Emperor W&J Delivers Strong 1H2018 Results; Quadruples Net Profit to HK$157M
Product name：Emperor W&J Delivers
HONG KONG, Aug 29, 2018 - (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 an encouraging interim results for the six months ended 30 June 2018 (the "Period").
Driven by strong momentum in luxury consumption market, the Group delivered solid operating performance in the Period. The Group's total revenue soared by 34.3% to HK$2,454.0 million (1H2017: HK$1,827.2 million). Amidst the revival of inbound tourism and the strong recovery in retail sales, revenue from Hong Kong achieved a growth of 42.8% to HK$1,908.4 million (1H2017: HK$1,335.7 million), accounting for 77.8% (1H2017: 73.1%) of the total revenue. The improvement in consumption sentiment has supported robust demand of watches. Hence, revenue of the watch segment, the Group's largest revenue contributor, rose 32.1% to HK$1,941.5 million (1H2017: HK$1,470.3 million), accounting for 79.1% (1H2017: 80.5%) of the total revenue. Revenue from the jewellery segment increased by 43.6% to HK$512.5 million (1H2017: HK$356.9 million).
Gross profit grew by 39.0% to HK$677.3 million (1H2017: HK$487.3 million). The gross profit margin further enhanced to 27.6% (1H2017: 26.7%), due to stronger market demand for watches.
These factors, coupled with enhanced operating efficiency, led to a significant rise in the Group's net profit, to HK$157.2 million (1H2017: HK$39.1 million), more than quadrupled year-on-year. Basic earnings per share was HK2.29 cents (1H2017: HK0.57 cent). The Group has declared an interim dividend of HK0.70 cent (1H2017: HK0.17 cent) per share.
As at 30 June 2018, the Group operated 84 stores (31 December 2017: 80) in Hong Kong, Macau, mainland China and Singapore.
In recent years, the Group strives to strengthen the presence of "Emperor Jewellery" in emerging shopping areas, aiming to seize the market potential of local young consumers. During the Period, two "Emperor Jewellery" stores were opened in Telford Plaza I in Kowloon Bay and Sunshine City Plaza in Ma On Shan, which are surrounded by large-scale residential developments. The store layouts are decorated with warm colour combinations, creating the harmonious and relaxing atmosphere, and the perfect setting for presentations of exquisite jewellery pieces.
During the Period, the Group continued to diversify its "Emperor Jewellery" product portfolio in order to attract new customer segments. The Group presented the "Mini Me" Family Jewellery collection, featuring enchanting mother-and-baby pendant sets modelled after lovable animals including the panda, giraffe, dog, cat and bear, making perfect gifts for family-themed parties or new-born celebrations. In addition, the new "Yo Yo" collection of fashionable black chalcedony embraces subtle unisex design. To spotlight the design that is imbued with an urban sense of style, renowned artist Mr. Nicholas Tse was invited to feature the new "Yo Yo" collection in a music video.
Moving forward, the Group plans to further extend its presence to Malaysia, following the successful launch in Singapore in 2013. The Group will continue to eye further expansion opportunities, to enhance its market presence around the world.
Ms. Cindy Yeung, Chairperson & Chief Executive Officer of Emperor W&J, said, "We are pleased to deliver significant growth in both topline and bottom line in the first half of 2018. The solid performance is largely due to a strong recovery in retail market and the improvement in margin profile driven by our impressive efforts at enhancing efficiency. Given the favourable fundamentals of Hong Kong luxury watch sector, we are cautiously optimistic about our long-term business prospects albeit market volatility. We remain committed to respond proactively to the market dynamics and leverage on our core competencies."
Ms. Yeung continued, "This year marks the 10th anniversary of our listing. Over the past decade, the Group has achieved considerable operational progress despite cyclical swings. We stay faithful to our business strategy with renewed commitment to delivering on its potential."
About Emperor Watch & Jewellery Limited
With long establishment history of over 70 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, the mainland China and Singapore, 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 IR Presentation Collaterals" (Small Cap) in HKIRA Investor Relations Awards 2018 by the Hong Kong Investor Relations Association. For more information, please visit its website: www.emperorwatchjewellery.com.
Ms. Winnie Kwong,
Group Investor Relations Manager
Tel: +852 2835 6791
Ms. Anna Luk,
Group Investor Relations Director
Tel: +852 2835 6783
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Emperor W&J Delivers