香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不對因本公佈全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失 承擔任何責任。 二零二三年中期業績公佈 董事局主席報告 中期業績及股息 集團截至二零二三年六月三十日止六個月，股東應佔(未經審核)虧損為港幣一千八百 萬元，而去年同期則錄得股東應佔盈利港幣二千四百萬元。虧損主要由於(i)位於太古 城之APITA進行分階段翻新工程令其銷售額下降；及(ii)自二零二二年年底起取消社交 距離措施，令顧客對集團超級市場食品及日用品之需求減少。每股虧損為港幣0.6仙 (二零二二年：每股盈利為港幣0.8仙) 。 由於期內錄得虧損，董事局宣佈不派發中期股息(二零二二年：每股港幣一仙)。 ...

Financial Performance - The group's net profit attributable to shareholders for the year ended December 31, 2022, was HKD 5 million, a decrease of HKD 29 million or 85% compared to HKD 34 million in the previous year[5]. - Total sales revenue for Citistore decreased by 5% year-on-year, with self-operated product sales dropping 9% to HKD 359 million, maintaining a gross margin of 31%[11]. - The overall same-store sales for APITA and UNY decreased by 10% and 6% respectively, while Unicorn's total sales increased by 4% year-on-year[16]. - The group recorded a post-tax loss of HKD 63 million for Unicorn, compared to a loss of HKD 34 million in the previous year[17]. - The group's market capitalization as of December 31, 2022, was HKD 132 billion, with the total market capitalization of the six listed companies under the group at HKD 295 billion[4]. Operational Metrics - Commission income from consignment counters decreased by 3% to HKD 340 million, with consignment counters contributing HKD 242 million and franchise counters contributing HKD 98 million[13]. - Rental and related expenses amounted to HKD 46 million for the year ended December 31, 2022, a decrease of 4.17% from HKD 48 million in 2021[36]. - Depreciation expense for right-of-use assets was HKD 115 million, up 7.48% from HKD 107 million in the previous year[36]. - Financing costs for lease liabilities increased to HKD 31 million, a significant rise of 181.82% compared to HKD 11 million in 2021[36]. - Cash and bank balances decreased by HKD 100 million (or 27.78%) to HKD 260 million as of December 31, 2022, from HKD 360 million in 2021[38]. Sustainability and Environmental Impact - Total greenhouse gas emissions decreased from 14,327.4 tons CO2 equivalent in 2021 to 8,848.8 tons CO2 equivalent in 2022, a reduction of approximately 38.2%[87]. - The density of greenhouse gas emissions per square foot of store area improved from 0.023 tons CO2 equivalent in 2021 to 0.015 tons CO2 equivalent in 2022, reflecting a 34.8% decrease[87]. - The number of plastic shopping bags used increased to 6,954,889 in 2022 from 6,423,327 in 2021, marking an increase of approximately 8.3%[87]. - The total amount of cardboard recycled was 234,723 kg in 2022, down from 319,017 kg in 2021[87]. - Total energy consumption decreased from 23,740.5 thousand kWh in 2021 to 19,821.6 thousand kWh in 2022, a reduction of approximately 16.1%[87]. Employee Engagement and Development - The number of full-time employees decreased from 1,134 in 2021 to 1,039 in 2022, a decline of approximately 8.4%[87]. - The company has a comprehensive training program for employees, including skill enhancement courses for different levels of management[103]. - The company reported a training participation rate exceeding 100% due to employee turnover, indicating a strong focus on employee development[106]. - Employee turnover rate for males decreased to 34% from 46% and for females increased to 36% from 32%[133]. - The company has organized team-building activities and monthly events to boost employee morale, with participation rates of 50% for annual celebrations and 40% for mid-autumn and Christmas parties[100]. Corporate Governance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange regulations[126]. - The board provides monthly reports containing financial data and summaries of important events and business outlooks to ensure informed decision-making[147]. - The company is committed to complying with all applicable rules and regulations, ensuring good corporate governance practices[154]. - The board has mechanisms in place to ensure independent viewpoints are obtained during decision-making processes[161]. - The company has implemented anti-corruption training for directors and employees to prevent bribery and fraud[30]. Community Engagement - The company emphasizes the importance of community engagement to understand local needs and ensure business activities consider community interests[31]. - The company donated approximately HKD 70,000 to the Green Power initiative and collected 591 kg of red packets for recycling[110]. - The company has provided 96 hours of volunteer service to support local retail systems[110]. - The company has been recognized for its community engagement and sustainability efforts, receiving the Caring Company logo for the 2021/2022 period[85]. - The company actively engages with stakeholders to understand their expectations regarding environmental, social, and governance strategies[44].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部份內容而產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 二零二二年全年業績公佈 董事局主席報告 股東應佔盈利及資產淨值 集團截至二零二二年十二月三十一日止年度之股東應佔盈利為港幣五百萬元，較去年度之 港幣三千四百萬元，減少港幣二千九百萬元或 85%。每股盈利為港幣 0.2 仙 (二零二一年：港幣 1.1 仙) 。 盈利下跌主要由於(i)2019冠狀病毒疫情對本集團營運帶來負面影響；(ii)位於太古城之 APITA進行分階段翻新工程令其銷售額下降；及(iii)二零二一年十一月開業之UNY將軍 澳店因首年營運進行銷售組合重整，而錄得經營虧損。 ...

