ANNOUNCES 2022 INTERIM RESULTS

Aug 30, 2022

Announces 2022 Interim Results

Continues to Enhance Retail Network

Results Summary

* d EBITD represents earnings before interest, tax and depreciation charge on the self-owned flagship store, which reflects the Group’s core operating performance. The Group has fully adopted the HKFRS16, which amortisation of right-of-use assets associated with rental lease agreements were included.

(Hong Kong, 30 August 2022) Emperor Watch & Jewellery Limited (the “Group” or “Emperor W&J”) (Stock code: 887), a leading retailer of European-made watches and fine jewellery, announced its interim results for the six months ended 30 June 2022 (the “Period”).

Due to the Covid-19 pandemic resurging to varying extents across the region spanning Hong Kong, Macau and mainland China during the Period, the general consumption sentiment was inevitably affected, and hence the Group’s total revenue decreased to HK$1,645.6 million (2021: HK$2,071.0 million). Revenues from mainland China and Hong Kong were HK$431.6 million (2021: HK$704.7 million) and HK$769.9 million (2021: HK$857.9 million), respectively, accounting for 26.2% (2021: 34.0%) and 46.8% (2021: 41.4%) of the total revenue. In terms of revenue by product segment, the sales revenue from watch and jewellery segments was HK$1,353.8 million (2021: HK$1,746.6 million) and HK$291.8 million (2021: HK$324.4 million), respectively, accounting for 82.3% (2021: 84.3%) and 17.7% (2021: 15.7%) of the total revenue.

Gross profit was HK$524.8 million (2021: HK$637.5 million) while gross profit margin was 31.9% (2021: 30.8%). As a result of the revenue decline, the Group’s net profit decreased to HK$85.9 million (2021: HK$132.2 million) during the Period. Basic earnings per share was HK1.27 cents (2021: HK1.95 cents). The Board has declared an interim dividend of HK0.38 cent (2021: HK0.55 cent) per share.

During the Period, the Group’s was in a net cash position, hence its net gearing ratio (calculated on the basis of bank borrowings less cash and cash equivalents over net asset value) was zero (31 December 2021: zero).

As at 30 June 2022, the Group had a total of 87 stores in Hong Kong, Macau, mainland China, Singapore and Malaysia. Subsequent to the Period, the Group newly opened one jewellery store in Hong Kong, as well as one jewellery store and one Rolex store in mainland China. The Group has established a stores rollout plan, focusing on jewellery stores in the residential areas of Hong Kong and prominent cities of mainland China, for the remainder of this year.

Ms. Cindy Yeung, Chairperson of Emperor W&J, said, “Though the operating environment remained challenging given the gloom of the Covid-19 pandemic, the Group is expecting a steady rebound resulting from the gradual easing of social distancing measures, and the relaxation of travel restrictions and quarantine requirements for inbound travellers. This particularly applies to the Hong Kong market — as the local economy, including the labour market, has shown signs of improvement. Coupled with the rolling out of consumption vouchers in August, the Group will benefit from the rebound in traffic flows.”

Mr. Ricky Ng, Chief Executive Officer of Emperor W&J, said, “The Group will reinforce the retail network and business operations through cautious expansion, in order to expand its footprint in Hong Kong and mainland China. The Group will promptly react to market changes and implement a prudent financial and capital management policy for enhancing operating efficiency, aiming to strengthen the Group’s competitive strength and ability to adapt to changes in the market.”

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About Emperor Watch & Jewellery Limited

With long establishment history of 80 years in Hong Kong since 1942, Emperor W&J (887.HK) is a leading retailer principally engages in the sale of European-made internationally renowned watches, and self-designed fine jewellery products under its own brand, “Emperor Jewellery”. Through its comprehensive watch dealership, unique marketing campaigns and extensive retail network at prime locations in Hong Kong, Macau, mainland China, Singapore and Malaysia, Emperor W&J established a strong brand image amongst its target customers ranging from middle to high income groups worldwide. In recognition of its efforts in investor relations communications, Emperor W&J was granted with “Best IR Company” (Small Cap), “Best Investor Presentation Material” (Small cap), “Best IRO” (Small Cap), “Best IR Team” (Small cap) in HKIRA Investor Relations Awards 2021 by the Hong Kong Investor Relations Association. For more information, please visit its website: www.EmperorWatchJewellery.com.

Investor/Media Enquiries

Anna Luk                                                                        Janice Au

Group Investor Relations Director                       Group Investor Relations Manager

Tel: +852 2835 6783                                            Tel: +852 2835 6799

Email: annaluk@emperorgroup.com                  Email: janiceau@emperorgroup.com