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]