Financial Performance - The group's unaudited profit attributable to shareholders for the six months ended June 30, 2022, was HKD 24 million, a decrease of HKD 6 million or 20% compared to HKD 30 million in the same period last year[4]. - Earnings per share were HKD 0.8 cents, down from HKD 1.0 cent in 2021[4]. - Revenue for the six months ended June 30, 2022, decreased by HKD 25 million or 7%, primarily due to reduced sales from self-operated products and consignment commission income[31]. - The company reported a total comprehensive income of HKD 24 million for the period, down from HKD 33 million in the previous year[59]. - The group recorded a net cash outflow of HKD 31,000,000 from operating, investing, and financing activities during the six months ended June 30, 2022[42]. - The net cash generated from operating activities for the six months ended June 30, 2022, was HKD 96 million, a decrease from HKD 136 million in the same period of 2021, representing a decline of 29.4%[71]. - The pre-tax profit for the six months ended June 30, 2022, was HKD 27 million, down from HKD 35 million in 2021, indicating a decrease of 22.9%[71]. - The company reported a decrease in accounts payable and other payables by HKD 89 million, compared to a decrease of HKD 36 million in the previous year[71]. Sales and Revenue - Total sales revenue for self-operated products decreased by 10% to HKD 180 million, with a gross margin slightly declining to 31%[12]. - The total sales amount for consignment and franchise counters decreased by 3% to HKD 166 million[14]. - For the six months ended June 30, 2022, Unicorn's total sales increased by 8% to HKD 703 million compared to HKD 651 million in the same period last year[18]. - The overall same-store sales for APITA and UNY Lok Fu decreased by 8% year-on-year due to the impact of the fifth wave of local COVID-19 outbreaks[18]. - Sales revenue for Unicorn reached HKD 536 million, a 12% increase from HKD 480 million in the previous year[34]. - The supermarket business saw a sales value increase of 3.3% due to consumer behavior during the pandemic[8]. Dividends and Shareholder Returns - The interim dividend declared is HKD 0.01 per share, consistent with the previous year[4]. - The total dividend payable for the current period was HKD 30 million, unchanged from the previous year[100]. Assets and Liabilities - Total assets increased to HKD 2,107 million from HKD 1,746 million, representing a growth of 20.6%[63]. - Current liabilities decreased to HKD 597 million from HKD 671 million, a reduction of 11%[63]. - Lease liabilities increased to HKD 870 million as of June 30, 2022, from HKD 502 million as of December 31, 2021, reflecting a growth of approximately 73.5%[138]. - The company's net asset value slightly decreased to HKD 1,318 million from HKD 1,324 million[63]. Government Support and Subsidies - Despite the decrease in sales, the after-tax profit contribution from Citistore increased by HKD 7 million or 21% to HKD 40 million, mainly due to government wage subsidies of HKD 8 million[15]. - Other income included HKD 8 million from the Employment Support Scheme related to COVID-19, which was not present in the previous year[32]. - The company received government subsidies totaling HKD 10 million under the "Employment Support Scheme" for May and June 2022[92]. Operational Efficiency and Future Plans - The group expects consumer spending to improve with the government's new consumption voucher scheme, while closely monitoring the local pandemic situation[25]. - The group plans to enhance customer shopping experiences by introducing new food counters and children's play areas in selected stores, along with a new online store and integrated rewards program[25]. - The central distribution center, covering 58,500 square feet, is expected to enhance operational efficiency and cost-effectiveness, with its cold storage set to be operational by the end of 2022[25]. Financial Resources and Commitments - The group has sufficient financial resources to meet its operational and future expansion funding needs[43]. - The group had capital commitments of HKD 68,000,000 for fixed asset projects as of June 30, 2022, compared to HKD 14,000,000 at the end of 2021[47]. Management and Governance - The company has complied with the applicable code provisions of the Corporate Governance Code as per the Hong Kong Stock Exchange Listing Rules[156]. - The board of directors confirmed that all directors have fully complied with the standards set out in the code for securities transactions by directors[157]. - The company has adopted a code for securities transactions by directors in accordance with the Listing Rules[157]. Ownership Structure - The company is fully owned by Henderson Investment Limited, which holds significant stakes through various subsidiaries[169]. - The total equity interest held by the directors in the company was 2,110,868,943 shares, representing 69.27%[163]. - Major shareholders hold a total of 2,110,868,943 shares, representing 69.27% of the company's equity[168].

