Emperor W&J 2023 Interim Net Profit Doubles to HK$186 Million, Mainland China Market Achieves Remarkable Performance

HONG KONG, Aug 24, 2023 - (ACN Newswire) - - Emperor Watch & Jewellery Limited (the "Group" or "Emperor W&J") (Stock code: 887), a leading retailer of European-made watches and fine jewellery, is pleased to announce its encouraging interim results for the six months ended 30 June 2023 (the "Period").

Results Snapshots

-- Total revenue soared by 41.6%: the Group delivered satisfactory results, with its total revenue surging to HK$2,330 million (2022: HK$1,646 million) and gross profit rising by 38.1% to HK$725 million (2022: 525 million)

-- Revenue growth of 64.8% in mainland China and 49.7% in Hong Kong: the mainland China market exhibited strong growth, with its revenue totalling HK$712 million (2022: HK$432 million), accounting for 30.6% (2022: 26.2%) of total revenue; due to the resumption of travel and revival of luxury consumption momentum, revenue from the Hong Kong market increased to HK$1,153 million (2022: HK$770 million), accounting for 49.5% (2022: 46.8%) of the total revenue

-- Sales revenue up by 86.3% in the jewellery segment and 31.9% in the watch segment: the sales revenues from the jewellery and watch segments increased to HK$544 million (2022: HK$292 million) and HK$1,786 million (2022: HK$1,354 million), respectively, accounting for 23.3% (2022: 17.7%) and 76.7% (2022: 82.3%) of the total revenue, respectively

-- Net profit doubled: due to the revenue surge and the operating leverage enjoyed by the Group, the Group's net profit increased significantly, by 116.3% to HK$186 million (2022: HK$86 million), and basic earnings per share increased to HK2.74 cents (2022: HK1.27 cents)

-- Net cash position: as at 30 June 2023, the Group's bank balances and cash on hand had increased to HK$843 million (31 December 2022: HK$664 million), and the Group did not have any bank borrowings

-- Distribution of interim dividend: the Board has declared an interim dividend of HK0.76 cent (2022: HK0.38 cent) per share

Ms. Cindy Yeung, Chairperson of Emperor W&J, said, "The reopening of borders between Hong Kong, Macau and mainland China in early 2023 has driven the recovery in general mobility and business activities; the tourism and retail industries in the region have thereby regained growth momentum, which positively impacted the Group's business performance."

Mr. Ricky Ng, Chief Executive Officer of Emperor W&J, said, "The mainland China and Hong Kong markets are our development focus and we will continue expanding our footprint there. In the meantime, considering the macroeconomic headwinds, the Group will be prudent in the course of expansion, and continue exercising stringent operating cost control, in order to maintain operating efficiency in times of instability and enhance its profitability."

As at 30 June 2023 the Group had a total of 91 stores in Hong Kong, Macau, mainland China, Singapore and Malaysia. During the Period, the Group opened one jewellery store in Hong Kong and two jewellery stores in mainland China. While further expanding its network of stores, the Group will continue focusing on residential areas in Hong Kong and prominent cities in mainland China.

About Emperor Watch & Jewellery Limited

With long establishment history of over 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 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) and "Best Investor Presentation Material" (Small cap) in HKIRA Investor Relations Awards 2023 by the Hong Kong Investor Relations Association. For more information, please visit its website: www.EmperorWatchJewellery.com.

Investor/Media Enquiries

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Group Investor Relations Manager

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