Emperor Watch & Jewellery (887) H1 2025 earnings summary

Executive summary

• Total revenue for the six months ended 30 June 2025 rose 7.6% year-over-year to HK$2,794 million, with gross profit up 7.7% to HK$840 million and net profit up 4.9% to HK$194 million.

• Revenue growth was driven by both Hong Kong (+8.8%) and Mainland China (+8.7%), with jewellery segment revenue up 13.4% and watch segment revenue up 4.2%.

• The group expanded its retail network to 73 stores across Hong Kong, Macau, Mainland China, Singapore, and Malaysia, opening new flagship stores for Patek Philippe and Tudor.

• Strategic partnership and joint venture formed for jewellery business expansion in Mainland China, targeting 600 new stores in five years.

Financial highlights

• Gross profit margin remained stable at 30.1% (2024: 30.0%).

• Adjusted EBITDA increased 5.3% to HK$297 million.

• Basic earnings per share was HK2.73 cents, up from HK2.72 cents year-over-year.

• Interim dividend declared at HK0.55 cent per share, down from HK0.65 cent last year, totaling HK$39.9 million.

• Cash and cash equivalents at period end were HK$1,508 million, up from HK$950 million at the start of the period.

Outlook and guidance

• Anticipates increased luxury spending in Hong Kong due to tourism recovery and government initiatives.

• Expects gold jewellery demand to remain strong as an alternative investment amid volatile markets.

• Plans to expand retail network in Mainland China with diversified segmentation strategies.