Annual Report 
The 40th General Committee's Report (2008/2009)Yip Siu Fan President (2008-2009)
Hong Kong Watch Manufacturers Association was founded in 1968 and I am greatly honoured to take up the post of the 40th President of the Association. Having taken over the mission of the previous presidents of the last term of office for a year, I have been carrying out association affairs jointly with the other directors. Meanwhile I should express my sincere gratitude for the kind support of all the directors, honorary presidents and our members in serving the members and fellow traders who are engaged in the watch and clock industry, promoting exchange, expanding business opportunities and promoting the long-term development of the Hong Kong watch and clock industry so as to benefit our members and fellow traders.
On 4th September last year, we held the 40th founding anniversary celebration and the inauguration of our 40th board of directors and we were honoured to have invited Mrs. Rita Lau Ng Wai-lan, JP, Secretary for Commerce and Economic Development of the Government of the HKSAR and have the presence of friends from various circles. President Yip Siu Fan and the new board of directors officially took their new posts and made their efforts to carry out association affairs in order to serve our members.
The year of 2009 has been a difficult one and all the trades and industries are facing up to the economic depressions and the impact of the financial tsunami. Last year, the total export value of Hong Kong watches and clocks reached 55 billion HKD, ranking second in the world. Compared with the export in 2007, there was an increase of about 10 per cent. The exports to India and Brazil in South America registered a relatively more remarkable increase.
However, we know that the financial tsunami starting since the end of last year has seriously affected the global economy and emergency measures have been adopted everywhere in order to recover the economy. As a result of the financial tsunami, banks were forced to tighten up their credits for manufacturers, and the costs of such aspects as labour, fund, personnel management and so on has increased for a large number of manufacturers. In particular, so far as Hong Kong firms (most of whom are small and medium-sized enterprises) are concerned, they have been stuck in a gloomy situation, facing up to difficulties of fund application and turnover. The watch and clock industry is one of the five major industries in Hong Kong and its export ranks second in the world. We believe the watch and clock industry will stead fast and remain at their posts with dauntlessly indomitable spirits as always and face up to the predicaments with proactive and positive attitudes. Facing the impact of the financial tsunami, the Government of the HKSAR has launched a series of enterprise credit to help our industry. In light of this, we held a forum in the name of "SME Financing – Latest Situation and Case Sharing" at the end of October last year to listen to the suggestions and opinions of the members with the special presence of the representatives of Liaison Office of the Central People's Government (LOCPG), Trade and Industry Department, Federation of Hong Kong Industries as well as the banking and accounting sectors. At the forum, our members and fellow traders took advantage of the chance to give out their suggestions and opinions directly. Afterwards, we held a "SME Financing Briefing" at the beginning of January 2009, inviting the representatives of the banking sector to explain their financing plans in order to provide assistance to our members. We also hope that we can try our best to continue reporting the questions and issues of our members to the authorities concerned so as to achieve an effective solution.
Arranged by Hong Kong Watch and Clock Technology Centre under Hong Kong Productivity Council and assisted by Innovation and Technology Commission, both our association and the Federation of Hong Kong Watch Trades and Industries attended the ISO/TC114 meeting held in May as observing members. With the acceptance of Switzerland and the other major participating nations and the support of China Horologe Association, we managed to be present at the constructive meeting. We hope we can continue to attend the meeting in future in order to exchange views and experience with the other participants.
As everybody knows, a large number of enterprises have invested in or set up factories in the region of the Pearl River Delta. Under the pressures as changes in the global economic environment, increasing cost of land, labour, resource serialization etc. and the implementation of processing trade and other new policies, our industry has been forced to make appropriate adjustments, upgrading and transformation or making industrial adjustments represent the trends for future sustainable development. In addition to the maintenance of the traditional OEM manufacture, we must add values to our products, develop our brands, find new outlets for our products, work out our sales plans and expand our markets so as to achieve sustainable development of our business.
In coordination with the promotion of upgrading and transformation, both our association and the Federation of Hong Kong Watch Trades and Industries held "Seminars on the Watch and Clock industry's Expansion of the Mainland Market and Technology Upgrading and Transformation" jointly with Hong Kong Productivity Council, which were respectively held in September 2008 and January and February 2009 to share experience with and introduce the latest technology to the personalities of our industry.
Our industry is still operating in a very difficult period, facing up to various internal and external environments such as the impacts of the financial tsunami, slowdown of economy, implementation of new policies such as Labour Contract Law and book accounting system, environmental protection issues, changes in factors such as labour and the like, cost increases and order reduction. For those reason, we have conducted a member questionnaire investigation in the second quarter of this year to understand the operating situation of our members and fellow traders in order to assist with reporting the problems to the authorities concerned and achieve effective solutions.
