]. - Administrative expenses decreased by HKD 16.0 million or approximately 56.9% from HKD 28.1 million in the first half of the 2019 fiscal year to HKD 12.1 million in the first half of the 2020 fiscal year[39]. - The company recognized a cost of goods sold of HKD 17,374,000 for the six months ended June 30, 2020, compared to HKD 31,036,000 in 2019, representing a reduction of approximately 44.5%[134]. Market Strategy - The company has adjusted its brand promotion and distribution strategies in response to market conditions affected by the COVID-19 pandemic[23]. - The company enhanced its online marketing efforts through platforms like WeChat and Tmall to boost e-commerce sales during the pandemic[26]. - E-commerce sales remained stable and higher than the same period last year, despite some regional sales being affected by COVID-19[63]. - The company plans to design new men's, women's, and couple's watch series to meet market needs[59]. - The company is exploring new strategies for market expansion and product development to enhance its competitive position[159]. Financial Position - As of June 30, 2020, the company's non-collateral cash and bank balances were HKD 16.4 million, down from HKD 18.7 million as of December 31, 2019[45]. - The capital debt ratio increased to approximately 171.6% as of June 30, 2020, compared to 146.7% as of December 31, 2019[45]. - The company's total assets as of June 30, 2020, were HKD 381,873,000, slightly down from HKD 388,866,000 at the end of 2019[102]. - Current liabilities decreased to HKD 251,493,000 from HKD 247,886,000, indicating a stable financial position[102]. - The company reported a decrease in reserves from HKD 136,954 to HKD 130,637, a reduction of 4.8%[124]. - The company’s total liabilities increased, indicating a potential need for strategic financial management moving forward[163]. Shareholder Information - As of June 30, 2020, the company had a total of 347,437,000 shares issued[71]. - International Brand Limited holds 222,634,485 shares, representing 64.08% of the total issued shares[73]. - Teguh Halim holds 6,000,000 shares, accounting for 0.14% of the total issued shares[67]. - The company has a share option scheme in place, effective from July 11, 2014, aimed at incentivizing eligible individuals to enhance future performance and efficiency[81]. - The company will continue to seek valuable and sustainable returns for shareholders through strategic investments and market expansion[65]. Future Outlook - The company anticipates a challenging outlook for the second half of 2020 due to ongoing uncertainties in the global economy, including the impact of the COVID-19 pandemic and US-China trade disputes[65]. - The company plans to closely monitor market conditions and adjust operational strategies accordingly, while being prudent in controlling operational expenses[65]. - The company is committed to reviewing and allocating resources for advertising and product development more cautiously[65]. - The company is exploring various investment and development opportunities to expand revenue and provide sustainable returns to shareholders in the future[65].

Financial Performance - Revenue for the fiscal year ended December 31, 2019, decreased from HKD 171.8 million to HKD 141.5 million, a decline of approximately 17.6%[7] - Gross profit margin fell from 44.2% to 39.5%, with gross profit decreasing from HKD 75.9 million to HKD 55.9 million[8] - Loss before tax reduced from HKD 82.7 million to HKD 55.2 million, a decrease of 33.3%[9] - Loss after tax for the fiscal year was HKD 79.0 million, down from HKD 97.7 million, representing a reduction of 19.1%[10] - Earnings per share improved from HKD 0.2811 to HKD 0.2275[11] - The company recorded revenue of HKD 141.5 million for the fiscal year 2019, a decrease of approximately 17.6% from HKD 171.8 million in 2018[37] - Gross profit decreased to HKD 55.9 million in 2019, down from HKD 75.9 million in 2018, with a gross margin of 39.5% compared to 44.2% in the previous year[48] - The company's net loss for the fiscal year 2019 was HKD 79.0 million, a reduction of 19.1% from a net loss of HKD 97.7 million in 2018[54] Market Performance - Revenue from the Chinese market fell to HKD 110.1 million in 2019, representing a 26.4% decline from HKD 149.6 million in 2018, accounting for approximately 77.8% of total revenue[38][44] - Sales in the Hong Kong and Macau markets decreased by 22.9% to HKD 6.6 million in 2019 from HKD 8.5 million in 2018, contributing about 4.7% to total revenue[39][45] - Other markets, primarily in Southeast Asia and Europe, saw an increase in revenue from HKD 13.6 million in 2018 to HKD 24.8 million in 2019, marking an 81.8% growth and accounting for approximately 17.5% of total revenue[40][46] Cost Management - Inventory decreased by approximately 10.7% from HKD 366.1 million at the end of 2018 to HKD 326.9 million at the end of 2019[55] - The company's total borrowings were HKD 205.9 million as of December 31, 2019, down from HKD 223.1 million in 2018, with a capital debt ratio of approximately 146.7%[58] - Sales and