Revenue and Profitability - Revenue for the first half of the 2025 fiscal year decreased by approximately 20.6% to about HKD 343.0 million from HKD 432.0 million in the same period of 2024[10]. - Gross profit dropped by approximately 25.5% to about HKD 235.1 million, with a gross profit margin decline from 73.1% to 68.5%[14]. - The revenue from the Tian Wang watch business, which accounted for approximately 83.1% of total revenue, decreased by about 24.9% to HKD 284.8 million[11]. - The company recorded a loss attributable to owners of approximately HKD 10.9 million, compared to a profit of HKD 11.5 million in the previous year[19]. - The group reported a loss before tax of HKD 22,756,000, compared to a profit of HKD 15,360,000 in the previous year[46]. - The company reported a net loss attributable to owners of HKD 10,914,000 for the six months ended December 31, 2024, compared to a profit of HKD 11,482,000 in the same period of 2023, representing a significant decline[47]. - Total comprehensive loss attributable to owners was HKD 14,597,000 for the six months ended December 31, 2024, down from a total comprehensive income of HKD 17,150,000 in 2023[47]. Sales and Distribution - The number of retail points for Tian Wang watches reduced from 1,695 to 1,573, a net decrease of 122 points[11]. - Offline retail sales of Tianwang watches decreased by approximately 25.2% in the first half of the 2025 fiscal year compared to the same period in 2024[22]. - The revenue contribution from the Tianwang watch business for the first half of the 2025 fiscal year was approximately 83.1%, down from 87.8% in the first half of the 2024 fiscal year[22]. - The group aims to reduce underperforming sales points and optimize its sales network to maintain market coverage amid declining sales revenue[43]. Other Income and Expenses - Other income and losses decreased by approximately 16.5% to HKD 33.0 million, primarily due to a drop in interest income and government subsidies[15]. - Selling and distribution costs decreased by approximately 16.5% to HKD 247.7 million, attributed to the closure of retail points and reduction in full-time staff[16]. - The company incurred a loss of HKD 7,513,000 from other gains and losses for the six months ended December 31, 2024, compared to a loss of HKD 7,384,000 in the previous year[62]. - The group’s administrative costs for the six months ended December 31, 2024, were HKD 18,249,000, compared to HKD 17,515,000 in the same period of 2023[59]. Cash Flow and Investments - The cash and cash equivalents as of December 31, 2024, were approximately 861.9 million HKD, down from 959.2 million HKD as of June 30, 2024[27]. - The net cash used in investment activities for the first half of the 2025 fiscal year was approximately 118.7 million HKD, primarily due to purchases of property, plant, and equipment[28]. - Cash generated from operating activities was HKD 56,501,000 for the six months ended December 31, 2024, down from HKD 84,281,000 in the same period of 2023, a decrease of about 33%[51]. - Cash used in investing activities was HKD 118,693,000 for the six months ended December 31, 2024, compared to cash generated of HKD 133,080,000 in 2023, indicating a shift in cash flow dynamics[51]. - The company reported a net cash outflow from financing activities of HKD 39,661,000 for the six months ended December 31, 2024, compared to HKD 85,767,000 in the same period of 2023, showing an improvement in financing cash flow[51]. Assets and Liabilities - The total equity as of December 31, 2024, was approximately 2,265.4 million HKD, a decrease of about 50.8 million HKD from 2,316.2 million HKD as of June 30, 2024[28]. - Non-current assets decreased to HKD 1,109,432,000 as of December 31, 2024, from HKD 995,364,000 as of June 30, 2024, indicating an increase of approximately 11.4%[48]. - Current assets decreased to HKD 1,362,933,000 as of December 31, 2024, from HKD 1,545,509,000 as of June 30, 2024, reflecting a decline of about 11.8%[48]. - The company’s current liabilities increased to HKD 159,037,000 as of December 31, 2024, from HKD 154,723,000 as of June 30, 2024, reflecting a rise of about 2.1%[49]. Employee and Management - The total number of full-time employees was approximately 2,800 as of December 31, 2024, down from about 3,000 on June 30, 2024[35]. - Employee costs for the first half of the 2025 fiscal year were approximately HKD 126.4 million, compared to HKD 137.4 million in the first half of the 2024 fiscal year[35]. - Total employee costs decreased to HKD 126,405,000 in 2024 from HKD 137,426,000 in 2023, reflecting a reduction of approximately 8.2%[66]. - The total remuneration for key management personnel was HKD 6,294,000 for the six months ended December 31, 2024, slightly up from HKD 6,279,000 in the previous year[86]. Shareholding and Corporate Governance - As of December 31, 2024, the chairman and CEO, Mr. Tung Koon Ming, held 1,466,869,000 shares, representing 71.27% of the company[97]. - Major shareholder Tung Koon Ming Family (PTC) Limited held 1,456,277,000 shares, accounting for 70.76% of the company's total shares[99]. - The total number of issued shares as of December 31, 2024, was 2,058,068,000[100]. - The company confirmed compliance with the corporate governance code during the first half of the 2025 fiscal year[93].

