Group 1 - The core point of the article highlights a significant drop in the stock price of Emperor Watch and Jewellery, which fell by 6.58% to HKD 0.355 per share, with a trading volume of HKD 14.70 million as of August 15 [1] - Emperor Watch and Jewellery primarily engages in the sales of watches and jewelry, including European brand watches and its own brand, Emperor Jewellery. The company operates retail stores in Hong Kong, Macau, mainland China, Singapore, and Malaysia, and also sells through online shopping platforms [1] - As of the 2024 annual report, Emperor Watch and Jewellery reported total revenue of HKD 4.843 billion and a net profit of HKD 238 million [2] Group 2 - Emperor Watch and Jewellery is scheduled to disclose its interim report for the fiscal year 2025 on August 20 [3]

Core Viewpoint - The article highlights the financial struggles of Emperor Group, particularly Emperor International, which reported a significant increase in losses, raising concerns about the future of its artists and assets [5][7][65]. Financial Performance - Emperor International's annual loss expanded from 20.28 billion HKD to 48.4 billion HKD, marking a 138% increase [5]. - Shareholder losses reached 47.43 billion HKD, a year-on-year increase of 131.7% [5]. - Following the financial report, Emperor Group's stock prices plummeted, with Emperor Watch & Jewelry and Emperor Entertainment Hotel dropping over 5%, and Emperor Capital falling nearly 20% [6]. Real Estate and Asset Management - The financial crisis is primarily attributed to losses in the real estate sector, particularly in rental income [15]. - Emperor International's investment properties suffered a fair value loss of 15.41 billion HKD [19]. - The vacancy rate for Grade A office buildings in Hong Kong reached a record high of 17.6%, with rental prices dropping by 6.3% [21]. Debt and Financial Health - As of March 2025, Emperor International had 16.6 billion HKD in overdue bank loans, raising questions about its operational viability [22]. - The company's debt-to-asset ratio stood at 54.68%, with a high proportion of short-term debt [25]. - Emperor's liquid cash reserves were reported at only 639 million HKD [25]. Business Strategy and Market Position - Emperor Group's strategy has involved aggressive real estate acquisitions, which have led to increased debt levels [25]. - The company has a long-standing reputation in the watch and jewelry sector, with Emperor Watch & Jewelry reporting a revenue of 5.23 billion HKD in 2024, an 8.4% increase from the previous year [32]. Entertainment Sector Challenges - The entertainment division, while historically significant, has seen a decline in profitability, with a net loss of 7.15 billion HKD in 2024, a 116.75% year-on-year decrease [65]. - The overall decline in the Hong Kong film industry has impacted Emperor's cultural sector, which is now facing substantial losses [66].