Other Information

Company Structure

Comprehensive watch brand mix

Wide recognition of brand

Strong presence on prime retail locations

Diversify synergies effect with group sister companies

Excellent direct marketing

Proficient management team

China Galaxy Tony Li 852-3698 6392 tonyli@chinastock.com.hk

Cinda Lewis Pang 852-2235 7847 lewis.pang@cinda.com.hk

CLSA Mariana Kou 852-2600 8190 mariana.kou@clsa.com

CMB International Walter Woo 852-3761 8776 walterwoo@cmbi.com.hk

Haitong International Walden Shing 852-3926 8952 walden.wc.shing@htisec.com

Macquarie Linda Huang 852-3922 4068 linda.huang@macquarie.com

Yuanta Peter Chu 852-3969 9521 peter.kk.chu@yuanta.com

IR Contacts Anna Luk, Group IR Director T: (852) 2835 6783 E: annaluk@emperorgroup.com Janice Au, Group IR Manager T: (852) 2835 6799 E: janiceau@emperorgroup.com

Analyst Contacts

Emperor Watch & Jewellery Limited (887.HK)

Emperor Group (~60%)

Watch Business (~80%)

Authorised dealer of international watch brands

Design and sale of diamond, jade, pearl, gold and other

jewellery under brand

Public (~40%)

Jewellery Business (~20%)

A Leading Watch & Jewellery Retailer

Competitive Strengths

1

www.emperorwatchjewellery.com Issued on 20 Aug 2019

Shareholding:

Revenue Mix:

Mr. Martin Lee, Executive Director of

Henderson Land Development Co. Ltd (Left)

Mr. Brian Li, Deputy Chief Executive of

the Bank of East Asia Limited (Left 1)

Baume & Mercier Bedat & Co Bell & Ross Blancpain Breguet Cartier Certina Chopard Girard-Perregaux Hamilton IWC Schaffhausen Jaeger-LeCoultre Montblanc

Mido Omega Officine Panerai Parmigiani Patek Philippe Piaget Rado Rolex Tag Heuer Tissot Tudor Vacheron Constantin

Baume & Mercier (名士) Carl F. Bucherer (寶齊萊) Franck Muller (法穆蘭) Piaget (伯爵) Rolex (勞力士) Tag Heuer (泰格豪雅) Tudor (帝舵表) Zenith (真力時)

Hong Kong: 25 Dealerships Mainland China: 8 Dealerships

Watch Business

Mr. Thierry Stern, President of Patek Philippe (Right 2) Mr. & Mrs. Philippe Stern, Honorary President of

Patek Philippe (Left 3 & 4)

Co-op advertising campaigns with watch brand suppliers

The above price differences is mainly attributable by VAT, luxury tax, import tariff, currency exchange rate and regional price difference dictated by watch brand suppliers

Rolex “Day-Date” Yellow Gold

HK$270,400 RMB270,400 SGD42,460

Cartier “Ballon Bleu” Medium Rose Gold

HK$343,000 RMB335,000 SGD63,000

Patek Philippe “Grand Complications”

Rose Gold

HK$679,000 RMB652,000 SGD119,500

Market Local Listed Price Against Hong Kong

Hong Kong -

Macau -

Mainland China plus ~13-15%

Singapore plus ~5%

Malaysia -

Japan plus ~5%

Korea plus ~5%

Thailand plus ~5%

Europe minus ~5%

Comprehensive Brand Mix

Close Relationship with Watch Brand Suppliers

Regional Watch Price Differences

2

Singapore: 7 Dealerships

Blancpain Breguet Cartier Corum Patek Philippe Rolex Tudor

Mr. Daniel Neidhart, Managing Director of Rolex (Hong Kong) Limited (Left 1); Mr. Eric Pirson,

Director of MONTRES TUDOR S.A (Left 2)

www.emperorwatchjewellery.com Issued on 20 Aug 2019

Ms. Chabi Nouri, CEO of Piaget (Left) Mr. Stephan Ritzmann, CEO of

Chopard Asia-Pacific Region (Left 2)

With focus on quality diamond and fine jadeites among the comprehensive product range, including pearl, colour stones and gold as well, under brand

Emphasis on skillful craftsmanship, delicate and stylish design

Jewellery Business

Roll out various signature jewellery collections with unique charisma for brand loyalty

Recast precious materials in an elegance and excellence with exceptional creations

Demonstrate feminine appeal with a fine and delicate quality

Celebrities endorsement on advertisements and advertorials Online exposure in popular websites and social media channels Collaboration with KOLs & Bloggers

Quality Diamond and Jadeite with Design on Premium

Stringent Quality and Service Standards

Charismatic Endless Collections

Widely Recognised as a Prestigious Brand

3

Recognised as Quality Tourism

Services-accredited shop by HKTB

Exposure on social media platforms

Well-trained staff who possess professional product knowledge and provide excellent customer services Advise tips on jewellery care and maintenance Offer comprehensive after-sale services

