Emperor Watch & Jewellery (887) H2 2025 earnings summary

Executive summary

• Revenue rose 10.2% year-over-year to HK$5,765 million, with strong growth in both Hong Kong and Chinese Mainland markets.

• Net profit surged 67.7% to HK$431 million, driven by improved gross margin and robust jewellery segment performance.

• Final dividend proposed at HK1.14 cents per share, up 153.3% year-over-year; total annual dividend HK1.69 cents per share.

Financial highlights

• Gross profit increased 20.2% to HK$1,780 million, with gross margin improving to 30.9% from 28.3%.

• Adjusted EBITDA rose 49.2% to HK$646 million.

• Basic EPS was HK6.34 cents, up 67.3% year-over-year.

• Cash and cash equivalents at year-end were HK$1,610 million, with net cash position of HK$1,598 million.

Outlook and guidance

• Expects continued cautious consumer spending amid global economic volatility, but gold jewellery demand in China remains strong.

• Plans to expand retail network and online presence, targeting young consumers and leveraging e-commerce platforms.

• Anticipates sustained recovery in luxury retail, especially in Hong Kong and Chinese Mainland.