1 Annual Report 08 2 06 10 7 9 5 8 1 Sincere Watch (Hong Kong) Limited (incorporated in the Cayman Islands with limited liability) Stock Code : 00444
1 Annual Report 08 2 Financial Summary 06 10 8 7 9 1 5 Sincere Watch (Hong Kong) Limited (incorporated in the Cayman Islands with limited liability) Stock Code : 00444 Sincere Watch (Hong Kong) Limited Annual Report 08 61
06 07 08 11 16 21 25 30 31 32 33 34 35 60
ACIS HKICPA Cricket Square Hutchins Drive P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands 18 5402-04 88 35 Bank of Bermuda (Cayman) Limited P.O. Box 513 GT Strathvale House North Church Street George Town Grand Cayman Cayman Islands British West Indies 28 26 Malayan Banking Berhad 6 Sincere Watch (Hong Kong) Limited
470,833,000 56% 733,211,000 151,891,000237,442,000 32.4% 71,006,000 72% 122,356,000 27,773,00013,188,00052,743,000 4,520,000 34,389,000 43,615,000 8.410.7 520,400,000 60,000 250,000 50,000 52,151 49,920 43,615 200,000 196,840 224,152 211,936 40,000 30,000 36,937 34,389 150,000 124,622 100,000 20,000 76,774 10,000 50,000 0 0 Sincere Watch (Hong Kong) Limited 7
8 Sincere Watch (Hong Kong) Limited
396,100,000 568,600,000 78% 44% 470,800,000 56% 733,200,000 56% 237,400,000 71,000,000 72% 122,400,000 34,400,000 8.4 10.7 58% 214,200,000 135,600,000 51.95 54.94 5 Franck Muller CVSTOS de Grisogono European Company Watch Pierre Kunz 43 23 Sincere Watch (Hong Kong) Limited 9
1881 Heritage Building 10 Sincere Watch (Hong Kong) Limited
49Singapore Corporate Awards 2007 500,000,000 Best CEO of the year Sincere Brand Management Limited SBML Sincere Watch Limited Lakehead University 26 Lifestyle and Retail Entrepreneur of the Year 2004 Ernst and Young Entrepreneur of the Year Singapore 2004 Tourism Entrepreneur of the Year 2005 SBML 48 SBML Wesleyan University SBML Sincere Watch (Hong Kong) Limited 11
44 SBML National University of Singapore Export Insurance Corporation of Singapore SBML 54 Committee of the International Federation of Accountants (IFAC) Retail Industry Skills Training Council (RISTC) of the Singapore Workforce Development Agency (WDA) (PAIB) Sincere Watch Limited (University of Singapore) Institute of Certified Public Accountants of Singapore, ICPAS ICPAS Advanced Holdings Ltd Craft Print International Limited UMS Holdings Limited Singapore Corporate Awards 2006500,000,000 (Best CFO of the Year) SBML 50 Stamford Law Corporation SembCorp Industries Ltd Macquarie International Intrastructure Fund Ltd Richina Pacific Limited Orangestar Investment Holdings Pte Ltd Inter-Pacific Bar Association (Nanyang Technological University, NTU) Singapore National Heritage Board (The Singapore Management University, SMU) Gray s Inn 12 Sincere Watch (Hong Kong) Limited
67 Arrow Electronics Corporation TNT EMBA Bell Telephone Laboratories Pacific Coffee Limited (University of Michigan) Advanced Management Program 52 22 (University of British Columbia) Sincere Watch (Hong Kong) Limited 13