Financial Performance - The company's profit attributable to shareholders for the year ended December 31, 2021, was HKD 34 million, a decrease of HKD 93 million or 73% compared to HKD 127 million in the previous year[14]. - Earnings per share decreased to HKD 0.011 from HKD 0.042 in 2020[14]. - The total sales value of the supermarket business decreased by 8.4% year-on-year due to reduced demand for food and daily necessities[17]. - The total sales revenue for Citistore increased by 7% to HKD 1,616 million, compared to HKD 1,515 million in the previous year[21]. - The sales revenue from self-operated products increased by 3% to HKD 394 million, maintaining a stable gross margin of 31%[22]. - The net asset value attributable to shareholders as of December 31, 2021, was HKD 1.324 billion, or HKD 0.43 per share[14]. - The company proposed a final dividend of HKD 0.01 per share, totaling HKD 0.02 per share for the year, consistent with the previous year[15]. - The overall retail sales value in Hong Kong increased by 8.1% in 2021 compared to the previous year, indicating a recovery in consumer activity[17]. - The total sales amount for franchise and consignment counters increased by 8% year-on-year to HKD 1,222 million, with commission income rising by 2% to HKD 350 million[24]. - Unicorn's total sales decreased by 5% year-on-year to HKD 1,282 million, with self-operated product sales down 8% to HKD 939 million, while consignment sales increased by 5% to HKD 343 million[32]. - Unicorn recorded a post-tax loss of HKD 340 million for the year, compared to a profit of HKD 330 million the previous year, which included government wage subsidies of HKD 220 million[35]. - The group's cash and bank balance as of December 31, 2021, was HKD 360 million, down from HKD 410 million in 2020, with no bank borrowings[37]. - The gross profit margin for self-operated products decreased to 29% from 30% year-on-year, with gross profit down to HKD 269 million from HKD 311 million[33]. - Operating profit decreased by 21% to HKD 103 million from HKD 130 million year-on-year[49]. - Profit before tax declined by 18% to HKD 88 million from HKD 107 million[49]. - Net profit attributable to shareholders fell by 22% to HKD 73 million from HKD 94 million[49]. - The company opened five new "C生活" stores, contributing HKD 15 million in revenue during the year[52]. - Rental and related expenses increased significantly by 84% to HKD 59 million from HKD 32 million[49]. - The company maintained a strong brand presence with established retail operations in densely populated areas, enhancing market competitiveness[44]. - For the year ended December 31, 2021, the group reported a revenue decrease of HKD 78 million or 7% compared to the previous year, primarily due to reduced customer demand for food and daily necessities following the easing of COVID-19 social distancing measures[61]. - The group's total revenue from Unicorn for the year ended December 31, 2021, included sales revenue of HKD 939 million, a decrease of HKD 82 million or 8% year-on-year[58]. - The operating loss for the year ended December 31, 2021, was HKD 30 million, a decline of HKD 78 million or 163% compared to a profit of HKD 48 million in the previous year[58]. - The group did not receive any employment support subsidy from the Hong Kong government for the year ended December 31, 2021, compared to HKD 32 million received in the previous year[63]. - The total employee cost for the year ended December 31, 2021, was HKD 272 million, slightly up from HKD 270 million in 2020[76]. - The group had capital commitments of HKD 14 million for fixed asset projects as of December 31, 2021, down from HKD 15 million in 2020[74]. - The group reported no contingent liabilities as of December 31, 2021, similar to the previous year[75]. - The group maintained a net asset value of HKD 1,324 million as of December 31, 2021, compared to HKD 1,347 million in 2020[81]. - The group had a total of 1,134 full-time employees as of December 31, 2021, an increase from 1,118 in 2020[76]. - The group had no bank borrowings as of December 31, 2021, consistent with the previous year[69]. - The group has no significant interest or exchange rate risks as of December 31, 2021[71]. Sustainability and Corporate Social Responsibility - The company established a dedicated Sustainability Committee within the board to oversee environmental, social, and governance (ESG) strategies and performance, meeting at least once a year[88]. - The company aims to reduce carbon intensity per square foot of store area by 12% by the end of 2025 compared to the 2016 baseline[120]. - The company plans to decrease electricity intensity per square foot of store area by 12% by the end of 2025 compared to the 2016 baseline[121]. - The company reported a greenhouse gas emission of 720,000 tons of CO2 equivalent, with a reduction of 9.37% from the previous year[116]. - The company has implemented energy-saving measures, including monitoring indoor temperatures and using energy-efficient appliances[109]. - The company actively participates in environmental initiatives, such as the "Earth Hour" event to raise public awareness about energy