HONG KONG, Nov. 13 /Xinhua-PRNewswire/ --
-- Capitalizing on fast growing entertainment and hospitality sector and
the increasing number of visitor arrivals from PRC
-- Franck Muller flagship boutique at the Venetian Macao launched in
August 2007
-- Earnings per share more than doubled to HK 6.5 cents from HK 3.2
cents in Q2 FY2007
-- Net Asset Value per share (NAV) rose to HK 52.44 cents from HK 51.95
cents as at September 30
Sincere Watch (Hong Kong) Limited ("the Group"; HKEx: 0444), the leading watch specialist in Asia, posted a doubling of its net profit to HK$26.4 million on a 46% increase in revenue to HK$307.7 million for the six months ended September 30 ("Q2 FY2008").
In addition to the revenue growth, average gross margins improved from 29.1% to 29.6%. As a result, gross profit for Q2 FY2008 grew 50% to HK$91.0 million, up from HK$60.5 million in Q2 FY2007.
For Hong Kong, the Group saw spectacular growth with revenue jumping from HK$173.4 million to HK$252.2 million. For the PRC and Macau, the revenue difference between the two reporting period is due to purchases made by the new points of sales appointed in Macau in corresponding period last year. The Group also saw maiden contributions from other Asian markets, amounting to HK$31.5 million due to the acquisition of the Taiwanese subsidiary in October 2006.
The Group's sterling performance reflects the success of its marketing and branding strategies in capitalizing on the growth in demand for luxury goods in North Asia. The Group is also benefiting from Hong Kong's strong economic performance and the increased tourist traffic from the region, especially China.
Mr. Kevin Chau, the Executive Vice-Chairman of Sincere Watch (HK) said: "Our sterling first half performance is the result of our successful marketing strategies in a booming retail and luxury industry in North Asia. With the fast growing entertainment and hospitality sector and the increasing number of visitor arrivals from PRC, Macau will be a key growth market for the Group. We expanded our presence there with the opening of the Franck Muller flagship boutique at the Venetian Casino and Resort Macao in August 2007. We will continue to launch innovative retail concepts and marketing platforms in Macau and North Asia to entrench our leading position and drive growth forward. To capture growth opportunities in the luxury sector in HK where we expect to enjoy continued healthy tourism growth, our flagship Franck Muller boutique at Central Hong Kong was considerably enlarged and refurbished."
Earnings per share for Q2 FY2008 were HK 6.5 cents, up from HK 3.2 cents in Q2 FY2007. Net asset value per share also rose from HK 51.95 cents to HK 52.44 cents as at September 30.
Added Mr Chau, "To continue to ride on the booming luxury demand in the PRC, we plan to re-open the Franck Muller boutique in Shanghai in November 2007 at Plaza 66, Nanjing Xi Lu, the premier luxury shopping mall in Shanghai following the opening of Franck Muller boutique in Beijing in April 2007. We have already appointed dealerships in Dalian, Hangzhou and Shanghai and are currently exploring opportunities to form strategic alliances with potential business partners. We will look at expanding our portfolio to include new luxury brands that have good growth potential. Our enlarged presence in Beijing and Shanghai will enable us to capitalize on the tourism boom in the upcoming 2008 Olympics."
The Group expects business to remain robust and profitable in the next quarter.
For more information, please contact:
Ms Tham Moon Yee / Mr Lee Yew Meng / Ms June Yong
Stratagem Consultants Pte Ltd
Tel: +65-6227-0502
Fax: +65-6227-5663
Email: tmy@stratagemconsultants.com /
yewmeng@stratagemconsultants.com /
june@stratagemconsultants.com