Instagram Facebook

Product Quality

Assure quality and authenticity of the gem-sets

~ 90% of diamond stones weighting 1ct or above are in upper colour range (i.e. colour D to J)

>90% of diamond stones weighting 1ct or above are certified by GIA

Charlene Choi featuring Love Knot

Collection

Service Standards

Emphasis on product knowledge of the staff and professional services to the customers

Maintain 1 qualified GIA certificate holder out of 5 jewellery sales executives in HK and Macau

www.emperorwatchjewellery.com Issued on 20 Aug 2019

Nuò by Cindy Yeung launched in Nov 2018

Joey Yung Featuring

Heartbeat Collection

Niki Chow Featuring

One Vow Two Love Collection

Gillian Chung Featuring

Fine Gold Collection

Heartbeat Collection Love Knot Collection launch event in May 2019

Financial Review

Revenue Breakdown

4

* Others represent color stones, pearl and gold jewellery.

www.emperorwatchjewellery.com Issued on 20 Aug 2019

* Excluding a depreciation charge of HK$45.7 million (1H2018: Nil; FY2018: 4.8 million; FY2017: Nil) on a self- owned store at Nos. 4-8 Canton Road, Tsim Sha Tsui, Kowloon, one of the Group's flagship stores in HK.

Emperor W&J declared an interim dividend of HK0.35 cent (1H2018: HK0.70 cent) per share.

HK$ million FY2017 FY2018 1H2018 1H2019 YOY Changes

Revenue 4,075 4,722 2,454 2,403 - 2.1%

Gross Profit 1,089 1,305 677 758 + 12.0%

Gross Profit Margin 26.7% 27.6% 27.6% 31.5% + 3.9 pp

Net Profit

- Per Reported

- Adjusted*

160

160

264

269

157

157

118

163

- 24.8%

+ 3.8%

Net Profit Margin

- Per Reported

- Adjusted*

3.9%

3.9%

5.6%

5.7%

6.4%

6.4%

4.9%

6.8%

- 1.5 pp

+ 0.4 pp

Basic EPS (HK Cents)

- Per Reported

- Adjusted*

2.32

2.32

3.87

3.87

2.29

2.29

1.73

2.41

- 24.5%

+ 5.2%

Total Revenue FY2017 FY2018 1H2018 1H2019 Changes

(HK$m) Mix (%) (HK$m) Mix (%) (HK$m) Mix (%) (HK$m) Mix (%) (%)

By Product Segment

Watch 3,239 79 3,664 78 1,942 79 1,884 78 - 3.0

Jewellery 836 21 1,058 22 512 21 519 22 + 1.4

Diamond & Jade 501 13 559 12 282 12 255 11 - 9.6

Others* 335 8 499 10 230 9 264 11 + 14.8

Total 4,075 100 4,722 100 2,454 100 2,403 100 - 2.1

By Geographical Segment

HK 3,047 78 3,643 77 1,908 78 1,751 73 - 8.2

Macau 234 6 286 6 149 6 148 6 - 0.7

China 420 10 410 9 207 8 285 12 + 37.7

Southeast Asia 374 9 383 8 190 8 219 9 + 15.3

Total 4,075 100 4,722 100 2,454 100 2,403 100 - 2.1

Financial Summary

* Same Store Sales represents the % change of total sales of the comparable stores year-on-year.

Volume VS ASP

Key Performance Indicators

5

* Others represent color stones, pearl and gold jewellery.

Financial Summary

www.emperorwatchjewellery.com Issued on 20 Aug 2019

FY2017 FY2018 1H2018 1H2019

Watch

No. of Goods Sold (pcs) 37,527 44,942 22,220 21,903

ASP (HK$) $86,301 $81,528 $87,378 $86,021

Jewellery

(Diamond

and Jade)

No. of Goods Sold (pcs) 25,074 25,386 13,020 13,066

ASP (HK$) $20,001 $22,021 $21,730 $19,489

Jewellery

(Others*)

No. of Goods Sold (pcs) 82,250 110,626 57,585 67,965

ASP (HK$) $4,080 $4,512 $3,986 $3,883

FY2017 FY2018 1H2018 1H2019

Same Store Sales* (Overall) + 15.1% + 10.3% + 31.2% - 7.2%

Same Store Sales* (HK) + 14.3% + 11.6% + 37.0% - 11.0%

Store Rental / Total Revenue 10.4% 8.9% 8.7% 8.6%

Store Staff Cost / Total Revenue 4.7% 4.6% 4.7% 5.6%

Marketing Cost / Total Revenue 0.5% 0.8% 0.5% 0.6%

YE2017 YE2018 PE2018 PE2019

Inventory (HK$) $2,651m $3,097m $2,875m $3,197m

Stock Turnover Days 353 days 330 days 294 days 355 days

Cash on Hand (HK$) $1,613m $627m $1,430m $623m

Debts (HK$) Nil $1,157m Nil $1,127m

Net Gearing Ratio (Net Debts/NAV) Nil 11.9% Nil 11.1%

Retail Network Retail Network Covering HK, Macau, Mainland China, Singapore and Malaysia

