Time Watch Investments 1q2010 Press Release 131109

Media Release – 1Q2010 Results TIME WATCH POSTS 8.9% INCREASE IN NET PROFIT TO HK$21.1 MILLION; STRONG CONTRIBUTION FROM HIGH-MARGIN RETAIL SEGMENT AND EXPANSION OF DISTRIBUTION NETWORK TO DRIVE FUTURE PERFORMANCE  Posts steady 8.9% increase in 1Q2010 net profit to HK$21.1 million despite continued market uncertainty

 Strategic initiative to focus on higher-margin business segments helps raise gross profit margins in 1Q2010  Points of sales grew 11% to 901 in 1Q2010 from 809 in 1Q2009; the Group will continue to expand its network in future periods to capitalise on the potential of the PRC retail market HK$ million

1Q2010

1Q2009

Change (%)

Revenue

281.4

280.2

0.4

Cost of sales

182.7

188.5

(3.1)

Gross profit

98.7

91.7

7.6

Profit for the period

21.1

19.4

8.8

Gross Profit margin

35.1

32.7

2.4ppt

Earnings Per Share* (HK cents)

4.54

4.23

N.M.

Net Asset Value

96.7

91.5**

N.M.

*On a fully diluted basis **As at 30 June 2009

Singapore, 13 November 2009 Friday – SGX Mainboard-listed Time Watch Investments Limited (“Time Watch” or the “Group”), a leading manufacturer and retailer

of quality timepieces in the People‟s Republic of China (the “PRC”), announced today its steady performance for the period ended 30 September 2009 (“1Q2010”). Bolstered by the strong brand equity of the Group‟s proprietary quality timepiece brands “Tian Wang” (天王) and “Balco” in the PRC watch industry, Time Watch recorded a 8.9% increase in profit to HK$21.1 million in 1Q2010 from HK$19.4 million in 1Q2009. The increase was achieved on the back of a 0.4% increase in revenue to HK$281.4 million as it strategically altered its revenue mix from the trading watch movements to focus on higher-margin segments such as the manufacturing and trading of watches as well as the manufacturing and resale of OEM watches. In-line with the Group‟s strategic shift to focus on higher-margin business, the Group‟s gross and net profit margins rose to 35.1% and 7.5% in 1Q2010 from 32.7% and 6.9%, respectively, in 1Q2009. Driven by this continued growth in profit margins, net profit attributable to equity holders grew 7.3% to HK$17.6 million in 1Q2010 from HK$16.4 million in 1Q2009.

The Group continues to maintain a prudent financial position. As at 30 Sep 2009, the Group‟s cash and bank balances rose 14.5% to HK$94.0 million from HK$82.1 million as at 30 June 2009. Fully diluted earnings per share rose 7.3% to 4.54 Hong Kong cents (based on 392,244,000 shares) for 1Q2010 from 4.23 Hong Kong cents (based on 392,244,000 shares) in 1Q2009. Outlook In the first nine months of 2009, total retail sales of consumer goods in the PRC rose 15.1% to RMB8.96 trillion based on statistics released by the PRC National Bureau of Statistics. This continued increase in retail purchases and consumer confidence underlines the success of the comprehensive economic stimulus package promulgated by the PRC Central government. Commenting on the performance and outlook for the Group, Time Watch‟s Chairman and Chief Executive Officer, Mr Tung Koon Ming, said “While uncertainty pertaining to the rate of global economic recovery may continue to put pressures on demand and discretionary spending over the near-term, the continued introduction of comprehensive

economic policies will encourage the sustained development of the PRC economy and bodes well for the continued growth of the retail sector. Moving forward, we will continue to leverage on our successful business strategies which includes key initiatives such as brand development, expansion of our distribution network and vertical extension of our OEM manufacturing business to further augment our competitive advantages and drive future development.” Leveraging on the Group‟s deep knowledge of the PRC retail market, Time Watch successfully opened 7 new stores in 1Q2010, raising its total points of sales to 901 across 35 cities in the PRC. This continued focus on the expansion of its distribution network stems from its recognition that despite growing affluence, the PRC consumer is geographically immobile. As such the continued expansion of its distribution chain will enable the Group to better penetrate the market and capitalise on the long-term development of the retail sector. As China‟s leading watch brand by sales, Tian Wang has established a significant track record for product quality and unmatched after-sales service. To further enhance the brand equity and consumer mind share of Tian Wang and other key brands under its product portfolio such as Balco and Police, the Group will continue to invest resources on focused marketing campaigns and strict product quality control measures to better serve its discerning customers. The Group‟s OEM manufacturing business continues to be a key revenue contributor. Capitalising on its quality track record as the OEM of international brands such as „Police‟, „Swiss Military‟ and „Aigner‟, the Group will continue to initiate discussion and seek out opportunities to further enhance collaborations with international brands. Testament to the Group‟s growing maturity as a designer and manufacturer of quality timepiece, Time Watch was appointed by international brands French Connection “FCUK” and Cerruti to be the original design manufacturer (“ODM”) in 2008 and 2009, respectively. Moving forward, the Group will continue to seek out fresh opportunities to penetrate into the ODM business for other international brands.

-- End of Release --

Issued by WeR1 Consultants Pte Ltd on behalf of Time Watch Investments Limited About Time Watch Investments Limited (TWIN.SP) Time Watch is a leading manufacturer, distributor and retailer of timepieces in the PRC. The Group‟s proprietary brand, “Tian Wang” has been established in the PRC since 1988 and is 1

currently ranked as one of the top 4 local watch brands in the PRC by sales volume . Supporting the Group‟s key proprietary brand are other popular in-house watch brand, Swiss-made “Balco” – which caters to middle-upper income PRC consumers who are willing to pay a premium for the precision and prestige of Swiss-made timepieces - and renowned Italian-brand “Police”. In addition, the Group‟s main operating subsidiary, Winning Metal Products Manufacturing Company Limited (“Winning”) has a successful track record as a major trader of watch movements in Hong Kong since 1980. The Group currently distributes over 700 models of watch movements from major manufacturers worldwide, including Seiko/ Epson, Citizen/ Miyota and Ricoh (Japan), Timex (USA), Ronda, ISA/ Prestige Time and Swatch/ ETA (Switzerland) and Epoch/ Technotime (PRC/ France). Its customer base comprises over 230 watch manufacturers and distributors from all across the world. For more information, please visit the Group’s corporate website, www.timewatch.com.sg

Media & Investor Relations Contact WeR1 Consultants Pte Ltd Mr. Yim Jeng Yuh ([email protected]) Mr. Ng Chung Keat ([email protected]) Tel: +65 6737 4844 Fax: +65 6737 4944

1

By the Chinese National Commercial Information Centre