Oriental Watch Holdings released its audited results for the year ended 31 March 2026. Revenue slipped 0.8% year-on-year to HK$3.42 billion, reflecting soft luxury-watch demand across Greater China.

Gross profit decreased 2.0% to HK$1.06 billion, trimming gross margin to 31.1% from 31.5% a year earlier. Operating cost controls partly offset weaker sales, with lease-related expenses down 6.5% to HK$201 million.

Profit attributable to shareholders declined 10.0% to HK$180 million, equivalent to basic earnings per share of 36.95 HK cents. Excluding a one-off HK$20 million loss on disposal of a joint venture, adjusted profit matched the prior year’s HK$200 million.

By geography, Mainland China remained the growth driver: revenue rose 4.5% to HK$2.73 billion and segment profit reached HK$466.50 million. Hong Kong sales shrank 11.1% to HK$673.37 million, posting a HK$47.68 million segment loss, while Macau revenue dropped to HK$14.88 million with a segment loss of HK$35.91 million.

The balance sheet stayed robust. Cash and cash equivalents increased to HK$950.37 million (31 March 2025: HK$836.08 million) and the group remained debt-free. Net current assets stood at HK$1.37 billion, and total equity rose to HK$1.81 billion. Inventories were broadly flat at HK$466.03 million.

The Board recommended a final dividend of 4.0 HK cents per share and a special dividend of 12.3 HK cents, subject to shareholder approval. Together with the interim distributions, full-year payouts amount to 37.1 HK cents per share, representing a 100.4% dividend-to-earnings ratio.

Management highlighted continued cost discipline, selective store rationalisation and expansion in premium Mainland locations, alongside extension of the certified pre-owned watch business, as core strategic focuses amid challenging luxury consumption trends.