The Hong Kong watch and clock industry is a traditional one. Living and working in the contemporary world with technology advancing at a high speed, our industry must improve and develop our business regarding our value-added products in many aspects such as to innovate, develop and build up brand new products and open up domestic sale and overseas markets, to seek new orientations and explore business opportunities so as to sustainably develop the Hong Kong watch and clock industry. According to the resolution adopted at the 2008 Annual General Meeting, we have sold our old premises and bought new ones and we have moved into the new premises in mid-June this year.
As of 31st May, 2009, there were a total of 602 company members in our association.
Hong Kong Watch Manufacturers Association Foundation Ltd. is an independent company, mainly responsible for the operation of education foundation with its board of directors in charge of its management. Through the foundation, our association allots funds every year to sponsor scholarship respectively with Lee Wei Li Campus, Shatin Campus and Chaiwan Campus of Hong Kong Institute of Vocational Education and other significant education projects and we shall also continue to apply the foundation to the courses suited for the development and training of the watch and clock industry so as to assist with the long-term development of the watch and clock industry.
We pay close attention to the development of our industry
Contacting departments of the Government of the HKSAR and Liaison Office of the Central People's Government and paying close attention to the development of our industry
On 22nd July, 2008, our representatives paid a courtesy visit to the Coordination Department of the Liaison Office of the Central People's Government in Hong Kong. The LOCPG regularly meets the major trade associations in Hong Kong, exchanging views and experience with each other, communicating information mutually, reporting the current problems encountered by the industrial sector and seeking solutions. On 14th August, 2008, we paid a courtesy visit to the Trade and Industry Department as we constantly pay close attention to the situation of the CEPA and the lending plans for small and medium-sized enterprises so as to benefit our industry. On 29th July, 2008, the representatives of our board paid a special visit to Hong Kong Economic and Trade Office in Guangdong, Government of the HKSAR to strengthen the communications between each other, assist with the regular release of the information of our industry in Guangdong, reporting the problems when doing business in Guangdong, which had been collected from our members, and seeking solutions through the assistance of the Office in Guangdong. On 11th August, 2008, we paid a courtesy visit to Innovation and Technology Commission, listening to and exchanging the information feasible to our industry in the latest technology information. On 22nd July, 2008, the representatives of our board visited the Federation of Hong Kong Watch Trades and Industries to strengthen communications between each other and promote the cooperation and interchange between the two organizations.
Our association promotes watch and clock development projects
We applied to the "2006-07 Sector-specific Programme" under the office of the Government Chief Information Officer of the Government of the HKSAR for funding to develop the "Watch and Clock World" electronic platform, an E-commerce starter site. At the end of 2008, the platform has been completed and put into official services to provide our members and fellow traders with one-stop services such as business promotion and information exchange and it was planned that the Hong Kong Polytechnic University should be in charge of the site. Now our task force is following up the feasible solutions of strengthening the usage of our members. Hong Kong is the world second largest watch and clock exporting region, therefore Hong Kong manufacturers have naturally huge demands for mechanisms. Since 2005, we have been supporting the Hong Kong mechanical mechanism research and development programme, which the Chinese University of Hong Kong is in charge. We hope we can apply the fruitful result of the development of different watch and clock programmes and technology projects to the industry in the long run.
Supporting and promoting exhibition affairs
The "Hong Kong Watch and Clock Fair" held in Hong Kong each September is a grand event of the Hong Kong watch and clock industrial sector, which is jointly sponsored by Hong Kong Trade Development Council, the Federation of Hong Kong Watch Trades and Industries and our association and we participate in its preparation. In September 2008, the fair was smoothly held with the opening ceremony held on the first day of the fair term, with honourable guests from various places and the atmosphere was nice. The main items carried on during the fair term included cocktail reception, seminar and watch and clock design competition. The competition attracted the designers from the student group and open group and they were helpful in urging the would-be designers to participate in designing and innovating so as to improve the overall designing levels. In coordination with the development of brands, a "Brand Name Gallery" was established at the fair, offering another route to display the brands. Our representatives of the Organising Committee included Co-Chairman Kenneth Wong and members Louis Tang, Bob Wai, Peter Sin, Sze Wai Hung and Mandy Lai. Our members were favoured with special discount on participation for them to reduce the burden of the participation costs. The Hong Kong Watch and Clock Fair was held in Hong Kong Exhibition and Convention Centre from 3rd to 7th September, 2008.