distribution expenses decreased by approximately 31.9% to HKD 47.5 million in 2019, representing about 33.6% of total revenue[51] - Administrative expenses were reduced by approximately 15.2% to HKD 52.3 million in 2019 from HKD 61.7 million in 2018[52] - The total employee cost for the fiscal year 2019 decreased to approximately HKD 63.3 million from about HKD 67.9 million in 2018, representing a reduction of approximately 8.7% in total employees from 231 to 211[69] - The company has adopted a cost control strategy to manage and allocate resources effectively, aiming to reduce unnecessary operating costs[76] Corporate Governance - The company has a significant management team with extensive experience in investment management and corporate governance, including executives with backgrounds in finance and operations[23][24][25] - The company has a diverse board of directors, including independent non-executive directors with expertise in finance, law, and management[29][30] - The company’s executive director, He Wen, has been appointed as CEO since June 2019, bringing over 20 years of experience in finance and operations[32] - The board consists of four executive directors, two non-executive directors, and three independent non-executive directors, ensuring a diverse range of expertise and experience[85] - The company has established various committees including the Audit, Remuneration, Nomination, Executive, and Investment Committees to ensure effective governance[101] - The Audit Committee consists of three independent non-executive directors, ensuring no conflicts of interest with the external auditor[103] - The company has adopted a nomination policy to guide the selection and recommendation of board candidates, ensuring transparency and fairness[110] - The board has reviewed the company's compliance with corporate governance codes and policies during the year[121] Strategic Initiatives - The company launched a series of new watch designs targeting market preferences, enhancing brand image and customer confidence[17] - E-commerce sales continued to grow, with investments in platforms like Tmall and JD.com to cater to customer tastes[19] - The company anticipates ongoing market challenges, particularly due to the COVID-19 pandemic, but plans to control operational costs and seek investment opportunities[19] - The company plans to enhance its product offerings by designing men's, women's, and couple's watch series to cater to target customers[73] - The company will continue to monitor market conditions and allocate resources to e-commerce to increase sales revenue[75] Environmental and Social Responsibility - The company aims to balance environmental, social, and governance aspects in its sustainable development efforts[135] - The company emitted a total of 183.84 tons of greenhouse gas during the reporting period, with a density of 0.91 tons of CO2 equivalent per employee[143] - The company consumed 104,081 kWh of electricity, averaging 512.71 kWh per employee[147] - The company has implemented a "green office" policy promoting energy-saving measures and resource conservation[148] - The company has a strict procurement policy to minimize waste and ensure responsible resource usage[146] - The company emphasizes equal opportunity and diversity, ensuring fair treatment regardless of gender, disability, or race[153] - Community engagement is encouraged, with employees participating in social welfare and volunteer activities to positively impact the community[164] Risk Management - The company is closely monitoring the impact of COVID-19 on the global business environment, which may affect its financial performance[68] - The macroeconomic environment poses risks to consumer behavior, potentially affecting demand for non-essential watch products[168] - As of December 31, 2019, the company reported a net exchange loss of HKD 4.1 million, compared to HKD 10.9 million in 2018, indicating a reduction in foreign exchange risk impact[169] Shareholder Relations - The company is committed to maintaining high transparency and effective communication with shareholders and investors through various reports and announcements[131] - The company has established a process for shareholders to request special general meetings and propose matters for discussion[132] - The company has adopted a dividend policy aimed at providing stable and sustainable returns to shareholders while reserving appropriate reserves for future development[127]

