Listed retailer Oriental Watch Holdings says its net profit fell 78 per cent in the year to March.

The company, which had issued a profit warning earlier in the year, has been hit by the slump in demand for luxury watches from mainland Chinese, in turn a result of the mainland government’s clampdown on gift giving.

OWH says its net profit fell to HK$5 million, (US$641,000) on turnover down 11 per cent to around HK$3.11 billion.

The company said luxury brand shoppers had changed preferences and attitudes and blamed slimmer margins on intense competition from watch retailers competing for a shrinking customer base.

Oriental Watch has 68 stores in mainland China, 13 in Hong Kong, three in Macau and three in Taiwan.