A Leading Watch & Jewellery Retailer...shop by HKTB High Jewellery Collection by Cindy Yeung launched in Nov 2017 Short film featuring High Jewellery Collection (by Cindy Yeung) on

Other Information

Company Structure

Comprehensive watch brand mix

Wide recognition of brand

Strong presence on prime retail locations

Diversify synergies effect with group sister companies

Excellent direct marketing

Proficient management team

China Galaxy Tony Li 852-3698 6392 [email protected] Lewis Pang 852-2235 7847 [email protected]

CLSA Mariana Kou 852-2600 8190 [email protected]

CMB International Walter Woo 852-3761 8776 [email protected]

Deutsche Bank Anne Ling 852-2203 6177 [email protected]

Haitong International Walden Shing 852-3926 8952 [email protected]

Macquarie Linda Huang 852-3922 4068 [email protected]

Yuanta Peter Chu 852-3969 9521 [email protected]

IR Contacts:Anna Luk, Group IR DirectorT: (852) 2835 6783 E: [email protected]

Winnie Kwong, Group IR ManagerT: (852) 2835 6791E: [email protected]

Janice Au, Group IR ManagerT: (852) 2835 6799E: [email protected]

Analyst Contacts

Emperor Watch & Jewellery Limited (887.HK)

Emperor Group (~60%)

Watch Business (~80%)

Authorised dealer of international watch brands

Design and sale of diamond,jade, pearl, gold and other

jewellery under brand

Public (~40%)

Jewellery Business (~20%)

ALeadingWatch&JewelleryRetailer

Competitive Strengths

1

www.emperorwatchjewellery.com Issued on 1 Jan 2019

Shareholding:

Revenue Mix:

Mr. Martin Lee,Executive Director of

Henderson Land Development Co. Ltd (Left)

Mr. Brian Li, Deputy Chief Executive of

the Bank of East Asia Limited (Left 1)

Baume & MercierBedat & CoBell & RossBlancpainBreguetCartierCertinaChopardGirard‐PerregauxHamiltonIWC SchaffhausenJaeger‐LeCoultreMontblanc

MidoOmegaOfficine Panerai ParmigianiPatek PhilippePiagetRadoRolexTag HeuerTissotTudorVacheron ConstantinZenith

Baume & Mercier (名士)Carl F. Bucherer (寶齊萊)Franck Muller (法穆蘭)Omega (歐米茄)Piaget (伯爵) Rolex (勞力士) Tag Heuer (泰格豪雅)Tudor (帝舵表)Zenith (真力時)

Hong Kong: 26 Dealerships Mainland China: 9 Dealerships

Watch Business

Mr. Thierry Stern, President of Patek Philippe (Right 2)Mr. & Mrs. Philippe Stern, Honorary President of

Patek Philippe (Left 3 & 4)

Co-op advertising campaigns with watch brand suppliers

The above price differences is mainly attributable by VAT, luxury tax, import tariff, currency exchange rate and regional price difference dictated by watch brand suppliers

Rolex "Day-Date”Yellow Gold HK$222,000RMB235,500SGD42,180

Cartier “Ballon Bleu” Medium Rose Gold

HK$343,000RMB342,000SGD63,000

Patek Philippe “Grand Complications”

Rose GoldHK$653,600RMB657,600SGD115,000

Market Local Listed Price Against Hong Kong

Hong Kong ‐

Macau ‐

Mainland China plus ~20%

Singapore plus ~5%

Malaysia ‐

Japan plus ~5%

Korea plus ~5%

Thailand plus ~5%

Europe minus ~5%

Comprehensive Brand Mix

Close Relationship with Watch Brand Suppliers

Regional Watch Price Differences

2

Singapore: 5 Dealerships

CartierCorumPatek PhilippeRolexTudor

Mr. Daniel Neidhart, Managing Director of Rolex (Hong Kong) Limited (Left 1)

Stephan Ritzmann, CEO of Chopard Asia-Pacific Region (Left 2)

Martin Ganz, Vice President of Breguet Hong Kong and Macau (Right 1)


With focus on quality diamond and fine jadeites among the comprehensive product range, including pearl, colour stones and gold as well, under brand

Emphasis on skillful craftsmanship, delicate and stylish design

Jewellery Business

Roll out various signature jewellery collections with unique charisma for brand loyalty

Recast precious materials in an elegance and excellence with exceptional creations