Organised by Hong Kong Trade Development Council and co-organised by both our association and the Federation of Hong Kong Watch Trades and Industries, the "Watch and Clock Pavilion" of Hong Kong International Jewellery Show was held in March 2009 and the Hall was on show for the fifth year and it was believed that certain experience had been accumulated in the respect, which could provide the industrial sector with another exhibition platform to attract jewel watch and brand watch buyers to open up new business opportunities. We have assigned our board members Alan Cheung and Alex Chow as our representatives to the preparatory committee of the show to participate in the preparation.
"Basel Fair" was grandly held in succession of 8 days from 26th March to 2nd April, 2009, and it is a grand event of the world watch and clock and jewellery industries. The Hong Kong Pavilion was provided in Exhibition Hall No. 6. The fair attracts the buyers and watch and jewellery exhibiters from all over the world.
We have always paid close attention to the interests of our members and proactively strived for the interests by keeping in touch with the Liaison Office of the Central People's Government in Hong Kong and various major departments of the Government of the HKSAR such as Hong Kong Economic and Trade Office in Guangdong, Government of the HKSAR (our major representatives regularly attend the meetings of the Office with various major local trade associations), Trade and Industry Department (We support its Mentorship Programme by our representatives' participating in matching, giving business guidance and consultancy services and planning to assist in the SME developments), Innovation and Technology Commission, Hong Kong Trade Development Council, Education Department and the like, reporting the suggestions and opinions of the industrial sector and seeking interests for our members so as to find solutions.
Keeping in touch with major local and overseas watch and clock trade associations
At the invitation of the Federation of the Swiss Watch Industry, FH in April 2009, we attended the 11th International Basel Conference, and mutually exchanged information on environmental protection, watch and clock markets, future development and so on with various overseas watch and clock trade associations.
China Horology Federation is composed of the four watch and clock industrial organizations in the Mainland, Hong Kong and Taiwan on both shores, including China Horologe Association, Taiwan Watch & Clock Industrial Association, the Federation of Hong Kong Watch Trades & Industries and our association for the purpose of strengthening the exchange of information on watch and clock development among the three places so as to assist with the improvement of the levels of the watch and clock industry and the promotion of the overall development of the watch and clock industry in the long run.
We have assigned a delegation to attend the "The 17th Asian Horological Trade and Industry Promotion Conference" organised by China Horologe Association, which was convened in Chongqing on 17th to 19th October, 2008 with the title of "Environmental Protection - Developing Trends of Marketing Approach", exchanging views and experience mutually with outstanding persons of the watch and clock industrial sectors at various places.
On 1st August and 29th August, 2008, our board assigned delegations to respectively attend the 79th anniversary celebration and dinner of Singapore Clock and Watch Trade Association and the 54th anniversary celebration and dinner of The Kuala Lumpur & Selangor Watch Trade Association, meeting the heads and representatives of overseas watch and clock industries and promoting the contacts with watch and clock trade associations at various places.
On 3rd July, 2008, the representatives of our board attended the 19th China Watch Jewellery and Gift Fair and were invited to attend the welcoming Party and "China Watch and Clock Top Forum" held in Shenzhen Convention Exhibition Centre, exchanging the latest situation of the watch and clock products in both places.
We were present at the "Spring Dinner for HK Industrial and Commercial Sectors 2009" perfectly held on 19th February, 2009 and, at the dinner, the outstanding persons of all walks of life were gathering there.
Jointly prepared and sponsored by more than 40 local trade associations, it was an exceptional grand event for industrial and commercial circles to get together. Being one of the members of the "Hong Kong Business Community Joint Conference Meeting", both all other trade associations and we are concerned with the operating problems encountered by the industrial sectors and various policies implemented by the governments and we attended various meetings and various types of forums, discussing various issues together and made proper reports to the government to fighting for legitimate interests. The participating trade associations are from watch and clock, jewellery, machinery and metal, electronic, eyeglasses, plastic and other manufacturing industries. In February 2009, the Joint Committee held the "Seminar on the Policies and Measures of the Customs to Support Enterprises in Coping with the Financial Crisis", hoping that all the members could have simultaneous understanding of the policies of the Mainland customs. The "Enterprise Financing Concern Group" has specifically been established to show our concern with financing across the border of the two places, the deference of the implementation of competition law, relevant adjustments of insurance amounts of the Hong Kong Export Credit Insurance Corporation and labour contract law in the hope of discussing with collective forces and making proper reports to the relevant organizations of the government so as to fight for legitimate interests.