41 18 (Royal Melbourne Institute of Technology University) 38 Singapore Polytechnic CHEW Joo Yee41 10ChewNgee Ann Polytechnic 14 Sincere Watch (Hong Kong) Limited
46 21 Phillipe Chariol 58 44 24 47 15S.T. Dupont Alfred DunhillChopard Bvlgari Hermes Rado University of Wisconsin Sincere Watch (Hong Kong) Limited 15
470,833,000 56% 733,211,000 151,891,000 56% 237,442,000 32.4% 42,683,000 96,506,000 68,079,000 83,206,000 117,076,000 Plaza 66 Franck Muller 72% 122,356,000 52,743,000 4,520,000 41,840,000 53,298,000 27,773,000 13,188,000 396,122,000 568,626,000 16 Sincere Watch (Hong Kong) Limited
34,389,000 51.95 54.94 8.4 10.7 Sincere Watch (Hong Kong) Limited 17
Franck Muller de Grisogono European Company Watch Pierre Kunz Cvstos Franck Muller de Grisogono 43 23 Franck Muller de Grisogono 18 Sincere Watch (Hong Kong) Limited
Mercedes-Benz Cvstos de Grisogono Pierre Kunz Sincere Watch (Hong Kong) Limited 19
78% 568,626,000 396,122,000 44% 96,506,00013% 42,683,000 9%126% Franck Muller Franck Muller Franck Muller Plaza 66 9% 32,028,000 7% Franck Muller 1881 Heritage 20 Sincere Watch (Hong Kong) Limited
14 10 14 5/5 4/5 5/5 3/5 4/5 5/5 5/5 Sincere Watch (Hong Kong) Limited 21
11 13 2/2 2/2 2/2 22 Sincere Watch (Hong Kong) Limited
1/1 1/1 1/1 660,000 46,500 660,000 30,000 16,500 4/4 3/4 4/4 Sincere Watch (Hong Kong) Limited 23
3.21 24 Sincere Watch (Hong Kong) Limited
27 31 0.0520,400,000 13,989,000 22 131,787,000 53.5%14.3% 87.6%52.6% Chrono Star International Participations Groupe Franck Muller S.A. 5%Chrono Star International Participations Groupe Franck Muller S.A. Franck Muller GeneveGroup Franck Muller 5% 14,082,000 13 Sincere Watch (Hong Kong) Limited 25
108 112 352 23,876,001 2.19% 1,903,183 0.17% 951,457 0.08% TBJ Holdings Pte.( TBJ ) 26 Sincere Watch (Hong Kong) Limited
Franck Muller Pte Ltd. Avante Marketing Pte Ltd. 6,661,000 14A.38 (i) (ii) (iii) 43,000,000 (iv) 11,000,000 3.13 Sincere Watch (Hong Kong) Limited 27
336 1 Sincere Watch Limited 2 306,000,000 (L) 75% A-A United Limited 3 306,000,000 (L) 75% 4 306,000,000 (L) 75% 306,000,000 (L) 75% 5 306,000,000 (L) 75% 6 Chartered Asset Management 28,641,000 (L) 7.02% Pte Ltd. CAM-GTF Limited 24,637,000 (L) 6.04% (1) L (2) 306,000,000 (3) (2)A-A United Limited306,000,000 (4) (3)A-A United Limited306,000,000 (5) (4)(i)7.85%(ii)A-One Investments Limited27.81%50.45%(iii) (6) 317 4.43% 306,000,000 (6) (4) (i)1.82%(ii)a-one Investments Limited 27.81% 49.55%(iii)United Success Enterprises Limited 2.61%(iv) (5)317 7.85% 306,000,000 (7) (2) (6)306,000,000 28 Sincere Watch (Hong Kong) Limited
14 10 Sincere Watch (Hong Kong) Limited 29
SINCERE WATCH (HONG KONG) LIMITED 31 59 Sincere Watch (Hong Kong) Limited 30 Sincere Watch (Hong Kong) Limited
733,211 470,833 (495,769) (318,942) 237,442 151,891 1,990 2,321 (37,276) (29,131) (79,800) (54,075) 122,356 71,006 (27,773) (13,188) (52,743) (4,520) 8 41,840 53,298 10 (7,451) (9,683) 34,389 43,615 12 8.4 10.7 Sincere Watch (Hong Kong) Limited 31
