Financial Performance - For the year ended December 31, 2021, the Group recorded revenue of RMB992,962,000, a year-on-year decrease of 18.6% from RMB1,219,856,000 in 2020[6]. - The high-end consuming accessories business generated revenue of RMB550,933,000, representing a year-on-year increase of 28.7% compared to RMB428,048,000 in 2020[6]. - International commodity trading revenue surged to RMB327,061,000, marking a year-on-year increase of 185.3% from RMB114,641,000 in 2020[6]. - Watch retail and trading sales decreased to RMB114,968,000, reflecting a year-on-year decline of 83.0% from RMB677,167,000 in 2020[6]. - The Group achieved a net profit of RMB20,210,000, a significant recovery from a loss of RMB386,524,000 in 2020[6]. - The Group's gross profit amounted to approximately RMB113,867,000, representing a year-on-year increase of 176.8%[37]. - Gross profit margin was approximately 11.5%, representing a year-on-year increase of 24 percentage points[37]. - Profit attributable to equity shareholders amounted to RMB26,282,000, representing a year-on-year increase of 106.9%[37]. - The Group's financial report for 2021 reflects a fair view of the company's financial position as of December 31, 2021[149]. Business Strategy and Focus - The Group's business focus during the year was on high-end consumer accessories manufacturing and international commodity trading[44]. - The Group will focus on manufacturing high-end accessories for renowned watches and deepen cooperation with brands and international counterparts[22]. - The Group aims to expand its business into high-end lifestyle products such as jewellery, cosmetics, and mobile phones, as well as enhance commercial space beautification services[22]. - The Group's strategy includes exploring new profit models and achieving breakthroughs in corporate development[22]. - The Group plans to adapt to market changes by strengthening industrial management and prioritizing quality and innovation for growth[22]. - The Group aims to establish a solid foundation for future growth through prudent commodity trading activities in 2022[23]. Market Conditions and Risks - The ongoing COVID-19 pandemic continues to create uncertainty in the global economy, increasing downward pressure on China's economy[9]. - The fundamentals for long-term economic improvement in Mainland China remain unchanged, with a trend for medium-to-high economic growth expected to continue[9]. - The Group's operations are subject to various risks, including strategy risk, commodity risk, and operation risk, which could impact financial performance and business direction[26]. - The reliance on brand suppliers poses a commodity risk, and the Group maintains good relationships with multiple suppliers to mitigate this risk[26]. - The Group will closely monitor international market conditions, price trends, and customer demands to reduce potential adverse impacts on operating results[26]. Corporate Governance - The Company has maintained high-standard corporate governance practices to ensure transparency and safeguard long-term development[128]. - The Board comprises three executive directors, one non-executive director, and three independent non-executive directors, ensuring independence and objectivity in decision-making[131]. - The independent non-executive directors possess expertise in accounting, economics, law, computing control, and business administration, representing shareholder interests effectively[131]. - The Company has established both remuneration and nomination committees in compliance with the Listing Rules, ensuring proper governance and oversight[153][156]. - The Company emphasizes the importance of candidates being able to dedicate sufficient time to fulfill their duties as Directors[157]. Human Resources and Employee Relations - The Group had a total of 1,597 employees as of December 31, 2021, an increase from 1,460 employees in 2020, reflecting a growth of approximately 9.4%[86]. - The Group offers a competitive remuneration package and various incentives, including pension plans and housing allowances, to enhance employee satisfaction[88]. - The remuneration for Directors and employees is determined based on their experience, responsibilities, workload, and years of service[71]. - The Group's human resource assurance system fosters a harmonious work environment among employees from diverse backgrounds[89]. - The Company emphasizes ongoing training for employees, covering management, sales skills, and service awareness to enhance overall capabilities[86]. Environmental, Social, and Governance (ESG) Initiatives - The Group's Board oversees environmental, social, and governance (ESG) strategies and performance, which are essential for long-term success[176]. - An ESG Committee has been established to formulate development strategies and monitor related risks[176]. - The Group focuses on providing quality and safe products, ensuring mutual benefits for customers, employees, and society[177]. - Hengdeli emphasizes the importance of corporate governance and risk management in its operations[189]. - The Group has committed to environmental protection and community contributions through various social activities[191]. Shareholder Relations and Communication - The Company has maintained close communications with shareholders, analysts, and fund managers through various channels, including one-on-one meetings, roadshows, and press conferences, to enhance transparency and provide timely information[169]. - The Company believes in the importance of effective communication with investors to enhance their understanding of the sales of exquisite watches and the Group's development strategy[169]. - The Company will continue to maintain a close relationship with its investors to enhance their understanding and confidence in the Group[169].

