Sincere Watch (HKG:0444) said an arbitration tribunal found that its unit, Sincere Brand Management, was wrongfully stripped of its exclusive rights to distribute Franck Muller timepieces in mainland China, Hong Kong, Macau, and Taiwan, according to a Thursday bourse filing.

The tribunal deemed the 2018 exclusive distribution agreement terminated as of Oct. 3, 2022, and awarded damages to Sincere Brand Management.

It ordered Multicontinental Distribution to repair and return withheld watches within 60 days.

Meanwhile, Sincere Brand Management is to return consigned products valued at about HK$337.7 million and pay for those sold.

It must also cease using the Franck Muller trademark and presenting itself as the brand's exclusive distributor, the filing said.