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Mar 24, 2021

Results Summary

HK$ million








Gross profit




Gross profit margin



+ 1.2pp

Adjusted EBIT*




Net profit




Earningsper share (HK cents)




*Adjusted EBIT represents earnings before interest and tax; adding back the depreciation charge on the self-owned flagship store, which reflects the Group’s core operating performance. The Group has fully adopted the HKFRS16, which a depreciation of right-of-use assets associated with lease was recorded in both financial years.

 (Hong Kong, 24 March2021) Emperor Watch & Jewellery Limited(the “Group” or “Emperor W&J”) (Stock code: 887), a leading retailer of European-made watches and fine jewellery, announcedits annualresults for theyear ended 31 December 2020(the “Year”).

 In the face of a tough operating environment as a result of COVID-19, the Group’s total revenue decreased by 36.1% to HK$2,626.6million (2019: HK$4,110.1 million) during the Year. The revenue during the second half of the Year is nearly twotimesof thatof thefirst halfYear. Revenue from the Hong Kong market dropped significantlyto HK$1,256.6million (2019: HK$2,760.7 million) as the retail market remained difficult due to weak tourism, and accounted for 47.8% (2019: 67.2%) of the total revenue. On the other hand, with mainland China substantially containing COVID-19and continued restrictions on outbound travel, there wasan expansion of inboundconsumption and resultedin a robust rebound of the Group’s mainland China business. Hence, revenue from the mainland China market increased by 39.7% to HK$783.3million (2019: HK$560.6 million), accounting for 29.8% (2019: 13.6%) of the total revenue.


In respect of product segment, the sales revenue from watch and jewellery segments decreased to HK$2,056.2million (2019: HK$3,158.2 million) and HK$570.4million (2019: HK$951.9 million) respectively, accounting for 78.3% (2019: 76.8%) and 21.7% (2019: 23.2%) of the total revenue.


Gross profit decreased to HK$840.1million (2019: HK$1,264.0 million), while gross profit margin increased by 1.2percentage points to 32.0% (2019: 30.8%). The Group actively adopted all necessary measures to mitigate the adverse financial impacts, including but not limited to rental reductions, staff cost reductions, and driving sales by various means. During the Year, the net profit decreased to HK$34.0million (2019: HK$90.0 million), while a net loss of HK$113.7 million was recorded for the six months ended 30 June 2020, indicating a turnaround during the second half of the Year. Basic earnings per share was HK0.50cent (2019: HK1.33 cents).The Group has recommended the payment of a final dividend of HK0.15cent (2019: Nil) per share.


During the Year, the Group’s cash position improved and thenetgearing ratio (calculated on thebasis of bank borrowings less cash and cash equivalentsovernetasset value) significantly decreased to 5.1% (2019: 12.3%).


As at 31 December 2020, the Group had 101 (2019: 104) stores in Hong Kong, Macau, mainland China, Singapore and Malaysia. To seize the opportunity to expand its business in the mainland China, the Group has opened a Rolex & Tudor watch boutique in Chongqing, China in February 2021.


Ms. Cindy Yeung, Chairperson of Emperor W&J, said, “The Group’s Hong Kong, Macau and Singapore businesses have seen slight improvements recently, while the mainland China business saw good progress in recovering from the earlier downturn. Although various governments have been pushing ahead with vaccination programmes, it takes time to achieve mass inoculation. In the meantime, mainland China’s outbound travel will still be restricted in the near term, thus the Group believes that domestic consumption within mainland China will be an important driver of the Group’s business going forward, given the strong pent-up demand and high purchasing power of Chinese citizens. The Group will adhere to its prudent approach and strive to minimise the downside risks to which the Group is exposed, with an aim of maintaining steady development of its businesses amid this unprecedented, challenging business environment.”

- 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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