Financial Performance - Revenue for the first half of the fiscal year 2025 was approximately HKD 343.0 million, a decrease of about HKD 89.0 million compared to HKD 432.0 million in the first half of fiscal year 2024[5]. - The loss attributable to the owners of the company for the first half of fiscal year 2025 was approximately HKD 10.9 million, compared to a profit of HKD 11.5 million in the first half of fiscal year 2024[5]. - Basic loss per share for the first half of fiscal year 2025 was HKD 0.5 cents, while it was a profit of HKD 0.6 cents in the first half of fiscal year 2024[7]. - Gross profit for the first half of fiscal year 2025 was HKD 235.1 million, down from HKD 315.6 million in the same period of the previous year, representing a decrease of approximately 25.5%[6]. - Total comprehensive loss for the period amounted to HKD 15.8 million, compared to a total comprehensive income of HKD 17.2 million in the previous year[7]. - The group reported a pre-tax loss of HKD 22,756,000 for the six months ended December 31, 2024, compared to a pre-tax profit of HKD 15,360,000 for the same period in 2023[20][22]. - The group reported a net loss attributable to shareholders of HKD 10,914,000 for the six months ended December 31, 2024, compared to a profit of HKD 11,482,000 in the same period of 2023[36][37]. - Other income, gains, and losses decreased by approximately HKD 6.5 million or 16.5% to HKD 33.0 million in the first half of FY2025[60]. - The company recorded a loss attributable to owners of approximately HKD 10.9 million in the first half of FY2025, compared to a profit of HKD 11.5 million in the first half of FY2024[65]. Dividend and Equity - The board of directors did not recommend the payment of an interim dividend for the first half of fiscal year 2025, consistent with the previous year[5]. - The group did not declare an interim dividend for the six months ended December 31, 2024, consistent with the previous year[34]. - Total equity as of December 31, 2024, was approximately HKD 2,265.4 million, a decrease of about HKD 50.8 million from HKD 2,316.2 million as of June 30, 2024[80]. - The company’s net asset value attributable to owners was HKD 2,265.0 million, down from HKD 2,314.6 million, a decrease of about 2.1%[11]. Cash Flow and Assets - Cash and cash equivalents decreased to HKD 861.9 million from HKD 959.2 million, a decline of about 10.1%[9]. - Trade receivables decreased to HKD 78.0 million from HKD 131.6 million, indicating a reduction of approximately 40.7%[9]. - The company reported a net cash used in operating activities for the first half of the 2025 fiscal year was approximately HKD 56.5 million, a decrease of about HKD 27.8 million from HKD 84.3 million in the first half of the 2024 fiscal year[78]. - Total assets decreased to HKD 2,313.3 million from HKD 2,386.2 million, reflecting a reduction of approximately 3.1%[11]. Sales and Market Performance - The external sales for the Tian Wang watch business were HKD 284,848,000, down from HKD 379,400,000 in the previous year, indicating a decrease of about 25%[20][22]. - The revenue from the Tianwang watch business, which accounted for approximately 83.1% of total revenue in the first half of FY2025, decreased by about HKD 94.6 million or 24.9% to approximately HKD 284.8 million[54]. - The number of sales points for the Tianwang watch business decreased from 1,695 to 1,573, a net reduction of 122 sales points[54][68]. - The company plans to continue optimizing its sales network by reducing underperforming sales points to maintain market coverage[89]. Employee and Operational Costs - The group incurred a total employee cost of HKD 126,405,000 for the six months ended December 31, 2024, compared to HKD 137,426,000 in the same period of 2023, reflecting a reduction of approximately 8%[33]. - Employee costs for the first half of the 2025 fiscal year were approximately HKD 126.4 million, down from HKD 137.4 million in the first half of the 2024 fiscal year[87]. - The company employed approximately 2,800 full-time employees as of December 31, 2024, down from approximately 3,000 as of June 30, 2024[87]. Future Outlook and Strategy - The retail market in China is expected to perform poorly in the second half of 2024 due to ongoing adjustments in the real estate market and international trade tensions, impacting overall retail performance[89]. - The company has successfully controlled sales and operating expenses during revenue contraction to maintain profitability[89]. - The company does not plan any significant acquisitions or disposals of subsidiaries, joint ventures, or major investments in the first half of fiscal year 2025[95]. - The financial position of the company remains strong due to a conservative approach to cash management, ensuring sufficient liquidity and operational capital[91]. - The Chinese retail market in 2025 will be influenced by macroeconomic conditions, policy environment, and consumer trends, with government policies aimed at boosting economic development[92]. Product Development - In the first half of the fiscal year 2025, the company launched a diverse range of fashion watches and carefully designed jewelry products[91]. - The company launched over 10 new models of Tianwang watches in the first half of FY2025, priced between approximately RMB 1,499 and RMB 6,180[69]. - The company has started supplying OEM/ODM watches to corporate clients, monitoring production growth and expanding facilities as needed[91].

Financial Performance - For the fiscal year 2024, the company reported revenue of approximately HKD 881.0 million, a decrease of about 10.3% compared to HKD 981.8 million for the fiscal year 2023[15]. - The gross profit margin slightly decreased from 73.4% in fiscal year 2023 to 72.8% in fiscal year 2024, representing a decline of approximately 0.6 percentage points[15]. - The profit attributable to the company's owners decreased from approximately HKD 37.1 million in fiscal year 2023 to approximately HKD 33.6 million in fiscal year 2024, a decline of about 9.4%[15]. - Basic earnings per share for fiscal year 2024 were HKD 1.6 cents, down from HKD 1.8 cents in fiscal year 2023, reflecting an 11.1% decrease[5]. - The total revenue for the fiscal year 2024 decreased by approximately HKD 100.7 million or about 10.3% to approximately HKD 881.0 million, primarily due to slower-than-expected recovery in the Chinese economy and the closure of underperforming sales points[23]. - The group's gross profit decreased by approximately HKD 79.8 million or about 11.1% to approximately HKD 641.2 million, reflecting the decline in sales from Tianwang watches and other brands[26]. - The net profit for the year was HKD 34.039 million, a decline of 10.4% compared to HKD 38.019 million in 2023[174]. - Total comprehensive income for the year was HKD 11.226 million, a significant recovery from a loss of HKD 94.895 million in 2023[174]. Revenue Breakdown - In the fiscal year 2024, the main brand, Tianwang watches, contributed approximately 87.3% of the total revenue, amounting to about HKD 769.4 million[24]. - Revenue from Tianwang watches decreased by approximately HKD 89.7 million or about 10.4% to approximately HKD 769.4 million, with the retail network shrinking from 1,786 to 1,695 sales points[24]. - Revenue from the other brands (China) business dropped by approximately HKD 34.6 million or about 57.5% to approximately HKD 25.6 million, accounting for about 2.9% of total revenue[25]. - The revenue from the movement trading business increased by approximately HKD 23.6 million or about 37.7% to approximately HKD 86.1 million, representing about 9.8% of total revenue[26]. - E-commerce business accounted for approximately 27.4% of total revenue in fiscal year 2024, up from 25.7% in fiscal year 2023[37]. Cost Management - Selling and distribution costs decreased by approximately HKD 58.3 million or about 9.3% to approximately HKD 569.0 million, due to the closure of sales points and reduced employee costs[28]. - Administrative expenses decreased by approximately