consumption[109]. - The company promotes the use of reusable shopping bags to reduce plastic waste and supports local waste reduction projects[114]. - The company has established a risk management plan to address climate-related risks, including monitoring for typhoons and heavy rain[123]. - The company emphasizes the importance of maintaining a safe and healthy work environment for all employees as part of its corporate social responsibility[107]. - In 2021, the company recycled a total of 319,017 kilograms of cardboard boxes and 39 electronic devices at Citistore[127][128]. - The company collected 1,450 kilograms of used red packets during the Lunar New Year for recycling and reuse[129]. - The company has implemented various health measures in stores, including temperature checks and regular cleaning, to ensure customer and employee safety during the pandemic[90]. - The company encourages non-contact payment methods to minimize social interactions and has adopted flexible working hours to comply with social distancing measures[93]. - The company collaborates closely with supply chain partners to continuously improve service quality and gather customer feedback[94]. - The company strictly adheres to various regulations to ensure product quality and has no reported violations in health and safety, advertising, labeling, or privacy during the reporting period[102]. - The company has established a robust customer privacy policy, ensuring that personal data collected is securely stored and accessed only by authorized personnel[101]. - The company has implemented safety measures in its department stores following a notice from the Labour Department regarding workplace safety[147]. - The company continues to promote a sustainable lifestyle by offering reusable items at Citistore[129]. - The company has maintained a zero-violation record regarding anti-corruption regulations during the reporting period[153]. - The company made community investments exceeding HKD 271,000 in 2021[159]. - The company donated over 270 items of clothing and household goods to various NGOs in 2021[164]. - The total amount of recyclable materials collected was 1,450 kilograms, with a donation of HKD 63,000 for the recycling initiative[164]. Corporate Governance - The board consists of eight members, including three independent non-executive directors, ensuring a balanced composition[188]. - The company has established mechanisms to ensure independent viewpoints within the board, with at least one independent non-executive director possessing appropriate professional qualifications[191]. - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange rules for the year ending December 31, 2021[183]. - There were no corruption lawsuits filed against the company or its employees during the reporting period[7.1]. - The company emphasizes the importance of good corporate governance practices and procedures[182]. - The board is responsible for overall decision-making, including risk management and internal control systems[184]. - Independent non-executive directors do not receive performance-related equity compensation to maintain their objectivity and independence[193]. - The company has a policy for community investment focusing on areas such as education, environment, and health[8.1]. - The company has implemented measures to prevent bribery, extortion, fraud, and money laundering[7]. - The board held four meetings during the year to approve interim and annual results, discuss important matters, and review corporate governance policies[200]. - Independent non-executive directors confirmed their independence and were deemed free from any relationships that could significantly interfere with their independent judgment[197]. - The company established a corporate governance committee in December 2021 to fulfill corporate governance responsibilities as per the Corporate Governance Code[200]. - The board ensures that each director, including independent non-executive directors, is subject to re-election at least once every three years[197]. - The company received independent confirmation letters from all independent non-executive directors regarding their independence[197]. - The board is empowered to appoint any individual as a director to fill temporary vacancies or as new members[197]. - The company’s independent non-executive director, Mr. Au, holds positions that do not affect his independence according to the Listing Rules[198]. - The board discussed the level of dividends during the meetings, indicating a focus on shareholder returns[200]. - The company’s governance practices were reviewed, ensuring compliance with established policies and regulations[200]. - The board's meetings included discussions on the training and continuous professional development of directors and senior management[200].

恒 基 兆 業 發 展 有 限 公 司 HENDERSON INVESTMENT LIMITED Stock Code 股份代號：97 | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | INTERIM REPORT 中期報告 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 20 | 6 | | | | | | | | | | | | | | | | --- | --- | |-------|----------------------------------| | | 目錄 | | 44 | 董事局主席報告 | | 44 | 中期業績及股息 | | 44 | 暫停辦理股份過戶登記 | | ...