The Federation of Hong Kong Industries, PRD Council and we are very much concerned with the future development of the Pearl River Delta. In face of the transformation and the implementation of new laws and regulations, both Federation of Hong Kong Industries and we are concerned with "Guangdong Provincial Regulations Regarding Enterprise Democratic Management" and we hoped that we could strive for the deference of their implementation. On 17th March, 2009, Dongguan municipal authorities held the "Seminar on Processing Trade Transformation and Upgrading" to introduce the relevant policies. On 28th November, last year, the "7th Joint Party of Hong Kong and Pearl River Delta Industrial and Commercial Circles" was held in Jiangmen City. We have assigned our personnel to attend the seminar and the party to meet and exchange views and experience with the representatives of the Pearl River Delta industrial circles. We shall regularly release the latest information to our members, including industrial support, seminar activities and so on.
Keeping in touch with The Chinese Manufacturers' Association of Hong Kong , we show our concern for the future development of manufacturers, provide them with the information in terms of trade and industry, training, business promotion and the like and enable the better understanding of the relevant information of the industrial sector and get ready accordingly for the development through the promotion of various forums and the other activities.
Promoting brand development and product design
Brand development is closely related to product design. We have co-organised a "Brand Development Forum" jointly with Hong Kong Brand Development Council and the Federation of Hong Kong Watch Trades and Industries in the hopes of enhancing the industrial sector's brand consciousness and promoting the manufacturers' exchange in respect of brands by regarding the strategies and skills of the development of watch and clock brands as the theme. The seminar was held on 19th May, 2009 and the members participated enthusiastically in the seminar. We are one of the members of "Hong Kong Brand Protection Alliance" and the alliance aims at protecting the products of Hong Kong industrial and commercial circles from infringement or piracy and make an effort to fight for legitimate interests for the industrial and commercial sectors.
We pay close attention to environmental protection
We are one of the members of Hong Kong Green Manufacturing Alliance under the Federation of Hong Kong Industries (hereinafter referred to as the "Alliance") and the Alliance has appropriately followed up the latest development of RoHS & WEEE regulations in China and launched a number of seminars, workshops and investigation delegations in relation to environmental protection during the past period. On 29th April, 2009, the Alliance held the "Seminar on China's Omnibearing Countermeasures and the Latest Development of WEEE in China" and on 19th January, 2009, held the Seminar & Workshop on the Latest General Situation after the Pre-registration Period and a Deeper Understanding of REACH in Relation to ‘Substances of Very High Concern'" for members to participate free of charge so as to understand the latest situation and countermeasures..
Promoting training proactively and supporting lifelong study
We support the "The Qualification Framework" implemented by Education Bureau and we have always supported and participated in the "Watch and Clock Industry Skills Upgrading Scheme" which has been carried out for many years. We regularly assign our representatives to take part in the consultancy committee for the industrial training in the watch and clock industry. For the implementation of the said programmes, we support the relevant courses to be prepared and taken by a number of educational organizations for the working personnel of our industry in order to encourage the employees of our industry to upgrade their skills and knowledge continually. We supported and assigned our personnel to participate in the "Skills Upgrading Fun Day" held on 21st February, 2009. The Phase 2 watch and clock courses of the "Watch and Clock Industry Skills Upgrading Scheme" is successively underway.
The "Honorary fellowship", "Fellowship" and "Associateship" programme prepared and sponsored by Professional Validation Council of Hong Kong Industries have been underway for many years. Through the said programme, the professional positions of the traders can be praised and confirmed, which is helpful in strengthening the promotion of the sustainable vocational studies of the industrial circles so as to reinforce the talents and levels of Hong Kong industries. We always support and promote life-long studies.
We promote talent training proactively and support the development of human resources. For many years, we have contacted local major universities and institutions of higher learning, such as Hong Kong Polytechnic University, Chinese University of Hong Kong, Hong Kong Productivity Council, Hong Kong Institute of Vocational Education (Lee Wai Lee Campus, Shatin Campus and Chaiwan Campus), Vocational Training Council, Hong Kong Design Institute and the like, exploring the feasible solutions, such as courses and development projects and so on, which are helpful to the development of the watch and clock industry. Every year, we release the information on the watch and clock diploma courses of Hong Kong Institute of Vocation Education (Lee Wai Li Campus), watch and clock design course of Shatin Campus, Graduates from Hong Kong Design Institute or summer student internship programmes so as to help the members to consider the employment of the graduates and cultivate newcomers into our industry. On 25th April, 2009, the "2009 VTC's Students Employment Information Show" was held and, on 10th June, 2009 "Timepiece Design and Brand Senior Diploma First Graduation Classes Recruitment Day was held in Shatin Campus and the members can consider the provisions of the graduation with appropriate positions through the visits to both of them so as to provide the graduates to throw themselves into the watch and clock industry.