13 16,430 8,191 14 11,865 13,174 21 13,436 11,411 41,731 32,776 15 281,250 281,648 16 119,000 88,082 1,187 2,924 18 214,228 135,657 615,665 508,311 19 424,215 314,964 17 71 331 17 1,566 8,798 4,692 1,458 430,544 325,551 185,121 182,760 226,852 215,536 21 2,700 3,600 224,152 211,936 20 40,800 40,800 183,352 171,136 224,152 211,936 31 59 32 Sincere Watch (Hong Kong) Limited
40,800 59,546 801 95,693 196,840 41 41 43,615 43,615 41 43,615 43,656 (28,560) (28,560) 40,800 59,546 801 41 110,748 211,936 2,307 2,307 34,389 34,389 2,307 34,389 36,696 (24,480) (24,480) 40,800 59,546 801 2,348 120,657 224,152 Sincere Watch (Hong Kong) Limited 33
41,840 53,298 (1,990) (2,321) 1,309 1,126 5,879 1,545 17 11,298 (11,946) 1,606 52,743 4,520 112,685 46,239 (10,900) 95,607 (32,524) 11,506 3,671 56,508 (77,405) (260) (7,232) 8,798 118,277 88,416 (3,004) (10,804) (2,398) (1,142) 112,875 76,470 (14,082) (7,552) 1,990 2,321 22 (19,066) 70 (12,092 ) (24,227 ) (24,480 ) (28,560 ) (32,410 ) (24,480 ) (60,970 ) 76,303 (8,727) 135,657 144,350 2,268 34 214,228 135,657 34 Sincere Watch (Hong Kong) Limited
1. 22 3 Peace Mark (Holdings) Limited Sincere Watch Limited 2. 1 7 7 8 9 10 11 29 2 2 1 7 321 7 Sincere Watch (Hong Kong) Limited 35
2. 1 1 23 1 27 2 2 1 3 2 8 1 12 3 13 4 14 19 3 1 2 3 4 3. 36 Sincere Watch (Hong Kong) Limited
3. 3 Sincere Watch (Hong Kong) Limited 37
3. 38 Sincere Watch (Hong Kong) Limited
3. Sincere Watch (Hong Kong) Limited 39
3. 40 Sincere Watch (Hong Kong) Limited
3. Sincere Watch (Hong Kong) Limited 41
3. 4. 8,092,000 8,092,000 13,436,000 11,411,000 5. 42 Sincere Watch (Hong Kong) Limited
6. 6a. 320,182 216,288 392,337 277,111 6b. 2% 169 284 236 1,074 6,705 508 2,921 8,943 391,024 275,686 78 8 Sincere Watch (Hong Kong) Limited 43
6. 6b. 5%5% 5%5% 5% 19,405 13,337 67%68% 78%84% 44 Sincere Watch (Hong Kong) Limited
6. 6c. 7. 568,626 96,506 68,079 733,211 170,665 39,993 17,671 228,329 (188,479) 1,990 41,840 (7,451) 34,389 Sincere Watch (Hong Kong) Limited 45
7. 396,122 42,683 32,028 470,833 122,745 9,972 9,705 142,422 (91,445) 2,321 53,298 (9,683) 43,615 85,800 64,545 17,280 3,804 27,785 25,454 130,865 93,803 526,531 447,284 657,396 541,087 514,463 454,923 65,520 14,405 62,790 57,424 642,773 526,752 14,623 14,335 657,396 541,087 46 Sincere Watch (Hong Kong) Limited
7. 7,146 7,552 5,625 1,311 15,609 14,082 23,161 4,009 1,309 1,072 2,107 1,362 7,188 2,671 1,945 (339 ) 7,070 (11,946 ) 4,228 17 Sincere Watch (Hong Kong) Limited 47
8. 15,735 16,290 17,877 13,323 404 345 34,016 29,958 1,945 11,298 660 506 1,309 1,126 5,879 1,545 17 21,382 11,914 339 11,946 180,000 180,000 9. 2,003 2,324 4,327 4,950 2,324 12 7,286 2,130 1,500 12 3,642 160 160 160 160 160 160 480 9,083 6,148 24 15,735 48 Sincere Watch (Hong Kong) Limited
9. 1,884 2,961 4,845 4,950 2,961 12 7,923 2,130 900 12 3,042 160 160 160 160 160 160 480 8,964 6,822 24 16,290 1,750 2,266 1,176 180 24 12 2,950 2,458 1,000,0011,500,000 1 2 1,500,0012,000,000 1 Sincere Watch (Hong Kong) Limited 49
