Hong Kong-based luxury watch retailer Hengdeli Holdings has acquired a rival in mainland China.

Hengdeli, a retail partner of Swiss company Swatch Group, has invested 469.5 million yuan (US$77.3 million) to acquire 88.6 per cent of Nanchang Hengdeli Co, a retailer of watches, gold jewellery and eyewear in Nanchang City.

“The acquisition can strengthen and consolidate the retail market of watches of the group in the central areas of China,” said Hengdeli Holdings in a statement.

Hengdeli has a network of more than 166 retail shops in mainland and Hong Kong, through which it distributes approximately 50 international watch brands.

Due to the gift giving crackdown in China, Hengdeli’s first half income dropped from 562.7 million yuan in 2012 to 272.5 million yuan this year.