Revenue Performance - For the six months ended June 30, 2021, the Group recorded revenue of RMB450,749,000, a year-on-year decrease of 30.8% from RMB651,831,000 in the same period of 2020[3]. - The high-end consuming accessories business generated revenue of RMB210,787,000, which is similar to RMB208,502,000 in the same period last year[6]. - Watch retail and trading sales amounted to RMB64,518,000, representing a significant year-on-year decrease of 83.9% from RMB399,959,000[8]. - Commodity trading recorded revenue of RMB175,444,000, marking a substantial year-on-year increase of 304.5% from RMB43,370,000[8]. - For the six months ended June 30, 2021, the group's revenue was RMB 450,749,000, a decrease of 30.8% compared to RMB 651,831,000 for the same period in 2020[19]. - High-end consuming accessories revenue was RMB 210,787,000, accounting for 46.8% of total revenue, showing a slight increase from RMB 208,502,000 in 2020[21]. - Watches retail and trading business revenue dropped significantly to RMB 64,518,000, a decline of 83.9% from RMB 399,959,000 in the previous year[19]. - Commodity trading revenue surged to RMB 175,444,000, representing a 304.5% increase from RMB 43,370,000 in 2020[19]. Financial Performance - The Group reported a loss of RMB21,885,000 for the period, a significant improvement compared to a loss of RMB71,317,000 in the same period of 2020, representing a 69.3% reduction in loss[3]. - Loss attributable to shareholders was RMB16,975,000, down 76.1% from RMB70,961,000 in the same period last year[3]. - Gross profit for the period was approximately RMB 38,466,000, down 53.0% year-on-year, with a gross profit margin of 8.5%, a decrease of 400 basis points from 12.5%[25]. - The company reported a loss for the period of RMB 21,885,000, compared to a loss of RMB 71,317,000 in the prior year, indicating an improvement[141]. - Basic loss per share for the period was RMB 0.004, compared to RMB 0.015 in the same period of 2020[141]. - Total comprehensive income for the period was RMB (67,214,000), a decline from RMB 53,105,000 in the previous year, primarily due to exchange differences and other comprehensive income adjustments[145]. Assets and Liabilities - As of June 30, 2021, total equity was RMB 3,322,492,000, down from RMB 3,439,810,000 at the end of 2020[27]. - The group maintained a net debt to equity ratio of zero, with total debt increasing to RMB 74,931,000 from RMB 29,918,000 at the end of 2020[32]. - Cash and cash equivalents were RMB 1,134,615,000, a decrease from RMB 1,241,863,000 at the end of 2020[27]. - As of June 30, 2021, the Group's current assets amounted to approximately RMB2,266,979,000, a decrease from RMB2,459,838,000 as of December 31, 2020[38]. - The Group's current liabilities increased to approximately RMB165,041,000 as of June 30, 2021, compared to RMB137,312,000 as of December 31, 2020[40]. - The company’s inventories were reported at RMB 623,316,000, down from RMB 653,106,000 in the previous year, indicating a decrease in stock levels[169]. - Trade and other receivables decreased to RMB 492,097,000 from RMB 535,487,000, suggesting tighter credit management or reduced sales[170]. Strategic Plans and Market Outlook - The Group plans to focus on expanding the development in manufacturing high-end accessories for renowned watches and enhancing integrated services for commercial space in Mainland China and international markets[13]. - The Group will explore new profit models and diversify into manufacturing high-end product accessories in other lifestyle products such as jewelry, cosmetics, and mobile phones[13]. - The overall economic situation remains unpredictable, but the Group expects steady economic development in Mainland China[12]. - The Group will continue to adapt to market changes and strive for new breakthroughs in corporate development[13]. - The Group plans to seek opportunities for industry integration and strengthen its leadership through technical R&D and innovation in the second half of the year[51]. - The Group will expand its commercial space beautification services to include living space beautification services, aiming to build momentum for future development[66]. - The Group continues to enhance the standard of its integrated services for commercial space in both Mainland China and international markets[66]. Corporate Governance and Shareholder Information - The Company has established an audit committee comprising three independent non-executive directors to enhance financial oversight[128]. - The Company has adopted a code for securities transactions by directors