HKD 1.5 million or about 1.6% to approximately HKD 93.2 million[29]. - The group maintains a cautious approach to cost control and aims to maximize profitability through improved efficiency and cost structure[24]. - The financing cost for the fiscal year 2024 is approximately HKD 0.6 million, a decrease of about 25% from HKD 0.8 million in fiscal year 2023[30]. Assets and Equity - Total assets as of June 30, 2024, were approximately HKD 2,540.9 million, a decrease from HKD 2,619.6 million in fiscal year 2023[9]. - The company’s equity attributable to owners was approximately HKD 2,314.6 million as of June 30, 2024, down from HKD 2,386.1 million in fiscal year 2023, reflecting a decrease of 3.0%[5]. - As of June 30, 2024, the total equity of the group was approximately HKD 2,316.2 million, a decrease of about HKD 71.4 million from HKD 2,387.6 million on June 30, 2023[40]. Inventory and Cash Management - The average inventory turnover days improved from 408 days in fiscal year 2023 to 317 days in fiscal year 2024[9]. - Inventory balance decreased by approximately HKD 41.2 million or 18.0% to about HKD 187.4 million as of June 30, 2024[38]. - Cash and cash equivalents increased to approximately HKD 959.2 million as of June 30, 2024, from HKD 792.2 million as of June 30, 2023[39]. - The net cash generated from investment activities for the fiscal year 2024 was approximately HKD 82.2 million, primarily from the redemption of financial assets at fair value through profit or loss of about HKD 86.8 million and the sale of debt instruments at fair value through other comprehensive income of approximately HKD 81.1 million[40]. Market Conditions and Future Plans - The company acknowledges ongoing pressures in the Chinese job market and real estate sector, which continue to affect consumer spending ability and sentiment[14]. - The company plans to expand its OEM and ODM production of mechanical watch movements and watches, starting from July 1, 2024, targeting markets outside of Hong Kong, Macau, and China[14]. - The company anticipates challenges in the e-commerce sector due to increasing competition but will enhance online operational capabilities through targeted marketing activities[56]. - The company expects its performance and financial condition to be inevitably affected by uncertainties and challenges in the Chinese economy and retail industry in the coming years[57]. Corporate Governance - The board consists of seven directors, including four executive directors and three independent non-executive directors as of June 30, 2024[85]. - The company has adopted a corporate governance code and established a corporate governance committee to ensure compliance with governance standards[81]. - The company is committed to maintaining high standards of corporate governance and regularly reviews its governance practices[81]. - The company has arranged suitable liability insurance for directors to protect against legal claims arising from corporate activities[85]. - The company emphasizes the importance of internal controls and risk management in its operations[85]. Social Responsibility and Community Engagement - The company has a commitment to social responsibility, with board members actively involved in charitable and community service initiatives[75]. - The company raised approximately HKD 1.4 million in charity funds during the "YO Charity Event 2023," with over 500 participants[66]. - The company is committed to supporting educational equity in rural China through donations to the "Beautiful China" organization, enhancing access to quality education for rural children[66]. Shareholder Information - The company has established multiple communication channels with shareholders, including annual reports and direct inquiries[116]. - Shareholders holding at least 10% of the paid-up capital have the right to request a special general meeting to vote on specified matters[113]. - The company has distributed over 40% of its attributable profit as cash dividends from the fiscal year ending June 30, 2013, to the fiscal year 2024[56]. - The company declared a special dividend of HKD 0.01 per share and a final dividend of HKD 0.007 per share for the fiscal year 2024, to be paid on December 12, 2024[129]. Risk Management and Compliance - The group has established procedures to accurately and securely handle and disclose insider information to prevent unauthorized access and mishandling[106]. - The independent non-executive directors have reviewed the compliance with the non-competition commitments and found that the controlling shareholders have adhered to these commitments throughout the 2024 fiscal year[111]. - The group has engaged an external professional company to periodically review its internal control measures across all significant operations, including governance, financial, and operational aspects[105]. - The company has implemented corporate governance measures to manage potential conflicts of interest between the controlling shareholders and the company[109].

Financial Performance - Revenue for the fiscal year 2024 was approximately HKD 881.0 million, a decrease of about 10.3% compared to HKD 981.8 million in fiscal year 2023[1] - Gross profit for fiscal year 2024 was approximately HKD 641.2 million, down about 11.1% from HKD 721.0 million in fiscal year 2023[1] - The gross profit margin decreased from approximately 73.4% in fiscal year 2023 to about 72.8% in fiscal year 2024[1] - Profit attributable to owners of the company for fiscal year 2024 was approximately HKD 33.6 million, a decrease of about 9.3% from HKD 37.1 million in fiscal year 2023[1] - Basic earnings per share for fiscal year 2024 were HKD 0.016, compared to HKD 0.018 in fiscal year 2023[1] - The company reported a total comprehensive income of HKD 11.2 million for the fiscal year 2024, a significant recovery from a loss of HKD 94.9 million in fiscal year 2023[2] - The company reported a profit before tax of HKD 42,780,000 for the year ending June 30, 2024[17] - The group reported a profit before tax of HKD 45,517,000 for the year ended June 30, 2023[18] - The net profit attributable to the company's owners decreased by approximately HKD 3.4 million or about 9.3% to approximately HKD 33.6 million in FY2024[49] Revenue Breakdown - Total revenue for the year ending June 30, 2024, was HKD 881,036,000, with watch sales contributing HKD 769,430,000 and movement trading contributing HKD 86,050,000[15] - For the year ending June 30, 2023, total revenue was HKD 981,760,000, with watch sales at HKD 919,266,000 and movement trading at HKD 62,494,000[16] - The revenue from the Tian Wang watch business, which accounts for approximately 87.3% of total revenue, decreased by about HKD 89.7 million or about 10.4% to approximately HKD 769.4 million in FY2024[41] - Revenue from other brands (China) decreased by approximately HKD 34.6 million or about 57.5% to approximately HKD 25.6 million, representing about 2.9% of total revenue in FY2024[42] - The revenue from the movement trading business increased by approximately HKD 23.6 million or about 37.7% to approximately HKD 86.1 million in FY2024, accounting for about 9.8% of total revenue compared to 6.4% in FY2023[54] - E-commerce business accounted for approximately 27.4% of total revenue in FY2024, up from 25.7% in FY2023, indicating stable performance in online sales channels[55] Dividends - The proposed final dividend and special dividend for fiscal year 2024 were HKD 0.007 and HKD 0.010, respectively[1] - The company plans to pay a final dividend of HKD 0.007 per share and a special dividend of HKD 0.010 per share for the year ended June 30, 2024[25] - The board has proposed a special dividend of HKD 0.01 per share and a final dividend of HKD 0.007 per share for the fiscal year 2024[67] - The company has distributed or declared cash dividends amounting to over 40% of the profit attributable to owners from the fiscal year ended June 30, 2013, to the fiscal year 2024[66] Assets and Liabilities - Non-current assets totaled HKD 995.4 million as