Financial Performance - For the fiscal year ended December 31, 2020, the company's attributable profit was HKD 127 million, an increase of HKD 65 million or 105% compared to HKD 62 million in the previous year[11]. - Earnings per share increased to HKD 0.042 from HKD 0.020 in 2019[11]. - As of December 31, 2020, the net asset value attributable to shareholders was HKD 1.347 billion, or HKD 0.44 per share, compared to HKD 1.288 billion or HKD 0.42 per share in 2019[11]. - The group reported a total net profit attributable to shareholders of HKD 127 million, a 105% increase from HKD 62 million in the previous year[34]. - Profit attributable to shareholders increased by 24% to HKD 94 million, compared to HKD 76 million in the previous year[48]. - The company's annual profit for 2020 was HKD 127 million, a decrease of 10.4% compared to 2019's profit of HKD 142 million[78]. - Revenue for the year ended December 31, 2020, decreased by HKD 85,000,000 or 10% compared to the previous year[51]. - Total sales for Citistore decreased by 14% to HKD 1,515 million for the year ended December 31, 2020, compared to HKD 1,768 million in 2019[20]. - UNY's total sales increased by 19% to HKD 1,347 million, with self-operated product sales rising by 25% to HKD 1,021 million[29][30]. - UNY achieved a net profit of HKD 33 million, compared to a net loss of HKD 22 million in the previous year, supported by government wage subsidies of HKD 22 million[32]. Operational Changes - The company operates six "Citistore" department stores and three "APITA" or "UNY" supermarkets in Hong Kong[6]. - The company plans to continue expanding its supermarket and department store operations in densely populated residential areas[15]. - The company optimized its product mix by introducing more home goods in response to reduced demand for travel-related items due to the pandemic[20]. - The company plans to strategically adjust its store network, including the closure of the Citistore in Tai Kok Tsui within 2021[36]. - The total operating hours for Citistore stores were reduced by 3,123.5 hours due to the pandemic, impacting customer traffic[50]. - The company aims to enhance its online business and diversify shopping channels to improve overall performance[36]. Customer Engagement and Marketing - The "Citi-Fun" membership program has grown to over 350,000 members by the end of December 2020, with increased promotional efforts to enhance customer engagement[16]. - New product offerings included the launch of the "Style One" private label and online grocery delivery services, enhancing customer experience[29]. - The company emphasizes customer-centric operations, aiming to provide high-quality service and products to enhance the shopping experience[99]. - Citistore received 14 customer appreciation letters during the reporting period, reflecting its commitment to providing the best customer experience[103]. - In 2020, Citistore received a total of 44 customer complaints regarding purchased products and services, all of which were resolved according to internal procedures[102]. COVID-19 Response - The company implemented comprehensive preventive measures in stores to ensure a safe environment for customers and staff during the pandemic[16]. - The company has implemented enhanced cleaning and disinfection procedures in response to the COVID-19 pandemic, increasing the frequency of cleaning high-contact areas[97]. - The company has established automatic temperature screening stations at store entrances to ensure visitor safety during the pandemic[94]. - The company has adopted a mask-wearing policy for all employees and customers to mitigate transmission risks[95]. - The company has implemented flexible work arrangements and provided masks and sanitizers to ensure employee health and safety during the pandemic[135]. Financial Management - Cash and bank balances reached HKD 415 million, up from HKD 363 million in 2019, with no bank borrowings reported[35]. - The company had no bank borrowings as of December 31, 2020, consistent with the previous year[67]. - The company recorded zero financing costs for bank borrowings for the year ended December 31, 2020, compared to HKD 64,910 in 2019[66]. - The total employee cost for the year ended December 31, 2020, was HKD 270,000,000, an increase from HKD 250,000,000 in 2019, primarily due to the opening of a new supermarket[75]. - The company received a rental concession of HKD 23,000,000 during the year, contributing to reduced rental expenses[52]. Sustainability and Community Engagement - The company is committed to sustainable development and regularly engages with stakeholders to assess environmental, social, and governance issues[84]. - The company continues to promote sustainable shopping habits through initiatives like the "Bring Your Own Shopping Bag" campaign[122]. - The total donations for community investment exceeded HKD 250,100 in 2020, supporting various charitable organizations and community projects[162]. - The company has a long-term partnership with Green Action to promote recycling initiatives, including the reuse of red packets during the Lunar New Year[131]. - The company has not reported any environmental regulation violations during the reporting period[110]. Corporate Governance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange rules, with no significant deviations noted[177]. - The board of directors is responsible for the overall management of the company, including business strategy formulation and supervision of company affairs[178]. - The board has established a clear framework for risk management and internal control systems, reviewing their effectiveness regularly[178]. - The audit committee is responsible for reviewing and monitoring the company's financial reporting processes and risk management systems[199]. - All independent non-executive directors confirmed their independence and have no relationships that could significantly interfere with their independent judgment[185].