Offering diversified member activities, seminars and watch and clock study mission
On 4th September, 2008, our "Association's 40th Anniversary and the 40th Board of Directors Inauguration Dinner" was held at Grand Hyatt Hong Kong and government representatives, friends from various trade associations and outstanding persons from the industrial sector, our members and other honoured guests were invited to the dinner to express our common congratulations on the official inauguration of the new board. On 5th December, 2008, we have assigned a delegation to attend the "Guangdong and Hong Kong Watch and Clock Seminar" once a year and the seminar is jointly co-organised by our association, Guangdong Province Horologe Association, the Federation of Hong Kong Watch Trades and Industries and Shenzhen Watch and Clock Industry Association. Discussions were carried out on the theme of the seminar that day, i.e. the "Risks, Predicaments and Outlets of China Watch and Clock Industry" and our members responded very enthusiastically to it. The "Seminar on Watch and Clock Industry's Expansion of Mainland Retail Market and Watch and clock Production Technology Upgrading and Transformation", which was held on 5th September, 2008, was aimed at the introduction of the latest technology and relevant processes in coordination with industrial upgrading and transformation. The annual "Hong Kong Watch and Clock Fair" is jointly organised by Hong Kong Trade Development Council, the Federation of Hong Kong Watch Trades and Industries and our association. The seminar "Time Star – Mr. Wilson Scott" was prepared by the organising committee of Hong Kong Watch and Clock Fair and the seminar was held during the Hong Kong Watch and clock Fair. We shared the designing experience with the participants who attended the seminar very enthusiastically.
We planned and sponsored the "SME Credit Forum – Latest Situation and Case Sharing" and "SME Credit Briefing" respectively held on 22nd November, 2008 and 12th January, 2009 and major representatives from the Liaison Office of the Central People's Government, Trade and Industry Department, banking sector were present and so on to explain the latest lending plans to our members right then so as to assist our members in the solution of financing problems. The "Seminar on New Policies in Support of the Development of Processing Trade Industry", which was sponsored by Commerce and Economic Development Bureau, the Government of the HKSAR on 15th January, 2009, allowed our members to attend free of charge, explaining relevant policies to our members.
At the "40th Annual General Meeting" and lunch on 23rd June, 2008 and our "Spring Dinner" of this year held on 13th February, 2009, our members got together and communicated with each other in a scene of bustle and excitement.
Providing members with information and services
September 2008 and freely distributed at the Hong Kong Watch and Clock Fair and various major watch and clock exhibitions. The journal is helpful for the promotion of the communications between the traders and the buyers. Its contents include association affairs, registers of board of directors and members, classification lists of members' products, market operation, articles written by fellow traders and other reports on the watch and clock industry. The 30th Volume will be published in September 2009.
Watch and Clock Design Depository has been set up, our association website to provide information for the members, and the establishment of the "Watch and Clock World" can also provide our members with a new platform for information exchange so as to be helpful to business promotion. In addition to the regular publication of announcements to the members, we also provide the members with electronic communications for the release of the latest information and watch and clock relevant information, such as seminars, study mission, training courses and member activities.
Every year, we help our members to order for the "2009 Watch and Clock Brands", which is published by Japanese Watch Importers' Association" and our members order very enthusiastically for the book.
During the past one-year term of office, I have the great honour to act as the president of Hong Kong Watch Manufacturers Association and, in accordance with our aims, carry out association affairs jointly with the other members of the board for the promotion of the Hong Kong watch and clock industry. In face of the impact of the glide of the global economy, all our colleagues in the board can still unite as one, giving play to effective uniting spirits and plan and prepare for the industry by uniting members and fellow traders. With the industry standing firm and remaining at its posts, Hong Kong Watch Manufacturers Association has passed its 40th anniversary and this moment also marks the birth of the new board. Looking forward to the future, I sincerely hope the new board will continue to be devoted to the services for our members, win over more support and favourable business conditions and make joint efforts to develop the watch and clock industry in the long run. The members' support and proactive participation are very important and I hereby sincerely look forward to the continuous support to Hong Kong Watch Manufacturers Association and support to the Hong Kong watch and clock industry.
Sincerely wishing all our members brisk business and good health !