Financial Performance - Revenue for the first half of the 2019 fiscal year decreased by approximately 33.9% to HKD 55.7 million from HKD 84.3 million in the same period of 2018[21]. - Gross profit for the first half of 2019 fell to HKD 24.7 million, with a gross margin of 44.3%, down from HKD 39.5 million and 46.9% respectively in the first half of 2018[10]. - Loss attributable to equity holders decreased to HKD 27.5 million in the first half of 2019, compared to HKD 43.1 million in the same period of 2018[11]. - Revenue from the Chinese segment decreased to HKD 46.9 million, accounting for approximately 84.2% of total revenue, down from HKD 73.9 million in the first half of 2018[17][23]. - Sales in the Hong Kong and Macau markets decreased by approximately 8.5% to HKD 4.3 million, representing about 7.7% of total revenue[18][24]. - Other markets, primarily in Southeast Asia and Europe, saw revenue decline by approximately 21.1% to HKD 4.5 million[18][25]. - The overall loss per share for the first half of 2019 was HKD 0.079, compared to HKD 0.1241 in the same period of 2018[11]. - The company reported a revenue of HKD 55,734,000 for the six months ended June 30, 2019, compared to a loss of HKD 43,121,000 in the same period of 2018[103]. - The gross profit was HKD 24,698,000, resulting in a gross margin of approximately 44.3%[103]. - The net loss attributable to the owners of the company for the period was HKD 27,458,000, a decrease from HKD 43,121,000 in the previous year, indicating an improvement of approximately 36.2%[103]. - Total comprehensive loss for the period was HKD 27,720,000, compared to HKD 43,692,000 in the prior year, reflecting a reduction of about 36.6%[103]. Cost Management - Sales cost decreased by approximately 30.6% from HKD 44.7 million in the first half of the 2018 fiscal year to HKD 31.0 million in the first half of the 2019 fiscal year[29]. - Distribution expenses decreased by approximately 46.0% from HKD 36.3 million in the first half of 2018 to HKD 19.6 million in the first half of 2019, representing about 35.2% of total revenue for the first half of 2019[31]. - Administrative expenses increased by HKD 1.8 million or about 6.8%, from HKD 26.3 million in the first half of 2018 to HKD 28.1 million in the first half of 2019[32]. - Financing costs decreased by approximately 65.4% from HKD 15.6 million in the first half of 2018 to HKD 5.4 million in the first half of 2019[33]. Market Presence and Strategy - The company aims to enhance its market presence and brand positioning in the luxury watch segment[16]. - The company continues to focus on maintaining high-quality Swiss manufacturing standards and expanding its distribution network[16]. - The company maintains a positive outlook for the second half of 2019, focusing on enhancing brand awareness and controlling operational costs while exploring investment opportunities for sustainable returns[54]. Shareholder Information - The company has a total of 347,437,000 shares issued as of June 30, 2019[64]. - Mr. Tai Wei holds 37,935,000 shares, representing 10.92% of the company's equity[59]. - Mr. Tequh Halim and his spouse collectively hold 6,000,000 shares, accounting for 0.14% of the equity[59]. - The company has a share option plan that allows for the issuance of up to 34,700,000 shares, which is approximately 9.99% of the issued share capital[80]. - The share option plan is designed to incentivize eligible individuals to improve future performance and efficiency[79]. - International Brand Limited directly holds 222,634,485 shares, which is a significant portion of the company's equity[71]. - The company aims to retain and attract qualified individuals through its share option plan[79]. - The total number of shares held by major shareholders is significant, with various entities holding substantial stakes[68]. - The company has a structured approach to disclosing interests and holdings in accordance with securities regulations[70]. Assets and Liabilities - The company's total assets as of June 30, 2019, were HKD 404,205,000, with total liabilities of HKD 207,299,000, resulting in a net asset value of HKD 196,906,000[108]. - The company had cash and cash equivalents amounting to HKD 69,375,000 as of June 30, 2019[107]. - The total trade receivables as of June 30, 2019, were HKD 56,235,000, down from HKD 75,329,000 as of December 31, 2018[177]. - The net trade receivables after impairment losses were HKD 35,619,000, a decrease from HKD 54,718,000 in the previous year[177]. - The company reported a total financial liability of HKD 200,580,000 as of June 30, 2019, down from HKD 231,176,000 as of December 31, 2018[200]. - The company has a total of HKD 61,414,000 in financial assets measured at amortized cost as of June 30, 2019, compared to HKD 85,604,000 in the previous year[200]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2019, was HKD 17,164,000[119]. - The net cash used in investing activities amounted to HKD (4,061,000) for property, plant, and equipment additions[119]. - The net cash used in financing activities was HKD (35,297,000), primarily due to repayments of loans from related companies and the ultimate holding company[119]. - The cash and cash equivalents decreased by HKD (3,682,000), resulting in a closing balance of HKD 24,866,000[119]. - The company reported a total cash inflow from life insurance policy proceeds of HKD 17,428,000[119]. - Interest income received during the period was HKD 45,000[119]. Compliance and Governance - The company’s board confirmed compliance with the corporate governance code during the reporting period[87]. - The audit committee, composed of three independent non-executive directors, reviewed the interim results and