EMPEROR WATCH&J(HK:00887)2023-04-24 09:40Shareholding and Directors - As of December 31, 2022, Ms. Cindy Yeung held 2,747,611,223 shares, representing 74.71% of the voting shares of the company[10]. - As of December 31, 2022, none of the Directors or chief executives had any interests or short positions in any shares or debentures of the company or its associated corporations[15]. - Mr. Wong Chi Fai has an interest in debentures amounting to HK$2,000,000[13]. - Ms. Fan Man Seung held 10,500,000 shares, representing 0.29% of the voting shares[13]. - The Directors Ms. Cindy Yeung, Ms. Chan Sim Ling, and Ms. Chan Wiling will retire by rotation at the 2023 AGM and are eligible for re-election[19]. - The company has no arrangements to enable Directors or chief executives to acquire benefits through the acquisition of shares or debentures[18]. - The company has no unexpired service contracts with Directors that are not determinable within one year without compensation[20]. Financial Performance - The Group's total revenue for the year ended December 31, 2022, was HK$3,684.3 million, a decrease from HK$3,926.6 million in 2021, representing a decline of approximately 6.2%[45]. - The Group's net profit increased to HK$222 million in 2022, up from HK$205 million in 2021, reflecting a growth of approximately 8.3%[43]. - Basic earnings per share rose to HK3.28 cents from HK3.02 cents, indicating an increase of about 8.6%[43]. - Gross profit for the year was HK$1,177.3 million, a slight decrease from HK$1,229.5 million in 2021, while gross profit margin increased to 31.9% from 31.3%[69]. - The Group's effective cost-saving measures contributed to the increase in net profit despite a slight decline in gross profit[69]. - The total dividends for the year increased to HK1.0 cent per share from HK0.9 cent in 2021, reflecting improved financial performance[69]. Dividends - The final dividend per share was increased to HK0.62 cent from HK0.35 cent, representing a rise of approximately 77.1%[43]. - The Group recommended a final dividend of HK0.62 cent per share, up from HK0.35 cent in 2021, bringing total dividends for the year to HK1.0 cent per share[69]. - An interim dividend of HK$0.38 per share was paid during the year, totaling approximately HK$25.8 million, down from HK$0.55 per share in 2021[196]. - The proposed final dividend is HK$0.62 per share for the year, an increase from HK$0.35 per share in 2021, subject to shareholder approval[195]. - The Company's reserves available for distribution to shareholders as of December 31, 2022, amounted to HK$1,277,112,000, an increase from HK$1,175,756,000 in 2021[200]. Store Expansion and Strategy - The Group opened three jewellery stores in Hong Kong and five stores (four jewellery and one Rolex) in mainland China during the year[57]. - The Group plans to focus on store rollouts in residential areas of Hong Kong and prominent cities in mainland China in 2023[57]. - The Group plans to open new jewellery stores in Tai Wai and Kwun Tong, Hong Kong, as well as Chengdu and Hebei, mainland China in 2023[90]. - Approximately 75% of the Group's stores in mainland China are located in first-tier and new first-tier cities, aligning with its customer targeting and market positioning[106]. - The Group has established a retail network across Hong Kong, Macau, mainland China, Singapore, and Malaysia, focusing on maintaining its leading position in Greater China[75]. Market Conditions - The pandemic has stabilized globally, but geopolitical tensions and interest hikes continue to hinder macroeconomic development[48]. - The resurgence of the pandemic in mainland China during the last quarter of the year affected consumer spending recovery[49]. - Visitor arrivals to Hong Kong increased by 562% year-on-year to approximately 600,000, indicating a recovery in luxury consumption[72]. - Following the reopening of borders, an increase in visitor arrivals to Hong Kong is expected, positively impacting the retail industry[118]. Online Presence and E-commerce - The Group expanded its online shopping platform to include watches, launching a Tudor online sales platform to enhance brand promotion and sales[115]. - The Group will continue to enhance its online shopping presence and capture market opportunities, recognizing the lasting importance of e-commerce[119]. - The Group aims to enhance its brand image and capitalize on online market opportunities as consumer behavior shifts post-pandemic[121]. Financial Position and Assets - As of December 31, 2022, the Group's current assets were approximately HK$3,505.9 million, and current liabilities were HK$433.5 million, resulting in a current ratio of 8.1[96]. - The Group's bank balance and cash increased to HK$664.4 million as of December 31, 2022, with no bank borrowings, resulting in a net debt ratio of zero[99]. - The Group had no bank borrowings as of December 31, 2022, compared to HK$165.5 million in 2021, resulting in a net gearing ratio of zero[123]. - The Group's un-utilised banking facilities amounted to approximately HK$942.6 million as of December 31, 2022[123]. Employee Costs and Governance - Total staff costs for the year were HK$262.9 million, a decrease from HK$288.5 million in 2021, with 638 salespersons and 201 office staff as of December 31, 2022[125]. - The Group's total employee costs reflect a compensation structure based on individual responsibility, competence, and market pay levels[125]. - The remuneration of directors is determined by the board based on a written remuneration policy linked to business strategy and shareholder interests[189]. - The Group's corporate governance report outlines principal risks and uncertainties faced by the Group[197]. Awards and Recognition - The Group has received multiple awards for investor relations and service excellence in 2022, highlighting its commitment to stakeholder engagement[169]. Miscellaneous - The Group has not engaged in any purchase, sale, or redemption of its listed securities during the year[183]. - There are no significant events affecting the Group since the end of the year up to the date of the report[198]. - A fair review of the Group's business and performance analysis is detailed in the Management Discussion and Analysis section of the report[197]. - The Group's management team has extensive experience in various sectors, including retail and financial services, enhancing strategic planning and operational oversight[161][162]. - The Group's performance summary and financial results for the last five years are detailed on page 180 of the annual report[180].