of June 30, 2024, compared to HKD 982.4 million as of June 30, 2023[4] - Current assets amounted to HKD 1,545.5 million as of June 30, 2024, down from HKD 1,637.2 million as of June 30, 2023[4] - Total equity attributable to owners of the company was HKD 2,314.6 million as of June 30, 2024, compared to HKD 2,386.1 million as of June 30, 2023[5] - Total equity decreased by approximately HKD 71.4 million to about HKD 2,316.2 million as of June 30, 2024, compared to approximately HKD 2,387.6 million as of June 30, 2023[58] Inventory and Receivables - The total inventory decreased from HKD 228,632,000 in 2023 to HKD 187,384,000 in 2024, with raw materials and consumables significantly dropping from HKD 68,782,000 to HKD 32,942,000[35] - Trade receivables from third parties decreased from HKD 188,259,000 in 2023 to HKD 154,930,000 in 2024, with a credit loss provision of HKD 25,312,000[36] - The total amount of trade and other receivables, deposits, and prepayments decreased from HKD 244,300,000 in 2023 to HKD 202,274,000 in 2024[37] Employee Costs - The total employee costs for the year were HKD 270,526,000, a decrease from HKD 300,124,000 in the previous year[23] - The company employed approximately 3,000 full-time employees as of June 30, 2024, down from approximately 3,100 employees as of June 30, 2023, with employee costs decreasing to about HKD 270.5 million from approximately HKD 300.1 million[61] Financial Management - The company maintains a strong financial position despite experiencing a turbulent period, focusing on cash management and liquidity[66] - The company received government subsidies related to the COVID-19 employment support scheme amounting to approximately HKD 927,000[21] - Interest income for the year was HKD 56,426,000, while other income totaled HKD 89,287,000[20] Corporate Governance - The company has complied with the corporate governance code and has adopted a code of conduct for directors' securities transactions[73] - The board of directors held two regular meetings during the fiscal year 2024 to discuss significant business activities and operational matters[72] Future Outlook - The company anticipates challenges in the growth of its e-commerce segment due to increasing competition among market participants[65] - The company expects the application of new and revised Hong Kong Financial Reporting Standards will not have a significant impact on the consolidated financial statements in the foreseeable future[14] - The company will begin supplying OEM-produced mechanical watch movements and watches to markets outside of Hong Kong, Macau, and China starting July 1, 2024[65]

Financial Performance - Group revenue for the period was HK$465,666 thousand, with external sales contributing HK$382,766 thousand and inter-segment sales at HK$4,631 thousand[1] - The group reported a pre-tax loss of HK$48,727 thousand, with a segment performance loss of HK$13,004 thousand[1] - Revenue for the first half of fiscal year 2024 decreased by 7.2% to HKD 432.0 million compared to HKD 465.7 million in the first half of fiscal year 2023, primarily due to a decline in revenue from other branded watches (China) business[93] - Net profit attributable to owners of the company was HKD 11.5 million in the first half of fiscal year 2024, compared to a net loss of HKD 44.9 million in the first half of fiscal year 2023, driven by reduced exchange losses and inventory provisions[100] - Revenue for the six months ended December 31, 2023, was HK$431.964 million, a decrease from HK$465.666 million in the same period in 2022[187] - Gross profit for the period was HK$315.582 million, down from HK$327.167 million in the previous year[187] - Net profit for the period was HK$11.023 million, a significant improvement from a net loss of HK$45.218 million in 2022[187] - The company's total revenue for the period was HK$431.964 million, with external sales contributing HK$379.4 million from the Tian Wang watch business, HK$39.796 million from the watch movement trading business, and HK$12.768 million from other brands (China) business[199] - The Tian Wang watch business generated a segment profit of HK$4.041 million, while the watch movement trading business and other brands (China) business reported segment losses of HK$1.247 million and HK$1.259 million, respectively[199] - The company's profit before tax for the period was HK$15.36 million, after accounting for interest income of HK$32.73 million, other income and losses of HK$1.078 million, central administrative costs of HK$17.515 million, and financing costs of HK$312,000[199] - The company's total segment revenue was HK$436.644 million, with inter-segment sales of HK$4.68 million, primarily from the watch movement trading business[199] Revenue Breakdown - Tian Wang watch business contributed 87.8% of the total revenue in the first half of fiscal year 2024, with revenue slightly decreasing by 0.9% to HKD 379.4 million compared to HKD 382.8 million in the first half of fiscal year 2023[94] - Revenue from the watch movement trading business increased by 9.0% to HKD 39.8 million in the first half of fiscal year 2024, accounting for 9.2% of total revenue[96] - The revenue contribution of the Tianwang watch business to the group's total revenue in the first half of the 2024 fiscal year was approximately 87.8%, up from 82.2% in the same period of the 2023 fiscal year[104] - Revenue from other brands (China) business decreased by HKD 33.6 million or 72.5% from HKD 46.4 million in the first half of fiscal year 2023 to HKD 12.8 million in the first half of fiscal year 2024[125] - The revenue from other branded watches (China business) decreased by approximately HKD 33.6 million, or 72.5%, from HKD 46.4 million in the first half of the 2023 fiscal year to HKD 12.8 million in the first half of the 2024 fiscal year[117] Inventory and Trade Receivables - Inventory levels included raw materials and consumables at HK$59,318 thousand, work-in-progress at HK$6,964 thousand, and finished goods at HK$163,288 thousand[23] - Trade receivables from related parties aged 0-30 days stood at HK$12,692 thousand, while those aged 31-60 days were HK$12,187 thousand[27] - Trade receivables decreased from HKD 161,998 thousand as of June 30, 2023, to HKD 126,420 thousand as of December 31, 2023, with the largest decrease in the 0-60 days category from HKD 128,996 thousand to HKD 89,185 thousand[47] - Inventory balance increased by HKD 1.0 million or 0.4% to HKD 229.6 million as of December 31, 2023, compared to HKD 228.6 million as of June 30, 2023[126] - Inventory turnover days decreased from 408 days as of June 30, 2023, to 359 days in the first half of fiscal year 2024[126] - The average inventory turnover days decreased from 408 days as of June 30, 2023, to 359 days as of December 31, 2023[114] Financial Assets and Liabilities - The group's financial assets measured at amortized cost were valued at HK$412,661 thousand, down from HK$445,124 thousand in the previous period[22] - The group's investments in debt instruments through other comprehensive income had coupon rates ranging from 5.00% to 6.38%, with semi-annual payments[20] - The group's deposits and certificates of deposit were valued at HK$61,679 thousand, while life insurance policies were valued at HK$7,603 thousand[17] - The group's fair value of financial assets measured on a recurring basis was HK$125,668 thousand as of June 30, 2023, with a foreign exchange adjustment of HK$327 thousand[15] - Deferred tax assets slightly decreased from HKD 52,638 thousand as of June 30, 2023, to HKD 51,994 thousand as of December 31, 2023, while deferred tax liabilities decreased from HKD 66,893 thousand to HKD 62,779 thousand over the same period[51] - The company's financial assets measured at fair value through other comprehensive income decreased to HK$101.893 million from HK$198.151 million as of June 30, 2023[190] - The company's deferred tax assets were HK$51.994 million as of December 31, 2023, compared to HK$52.638 million as of June 30, 2023[190] - The company's investments