Strong Presence on Prime Retail Locations in Hong Kong

6

1881 Heritage

China HK City Harbour City

Times Square

No. 22-24

Times Square Legend

Premises owned by Emperor W&J (887.HK)

Premises owned by Emperor International (163.HK)

www.emperorwatchjewellery.com Issued on 20 Aug 2019

@20 Aug 2019 @30 Jun 2019

No. of stores Floor Area

Total Multi-brand Watch Shop

with/without Jewellery

Single-brand

Watch Boutique

Emperor Jewellery

Store

Total Total

(sq. ft.)

Average

(sq. ft.)

Hong Kong 31 8 7 15 30 82,359 2,745

Macau 5 2 1 2 5 9,451 1,890

Mainland China 53* 1 7 45 53* 41,012 774

Singapore 8 2 4 2 8 6,679 835

Malaysia 1 - - 1 1 2,000 2,000

Total 98 13 19 65 97 141,501 1,459

Russell Street, Causeway Bay

Canton Road, Tsim Sha Tsui

* Majority of the POS are located at first tier and new first tier cities

7

(-) represents internal shop number

Multi-Watch Store at Russell Street, Causeway Bay

Emperor Jewellery Image Store at 1881 Heritage, No. 2A Canton Road,

Tsim Sha Tsui

Flagship Store at Nos. 4-8 Canton Road, Tsim Sha Tsui

www.emperorwatchjewellery.com Issued on 20 Aug 2019

2019 Store Expansion Plan

Future Strategies

Opening Date Shop Details

Hong Kong

1 Jan 2019 Emperor Jewellery Store - Shop G003, G/F, KOLOUR．Tsuen Wan I, No. 68 Chung On Street, Tsuen Wan

2 Jul 2019 Emperor Jewellery Store - Shop Nos. L2-133&135, Level 2, V Walk, 28 Sham Mong Road, Sham Shui Po

3 Aug 2019 Emperor Jewellery Store - Shop 023, 025-026, Yuen Long Plaza, 249-251 Castle Peak Road, Yuen Long

Mainland China

4 Feb 2019 Rolex & Tudor boutique - Shop 124, 1/F, Chengdu Yintai Centre, No. 1199 Tianfu Avenue North Section, High-Tech Zone, Chengdu, Sichuan (CD1)

5 May 2019 Emperor Jewellery Store - 1/F, Hui Jin Department Store (Hong Qiao), No. 900 Tianshan Road, Changning District, Shanghai (H37)

6 Jun 2019 Emperor Jewellery Store - 1/F, I'SOPEN Square, No. 2 Chuanshan West Road, Zhengxiang District, Hengyang, Hunan (HN2)

7 4Q 2019 Rolex boutique - Shanghai One ITC Mall, No. 1901 Huashan Road, Xuhui District, Shanghai

8 4Q 2019 Emperor Jewellery Store - Haiya Mega Mall, No. 99 Jian'an Yi Road，Bao'an District, Shenzhen

9 4Q 2019 Emperor Jewellery Store - Unit L118, Level L1, The MixC One, 1266 Qianjin West Road, Yushan Town, Kunshan, Jiangsu

Singapore

10 Jun 2019 Breguet & Blancpain boutique - 435 Orchard Road, #02-35 to 36, Wisma Atria

11 Jun 2019 Emperor Jewellery Store - 435 Orchard Road, #02-37 to 39, Wisma Atria

8

Expand jewellery business to enhance overall profit margin performance Increase the sales capacity by rolling out numerous collections on regular basis and direct marketing events Target to achieve 50% of the overall revenue in medium to long term

Reinforce brand positioning Position “Emperor Jewellery” as affordable luxury Implement brand building exercise Enhance brand exposure by participating in regional/international fashion and jewellery shows

Deepen market penetration Continue to execute organic store expansion plan Revamp stores and create fresh counters to enhance shoppers’ experience and enable effective customer segmentation

Enhance Jewellery Business

Future Strategies

Identify e-commerce opportunities Seek to operate e-commerce through online shopping platforms (e.g. Tmall, jd.com) to capture massive potentials of internet and mobile users Enhance brand visibility on various websites to draw target customers from online to offline Expand user database for analysing customer demographics and formulating effective product strategy

New Love Knot Collection, 2019

Tmall

Chinese Wedding Fine Gold Collection, 2018

www.emperorwatchjewellery.com Issued on 20 Aug 2019

Nuò by Cindy Yeung, 2018

Emperor Jewellery X Joey Yung

Heartbeat Collection, 2018 One Vow, Two Love Collection, 2018

Blessings Collection, 2019

jd.com

Mini Me Collection, 2018