that meets the standards required by the Model Code[129]. - The Board has reviewed the effectiveness of the internal control systems and considers them to be effective and adequate[125]. - Mr. Zhang Yuping holds a total of 1,597,556,501 shares, representing 35.78% of the issued share capital as of June 30, 2021[74]. - Best Growth International Limited, controlled by Mr. Zhang, holds 1,505,832,901 shares, which is 33.73% of the issued share capital[80]. - The Swatch Group (Hong Kong) Limited holds 437,800,000 shares, accounting for 9.81% of the issued share capital[82]. - The total number of issued shares of the Company as of June 30, 2021, is 4,464,806,959[75]. - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2021[84]. Environmental and Social Responsibility - The Group emphasizes environmental protection, ensuring all branches comply with national quality standards and regulations[62]. - The Group actively participates in public welfare activities, contributing to education, healthcare, and sports through donations[65].

Financial Performance - For the year ended December 31, 2020, the Group recorded revenue of approximately RMB1,219,856,000, a year-on-year decrease of 49.5% from RMB2,417,181,000 in 2019[11] - Retail sales amounted to approximately RMB677,167,000, representing a year-on-year decrease of 59.6% from RMB1,678,209,000 in 2019[11] - Revenue from the industrial group and others was approximately RMB542,689,000, down 26.6% from RMB738,972,000 in 2019[11] - The Group recorded a loss of approximately RMB386,524,000 for the year, with a loss attributable to equity shareholders of approximately RMB383,076,000[11] - The Group's gross loss for the year was approximately RMB148,223,000, a decrease of 138.0% compared to the previous year[90] - The gross loss margin was approximately 12.2%, a decrease of 28 percentage points from the previous year's gross profit margin of 16.2%[90] - The Group recorded an unaudited loss attributable to equity shareholders of approximately RMB 71 million, mainly due to the decrease in revenue from the retail business of renowned watches[35] - The total reserves and accumulated profits of the Company as of December 31, 2020, were approximately RMB 3,344,357,000, down from RMB 3,872,278,000 in 2019, indicating a decline of 13.6%[114] Business Operations - The Group decided to wind up the operation of its renowned watch business due to heavy losses and challenging market conditions[13] - The Group has ceased the operation of its renowned watch retail business to focus resources on more favorable prospects[40] - The luxury watch retail sales of the group dropped by 59.6% year-on-year, leading to the closure of all retail operations, including two stores and four pop-up counters[43] - The Group aims to expand the production of high-end accessories for renowned watches and diversify into other high-end lifestyle products in 2021[74] - The Group plans to implement limited diversification by integrating high-end product accessory manufacturing into other lifestyle products like jewelry, cosmetics, and mobile phones[47] - The Group's retail network primarily covers Hong Kong, Macau, Taiwan, and Malaysia, with various store formats including "Elegant" and "Hengdeli"/"Watchshoppe"[28] Market Conditions - The COVID-19 pandemic has highlighted operational difficulties, but the Group has taken measures to ensure staff safety and resumed production effectively[14] - Retail sales in Hong Kong experienced a substantial decline, representing a year-on-year decrease of 65.7%[34] - The overall economic indicators in Mainland China have shown positive signals, indicating resilience after the pandemic[49] - The Group believes that the long-term positive fundamentals of China's economy remain unchanged, with potential for medium-to-high economic growth continuing[20] - The Group aims to seek new business opportunities while ensuring stable and sustainable development of its overall business[20] Corporate Governance and Values - The Group's core values include respect, commitment, cooperation, and innovation, which support its corporate governance and social responsibilities[15] - The Group is committed to quality and innovation as key drivers for growth in the future[47] - The Group's corporate governance practices are aligned with its commitment to environmental, social, and governance (ESG) standards[200] - The Company emphasizes high standards of corporate governance, with a dedicated report spanning pages 39 to 52 of the annual report[200] Financial Position - Total equity as of December 31, 2020, was