recommended their adoption by the board[92]. - The financial statements were prepared in accordance with International Financial Reporting Standards and the relevant disclosure requirements of the Hong Kong Stock Exchange[120]. Changes in Leadership - The company appointed a new CEO on June 10, 2019, indicating a potential shift in leadership strategy[94]. Accounting Changes - The company adopted IFRS 16 Leases, which significantly changed the accounting treatment for leases, impacting the balance sheet with an increase in right-of-use assets by HKD 7,428,000[131]. - The non-current lease liabilities increased by HKD 2,265,000, while current lease liabilities rose by HKD 5,163,000 due to the adoption of IFRS 16[131]. - The total lease liabilities recognized on January 1, 2019, amounted to HKD 7,428 million, after adjustments for short-term leases and future interest expenses[134]. - The group has chosen not to capitalize leases for low-value assets and those with a lease term of less than 12 months, with related lease payments recognized as expenses on a straight-line basis[140]. - The average incremental borrowing rate applicable to the recognized lease liabilities as of January 1, 2019, was 5%[134]. - The group has adopted the cumulative effect method for the initial application of IFRS 16, with all cumulative effects recognized as adjustments to retained earnings on the date of initial application[146].

Financial Performance - Revenue for the fiscal year ended December 31, 2018, decreased from HKD 227.2 million to HKD 171.8 million, representing a decline of approximately 24.5%[7] - Gross profit margin increased from 21.2% to 44.2%, with gross profit rising from HKD 48.1 million to HKD 75.9 million[8] - The net loss after tax for the fiscal year was HKD 97.7 million, a reduction of 50.5% compared to HKD 197.3 million in the previous fiscal year[9] - Loss per share improved from HKD 0.5678 to HKD 0.2811[10] - Revenue from the Chinese market fell from HKD 193.4 million in 2017 to HKD 149.6 million in 2018, accounting for approximately 87.1% of total revenue[41] - Sales in the Hong Kong, Macau, and Southeast Asia markets decreased by about 26.4% from HKD 28.7 million in 2017 to HKD 21.1 million in 2018, representing about 12.3% of total revenue[42] - Loss attributable to equity holders decreased by 50.5% from HKD 197.3 million in 2017 to HKD 97.7 million in 2018[56] - The company's revenue decreased by approximately 24.4% from HKD 227.2 million in 2017 to HKD 171.8 million in 2018[43] Management and Governance - The company appointed Mr. Teguh Halim as Executive Director and Vice Chairman on October 12, 2018, who has extensive experience in corporate and investment management[21] - Ms. Lin Li was appointed as Executive Director and Authorized Representative on October 12, 2018, leading the company's overseas investment and acquisition projects[22] - The company has a strong management team with over 30 years of experience in business management, international business, and brand building[32] - The company secretary, Mr. Liu Fanru, has over 24 years of experience in finance and accounting, managing the overall financial and accounting matters of the group since February 2012[33] - The company appointed Mr. Shang Jian Guang as the Executive Director and Chairman of the Board on October 12, 2018, and Mr. Tao Li as the CEO, ensuring compliance with the corporate governance code A.2.1[84] - The Board consists of four Executive Directors, one Non-Executive Director, and three Independent Non-Executive Directors, ensuring a diverse range of expertise and industry knowledge[90] - The company has complied with all provisions of the corporate governance code as of December 31, 2018, except for the temporary deviation regarding the roles of Chairman and CEO prior to October 12, 2018[87] - Independent Non-Executive Directors play a crucial role in providing independent judgment and ensuring that the interests of all shareholders are considered[116] - The company has arranged suitable insurance to protect directors against legal liabilities arising from corporate activities[113] - The Board meets regularly to discuss business strategies, monitor financial and operational performance, and approve annual and interim results[91] - The company has implemented continuous professional development for directors to ensure compliance with corporate governance standards[114] - The company has ensured a balance of power and authority within the Board, with independent non-executive directors providing independent opinions on matters considered by the Board[84] Operational Strategies - The company plans to adopt a cautious yet proactive approach in 2019, focusing on controlling operational costs and launching market-appropriate new products[18] - The company is actively seeking different investment opportunities to expand its profit base and provide sustainable returns to shareholders[18] - The company has developed three new product lines: Romantic Couples, Elegant Ladies, and Dripping Elegant Gents, aimed at high-end target customers and millennials[80] - The