in debt instruments measured at fair value through other comprehensive income include corporate bonds issued by Hong Kong-listed companies, with a comparative figure from June 30, 2023[158] - The company's financial assets measured at fair value through profit or loss include non-listed financial products purchased from commercial banks and insurance companies, with a comparative figure from June 30, 2023[176] Cash Flow and Liquidity - Net cash generated from operating activities increased by HKD 44.4 million to HKD 84.3 million in the first half of fiscal year 2024, compared to HKD 39.9 million in the first half of fiscal year 2023[128] - Cash and cash equivalents were HKD 927.8 million as of December 31, 2023, compared to HKD 792.2 million as of June 30, 2023[144] - Net cash generated from investing activities was HKD 133.1 million in the first half of fiscal year 2024, primarily from the purchase of property, plant, and equipment of HKD 19.5 million and net cash inflows from the redemption of financial assets[145] - The company's net cash used in financing activities was approximately HKD 85.8 million in the first half of the 2024 fiscal year, primarily due to dividends paid of approximately HKD 82.3 million[109] - The company maintains a strong financial position with a focus on cash management and liquidity to navigate the challenging retail environment[185] Shareholding Structure - Tung Koon Ming holds 1,466,869,000 shares, representing 71.27% of the company's equity, through a trust arrangement[43][44] - Red Glory Investments Limited holds 1,456,277,000 shares, representing 70.76% of the company's equity[66] - Areo Holdings Limited holds 186,292,000 shares, representing 9.05% of the company's equity, with interests controlled by Lin Liming and Li Jipei[66][68] - Orchid Asia V, L.P. holds 180,946,000 shares, representing 8.79% of the company's equity[66] - Webb David Michael holds 63,354,320 shares, representing 3.08% of the company's equity, and an additional 41,217,680 shares as a beneficial owner[66] Operational Expenses and Efficiency - Administrative expenses decreased by 11.0% to HKD 43.8 million in the first half of fiscal year 2024, mainly due to reduced employee costs[99] - Employee costs were HKD 137.4 million in the first half of fiscal year 2024, compared to HKD 163.6 million in the first half of fiscal year 2023[131] - The company employed approximately 3,200 full-time employees as of December 31, 2023, compared to 3,100 as of June 30, 2023[131] - The company's other business segments, including the Baige watch business and other brands in China, remain under pressure due to current market conditions, with short-term goals focused on improving overall operational efficiency[164] Retail Network and Sales Strategy - The retail network for Tian Wang watches decreased by 21 sales points from 1,786 to 1,765 between June 30, 2023, and December 31, 2023[94] - The company operates a retail network of approximately 1,900 directly managed and controlled sales points across China, along with e-commerce channels on major platforms[83] - The company strategically expanded its sales network and increased investment in e-commerce to enhance overall competitiveness[89] - The number of Tianwang watch sales points decreased by 21, from 1,786 as of June 30, 2023, to 1,765 as of December 31, 2023[123] - Directly managed sales points accounted for over 65.2% of the sales of Tian Wang and Baige watches in the first half of fiscal year 2024[139] - The company plans to continue monitoring the performance of its sales outlets and expand the retail network for its Tian Wang watches, while optimizing the sales network for better regional market coverage[163] Brand and Product Development - The company's core brand, Tian Wang, established in 1988, is one of China's leading domestic watch brands targeting the mass market[88] - The company's other brand, Balco, acquired in 2002, targets young middle-income consumers with Swiss-made watches[88] - The company launched over 40 new Tianwang watch models in the first half of the 2024 fiscal year, with prices ranging from approximately RMB 160 to RMB 5,680[104] - The company is actively seeking a prominent Chinese film and television star to serve as the new brand ambassador for Tian Wang watches, aligning with the brand's image and perception[182] E-commerce and Online Sales - E-commerce sales of watches increased from approximately HKD 115.0 million in the first half of the 2023 fiscal year to HKD 120.5 million in the first half of the 2024 fiscal year, a growth of HKD 5.5 million[106] - The company's e-commerce business faces increasing competition, but it plans to enhance online operations through live streaming, short videos, and new media channels like Douyin and Dewu[184] Capital Expenditure and Investments - The group purchased property, plant, and equipment worth HK$19,464 thousand, a significant decrease from HK$53,067 thousand in the same period last year[13] - The company's property, plant, and equipment were valued at HK$379.016 million as of December 31, 2023, compared to HK$385.626 million as of June 30, 2023[190] - The company's investment properties were valued at HK$125.995 million as of December 31, 2023, slightly higher than HK$125.668 million as of June 30, 2023[190] - The company's IPO proceeds of HKD 742.0 million as of February 2013 have seen HKD 705.5 million utilized by the end of the 2023 fiscal year, with no further utilization in the first half of the 2024 fiscal year[181] - The company has not made any significant acquisitions, disposals, or investments in subsidiaries, associates, or joint ventures during the first half of the 2024 fiscal year[179] Market and Economic Outlook - The company expects its performance and financial condition to be inevitably affected by the uncertain and challenging economic outlook and retail industry in China over the next few years[165] - The company holds foreign currency sales, exposing it to foreign exchange risk, with financial assets, trade receivables, bank balances, and loans denominated in foreign currencies[151] Dividends and Shareholder Returns - The company did not declare an interim dividend for the six months ended December 31, 2023, consistent with the previous year[42] Gross Profit Margin - The gross profit margin increased by 2.8 percentage points from 70.3% in the first half of the 2023 fiscal year to 73.1% in the first half of the 2024 fiscal year[119] Total Assets and Liabilities - Total assets as of December 31, 2023, were HK$2,394.393 million, slightly lower than HK$2,464.421 million as of June 30, 2023[191] - The asset-to-liability ratio was approximately 1.2% as of December 31, 2023, compared to 1.3% as of June 30, 2023[146] - The company's total equity decreased by approximately HKD 65.1 million from HKD 2,387.6 million as of June 30, 2023, to HKD 2,322.5 million as of December 31, 2023[109]