approximately RMB3,439,810,000, down from RMB3,981,587,000 in 2019, indicating a decrease of about 13.6%[94] - Current assets amounted to approximately RMB2,459,838,000 as of December 31, 2020, a decrease from RMB3,441,497,000 in 2019, representing a decline of approximately 28.4%[100] - Cash and cash equivalents were approximately RMB1,241,863,000, down from RMB1,713,284,000 in 2019, reflecting a decrease of about 27.5%[100] - The net debt to equity ratio of the Group was zero as of December 31, 2020, consistent with the previous year, indicating no reliance on debt financing[94] - The Group's current liabilities decreased to approximately RMB137,312,000 from RMB510,949,000 in 2019, a reduction of about 73.1%[109] Shareholder Information - The total issued share capital of the Company remained unchanged at 4,662,666,959 shares as of December 31, 2020[130] - The Company's distributable reserves increased to approximately RMB 1,426,459,000 in 2020, up from RMB 1,338,806,000 in 2019, representing a growth of 6.5%[123] - The Board does not recommend the payment of any final dividend for the year ended December 31, 2020, consistent with the previous year[125] - As of December 31, 2020, Mr. Zhang Yuping held a total of 1,597,556,501 shares, representing 34.26% of the issued share capital of the Company[176] - Best Growth International Limited, wholly owned by Mr. Zhang Yuping, held 1,505,832,901 shares of the Company as of December 31, 2020, accounting for 32.30% of the issued shares[184] Employee and Environmental Initiatives - As of December 31, 2020, the Group had a total of 1,460 employees, a decrease from 1,831 employees in 2019[200] - Environmental protection is a top priority for the Company, which has implemented various measures for energy conservation and environmental management[200] - The Company has achieved significant results in promoting harmonious development in economic, social, and ecological benefits through its environmental initiatives[200]

Financial Performance - For the six months ended 30 June 2020, the Group recorded revenue of RMB651,831,000, a year-on-year decrease of 52.1% compared to RMB1,361,170,000 in the same period of 2019[6]. - Retail sales amounted to RMB399,959,000, representing a year-on-year decrease of 58.7% from RMB968,743,000 in the prior year[6]. - The Group recorded a loss of RMB71,317,000 for the period, compared to a profit of RMB33,414,000 in the same period of 2019, marking a significant decline[6]. - Loss attributable to equity shareholders amounted to RMB70,961,000, a stark contrast to the profit of RMB29,925,000 recorded in the previous year[6]. - The gross profit margin decreased to 12.5%, down 600 basis points from 18.5% in the prior year[3]. - The Group's gross profit was approximately RMB81,777,000, a decrease of 67.6% year-on-year, with a gross profit margin of approximately 12.5%, down 600bps from 18.5%[27]. - For the six months ended June 30, 2020, the total comprehensive income was RMB 46,024,000, which includes a profit of RMB 29,925,000[178]. - The basic and diluted loss per share for the period was RMB (0.015), compared to earnings of RMB 0.006 per share in the previous year[154]. Retail Operations - As of 30 June 2020, the Group operated a total of 67 retail outlets in Hong Kong, Macau, Taiwan, and Malaysia[10]. - The Group closed five retail outlets in Hong Kong and Macau during the review period to mitigate losses[58]. - As of June 30, 2020, the Group operated a total of 16 retail outlets in Hong Kong and Macau, facing extremely tough conditions[59]. - The retail business in Taiwan consists of 45 outlets, primarily selling mid-end and mid-to-high-end watch brands[61]. - The Group operated 6 stores in Malaysia, focusing on mid-end and mid-to-high-end branded watches[62]. - Sales in Taiwan and Malaysia have severely declined or been halted due to the pandemic and economic downturn, with no expected breakthroughs in the second half of the year[63]. - The ongoing geopolitical unrest and the impact of the coronavirus pandemic continue to pose significant challenges to the Group's retail operations[58]. Business Strategy and Future Plans - The Group plans to adjust its business structure and explore new development models to achieve sustainable revenue growth in the future[13]. - The Group aims to expand production of accessories for mid-to-high-end products to ensure stable revenue streams[13]. - The Group will implement a limited diversification process in its industrial production to seek broader development paths[13]. - The Group aims to explore new development models and