Financial Performance - The company's unaudited profit attributable to shareholders for the six months ended June 30, 2020, was HKD 48 million, an increase of HKD 27 million or 129% compared to HKD 21 million in the same period last year[4]. - Earnings per share were HKD 0.016, up from HKD 0.007 in 2019[4]. - The group's total post-tax profit contribution from Citistore and UNY Hong Kong was HKD 46 million, an increase of HKD 27 million or 129% compared to the previous year[26]. - The company reported a pre-tax profit of HKD 55 million, compared to HKD 24 million in the previous period, marking an increase of approximately 129.2%[53]. - The company recorded a total net profit of HKD 48 million for the six months ended June 30, 2020, a 129% increase from HKD 21 million in the same period of 2019[141]. - The group's pre-tax operating profit for the six months ended June 30, 2020, was HKD 74 million, compared to HKD 46 million in 2019, representing a year-on-year increase of 60.87%[145]. Sales and Revenue - Total sales revenue for "Citistore" decreased by 17% to HKD 749 million, down from HKD 907 million in the previous year[13]. - The total sales amount from licensed and consignment counters decreased by 20% to HKD 560 million, down from HKD 698 million[13]. - The group recognized a total revenue of HKD 880 million for the six months ended June 30, 2020, down from HKD 926 million in the same period of 2019, representing a decrease of approximately 5%[68]. - Sales revenue from merchandise was HKD 669 million for the first half of 2020, compared to HKD 673 million in the same period of 2019, indicating a slight decline[68]. - The group reported a total consignment sales revenue of HKD 717 million for the first half of 2020, down from HKD 879 million in the same period of 2019, reflecting a decrease of approximately 18%[68]. - For the six months ended June 30, 2020, the total revenue from Citistore decreased by HKD 56 million or 13% compared to the same period in 2019, primarily due to the impact of the COVID-19 pandemic on retail activities in Hong Kong[131]. Operational Highlights - The contribution to profit after tax from "Citistore" increased by HKD 1 million or 3% to HKD 34 million, mainly due to a reduction in rental expenses of HKD 27 million[19]. - UNY Hong Kong expanded its operations by opening a new Japanese supermarket in Yuen Long, offering fresh Japanese agricultural products and daily necessities[20]. - The supermarket business is expected to remain stable, while the department store sector faces ongoing challenges due to the pandemic[30]. - UNY Hong Kong launched an online delivery service for fresh sushi and sashimi in July 2020, responding to changing consumer preferences[30]. - The number of "Citi-Fun" members increased to over 330,000 due to enhanced promotional activities[10]. Dividends and Shareholder Information - The company declared an interim dividend of HKD 0.01 per share, down from HKD 0.02 per share in 2019[4]. - The company paid dividends of HKD 30 million, down from HKD 61 million, indicating a reduction of approximately 50.8%[53]. - As of June 30, 2020, major shareholder Li Ka-shing holds 2,110,868,943 shares, representing 69.27% of the total equity[170]. - The company has no share option scheme in place for its subsidiaries[177]. - The company has a significant ownership structure with Li Ka-shing and his family controlling 72.50% of Hysan Development Company Limited[170]. Financial Position - As of June 30, 2020, the group had no bank borrowings and a net cash balance of HKD 349 million[29]. - The company maintained goodwill at HKD 1,072 million, unchanged from the previous period[43]. - The total equity attributable to shareholders increased from HKD 1,288 million to HKD 1,298 million, a rise of about 0.8%[43]. - The group has sufficient financial resources to meet operational and future expansion funding needs, supported by a cash balance of HKD 349 million[145]. - The group had no bank borrowings as of June 30, 2020, maintaining a strong liquidity position[144]. Cost and Expenses - Employee costs increased to HKD 125 million from HKD 121 million, marking a rise of approximately 3.31%[75]. - The total cost of sales for the period was HKD 466 million, slightly down from HKD 470 million in 2019, showing a decrease of approximately 0.85%[75]. - The depreciation expense for right-of-use assets was HKD 111 million, an increase from HKD 103 million in 2019, representing a rise of about 7.77%[85]. - Direct costs decreased by HKD 40 million or 12%, from HKD 328 million to HKD 288 million, reflecting lower sales and related expenses[128]. Asset and Liability Management - Non-current assets decreased from HKD 2,010 million to HKD 1,953 million, a reduction of approximately 2.8%[43]. - Current assets decreased from HKD 536 million to HKD 525 million, a decline of about 2.1%[43]. - Total liabilities decreased from HKD 1,262 million to HKD 1,180 million, representing a decrease of approximately 6.5%[43]. - The group recognized HKD 12 million in profit adjustments related to rental payment changes due to COVID-19[64]. - The group has no contingent liabilities as of June 30, 2020, maintaining a stable financial position[117]. Compliance and Governance - The review of the interim financial statements was conducted in accordance with the Hong Kong Institute of Certified Public Accountants' standards[181]. - No significant issues were found that would lead to the belief that the interim financial statements were not prepared in accordance with the relevant accounting standards[182].

