- Total Revenue Surges over 120% and Achieves Turnaround
- Segment Profit of The Mainland China Records Fivefold Increase
Emperor Watch & Jewellery Limited (the Group or Emperor W&J) (HKG:887), a leading retailer of European-made watches and fine jewellery, announced its interims results for the six months ended 30 June 2021 (the Period).
As pandemic containment has become broadly stable in Greater China, and various governments made progress with vaccination programs during the Period, the Group generally continued noting signs of improvement, and its total revenue surged by 122.4% to HK$2,071.0 million (2020: HK$930.6 million). Revenue from mainland China registered a remarkable growth of 189.5% to HK$704.7 million (2020: HK$243.4 million), accounting for 34.0% (2020: 26.2%) of the total revenue. With a concrete rebound of domestic consumptions, the Group’s mainland China business during the Period exceeded the pre-COVID-19 level, while its segment profit recorded a fivefold increase to HK$119.6 million (2020: HK$22.8 million). Despite the decrease in visitor arrivals to Hong Kong, the local consumption market regained momentum, and revenue from the Hong Kong market increased by 70.3% to HK$857.9 million (2020: HK$503.7 million), accounting for 41.4% (2020: 54.1%) of the total revenue.
In respect of product segment, the sales revenue from watch and jewelry segments increased to HK$1,746.6 million (2020: HK$701.9 million) and HK$324.4 million (2020: HK$228.7 million) respectively, accounting for 84.3% (2020: 75.4%) and 15.7% (2020: 24.6%) of the total revenue.
Gross profit increased to HK$637.5 million (2020: HK$305.2 million), while the gross profit margin was 30.8% (2020: 32.8%). As a result of the revenue growth and better operating leverage, the Group achieved a net profit of HK$132.2 million (2020: net loss of HK$113.7 million) during the Period. Basic earnings per share was HK1.95 cents (2020: basic loss per share of HK1.68 cents). The Group has declared an interim dividend of HK0.55 cent per share.
During the Period, the Group’s cash position improved and 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 2020: 5.1%).
As at 30 June 2021, the Group had a total of 98 stores in Hong Kong, Macau, mainland China, Singapore and Malaysia. During the Period, the Group opened one jewellery store in Hong Kong and one dedicated watch boutique in mainland China, to further expand market coverage.
Ms. Cindy Yeung, Chairperson of Emperor W&J, said, “Though there are still a few sporadic outbreaks in mainland China, China’s overall economy has been recovering rapidly, providing a solid back-up to the Greater China economy and luxury consumption demand. In tandem with the expansion of the middle-income group and the release of the strong pent-up demand, the Group believes that the mainland China market will be an important driver of the Group’s business growth.”
Mr. Ricky Ng, Chief Executive Officer of Emperor W&J, said, “The Group will reinforce the retail network and business operations through cautious expansion, aiming to enhance the footprint in mainland China. In parallel, the Group will closely monitor inventory levels, adjust the product mix and exercise stringent control of cost expenses, aiming to achieve sustainable business development in future.”
About Emperor Watch & Jewellery Limited
With long-established history of over 75 years in Hong Kong since 1942, Emperor W&J (HKG:887) is a leading retailer principally engages in the sale of European-made internationally renowned watches, and self-designed fine jewelry 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) and “Best IR Team” (Small cap) in HKIRA Investor Relations Awards 2020 by the Hong Kong Investor Relations Association. In November 2019, “Emperor” and “Emperor W&J” , which have been recognised as well-known to the relevant public in mainland China, obtained cross-class protection by the National Intellectual Property Administration, affirming their wide recognition and brand value in China. For more information, please visit its website: www.emperorwatchjewellery.com.
Group Investor Relations Director
T: +852 2835 6783
Group Investor Relations Manager
T: +852 2835 6799