deepen cooperation with brand partners and international peers[14]. - The Group plans to focus on expanding the production of mid-to-high-end products such as watches and jewelry to ensure stable and sustainable income[14]. - The Group will diversify its industrial production into cosmetics and electronics, seeking new development paths for breakthroughs[89]. - The Group is adapting its business structure through staff layoffs and continuous shop closures to ensure survival[58]. Financial Position and Liquidity - As of June 30, 2020, the Group maintained total equity of RMB4,030,764,000, an increase from RMB3,981,587,000 at the end of 2019[30]. - The net debt to equity ratio of the Group was zero, indicating a solid financial foundation for future business expansion[30]. - The Group's cash and cash equivalents and deposits with banks amounted to RMB1,377,862,000 as of June 30, 2020, down from RMB1,713,284,000 at the end of 2019[30]. - The Group's total liabilities amounted to RMB 140,907,000, a decrease from RMB 216,617,000 as of December 31, 2019, indicating a significant reduction in liabilities[33]. - Current liabilities totaled approximately RMB 311,118,000 as of June 30, 2020, down from RMB 510,949,000 as of December 31, 2019, with bank loans decreasing from RMB 142,094,000 to RMB 63,830,000[38]. - The company reported a significant increase in other investments, rising to RMB 517,330,000 from RMB 400,184,000, indicating strategic investment activities[160]. - The cash and cash equivalents stood at RMB 1,186,946,000, showing a slight increase from RMB 1,165,169,000, suggesting stable cash flow management[160]. Shareholder Information - As of June 30, 2020, Mr. Zhang Yuping holds 1,597,556,501 shares, representing 34.26% of the issued share capital of the Company[93]. - The total number of issued shares of the Company as of June 30, 2020, is 4,662,666,959[96]. - The Company did not declare an interim dividend for the six months ended June 30, 2020, compared to RMB 3.8 cents per share for the same period in 2019[106]. - No awarded shares were granted during the review period, while 30,000,000 shares were granted in the same period of 2019[113]. Corporate Governance and Compliance - The Company has maintained compliance with the Corporate Governance Code, except for a deviation regarding the separation of the roles of chairman and CEO[137][138]. - The audit committee has reviewed the effectiveness of the internal control systems, which are considered effective and adequate[140]. - The Company has established an audit committee comprising three independent non-executive directors to oversee financial reporting and internal controls[141][143]. Environmental and Social Responsibility - The Group is committed to environmental protection, ensuring all pollutant emissions meet national standards[83]. - The Group maintains a strong commitment to environmental protection, ensuring compliance with national standards for pollution discharge during the review period[86]. - The Group actively participates in social welfare activities, contributing to education, healthcare, and sports through various donations[86].

Retail Operations - As of December 31, 2019, the Group operated a total of 77 retail outlets across Hong Kong, Macau, Taiwan, and Malaysia, with overall sales decreasing by 19.9% compared to the previous year[23] - The retail network includes 21 stores in Hong Kong and 56 in Taiwan/Malaysia, with a focus on high-end and mid-to-high-end brands[50] - The Group operated a total of 20 retail outlets in Hong Kong as of December 31, 2019, including 7 multi-brand Elegant shops and 13 single-brand boutiques[65] - Sales of renowned watches in Hong Kong decreased by 23.0% compared to the same period last year due to adverse political and economic conditions[66] - The Group maintained a stable sales performance in Taiwan with 50 retail outlets, but no significant increase in sales was observed[74] - In Malaysia, the sales of renowned-brand watches showed good momentum in the first half of the year, but profits declined in the second half due to adverse political situations[76] Business Strategy and Development - The Group adopted an aggressive strategy focusing on standardization, automation, and continuous improvement of service standards, while establishing new high-standard production bases to expand production scale[24] - The Group aims to deepen cooperation with brands to facilitate business expansion and increase profits, enhancing its overall strength as a powerful engine for future development[24] - The Group aims to expand the