Financial Performance - Shareholders' profit attributable to the company for the year ended December 31, 2019, was HKD 62 million, a decrease of HKD 35 million or 36% compared to HKD 97 million in the previous year[11]. - Earnings per share decreased to HKD 0.02 from HKD 0.032 in 2018[11]. - Total sales revenue for self-operated goods decreased by 7% to HKD 404 million from HKD 433 million in 2018[21]. - Total sales revenue for licensed and consignment counters decreased by 9% to HKD 1,364 million from HKD 1,493 million in 2018[21]. - Overall sales revenue decreased by 8% to HKD 1,768 million from HKD 1,926 million in 2018[21]. - The net asset value attributable to shareholders as of December 31, 2019, was HKD 1.288 billion, or HKD 0.42 per share, down from HKD 1.401 billion or HKD 0.46 per share in 2018[11]. - The company proposed a final dividend of HKD 0.01 per share, totaling HKD 0.03 per share for the year, down from HKD 0.04 per share in 2018[12]. - The overall after-tax profit contribution from "Citistore" and "UNY Hong Kong" combined was HKD 54 million, a decrease of HKD 35 million or 36% compared to the previous year[37]. - The company reported a pre-tax profit of HKD 91 million, down 15% from HKD 107 million in the previous year[54]. - The net profit attributable to shareholders decreased by 15% to HKD 76 million in 2019, compared to HKD 89 million in 2018[54]. Sales and Revenue Trends - The overall retail sales value in Hong Kong decreased by 11.1% year-on-year in 2019[15]. - Sales revenue from self-operated products decreased by 7% to HKD 404 million, with a slight decline in gross margin to 33% from 34% in the previous year[22][23]. - Commission income from franchise and consignment counters fell by 7% to HKD 406 million, driven by a decrease in sales amounts from both franchise and consignment counters[26][27]. - "UNY Hong Kong" reported a total sales amount decrease of 18%, with self-operated product sales down 16% to HKD 816 million and consignment sales down 24% to HKD 313 million[31][32]. - The retail business generated a total revenue of HKD 404 million in 2019, a decrease of 7% compared to HKD 433 million in 2018[54]. Operational Developments - The company plans to open a new Japanese supermarket in Yuen Long in mid-2020 to enhance its product offerings and mitigate potential negative impacts from the ongoing pandemic[39]. - The group aims to integrate the operations of "Citistore" and "UNY Hong Kong" to achieve operational synergies and improve cost efficiency[39]. - The company opened a limited-time store in Tsim Sha Tsui in April 2019, focusing on pet products and workshops, which increased brand awareness[18]. Cost Management - The direct costs associated with sales amounted to HKD 817 million, reflecting a 7% decrease from HKD 877 million in the previous year[54]. - Total depreciation expense for right-of-use assets amounted to HKD 140 million, with HKD 136 million classified as direct costs and HKD 4 million as administrative expenses[56]. - Rental and related expenses decreased by HKD 20 million year-on-year to HKD 226 million, attributed to social movements in Hong Kong affecting normal operating hours and reduced commission rental expenses[57]. Employee and Workforce Insights - The company had 934 full-time employees and 254 part-time employees as of December 31, 2019, a decrease from 1,017 full-time and 271 part-time employees in 2018[78]. - The total employee cost was HKD 250 million, an increase from HKD 218 million in 2018, primarily due to the full-year recognition of employee costs for UNY Hong Kong[78]. - The average training hours per employee is 10.5 hours[146]. - The employee turnover rate for males was 20.9%, while for females it was 19.2%[161]. Environmental and Social Responsibility - The company actively participated in the "Earth Hour" campaign in 2019, turning off neon lights and display window power for one hour to raise awareness about energy consumption[112]. - The company collected 639 kilograms of used red packets for recycling during the 2019 Lunar New Year, supporting the Green Action initiative[122]. - The company recycled a total of 318,332 electronic devices in collaboration with ECO Drive Hong Kong[123]. - The company showcased various eco-friendly products as alternatives to single-use plastics during the "Don't Go Plastic" campaign[123]. Corporate Governance - The company has a commitment to good corporate governance and compliance with applicable codes and standards[171]. - The board of directors is responsible for overall management and strategic direction, ensuring effective risk management and internal controls[172]. - The company has arranged for directors and officers liability insurance to cover potential liabilities arising from business operations[187]. - The board consists of nine members, including executive and independent non-executive directors, ensuring compliance with listing rules[178].

