东方表行集团2023 年报

CHAIRMAN’S STATEMENT AND MANAGEMENT DISCUSSION AND ANALYSIS主席報告及管理層討論及分析 MANAGEMENT DISCUSSION AND ANALYSIS Group Results On behalf of the Board of Directors (the “Board”) ofOriental Watch Holdings Limited (the “Company”) and itssubsidiaries (collectively, the “Group”), I hereby presentyou the audited consolidated results of the Group for theyear ended 31 March 2023 (the “Year”). 2019 Despite its existence of more than three years, theC O V I D - 1 9p a n d e m i c c o n t i n u e d t o b r i n g l i n g e r i n gimpact to the market. In the first half of the fiscal year,Mainland China saw a notable surge in cases, whichwas subsequently followed by sustained strict lockdownmeasures. That has led to drastic changes to people’sever yday lives, with offline sales and traffic almostimpossible. The uncertainties surrounding the globaleconomy, such as growing geopolitical tension, sharpinflation, and surging interest rates, have also broughtserious questions to people’s purchasing power, whichwas subsequently translated into pessimism amongconsumers. The same case could also be applied to HongKong, where outdoor activities were less preferred, andsales of high-ticket items suffered as a result of consumerconservatism. 2019 H o w e v e r, a s t h e s e c o n d h a l f o f t h e f i n a n c i a l y e a runfolded, the world seemed to see light at the end ofthe tunnel. Mainland China saw a change in its COVIDstrategy from prevention to adaptation, by relaxing itslockdown measures and announcing its border reopeningin Januar y 2023; whereas in Hong Kong, there wasalso the announcement of easing border control, theintroduction of consumption voucher, and the “Hello HongKong” campaign that aims to attract tourists and localconsumption. CHAIRMAN’S STATEMENT AND MANAGEMENT DISCUSSION AND ANALYSIS主席報告及管理層討論及分析 3,705,000,0003,640,000,0001.8%0.8%1,189,000,0001,180,000,00032.1%32.4%18.7%295,000,000363,000,00016,000,00013,000,00022,000,0005.1% Throughout the journey, the Group strived to maintainstable business operations, and remained focused onefficiency enhancement and cost control. Leveragingits strong brand equity and well-managed distributionnetwork, the Group was able to safely navigate theoperating environment, delivering a revenue of HK$3,705million (2022: HK$3,640 million), which represents a year-on-year (“yoy”) increase of 1.8% to. Gross profit slightlyincreased by 0.8% to HK$1,189 million (2022: HK$1,180million), with gross profit margin remained stable at 32.1%(2022: 32.4%). Compounded by the absence of one-off net gain recognised last year and depreciation ofrenminbi during the Year, profit attributable to owners ofthe Company decreased by 18.7% yoy to HK$295 million(2022: HK$363 million). If excluding one-off gain of HK$16million in relation to the reversal of impairment losseson other receivables, HK$13 million in relation to thenet gain on derivative financial instruments at fair valuethrough profit or loss for the year ended 31 March 2022and HK$22 million in relation to the depreciation of RMBcalculated on a constant exchange rate basis, the Group’sprofit attributable to owner of the Company recorded adecrease of 5.1% yoy. 7.510.022.030.5 To show our appreciation for shareholders’ continuoussupport, the Board has resolved to recommend a finaldividend of 7.5 HK cents per share (2022: 10.0 HK cents)and a special dividend of 22.0 HK cents per share (2022:30.5 HK cents) for the year ended 31 March 2023. CHAIRMAN’S STATEMENT AND MANAGEMENT DISCUSSION AND ANALYSIS主席報告及管理層討論及分析 Business Review 431 As at 31 March 2023, the Group operates 43 retailpoints (including associate retail stores) in the GreaterChina region, with 1 online store in Mainland China andHong Kong, respectively. Breakdown of retail points bygeographic region is as follows: 3.0%5.5%1.1%FH13.6%2,563,800,0001.4%6.0%2,560,000,0002,415,000,000 In terms of Mainland China’s economic performance,according to the National Bureau of Statistics, the PRC’sgross domestic product (GDP) only recorded a 3.0%yoy growth rate in 2022, which was slower than the 5.5%target set out at the beginning of 2022. The drop in GDPis also applicable to consumption across categories, withretail sales of gold, silver and jewelry during the sameperiod also reporting a decrease of 1.1% yoy. Accordingto the Federation of the Swiss Watch Industry FH, theamount of Swiss watch exports to the PRC also recorded adecrease of 13.6% yoy in 2022, decreasing to CHF 2,563.8million in value. The downtrend did not stop until Januaryto March 2023, which reported a growth of 1.4% yoy,highlighting the weak market sentiment and slow recoveryin the luxury watch market. Despite the challenges, theGroup made full use of its strong brand equity, attractivebrand portfolio, and extensive distribution network inMainland China, delivering an increase in revenue of 6.0%yoy to HK$2,560 million (2022: HK$2,415 million). CHAIRMAN’S STATEMENT AND MANAGEMENT DISCUSSION AND ANALYSIS主席報告及管理層討論及分析