production of watch accessories to ensure stable and sustainable income[34] - The Group plans to deepen cooperation with brand suppliers and international peers to explore new development models[34] - The Group's strategy includes introducing mid-to-high-end brands to adapt to changing consumer preferences in Hong Kong[55] - The Group is committed to optimizing its brand portfolio to stabilize overall sales performance[53] - The Group's new industrial production bases will support a limited diversification process to seek broader development opportunities[34] - The Group aims to leverage its core competitiveness and seek new business opportunities to ensure healthy and steady progress[33] - The Group plans to explore limited diversification to expand its business model beyond watch accessories[90] Financial Performance - For the year ended December 31, 2019, the Group recorded revenue of RMB 2,417,181,000, representing a year-on-year decrease of 10.0%[116] - Retail sales amounted to RMB 1,678,209,000, reflecting a year-on-year decrease of 19.9%[116] - Revenue from the industrial group and others increased to RMB 738,972,000, a year-on-year increase of 24.5%[116] - The Group's gross profit for 2019 was approximately RMB 390,504,000, a decrease of 15.4% year-on-year, with a gross profit margin of 16.2%, down 100bps from 2018[128] - The economic environment and increased inventory provisions were key factors contributing to the decline in retail revenue and gross profit margin[128] - The Group recorded a loss of approximately RMB324,117,000 for the year, compared to a profit of RMB79,249,000 in 2018[133] - Loss attributable to equity shareholders amounted to approximately RMB332,520,000, while profit for 2018 was RMB68,746,000[133] - As of December 31, 2019, total equity was RMB3,981,587,000, down from RMB4,447,689,000 in 2018[133] - Current assets amounted to approximately RMB3,441,497,000, a decrease from RMB3,904,184,000 in 2018, with inventories at RMB1,309,758,000[141] - Current liabilities increased to approximately RMB510,949,000 from RMB387,409,000 in 2018, with bank loans rising to RMB142,094,000[147] - The total reserves and accumulated profits of the Company as of December 31, 2019, were RMB 3,872,278,000, down from RMB 4,347,114,000 in 2018[152] Market Conditions and Challenges - The global political turmoil and economic slowdown have significantly impacted the Group's operations, particularly in Hong Kong, which faces unprecedented pressure[26] - Despite challenges, the Group believes in the stable fundamentals of China's economic development and the potential for continued high-speed growth driven by domestic demand[33] - The geopolitical turmoil and trade frictions have significantly impacted the Group's performance, particularly in Hong Kong[117] - The COVID-19 outbreak has posed a significant threat to the global economy, impacting various industries including retail in Hong Kong[155] - The geopolitical unrest and economic pressures in Hong Kong have created unprecedented challenges for business operations[72] Corporate Governance and Values - The Group's core values of "respect, commitment, cooperation, and innovation" have established a solid foundation for corporate governance and social responsibility[25] - The Group has complied with all relevant laws and regulations affecting its business operations during the year[114] - The Group is committed to enhancing employee training and improving frontline service levels to adapt to the challenging market environment[67] - The Group actively allocated more resources to marketing and strengthened cooperation with international brands for promotional activities[67] Shareholder and Director Information - The Company did not engage in any significant acquisitions or disposals during the year under review[149] - The Board does not recommend the payment of any final dividend for the year ended December 31, 2019, compared to RMB 1.2 cents per share in 2018[157] - The Company granted 30,000,000 awarded shares to employees, with a reference closing price of HKD0.405 on the grant date of April 24, 2019[163] - The total number of awarded shares includes 10,000,000 shares to independent third parties and 20,000,000 shares to connected persons, including 12,000,000 shares to Mr. Zhang Yuping[165] - The Company has entered into service contracts with executive and non-executive Directors for a term of three years, with no contracts that cannot be terminated without compensation within one year[181] - The remuneration policies for Directors and employees are based on experience, responsibilities, workload, and years of service[188]

