东方表行集团2024 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 2024 (the “Year”). 2019 The Greater China region experienced a slow recoveryfrom the impact of the Covid-19 pandemic. Initially, theeasing of restrictions and reopening of borders instilledoptimism for a better consumer market. However, theanticipated recovery did not materialize as expected.While industrial output and fixed asset investment showedsome acceleration, the retail sales performance remainedstagnant. Moreover, the troubled real estate industryin Mainland China, along with worsening investmentreturns and growing macro uncertainties such as highyouth unemployment rate, have heightened consumers’financial uncertainty. This, in turn, has resulted in a moreconservative consumer sentiment especially towards high-end products, including luxury watches. Consequently, theGroup faced notable operating pressure during the Year. 1.8%3,639,000,0003,705,000,00031.6%32.1%3.2%1,151,000,0001,189,000,000201915.3%250,000,000295,000,000 Despite the challenging market conditions, the Group’sestablished brand profile and network, coupled withstringent cost control measures, enabled it to maintain itsrevenue at a similar level, with a slight decrease of 1.8%year-on-year (“yoy”) to HK$3,639 million (2023: HK$3,705million). The gross profit slightly decreased by 3.2% yoyto HK$1,151 million (2023: HK$1,189 million), with grossprofit margin largely remained stable at 31.6% (2023:32.1%). It is worth noting that the revenue mix underwenta significant change due to the Covid-19 pandemic, withthe Mainland China surpassing Hong Kong as the Group’smajor revenue contributor. This led to a correspondingchange in the Group’s cost structure, ultimately leadingto a 15.3% yoy drop in profit attributable to owners of theCompany to HK$250 million (2023: HK$295 million). CHAIRMAN’S STATEMENT AND MANAGEMENT DISCUSSION AND ANALYSIS主席報告及管理層討論及分析 5.87.517.222.0 To show our appreciation for shareholders’ continuoussupport and taking into consideration the financial results,the Board has resolved to recommend a final dividend of5.8 HK cents per share (2023: 7.5 HK cents) and a specialdividend of 17.2 HK cents per share (2023: 22.0 HK cents)for the year ended 31 March 2024. This decision reflectsthe Board’s confidence in the Group’s long-term prospectsand its commitment to rewarding shareholders. Business Review 441 As at 31 March 2024, the Group operated 44 retail points(including associate retail stores) in the Greater Chinaregion, along with 1 online store in each of Mainland Chinaand Hong Kong respectively. Breakdown of retail pointsby geographic region is as follows: Hong KongMacauMainland ChinaTaiwan 2,571,000,0002,560,000,000 Despite the slower-than-expected market recovery, theGroup demonstrated its resilience and adaptability bymaintaining its business and revenue scale in the MainlandChina market, reaching HK$2,571 million (2023: HK$2,560million). This achievement highlights the Group’s ability tonavigate challenging economic conditions. Throughout theYear, the Group strategically established several boutiquestores in Mainland China, aiming to improve relationshipswith brand owners and expand its network with lowercapital commitment. These initiatives position the Groupfor future growth and reinforce its presence in the region. CHAIRMAN’S STATEMENT AND MANAGEMENT DISCUSSION AND ANALYSIS主席報告及管理層討論及分析 3.4%6.3%944,000,0001,008,000,000 In Hong Kong, the economic challenges were evenmore profound, with the 2023 gross domestic product(GDP) growth falling short of the initially projected 3.4%guidance, even after a downward revision earlier in2023. The general retail market experienced fluctuations.Despite a rebound in Hong Kong retail market in the firsthalf of 2023, there was an increase in tourism outboundby the Hong Kong citizens together with a lower-than-expected number of tourists visiting the city, resulted inlower local consumption. Furthermore, there has been ashift in tourists’ visiting behaviour towards seeking morein-depth experiences rather than traditional shoppingtours, posing additional challenges for the Group. Asa result, the Group’s sales in Hong Kong reported adecrease of 6.3% yoy to HK$944 million (2023: HK$1,008million). However, the Group proactively responded tothe difficult retail environment by focusing on networkenhancement and cost control measures to streamlineoperations. One notable strategic move was the comprehensiverevamping and expansion of the shop network in primeshopping areas across Hong Kong, Macau and MainlandChina. For example, we have strategically relocated theGroup’s Causeway Bay store to a more bustling areafavoured by