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Mainland, China

Hong Kong, China



Mar 30, 2020

Overall Gross Profit Margin Increases 3.2pp

 Mainland China and Southeast Asia Markets

Achieve 36.8% and 26.4% Revenue Growth Respectively

Results Summary

HK$ million (Audited)







- 13.0%

Gross profit



- 3.1%

Gross profit margin



+ 3.2pp

Net profit




-    Per reported



- 65.9%

-    Before the depreciation charge*



- 32.3%

Net profit margin




-   Per reported



- 3.4pp

-   Before the depreciation charge*



- 1.3pp

Basic earnings per share




-    Per reported

HK3.87 cents

HK1.33 cents

- 65.6%

-    Before the depreciation charge*

HK3.87 cents

HK2.69 cents

- 30.5%

* The depreciation charge on a self-owned store at Nos. 4-8 Canton Road, Tsim Sha Tsui, Kowloon, one of the Group’s flagship stores in Hong Kong was HK$92 million (2018: HK$5 million)

(Hong Kong, 30 March 2020) 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 annual results for the year ended 31 December 2019 (the “Year”).

During the Year, the ongoing Sino-US trade dispute and local social issues unquestionably hindered economic development in Hong Kong. Local retail market landscape experienced an exceptionally tough cycle, and the Group’s total revenue inevitably decreased by 13.0% to HK$4,110 million (2018: HK$4,722 million). Despite the weaker consumption sentiment, market demand for certain luxury watches remained stable and corresponding prices remained resilient, hence gross profit decreased only slightly to HK$1,264 million (2018: HK$1,305 million), while the gross profit margin increased by 3.2 percentage points to 30.8% (2018: 27.6%).

As a result of falling visitor arrivals and dampening consumption sentiment, revenue from Hong Kong market dropped to HK$2,761 million (2018: HK$3,643 million), which accounted for 67.2% (2018: 77.1%) of the total revenue. On the contrary, mainland China and Southeast Asia markets both exhibited strong growth, with revenue increasing by 36.8% and 26.4%, respectively; while revenue from Macau market increased by 6.6% year-on-year. Considering revenue breakdown by product, the watch segment generated sales of HK$3,158 million (2018: HK$3,664 million), accounting for 76.8% (2018: 77.6%) of the total revenue. Revenue from the jewellery segment was HK$952 million (2018: HK$1,058 million).

As a result of a depreciation charge arising from the self-owned store, net profit decreased by 65.9% to HK$90 million (2018: HK$264 million), while the net profit before the depreciation charge decreased by 32.3% to HK$182 million (2018: HK$269 million). Basic earnings per share was HK1.33 cents (2018: 3.87 cents).

During the Year, several dedicated watch stores and “Emperor Jewellery” stores were opened in Hong Kong, mainland China and Singapore. As at 31 December 2019, the Group had 104 (31 December 2018: 95) stores in Hong Kong, Macau, mainland China, Singapore and Malaysia.

In November 2019, and , 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.


Ms. Cindy Yeung, Chairperson & Chief Executive Officer of Emperor W&J, said, “Local tourism and retail market were adversely affected last year, and the Group has since then experienced a challenging business operating environment. The outbreak of coronavirus disease in this January has undoubtedly exacerbated the situation. Against the backdrop of the unfavourable market situation, the Group will adopt appropriate strategies for mitigating the potential downside risk. The Group will closely monitor inventory levels and remix the product portfolio in accordance with market responses; exercise stringent control over operating costs; and take appropriate measures to improve its overall operating efficiency. The Group will remain committed to seeking and seizing new opportunities, and overcome the challenges ahead.”


- End -

About Emperor Watch & Jewellery Limited

With long establishment history of over 75 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 IR in Corporate Transaction” (Small cap) and “Best IR Team” (Small cap) in HKIRA Investor Relations Awards 2019 by the Hong Kong Investor Relations Association. In November 2019,  and, 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:

Investor/Media Enquiries


Anna Luk

Group Investor Relations Director

Tel: +852 2835 6783



Janice Au

Group Investor Relations Manager

Tel: +852 2835 6799





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