Financial Performance - For the six months ended June 30, 2019, the Group recorded revenue of RMB1,361,170,000, representing a year-on-year increase of 1.3% compared to RMB1,344,045,000 in the same period of 2018[4]. - Retail sales amounted to RMB968,743,000, reflecting a year-on-year decrease of 9.6% from RMB1,072,162,000 in the previous year[7]. - The industrial group and others recorded revenue of RMB392,427,000, representing a year-on-year increase of 44.3% from RMB271,883,000 in the same period of 2018[7]. - The Group's net profit for the period was RMB33,414,000, showing a slight year-on-year decrease of 1.9% from RMB34,054,000[7]. - Gross profit for the period was approximately RMB252,333,000, a year-on-year increase of 16.5%, with a gross profit margin of 18.5%, up 240bps from the previous year[31]. - Profit attributable to equity shareholders was RMB29,925,000, down 2.9% year-on-year[31]. - The Group's revenue increased by 8.9% year-on-year, while net profit rose by 36.6% during the review period[88]. Dividends and Share Capital - A special interim dividend of RMB3.8 cents per ordinary share was declared[4]. - The total number of issued shares of the Company as of June 30, 2019, was 4,662,666,959[108]. - The Board declared a special interim dividend of RMB3.8 cents for the six months ended 30 June 2019, compared to nil for the same period in 2018[119]. - The special interim dividend will be distributed on or before 13 September 2019 to shareholders on the register as of 5 September 2019[119]. Retail Operations - As of June 30, 2019, the Group operated a total of 71 retail outlets in Hong Kong, Macau, Taiwan, and Malaysia, with overall sales remaining stable[10]. - The Group's retail business in Taiwan focused on mid-end and mid-to-high-end watch brands, operating 51 retail outlets[68]. - The Group plans to expand its retail outlets in prime commercial districts in Hong Kong in the second half of the year to increase market share[66]. - Sales performance in Malaysia improved, demonstrating a promising prospect amid a relatively stable environment[56]. - Sales in Taiwan showed a year-on-year increase in both sales amount and sales volume, with a growing number of VIP customers[73]. Financial Position and Assets - The Group maintained total equity of RMB4,447,031,000 as of June 30, 2019, slightly down from RMB4,447,689,000 at the end of 2018[31]. - Net current assets were RMB3,291,212,000, a decrease from RMB3,516,775,000 at the end of 2018[31]. - Cash and cash equivalents totaled RMB1,944,838,000, down from RMB2,189,214,000 at the end of 2018[31]. - Current assets as of June 30, 2019, totaled approximately RMB3,703,860,000, a decrease from RMB3,904,184,000 as of December 31, 2018[1]. - Non-current assets increased to RMB1,296,022,000 from RMB1,015,845,000, marking an increase of approximately 27.6%[182]. Strategic Initiatives - The Group plans to engage in more in-depth cooperation with brand suppliers and international peers, focusing on new industrial production bases for diversification[18]. - The Group aims to leverage its core competitiveness to identify new opportunities and ensure steady growth despite the challenging economic environment[15]. - The Group's strategy includes expanding production scale and deepening cooperation with brands to maintain growth momentum[25]. - The Group aims to strengthen industrial management and technical R&D while exploring business diversification to enhance its product pipeline[87]. Market Conditions - Sales of renowned branded watches in Hong Kong decreased by 13.5% compared to the same period last year, reflecting a challenging economic environment[62]. - Overall sales of renowned branded watches for the Group experienced a year-on-year decrease of 9.6%[56]. - The construction of the Guangdong-Hong Kong-Macau Greater Bay Area is expected to support the stability of the operating environment and economic progress in Hong Kong and Macau[15]. - The Group believes that the long-term fundamentals of the Chinese economy remain unchanged, with medium to high-speed growth expected to continue[100]. Corporate Governance - The audit committee has reviewed the effectiveness of the internal control system, confirming its adequacy and effectiveness[157]. - The Company has established an audit committee comprising three independent non-executive directors to oversee financial reporting and internal controls[158]. - The Board has ensured compliance with the Corporate Governance Code, maintaining a high standard of corporate governance[155].

