Time Watch Investments : INSIDE INFORMATION TERMINATION OF LICENSE AGREEMENT AND CESSATION OF OTHER BRANDS (GLOBAL) BUSINESS

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Time Watch Investments Limited

時計寶投資有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 2033)

INSIDE INFORMATION

TERMINATION OF LICENSE AGREEMENT

AND CESSATION OF OTHER BRANDS (GLOBAL) BUSINESS

This announcement is made by Time Watch Investments Limited (the "Company", and together with its subsidiaries as the "Group") pursuant to rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

TERMINATION OF LICENSE AGREEMENT

One of the businesses segments of the Group is the global distribution of third-party licensed international brands of watches under certain license agreement ("Other Brands (Global) Business"). "Kenneth Cole" is one of the principal brands licensed to the Group under a license agreement ("License Agreement") entered into between, among others, the brand owner and the Group for the grant of an exclusive worldwide license to the Group for the manufacture, sale and distribution on a wholesale basis of the watches under the trademark of "Kenneth Cole" for a term commencing from 17 November 2015 to 31 December 2022.

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Pursuant to the termination letter ("Termination Letter") dated 29 November 2019 entered into between, among others, the brand owner and the Group, the parties have mutually agreed to terminate the License Agreement with effect from 15 December 2019 ("Termination"). No termination fee, other than the settlement of the outstanding license fee payable up to 31 December 2019, is payable by the Group for the Termination. Under the License Agreement, the Group and its approved distributors may sell and dispose of its existing inventory for a period of six months from the date of the Termination.

CESSATION OF THE OTHER BRANDS (GLOBAL) BUSINESS

The Group has recorded continuing segmental loss attributable to the Other Brands (Global) Business since the acquisition of such business in November 2015. Although the Group has been able to narrow such loss during the year ended 30 June 2019 (the "FY2019") by way of stringent control of expenses, the global watch industry becomes more difficult due to the competition from wearable devices and trade war between China and the United States. In light of the Termination and the expiration of the license agreements with some other brand owners of international brands of watches, the Group has decided to gradually cease its Other Brands (Global) Business after Termination. The directors of the Company ("Directors") considered that the Termination could allow the Group to focus more on the core business segment of the Group in order to maximize the return for the shareholders of the Company.

Having considered the above, the Directors are of the view that neither the Termination nor the cessation of the Other Brands (Global) Business is expected to have any material adverse impact on the financial position and business of the Group, and that the Termination and the cessation of the Other Brands (Global) Business are in the best interest of the Company and its shareholders as a whole.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the securities of the Company.

By the order of the Board

Time Watch Investments Limited

Tung Koon Ming

Chairman and Executive Director

Hong Kong, 29 November 2019

As at the date of this announcement, the executive Directors are Mr. Tung Koon Ming, Mr. Tung Wai Kit, Mr. Deng Guanglei and Mr. Tung Koon Kwok Dennis; and the independent non-executive Directors are Mr. Ma Ching Nam, Mr. Wong Wing Keung Meyrick and Mr. Choi Ho Yan.

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