Demonstrate feminine appeal with a fine and delicate quality

Celebrities endorsement on advertisements and advertorialsOnline exposure in popular websites and social media channelsCollaboration with KOLs & Bloggers

Quality Diamond and Jadeite with Design on Premium

Stringent Quality and Service Standards

Charismatic Endless Collections

Widely Recognised as a Prestigious Brand

3

Recognised as Quality Tourism

Services-accredited shop by HKTB

High Jewellery Collection by Cindy Yeung launched in Nov 2017

Short film featuring High Jewellery Collection (by Cindy Yeung) on Youtube

Exposure on social media platforms

Heartbeat Collection

Ms. Charlene Choi featuring Heartbeat Collection

Well‐trained staff who possess professional product knowledge and provide excellent customer servicesAdvise tips on jewellery care and maintenance Offer comprehensive after‐sale services

Instagram Facebook

Product Quality

Assure quality and authenticity of the gem‐sets

~ 90% of diamond stones weighting 1ct or above are in upper colour range (i.e. colour D to J)

>90% of diamond stones weighting 1ct or above are certified by GIA

Mr. Nicolas Tsefeaturing Yo Yo Collection

Service Standards

Emphasis on product knowledge of the staff and professional services to the customers

Maintain 1 qualified GIA certificate holder out of 5 jewellery sales executives in HK and Macau

Mini Me Collection launch event in Apr 2018


Financial Review

Revenue Breakdown

4

*Others represent color stones, pearl and gold jewellery.

Emperor W&J declared an interim dividend of HK0.70 cent (1H2017: HK0.17 cent) per share.

Financial Summary

HK$ million FY2016 FY2017 1H2017 1H2018YOY

Changes

Revenue 3,642 4,075 1,827 2,454 + 34.3%

Gross Profit 909 1,089 487 677 + 39.0%

Gross Profit Margin 25.0% 26.7% 26.7% 27.6% + 0.9pp

Earnings/(Loss) BITDA (2) 207 61 198 + 224.6%

Earnings/(Loss) BITDA Margin (0.1)% 5.1% 3.3% 8.1% + 4.8pp

Net Profit/(Loss) (65) 160 39 157 + 302.6%

Net Profit/(Loss) Margin (1.8)% 3.9% 2.1% 6.4% + 4.3pp

Basic EPS/(LPS) (HK Cents) (0.94) 2.32 0.57 2.29 + 301.8%

Total Revenue FY2016 FY2017 1H2017 1H2018 Changes

(HK$m) Mix (%) (HK$m) Mix (%) (HK$m) Mix (%) (HK$m) Mix (%) (%)

By Product Segment

Watch 2,857 78 3,239 79 1,470 80 1,942 79 + 32.1

Jewellery 785 22 836 21 357 20 512 21 + 43.4Diamond & Jade 467 13 501 13 206 11 282 12 + 36.9

Others* 318 9 335 8 151 9 230 9 + 52.3

Total 3,642 100 4,075 100 1,827 100 2,454 100 + 34.3

By Geographical Segment

HK 2,797 77 3,047 78 1,336 73 1,908 78 + 42.8

Macau 211 6 234 6 105 6 149 6 + 41.9

China 373 10 420 10 212 12 207 8 - 2.4

Singapore 261 7 374 9 174 9 190 8 + 9.2

Total 3,642 100 4,075 100 1,827 100 2,454 100 + 34.3


*Same Store Sales represents the % change of total sales of the comparable stores year-on-year.

Volume VS ASP

Key Performance Indicators

5

*Others represent color stones, pearl and gold jewellery.

Financial Summary

FY2016 FY2017 1H2017 1H2018

Same Store Sales* (Overall) - 14.2% + 15.1% + 8.8% + 31.2%

Same Store Sales* (HK) - 13.2% + 14.3% + 8.2% + 37.0%

Store Rental / Total Revenue 12.9% 10.4% 11.9% 8.7%

Store Staff Cost / Total Revenue 4.8% 4.7% 4.9% 4.7%

Marketing Cost / Total Revenue 0.6% 0.5% 0.4% 0.5%

YE2016 YE2017 PE2017 PE2018

Gearing Ratio (Debts/Total Assets) Nil Nil Nil Nil

Gearing Ratio (Debts/Total Equity) Nil Nil Nil Nil

Stock Turnover Days 354 days 353 days 368 days 294 days

Inventory (HK$) $2,647m $2,651m $2,725m $2,875m

Cash on Hand (HK$) $1,324m $1,613m $1,426m $1,430m

Debts (HK$) Nil Nil Nil Nil

FY2016 FY2017 1H2017 1H2018

WatchNo. of Goods Sold (pcs) 35,789 37,527 17,456 22,220

ASP (HK$) $79,821 $86,301 $84,228 $87,378

Jewellery

(Diamond and Jade)