Financial Performance - The company's profit attributable to shareholders for the six months ended June 30, 2019, was HKD 21 million, a decrease of HKD 27 million or 56% compared to HKD 48 million in the same period last year[5]. - Earnings per share decreased to HKD 0.7 cents from HKD 1.6 cents in 2018[5]. - The group recorded a net loss of HKD 17 million after deducting operating expenses, primarily due to rental payments of HKD 22 million following the closure of PIAGO[20]. - The pre-tax profit for the same period was HKD 20 million, down 63.6% from HKD 55 million in 2018[83]. - The group reported a net profit attributable to shareholders of HKD 21,000,000 for the six months ended June 30, 2019, a decrease of 56% from HKD 48,000,000 in 2018[149]. Revenue and Sales - Total sales revenue for self-operated products decreased by 4% to HKD 209 million, with a gross margin of 33%, down from 35% in 2018[13]. - The total sales amount for licensed and consignment counters decreased by 6% to HKD 698 million, leading to a total revenue of HKD 907 million, down 6% from HKD 960 million[11]. - The company reported a significant increase in revenue, with sales revenue reaching HKD 673 million for the six months ended June 30, 2019, compared to HKD 294 million in the same period of 2018, representing a growth of 128.6%[72]. - The total revenue for the period was HKD 926 million, up from HKD 524 million in the previous year, indicating an overall increase of 76.7%[72]. - The company generated consignment sales revenue of HKD 622 million, up from HKD 506 million in the previous year, reflecting a growth of 22.9%[72]. Dividends and Equity - The interim dividend declared is HKD 0.02 per share, consistent with the previous year[5]. - The group’s total equity as of June 30, 2019, was HKD 1,311 million, a decrease from HKD 1,401 million at the end of 2018[36]. - As of June 30, 2019, the total equity amounted to HKD 1,311 million, a decrease of HKD 50 million compared to the previous period[47]. Costs and Expenses - Employee costs increased to HKD 121 million in 2019 from HKD 84 million in 2018, reflecting a rise of 44.0%[76]. - The cost of sales increased significantly to HKD 470 million in 2019 from HKD 196 million in 2018, representing a growth of 139.8%[76]. - The company recognized a depreciation expense of HKD 71 million related to right-of-use assets, with HKD 69 million classified as direct costs and HKD 2 million as administrative expenses[134]. - The finance costs related to lease liabilities amounted to HKD 22 million in 2019, with no comparable figure in 2018[76]. Assets and Liabilities - The group's net cash as of June 30, 2019, was HKD 388 million, down from HKD 465 million at the end of 2018[21]. - The current liabilities net value was HKD 24 million, primarily due to the adoption of HKFRS 16, which recognized lease liabilities of HKD 223 million[56]. - As of June 30, 2019, the total lease liabilities amounted to HKD 873 million, with current liabilities at HKD 223 million and non-current liabilities at HKD 650 million[107]. Acquisitions and Business Integration - The acquisition of "UNY Hong Kong" was completed on May 31, 2018, and currently operates two department stores with a total area of 188,736 square feet[19]. - The integration of "Citistore" and "UNY Hong Kong" businesses aims to improve market information exchange and operational synergies[22]. - The goodwill from the acquisition of Citistore remains at HKD 810 million, with no impairment loss recognized as of June 30, 2019[92]. Market Challenges and Strategies - The company faced challenges in sales due to unusual warm weather and socio-political factors affecting consumer sentiment[11]. - The company plans to continue enhancing brand awareness through promotional activities and limited-time stores[11]. - The group plans to continue launching promotional activities and cost-saving measures to enhance competitiveness[22]. Financial Reporting and Compliance - The interim financial statements were authorized for issue on August 21, 2019[55]. - The company did not adopt any new standards or interpretations that were not yet effective during the reporting period[68]. - No significant issues were found regarding the preparation of the interim financial statements according to Hong Kong Accounting Standards[194]. Corporate Governance - The company complied with the corporate governance code as of June 30, 2019, although it did not separate the roles of chairman and CEO[164]. - The audit committee reviewed internal controls and risk management systems during a meeting in August 2019[163].