Revenue and Profitability - Revenue for the six months ended December 31, 2023, was approximately HKD 432.0 million, a decrease of about HKD 33.7 million compared to HKD 465.7 million for the same period in 2022[2] - Profit attributable to the owners of the company for the first half of the 2024 fiscal year was approximately HKD 11.5 million, compared to a loss of HKD 44.9 million for the same period in 2023[2] - Basic earnings per share for the first half of the 2024 fiscal year was HKD 0.6 cents, compared to a basic loss per share of HKD 2.2 cents for the first half of the 2023 fiscal year[2] - Total comprehensive income for the six months ended December 31, 2023, was HKD 17.2 million, compared to a total comprehensive loss of HKD 149.4 million for the same period in 2022[3] - The group reported a pre-tax profit of HKD 15.4 million for the first half of 2024, compared to a pre-tax loss of HKD 48.7 million for the same period in 2023[3] - Net income for the first half of the 2024 fiscal year was approximately HKD 39.5 million, compared to a net loss of HKD 1.9 million in the same period of 2023, primarily due to a reduction in foreign exchange losses[68] Sales and Revenue Breakdown - The group’s external sales for the Tian Wang watch business were HKD 382.8 million, contributing significantly to the overall revenue[11] - Tian Wang watch business contributed approximately 87.8% to total revenue in the first half of the 2024 fiscal year, up from 82.2% in the same period of 2023[73] - Revenue from other brands (China) decreased by approximately HKD 33.6 million or 72.5% to HKD 12.8 million in the first half of the 2024 fiscal year, accounting for about 3.0% of total revenue[66] - Total revenue from the Tian Wang watch business decreased by approximately HKD 3.4 million or 0.9% to approximately HKD 379.4 million in the first half of the 2024 fiscal year, down from approximately HKD 382.8 million in the first half of the 2023 fiscal year[145] - The revenue from the watch trade business accounted for approximately 9.2% of the total revenue in the first half of the 2024 fiscal year, up from 7.8% in the previous year[179] Expenses and Costs - Gross profit for the six months ended December 31, 2023, was HKD 315.6 million, compared to HKD 327.2 million for the same period in 2022, reflecting a decrease of approximately 3.9%[3] - The total employee costs, including directors' remuneration, decreased to HKD 137,426 thousand from HKD 163,606 thousand, reflecting a reduction of approximately 16.0%[158] - Administrative expenses decreased by approximately HKD 5.4 million or 11.0% to HKD 43.8 million in the first half of the 2024 fiscal year, mainly due to a reduction in employee costs[69] - The company’s sales and distribution costs decreased by approximately HKD 27.6 million or 8.4%, from HKD 323.9 million in the first half of the 2023 fiscal year to HKD 296.6 million in the first half of the 2024 fiscal year[42] Cash Flow and Financial Position - The net cash generated from operating activities for the first half of the 2024 fiscal year was approximately HKD 84.3 million, an increase of about 111.3% from HKD 39.9 million in the first half of the 2023 fiscal year[50] - Cash and cash equivalents as of December 31, 2023, were approximately HKD 927.8 million, an increase from HKD 792.2 million as of June 30, 2023[76] - The company has adopted a conservative financial policy, maintaining an appropriate level of cash and cash equivalents to support operations and mitigate cash flow volatility[190] - The company reported a net loss from foreign exchange of HKD 2,276 thousand, a significant improvement compared to a loss of HKD 45,835 thousand in the previous period[154] Inventory and Receivables - The company's trade receivables from third parties amounted to HKD 152.1 million as of December 31, 2023, down 19.2% from HKD 188.3 million as of June 30, 2023[36] - The inventory balance as of December 31, 2023, was approximately HKD 229.6 million, reflecting a slight increase of 0.4% from HKD 228.6 million as of June 30, 2023[49] - Inventory aged over two years was approximately HKD 156.0 million as of December 31, 2023, with corresponding provisions of about HKD 108.1 million[188] Dividends and Equity - The company did not recommend the payment of an interim dividend for the six months ended December 31, 2023[2] - Total equity as of December 31, 2023, was approximately HKD 2,322.5 million, a decrease of approximately HKD 65.1 million from HKD 2,387.6 million as of June 30, 2023[77] Market and Operational Insights - The company plans to continue monitoring and controlling inventory levels to align with its sales network review and adjustment plans[49] - The company will focus on cash management and maintain sufficient liquidity and working capital as part of its financial management policy in response to the challenging retail environment[59] - The company anticipates challenges in future growth for its e-commerce segment due to increasing competition among market participants[198] - The e-commerce business continues to be a major revenue channel for the company in the first half of fiscal year 2024[187] - The company is focusing on enhancing online operational capabilities through targeted marketing activities on platforms like Douyin and other new media channels[198]

Financial Performance - The company reported a profit attributable to owners of HKD 37.1 million for the fiscal year 2023, representing a 12.4% increase from HKD 33.0 million in 2022[8]. - Basic earnings per share increased by 12.5% to HKD 1.8 cents in 2023, compared to HKD 1.6 cents in 2022[8]. - Total revenue for the fiscal year 2023 was approximately HKD 981.8 million, a decrease from HKD 1,408.1 million in 2022[14]. - The gross profit margin for 2023 was 73.4%, slightly improved from 72.6% in 2022[14]. - The company recorded revenue of approximately HKD 981.8 million for the fiscal year 2023, a decrease of about 30.3% compared to HKD 1,408.1 million in the fiscal year 2022[39]. - Gross profit margin slightly decreased from 72.6% in fiscal year 2022 to 73.4% in fiscal year 2023, a decline of approximately 0.8 percentage points[39]. - Profit attributable to shareholders increased from approximately HKD 33.0 million in fiscal year 2022 to approximately HKD 37.1 million in fiscal year 2023, representing a growth of about 12.4%[50]. - The gross profit of the group decreased from approximately HKD 1,022.3 million in the 2022 fiscal year to approximately HKD 721.0 million in the 2023 fiscal year, a decline of about 29.5%[65]. - The group's cash generated from operating activities was approximately HKD 107.6 million in the 2023 fiscal year, a decrease of about HKD 67.9 million from HKD 175.5 million in the 2022 fiscal year[57]. Revenue Sources - The Tian Wang brand contributed approximately 87.5% of total revenue, amounting to about HKD 859.1 million in 2023[21]. - The watch core business contributed approximately 87.5% of total revenue in fiscal year 2023, up from 85.0% in fiscal year 2022[52]. - E-commerce business contributed approximately 25.7% to the total revenue in the 2023 fiscal year, despite a decline in sales due to intense competition and COVID-19 restrictions[55]. - Revenue from the core watch movement trading business accounted for approximately 6.4% of total revenue in fiscal year 2023, down from 5.7% in fiscal year 2022, with a decline in revenue from HKD 80.0 million to HKD 62.5 million, a decrease of about 21.9%[91]. Operational Metrics - The company operated 1,953 sales points as of June 30, 2023, down from 2,319 in 2022, focusing on second, third, and fourth-tier cities[22]. - The average inventory turnover days increased to 408 days in 2023, compared to 347 days in 2022[14]. - The average trade receivables turnover days were 61 days in fiscal year 2023, compared to 54 days in fiscal year 2022[36]. - The group's inventory balance as of June 30, 2023, was approximately HKD 228.6 million, a decrease of about 35.5% from approximately HKD 354.4 million as of June 30, 2022[75]. - The number of sales points for Tian Wang watches decreased from 2,086 as of June 30, 2022, to 1,786 as of June 30, 2023, a net reduction of 300 sales points[63]. Cash and Investments - The company held cash and cash equivalents of approximately HKD 1,528.6 million as of June 30, 2023, which is a key competitive advantage in the current challenging market[20]. - As of June 30, 2023, the company held cash and bank balances of approximately HKD 792.2 million, with time deposits of about HKD 538.2 million and bond instruments of approximately HKD 198.2 million[41]. - The net cash used for investment activities in the fiscal year 2023 was approximately HKD 21.1 million, primarily from the purchase of properties, plants, and equipment amounting to HKD 73.8 million[95]. - The group’s investment strategy includes investing in low-risk, high-credit-rated products issued by banks and financial institutions[86]. Cost Management - The company aims to maximize profitability through cost control policies and improving its retail network[23]. - The group's administrative expenses decreased by approximately 14.9% to about HKD 94.7 million in