Hengdeli, China's biggest watch retailer, lost RMB 700M and fled Taiwan

Hengdeli Holdings (HKEX: 03389) was China's largest watch retail group, operating a network of stores selling Swiss and international luxury watch brands across Greater China. The group had expanded into Taiwan, buying a prime flagship property on Zhongxiao East Road Section 5 near Taipei City Hall MRT station for NT$480 million. An earlier 2010 purchase of a Zhongxiao East Road Section 4 storefront for NT$905 million had yielded a 40% profit four years later, reinforcing confidence in the Taiwan market.

The group's fortunes reversed as its Hong Kong and Macau operations accumulated losses exceeding RMB 700 million over two and a half fiscal years. High-end watch brands increasingly moved into department stores, reducing foot traffic and demand for street-side flagship formats. The pandemic accelerated the decline. In August 2020, Hengdeli began closing global physical retail channels. In November 2020, it shut its Taiwan flagship store, effectively exiting the Taiwan market entirely.

The Taipei flagship property, originally intended to be leased out while retaining some staff for a possible comeback, was instead put up for sale — a move described in Chinese media as '賣樓求生' (selling property to survive). The shift from landlord to seller confirmed the group's full and permanent withdrawal from Taiwan.