company upgraded and renovated its Swiss factory production line to maintain high-quality standards for its "Swiss Made" watches[80] - The company plans to enhance brand awareness through various marketing strategies, including outdoor advertising and digital promotions, to increase market share[80] - The company remains cautious yet optimistic about the global economy and the Chinese market, focusing on controlling operational costs and exploring investment opportunities for sustainable returns[81] Environmental, Social, and Governance (ESG) Initiatives - The report covers significant environmental, social, and governance issues faced by the group from January 1, 2018, to December 31, 2018[180] - The company has established clear policies to ensure product quality and protect customer rights, emphasizing the importance of product responsibility[179] - The company is committed to continuous improvement in environmental, social, and governance performance, seeking innovation in these areas[179] - Total greenhouse gas emissions amounted to 139.81 tons of CO2 equivalent, with an employee density of 0.61 tons of CO2 equivalent per employee[192] - Electricity consumption reached 185,069 kWh, with a density of 801.16 kWh per employee[197] - The company consumed 10,574.48 liters of automotive fuel, resulting in a density of 45.78 liters per employee[197] - Fixed fuel consumption was recorded at 5,014 liters, with a density of 21.71 liters per employee[197] - Water usage totaled 652.16 cubic meters, with a density of 2.82 cubic meters per employee[197] - The company implemented a "green office" policy promoting energy-efficient practices, including the use of LED lighting and double-sided printing[198] - Waste management practices include recycling old watch batteries and ensuring compliance with Swiss environmental laws[199] - The company aims to reduce its carbon footprint and improve environmental policies based on carbon measurement results[193] - Resource management efforts focus on responsible procurement and minimizing waste during production[196] - The company is committed to sustainable development and seeks opportunities to lessen environmental impact[191] Financial Management - The company's financing costs slightly decreased by about 1.8% from HKD 27.7 million in 2017 to HKD 27.2 million in 2018[56] - The capital debt ratio increased to approximately 99.3% in 2018 from 76.1% in 2017, with total borrowings of HKD 223.1 million[61] - Distribution expenses decreased by approximately 40.7% from HKD 117.6 million in 2017 to HKD 69.7 million in 2018, representing about 40.6% of total revenue[54] - The total employee cost increased from approximately HKD 59.4 million in 2017 to approximately HKD 67.9 million in 2018, despite a reduction in full-time employees from 273 to 231, representing a decrease of 15.4%[78] - The independent auditor's fees for audit services amounted to HKD 730,000, while non-audit services totaled HKD 169,000[170] Corporate Governance and Compliance - The Audit Committee held four meetings during the year to review the audited annual results for the year ended December 31, 2017, and the unaudited interim results for the six months ended June 30, 2018[144] - The Audit Committee recommended the appointment of Hong Kong Shinewing Certified Public Accountants Limited as the auditor to fill the vacancy left by the resignation of Guotai Junan (Hong Kong) CPA Limited[144] - The Remuneration Committee held three meetings to review the Group's remuneration policy and the remuneration of executive directors and senior management[148] - The Nomination Committee held three meetings to review the independence of independent non-executive directors and assess the composition of the board[155] - The Executive Committee held three meetings to handle urgent matters and approve changes to the authorization of senior management[157] - The Investment Committee did not hold any meetings during the year[159] - The company reviewed its corporate governance policies and practices during the year[161] - The company has not made any changes to its constitutional documents during the year[162] - The company has published its memorandum and articles of association on the Stock Exchange and its own website[163] - The board is responsible for preparing the financial statements to reflect the group's financial position, performance, and cash flow accurately for the fiscal year[164] - The audit committee and board conducted a risk assessment to identify and prioritize significant risks, ensuring the effectiveness of risk management and internal control systems[166] - The company emphasizes maintaining clear and timely communication with shareholders and investors, ensuring transparency through annual reports and announcements[172] - The board has confirmed that all directors complied with the trading standards set out in the listing rules throughout the year[171] - The company has taken appropriate measures to identify and maintain the confidentiality of insider information until it is properly disclosed through the stock exchange[167]