the 2023 fiscal year, down from HKD 111.3 million in the previous year[67]. - The total employee cost for the fiscal year 2023 was approximately HKD 300.1 million, down from HKD 398.0 million in fiscal year 2022, reflecting a decrease in full-time employees from about 4,100 to 3,100[82]. - The group has successfully controlled sales and operating expenses during revenue contraction to maintain profitability[89]. Corporate Governance - The board consists of seven directors, including four executive directors and three independent non-executive directors as of June 30, 2023[165]. - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with the standards set out in the listing rules[164]. - The company received annual independence confirmation letters from all independent non-executive directors, affirming their independent status[171]. - The board has a balanced composition of skills and experience, with independent directors confirming compliance with governance standards[164]. - The company has established a corporate governance committee to oversee compliance with governance codes[186]. - The company has arranged suitable liability insurance for directors to cover legal claims arising from corporate activities[191]. Market Challenges and Strategies - The group faced challenges in the second half of 2022 due to the impact of COVID-19 in China, leading to temporary suspensions of operations at some sales points[110]. - The management expects the group's performance and financial condition to be inevitably affected by uncertainties and challenges in China's economic outlook and retail industry in the coming years[139]. - Following the relaxation of COVID-19 restrictions by the Chinese government in December 2022, the market atmosphere has improved, particularly during the Spring Festival, with expectations of gradual economic recovery[137]. - The group anticipates challenges in future growth for its e-commerce business due to increasing competition among market participants, but will enhance online operational capabilities through targeted marketing activities[138]. - The group continues to monitor foreign exchange risks and may consider hedging significant foreign currency risks if necessary[82]. Shareholder Returns - The company proposed a special dividend of HKD 0.032 per share and a final dividend of HKD 0.008 per share to reward shareholders[42]. - The group is committed to monitoring the use of the net proceeds from the IPO, with expectations to fully utilize the unutilized amount within the next five years[109].

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，並明確表示概不就因本公告全部或任何部 分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 Time Watch Investments Limited 時 計 寶 投 資 有 限 公司 （於開曼群島註冊成立的有限公司） 2033 （股份代號： ） 2023 6 30 截至 年 月 日止年度之全年業績公告 • 2023 6 30 2023 981.8 截至 年 月 日止年度（「 財政年度」）的收益約 百萬港元，較截 2022 6 30 2022 1,408.1 30.3% 至 年 月 日止年度（「 財政年度」）約 百萬港元減少約 。 • 2023 721.0 2022 1,022.3 財政年度的毛利約 百萬港元，較 財政年度約 百萬港元減 29.5% 少約 。 • 2022 72.6% 2023 73.4% 毛利率由 財政年度約 增至 財政年度約 。 • 2023 37.1 2022 33.0 財政年度本公司擁有人應佔溢利約 百萬港元，較 財政年度約 12.4% 百萬港元增加約 。 ...

Financial Performance - The group's total gross profit decreased by approximately HKD 222.2 million or about 40.5% to approximately HKD 327.2 million in the first half of the 2023 fiscal year, primarily due to a reduction in gross profit from the Tianwang watch business[13]. - The company's revenue decreased by approximately 39.6% from HKD 770.7 million in the first half of the 2022 fiscal year to HKD 465.7 million in the first half of the 2023 fiscal year[39]. - Revenue from the Tian Wang watch business, which accounted for about 82.2% of total revenue in the first half of the 2023 fiscal year, fell by approximately 41.3% to HKD 382.8 million[50]. - The group recorded a net loss attributable to shareholders of approximately HKD 44.9 million in the first half of the 2023 fiscal year, compared to a profit of HKD 40.7 million in the same period of the previous year[76]. - The group reported a loss before tax of HKD 48,727 million for the period, compared to a profit of HKD 52,146 million in the same period of the previous year, indicating a significant decline in performance[100]. - The group reported a total comprehensive loss of HKD 149,385 million for the period, compared to a total comprehensive income of HKD 66,475 million in the same period of the previous year[100]. Cost Management - Administrative expenses decreased by approximately HKD 7.6 million or about 13.3% to approximately HKD 49.2 million in the first half of the 2023 fiscal year, mainly due to reduced employee costs and lower audit, legal, and professional fees[22]. - The group’s sales and distribution costs decreased by approximately HKD 168.7 million or 34.2% to HKD 323.9 million in the first half of the 2023 fiscal year, down from HKD 492.6 million in the same period of the previous year[75]. - The employee cost for the first half of the 2023 fiscal year was approximately HKD 163.6 million, down from HKD 210.6 million in the first half of the 2022 fiscal year, representing a reduction of about 22.3%[68]. Retail and Sales Network - The number of sales points for the Tianwang watch business decreased by 192 to 1,894 as of December 31, 2022, compared to June 30, 2022[23]. - The group closed several underperforming sales points to optimize its sales network in response to declining demand in the Chinese market[79]. - The group plans to continue optimizing its retail network for Tianwang watches and closely monitor the performance of existing sales points[140]. Inventory and Assets - The company's inventory balance as of December 31, 2022, was approximately HKD 280.3 million, a decrease of about 20.9% from HKD 354.4 million as of June 30, 2022[61]. - The company's total equity as of December 31, 2022, was approximately HKD 2,334.9 million, down by about HKD 276.7 million from HKD 2,611.6 million as of June 30, 2022[64]. - The total assets as of December 31, 2022, were HKD 2,611.6 million, a decrease from HKD 2,937.4 million as of December 31, 2021, reflecting a decline of approximately 11.1%[71]. Cash Flow and Financing - The company's cash and cash equivalents were approximately HKD 637.6 million as of December 31, 2022, compared to HKD 840.5 million as of June 30, 2022[63]. - The net cash generated from operating activities for the first half of the 2023 fiscal year was approximately HKD 39.9 million, a decrease of about HKD 116.0 million compared to HKD 155.9 million in the first half of the 2022 fiscal year[106]. - The group’s cash outflow from investment activities for the first half of the 2023 fiscal year was approximately HKD 126.6 million, primarily from the purchase of properties, plants, and equipment[83]. Market Conditions and Strategy - The impact of the recurring COVID-19 pandemic has adversely affected the group's sales performance, with temporary suspensions of operations at various sales points in multiple cities in China[98]. - The management anticipates a gradual recovery of the Chinese economy in the medium term following the easing of COVID-19 restrictions[140]. - The group aims to diversify its fashion watch offerings to adapt to the rapidly changing retail landscape[140]. Investments and Acquisitions - There were no significant acquisitions or disposals of subsidiaries or associates in the first half of the 2023 fiscal year[1]. - The group has no significant investments other than those disclosed as of December 31, 2022[26]. - The group plans to continue monitoring market conditions and will adopt a cautious investment strategy to optimize the use of surplus funds, focusing on low-risk, high-credit-rated products[94]. Other Financial Metrics - The group recognized right-of-use assets and lease liabilities of approximately HKD 1,000,000 each for new lease agreements during the period[170]. - The group experienced a foreign exchange loss of HKD 45,835,000 during the reporting period[178]. - The group reported interest income of HKD 26,144,000, contributing to the overall financial performance despite the losses[176].

