Watchmaker Egana International (Holdings) says it will send a formal application to the stock exchange 'soon' to spin off its jewellery arm. The company yesterday reported a near 13 per cent growth in net profit to $121.38 million and recommended a one-for-one bonus share instead of a cash dividend for the year to last December. Director David Wong Wai-kwong said the jewellery arm saw a 9.55 per cent rise in profit after tax and minority interests to $24.1 million, with sales up 10 per cent to $325.5 million. 'We've finished the restructuring of the group's business and our financial adviser Somerley is working on profit forecasts for the spin-off,' Mr Wong said. 'It will be named Egana Jewellery and Pearls and will be incorporated in the Cayman Islands.' Egana plans to offer 25 per cent of the new shares in the jewellery arm to the public and grant existing Egana shareholders preferential rights to subscribe to the shares, Mr Wong said. The jewellery arm contributed about 24 per cent of the group's sales and 25 per cent of its $127.24 million operating profit last year, he said. Chairman Hans-Joerg Seeburger said the jewellery arm would realise profit contributions from associate Keimothai, a Thai-based jewellery maker and distributor in which Egana acquired a 45 per cent stake in January.