Results Summary Emperor Watch & Jewellery (00887) reported FY25 revenue of HK$5.77 billion, up 10.20% year on year (YoY). Net profit jumped 67.70% to HK$431.29 million, while basic EPS rose to HK6.34 cents from HK3.79 cents. Adjusted EBITD advanced 49.20% to HK$646 million.

Margin Improvement Gross profit expanded 20.20% to HK$1.78 billion, lifting the gross margin by 2.6 percentage points to 30.9%. The improvement reflects a more favourable product mix and higher contribution from jewellery, which carries stronger margins than watches.

Revenue Mix • Product: Watches contributed 61.2% of turnover, climbing 5.80% to HK$3.53 billion. Jewellery sales grew 18.10% to HK$2.24 billion, accounting for 38.8% of total revenue; gold items remained 72.4% of jewellery sales. • Geography: Hong Kong remained the largest market, generating HK$3.31 billion (+13.30%) or 57.5% of group revenue. Mainland China delivered HK$1.63 billion (+20.30%), lifting its share to 28.2%. Macau recorded HK$327.76 million, while Singapore and Malaysia contributed HK$487.86 million.

Store Network As at end-2025 the group operated 64 stores: 28 in Hong Kong, 20 in Mainland China, nine in Macau, six in Singapore and one in Malaysia. Openings during the year included a Patek Philippe flagship in Hong Kong, dedicated boutiques for IWC, Tudor and Rolex in key locations, and three new jewellery stores in Hong Kong and Macau.

Financial Position Cash and cash equivalents rose to HK$1.61 billion (FY24: HK$950 million). The group remained debt-free, apart from HK$208 million in gold loans; net cash stood at HK$1.60 billion. Current ratio was 6.0 and quick ratio 2.3. Unutilised banking facilities amounted to HK$150 million.

Capital Actions • Share placement in January 2025 raised net proceeds of HK$79 million, fully deployed for network expansion and working capital. • Acquired floors 2–4 and advertising space at 4-8 Canton Road, Tsim Sha Tsui for HK$80 million to develop a mega flagship store. • Formed a joint venture with industry veteran Chan Sai Cheong to accelerate “Emperor Jewellery” development in Mainland China.

Cost and Workforce Total staff costs increased 7.80% to HK$399.20 million. Headcount declined to 784 from 876, comprising 540 sales personnel and 244 office staff.

Dividend The board declared a final dividend of HK1.14 cents, raising full-year payout to HK1.69 cents per share (FY24: HK1.10 cents). The final dividend is subject to shareholder approval on 18 May 2026, with payment scheduled for 15 June 2026.

Outlook Management anticipates continued recovery in luxury demand across Hong Kong and Mainland China and plans additional flagship openings, including a multi-storey Rolex boutique and a multi-brand watch store on Canton Road. The group will also intensify online and live-commerce initiatives targeting millennial and Gen Z consumers in Mainland China.