10. 4,740 6,031 5,524 868 10,264 6,899 21 (2,813) 2,784 7,451 9,683 17.5%17.5% 41,840 53,298 17.5%17.5% 7,322 9,327 (345) (388) 278 126 189 252 7 366 7,451 9,683 11. 0.06 0.0724,480,000 28,560,000 0.0520,400,000 12. 34,389,000 43,615,000 408,000,000 408,000,000 50 Sincere Watch (Hong Kong) Limited
13. 7,938 438 1,556 612 204 10,748 4 1 5 1,017 118 118 56 1,309 6,831 80 161 72 408 7,552 (3,396) (27) (204) (3,627) 12,394 637 1,808 740 408 15,987 117 22 30 13 182 10,740 1,572 1,572 198 14,082 (2,024) (2,024) 21,227 2,231 3,410 951 408 28,227 7,299 411 1,491 439 150 9,790 1 1 1,246 54 85 109 51 1,545 (3,333) (27) (180) (3,540) 5,213 465 1,549 548 21 7,796 79 16 41 10 146 4,918 271 457 151 82 5,879 (2,024) (2,024) 8,186 752 2,047 709 103 11,797 13,041 1,479 1,363 242 305 16,430 7,181 172 259 192 387 8,191 33 1 / 3 % 50% 33 1 / 3 % 33 1 / 3 % 20% Sincere Watch (Hong Kong) Limited 51
14. a 14,300 14,300 b (8,092) 8,092 6,208 8,092 14,300 1,126 1,126 1,126 1,126 1,309 1,309 2,435 2,435 3,773 8,092 11,865 5,082 8,092 13,174 (a) 22 (b) 6,208,0008,092,000 (c) 12.8% 16% 52 Sincere Watch (Hong Kong) Limited
15. 16. 99,704 80,629 19,296 7,453 119,000 88,082 6,705,000 508,000 3090 30 75,280 43,896 3190 17,545 36,726 91120 6,868 7 120 2,690 1,146 102,383 81,775 (2,679) (1,146) 99,704 80,629 6,879,000 7,000 91120 6,868 7 120 11 6,879 7 120 120 Sincere Watch (Hong Kong) Limited 53
16. 1,146 1,072 2 74 1,945 (75) (339) 2,679 1,146 17. 301 71 30 71 331 1,741 8,798 (175) 1,566 8,798 90 1,566 40 91180 173 181365 8,719 365 167 1,566 9,099 54 Sincere Watch (Hong Kong) Limited
18. 1.8 5.33.44.4 19. 391,283 277,111 32,932 37,853 424,215 314,964 90 43,239 47,499 91365 325,994 214,166 365 22,050 15,446 391,283 277,111 391,024,000 275,686,000 236,000 1,239,000 20. 2,000,000,0000.10 200,000 408,000,0000.10 40,800 Sincere Watch (Hong Kong) Limited 55
21. 983 12,067 13,050 2 1 3 21 709 (3,600) 412 (2,458) 10 (359) (2,090) (335) (2,784) 645 10,688 (3,600) 78 7,811 4 98 10 112 10 97 2,294 900 (478) 2,813 746 13,080 (2,700 ) (390 ) 10,736 4,200,000 3,100,000 13,436 11,411 (2,700) (3,600) 10,736 7,811 56 Sincere Watch (Hong Kong) Limited
22. 27,535,000 1,309 1,309 6,208 6,208 1,142 1,142 33,506 33,506 7,700 7,700 8,469 8,469 (843) (843) (32,715) (32,715) (1,733) (1,733) (3,600) (3,600) 16,835 2,608 19,443 8,092 27,535 (27,535) 8,469 (19,066 ) 31,856,0003,640,000 491,150,000 47,254,000 Sincere Watch (Hong Kong) Limited 57
23. 38,783 17,438 65,839 26,115 104,622 43,553 24. 620 25. 58 Sincere Watch (Hong Kong) Limited
26. (a) 172 6,661 3,885 (b) 9 27. Sincere Brand 200 100% Holdings Limited Sincere Brand 1,000,000 100% Management Limited 1,000,000 100% Pendulum (Macau) Limited 25,000 100% Pendulum Limited 2 100% Sincere Watch (Hong Kong) Limited 59
733,211 470,833 394,119 513,738 395,337 41,840 53,298 61,700 63,268 43,926 (7,451) (9,683) (11,780) (11,117) (6,989) 34,389 43,615 49,920 52,151 36,937 8.4 10.7 14.1 17.0 12.1 657,396 541,087 585,720 435,984 352,862 (433,244) (329,151) (388,880) (359,210) (228,240) 224,152 211,936 196,840 76,774 124,622 1. 2. 60 Sincere Watch (Hong Kong) Limited
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