Financial Performance - The company's basic earnings per share decreased to 1.6 HK cents, down 87.2% from 12.5 HK cents in 2021[6] - The profit attributable to the company's owners was 33.0 million HKD, a decline of 87.3% compared to 259.1 million HKD in 2021[6] - Total revenue for the fiscal year ended June 30, 2022, was 1,408.1 million HKD, down from 1,917.9 million HKD in 2021, representing a decrease of 26.5%[17] - The gross profit margin for 2022 was 72.6%, a slight decrease from 75.4% in 2021[17] - The company recorded revenue of approximately HKD 1,408.1 million for the fiscal year 2022, a decrease of about 26.6% from HKD 1,918.0 million in fiscal year 2021[30] - Gross profit margin decreased from 75.4% in fiscal year 2021 to 72.6% in fiscal year 2022, reflecting an approximate decline of 2.8 percentage points[30] - Profit attributable to the company's owners dropped from approximately HKD 259.1 million to about HKD 33.0 million in fiscal year 2022[30] Cash and Assets - As of June 30, 2022, the group held approximately 1,615.7 million HKD in cash and cash equivalents, which is a key competitive advantage in the challenging market[28] - The company’s total assets as of June 30, 2022, were 2,937.4 million HKD, a decrease from 3,077.8 million HKD in 2021[18] - The company’s total liabilities decreased to 325.8 million HKD in 2022 from 444.0 million HKD in 2021[18] - The company maintained cash and bank balances of approximately HKD 840.5 million, with time deposits of about HKD 518.7 million and bond instruments of approximately HKD 256.5 million as of June 30, 2022[31] - The inventory balance as of June 30, 2022, was approximately HKD 354.4 million, a decrease of about 6.4% from HKD 378.7 million in the previous year[59] Operational Efficiency - The company has focused on restructuring its business to reduce risks and improve operational efficiency, particularly by terminating third-party brand watch distribution[28] - The company aims to enhance operational efficiency and improve cost structure to maximize profitability amid challenging market conditions[31] - The average inventory turnover days increased to 347 days in 2022, compared to 292 days in 2021[18] - The average trade receivables turnover days were 61 days in 2022, up from 51 days in 2021[18] - The company aims to enhance its profitability by optimizing its sales network for better regional market coverage[85] Sales and Market Presence - The main brand, Tian Wang watches, contributed approximately 85.0% of total revenue, amounting to about HKD 1,196.6 million, down 27.2% from HKD 1,643.2 million in fiscal year 2021[42] - The number of sales points decreased from 2,549 in 2021 to 2,319 in 2022, a net reduction of 230 sales points[31] - The number of sales points for Tian Wang watches decreased by 140 to 2,086 as of June 30, 2022, compared to the previous year[54] - E-commerce business accounted for approximately 22.2% of total revenue in FY2022, despite a decline in sales from about HKD 466.9 million in FY2021 to about HKD 313.2 million in FY2022[58] - The company continues to focus on e-commerce as a key driver of revenue, maintaining its position as the top seller of watches on Tmall for nine consecutive years[30] Dividends and Shareholder Returns - The company plans to distribute a special dividend of HKD 0.043 per share and a final dividend of HKD 0.007 per share to reward shareholders[31] - The distributable reserves available for shareholders amounted to approximately HKD 1,856.4 million for the fiscal year 2022, compared to HKD 1,219.1 million for the fiscal year 2021[198] - The company declared a special dividend of HKD 0.043 per share and a final dividend of HKD 0.007 per share, to be paid on December 16, 2022[196] Employee and Operational Changes - The employee cost for the fiscal year 2022 was approximately HKD 398.0 million, compared to HKD 418.4 million in the fiscal year 2021[68] - The group employed approximately 4,100 full-time employees as of June 30, 2022, down from approximately 4,500 employees on June 30, 2021[68] - The group closed several underperforming sales points in FY2022 to optimize its sales network[56] Corporate Governance - The company is committed to corporate governance, with independent directors overseeing strategy and performance[112] - The board consists of seven directors, including four executive directors and three independent non-executive directors, ensuring a balanced skill set and experience[123] - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with the standards set forth in the listing rules[121] - The company’s governance committee regularly reviews compliance with the corporate governance code, ensuring ongoing adherence to best practices[120] - The company has adopted a Director Nomination Policy outlining the selection criteria and process for board appointments[143] Risk Management and Compliance - The company maintains effective risk management and internal control systems, which are reviewed and assessed at least annually by the board[159] - The company has adopted corporate governance measures to manage potential conflicts of interest between controlling shareholders and the company, including annual audits by independent non-executive directors[160] - The company emphasizes the importance of compliance with rules and regulations, recognizing the impact of non-compliance on business operations[189] Philanthropy and Social Responsibility - The company aims to continue its philanthropic efforts, contributing to social welfare initiatives[102] - The company donated over RMB 1,450,000 to Guangxi Cloud Social Service Center from 2020 to 2021, and an additional RMB 300,000 in March 2022 to support children in difficulty[102] Future Outlook - The company anticipates that its e-commerce business growth will slow or stagnate due to changes in consumer behavior and supply chain disruptions[86] - The company expects its performance and financial condition to be inevitably affected by uncertainties and challenges in the Chinese economy and retail sector in the post-pandemic era[86] - The company intends to focus resources on its proprietary brand business and plans to sell part or all of its other brand operations in China in the near future[86]