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The dial doesn鈥檛 look restored but to me it looks transplanted from another reference. The style definitely seems 1920s and seems out of place on a 1930s watch. It鈥檚 impossible to prove there鈥檚 anything amiss and it may well be just an oddball but I would have been very hesistant to spend on it, even at a much lower price.
My late grandfather purchased this Longines in 1941. It's ticking again after I cleaned and replaced its badly rusted mainspring. The 12.68Z is a very robust movement.
A great movement and a neat dial on your grandfather's watch. The cursive signature is not typical on a dial from the 1940s with such a sub-dial design.
You're right. According to Longines, the movement was sold to Z. Dason & Co. which was the Longines' agent in China/HongKong areas. The case and the dial were locally produced under license. I think at the time, the Swiss made dial logo had already changed to the wings and capital letters.