Financial Performance - As of December 31, 2018, the Group recorded revenue of RMB2,687,248,000, representing a year-on-year increase of 10.2%[34] - Retail sales amounted to RMB2,093,852,000, reflecting a year-on-year increase of 7.7%[34] - The industrial group and others recorded revenue of RMB593,396,000, representing a year-on-year increase of 19.7%[34] - The Group achieved a profit for the year of RMB79,249,000, a significant turnaround from a loss of RMB165,080,000 in 2017, marking a year-on-year increase of 148.0%[34] - Profit attributable to equity shareholders amounted to RMB68,746,000, compared to a loss of RMB236,382,000 in 2017, representing a year-on-year increase of 129.1%[34] - The Group's total sales for the year ended December 31, 2018, reached RMB 2,687,248,000, an increase of 10.2% compared to RMB 2,439,022,000 in 2017[36] - Retail sales amounted to RMB 2,093,852,000, reflecting a year-on-year growth of 7.7% from RMB 1,943,307,000 in 2017[36] - The industrial group's sales increased by 19.7% to RMB 593,396,000, up from RMB 495,715,000 in the previous year[36] - The Group reported a net profit of RMB 79,249,000, a significant turnaround from a loss of RMB 165,080,000 in 2017, marking a 148.0% increase[36] - Shareholders' profit attributable to the Group was RMB 68,746,000, compared to a loss of RMB 236,382,000 in 2017, representing a growth of 129.1%[36] Retail Operations - The Group maintained a retail network of 67 outlets across Hong Kong, Macau, Taiwan, and Malaysia, selling watches from over 50 internationally renowned brands[10] - The Group operated a total of 13 retail outlets in Hong Kong, including 5 multi-brand "Elegant" shops and 8 single-brand boutiques[83] - New stores opened in Hong Kong included a high-end MB&F boutique and Bulgari and Panerai boutiques, contributing to sales growth[83] - The Group opened a "Hengdeli" watch store in Macau, with stable sales and plans for further market expansion[92] - As of December 31, 2018, the Group operated a total of 48 retail outlets in Taiwan, primarily located in major districts such as Taipei, Taichung, Kaohsiung, Hsinchu, and Chiayi[96] - Sales in Taiwan remained stable during the year, with no significant changes compared to the previous year, and the sales target continues to focus on local customers[99] Strategic Initiatives - The Group's strategy focuses on steady and healthy growth while seeking sustainable development to create greater value for shareholders[31] - The Group aims to maintain stable and healthy growth while seeking sustainable development in 2019, focusing on deeper cooperation with brand suppliers and international peers[49] - The Group is actively adjusting its brand portfolio, introducing mid-to-high-end brands to adapt to changing consumer preferences in Hong Kong[73] - The Group's strategic approach will be regularly reviewed to ensure adaptability to changing market conditions[124] - The Group aims to strengthen industry management and technical R&D, focusing on quality and driving growth through innovation[119] Market Conditions - The overall retail market in Hong Kong showed prosperity in the first half of 2018, driven by favorable economic factors[33] - The Group faced increased market uncertainty and downward pressure in the second half of 2018 due to changing international situations[33] - Retail sales in Hong Kong increased by 6.8% year-on-year, despite market uncertainties in the second half of the year[84] - The international political and economic situation remains unstable, but the Group aims to leverage opportunities for growth in the Guangdong-Hong Kong-Macau Greater Bay Area[91] Financial Position - As of December 31, 2018, the Group had total equity of RMB4,447,689,000 and net current assets of RMB3,516,775,000, with cash and cash equivalents of RMB2,189,214,000[166] - The total debt amounted to RMB143,752,000, with a net debt to equity ratio of approximately zero, indicating a solid foundation for further business expansion[167] - Current assets totaled approximately RMB3,904,184,000, including inventories of RMB1,403,251,000 and trade and other receivables of RMB311,719,000[177] - The revenue breakdown showed that Hong Kong contributed 70.6%, Taiwan/Malaysia 7.3%, and the industrial group and others 22.1%[157] - The Group maintained good relationships with multiple banks to manage liquidity and financing requirements[179] Risk Management - The Group recognizes various risks, including operational, financial, and market risks, which may impact its performance and outlook[138][140] - The Group is committed to monitoring cash flow and maintaining adequate capital to manage liquidity risk effectively[138] - The Group did not face significant foreign exchange risk due to proper handling of currency fluctuations during the review year[180] - The Company has a prudent treasury policy for financial and cash management[179] Corporate Governance - The Group's core values include respect, commitment, cooperation, and innovation, which underpin its corporate governance and social responsibility efforts[41] - The Group recognizes customer relationship as its core competitiveness, committing to advanced technology, efficient management, and considerate services[102] - The Group emphasizes the importance of attracting and retaining skilled personnel to achieve its business goals[139]