Revenue fell 5.2 per cent to HK $3.733 billion,

Revenue fell 5.2 per cent to HK $3.733 billion as of March 31, 2013. Gross profit fell 15.4 per cent to HK $700m. The decline in revenue was mainly due to a slowdown in the economy during the year and a setback in sales performance in China. In addition, due to the weakness of the euro and Swiss franc last year, overseas watch prices were much lower than those in Hong Kong, resulting in an outflow of spending power, resulting in a drop in income. As the core brand did not increase its price during the year, the company's gross profit margin fell 2.2 percentage points to 18.8%. The company's net profit was HK $162 million, down 0.9 per cent from a year earlier. Excluding one-time income, the net profit of the company's core business decreased by 66.5%. This is mainly due to a 35.7% year-on-year increase in rents in Hong Kong and mainland China and a substantial 31.7% increase in inventory provisions. The company's earnings per share are HK $0.28.

In the future, the company will focus on improving inventory levels:

The company's inventory level in fiscal 2013 increased by 2.9% year-on-year to HK $2.06 billion. This is mainly due to the shortage of goods in Europe and the hoarding of goods in two new stores in Hong Kong. Inventory turnover days also rose from 198 days in fiscal year 2012 to 245 days in fiscal year 2013, up 47 days. The company's focus in fiscal year 2013 will be on improving inventory levels, as 200 million inventory will take up a lot of the company's cash, increasing borrowing and financial costs. In the future, the company will reduce inventory by requiring partners to buy out in whole or in part and return the remaining goods to the company to make more reasonable arrangements.

Same-store sales growth is gradually improving, and there may be no new stores in the new fiscal year:

The company said that judging from the current consumption situation, sales in Hong Kong and Macao have slowly improved. In April and May of the new fiscal year, same-store growth in Hong Kong and Macao was 8% and 11% respectively, and 16% and 13% in May, respectively. But sales in China are still slow, and same-store growth is still negative, bringing down the company's overall same-store growth to 4% and 10%. At present, the sales of mid-range and high-end watches are good, and the sales of watches worth about 200000 yuan are still not improving. For the new year, the company will not open any new stores except perhaps in Taiwan. The company will continue to maintain the current dividend rate.