No. of Goods Sold (pcs) 24,850 25,074 12,241 13,020

ASP (HK$) $18,808 $20,001 $16,853 $21,730

Jewellery(Others*)

No. of Goods Sold (pcs) 84,306 82,250 40,282 57,585

ASP (HK$) $3,769 $4,080 $3,741 $3,986


Times Square

No. 22-24

Times Square

Russell Street, Causeway Bay

Canton Road, Tsim Sha Tsui

Retail NetworkRetail Network Covering HK, Macau, Mainland China, Singapore and Malaysia

Strong Presence on Prime Retail Locations

6

LegendPremises owned by Emperor W&J (887.HK)

Premises owned by Emperor International (163.HK)

1881 Heritage

China HK CityHarbour City


As of 31 December 2018

Multi-brand Watch Shopwith/without

Jewellery

Single-brandWatch

Boutique

Emperor Jewellery

Store

Total Floor Area

Total (sq. ft.)

Average (sq. ft.)

Hong Kong 8 7 14 29 80,959 2,792

Macau 2 1 2 5 9,451 1,890

Mainland China 1 7 45 53 42,144 795

Singapore 1 4 2 7 5,700 814

Malaysia - - 1 1 2,000 2,000

Total 12 19 64 95 140,254 1,476

Future Strategies2019 Store Expansion Plan

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Opening Date Shop Details

Hong Kong

1 1Q 2019 Emperor Jewellery Store ‐ Shop G003, G/F, KOLOUR．Tsuen Wan I, 68 Chung On Street, Tsuen Wan

Mainland China

2 1Q 2019Rolex & Tudor boutique ‐ 1/F, Chengdu Yintai Centre, No. 1199 Tianfu Avenue North, High‐Tech Zone, Chengdu, Sichuan (CD1)

3 2Q 2019Rolex boutique ‐ 1/F, Shanghai One ITC Mall, No. 1901 Huashan Road, Xuhui District, Shanghai

4 2Q 2019 Emperor Jewellery Store ‐ Huijin Department Store, No. 900 Loushanguan Road, Changning District, Shanghai

5 2Q 2019Emperor Jewellery Store ‐ I'SOPEN Plaza, No. 2 Chuanshan West Road, Hengyang, Hunan

6 2Q 2019Emperor Jewellery Store ‐ Haiya Mega Mall, No. 99 Jian'an Yi Road，Bao'an District, Shenzhen

(-) represents internal shop number


Multi-Watch Store at Russell Street, Causeway Bay

Emperor Jewellery Image Store at 1881 Heritage, No. 2A Canton Road,

Tsim Sha Tsui

Rolex Boutique at Russell Street, Causeway Bay

Flagship Store at No. 4-8 Canton Road, Tsim Sha Tsui

8

Expand jewellery business to enhance overall profit margin performanceIncrease the sales capacity by rolling out numerous collections on regular basis and direct marketing eventsTarget to achieve 50% of the overall revenue in medium to long term

Reinforce brand positioningPosition “Emperor Jewellery” as affordable luxuryImplement brand building exerciseEnhance brand exposure by participating in regional/international fashion and jewellery shows

Deepen market penetrationContinue to execute organic store expansion planRevamp stores and create fresh counters to enhance shoppers’ experience and enable effective customer segmentation

Enhance Jewellery Business

Future Strategies

Heartbeat Collection, 2017

Identify e‐commerce opportunitiesSeek to operate e‐commerce through online shopping platforms (e.g. Tmall, jd.com)to capture massive potentials of internet and mobile usersEnhance brand visibility on various websites to draw target customers from online to offlineExpand user database for analysing customer demographics and formulating effective product strategy

Crown de Emperor, 2016

Byzance de Emperor Collection, 2015 High Jewellery Collection by Cindy Yeung, 2017

Crown Your Life 12+1 Collection, 2017 MiniMe Collection, 2018

New Yo Yo Collection, 2018

Tmall

jd.com

Chinese Wedding Fine Gold Collections, 2018


Documents

A Leading Watch & Jewellery Retailer...shop by HKTB High Jewellery Collection by Cindy Yeung launched in Nov 2017 Short film featuring High Jewellery Collection (by Cindy Yeung) on