Financial Performance - The company's net profit attributable to shareholders for the year ended December 31, 2018, was HKD 97 million, an increase of HKD 19 million or 24% compared to the adjusted profit of HKD 78 million from the previous year[10]. - The earnings per share for the year was HKD 0.032, compared to HKD 0.026 for the previous year (adjusted)[10]. - The total sales revenue for the "Citistore" department stores increased by 6% to HKD 1,926 million, up from HKD 1,810 million in the previous year[17]. - The sales revenue from self-operated products rose by 6% to HKD 433 million, with a stable gross margin of 34%[18]. - The net asset value attributable to shareholders as of December 31, 2018, was HKD 1.401 billion, or HKD 0.46 per share[10]. - The company proposed a final dividend of HKD 0.02 per share, maintaining the total dividend for the year at HKD 0.04 per share[11]. - The gross profit from self-operated products was HKD 149 million, with a gross margin of 34%, slightly down from 35% in the previous year[19]. - "Citistore" achieved a post-tax profit contribution of HKD 89 million, an increase of HKD 15 million or 20% compared to the previous year's profit of HKD 74 million[22]. - The combined post-tax profit contribution from "Citistore" and "UNY Hong Kong" was HKD 93 million, leading to a total profit attributable to shareholders of HKD 97 million, a 24% increase from HKD 78 million in the previous year[23]. - Pre-tax profit increased by HKD 18 million or 20% to HKD 107 million for the year ended December 31, 2018[43]. - The group recorded a net profit attributable to shareholders of HKD 89 million, an increase of HKD 15 million or 20% compared to HKD 74 million in 2017[43]. Acquisitions and Market Position - The company acquired Unicorn Stores (HK) Limited for approximately HKD 300 million to strengthen its position in the local retail market[13]. - The acquisition of "UNY Hong Kong" was completed on May 31, 2018, contributing sales of HKD 565 million and a gross profit of HKD 169 million with a gross margin of 30% for the seven-month period[23]. - The acquisition of UNY Hong Kong is expected to bring potential synergies and cost-saving opportunities to the company's procurement and logistics functions[14]. - The group paid approximately HKD 300 million for the acquisition of "UNY Hong Kong," fully funded by internal resources, with no bank borrowings as of December 31, 2018[27]. - The company acquired UNY (HK) Co., Limited, now renamed Unicorn Stores (HK) Limited, to enhance its retail portfolio and provide a better shopping experience with quality Japanese products[78]. Operational Efficiency and Strategy - The group plans to strategically adjust and optimize store structures, including downsizing certain locations in 2019 to enhance customer shopping experiences and operational efficiency[28]. - The group will continue to strengthen promotional efforts and cost control to drive sustainable business growth[28]. - The retail business focuses on essential goods, ensuring stable revenue and profit despite market fluctuations[34]. - The group aims to enhance its market competitiveness through strategic store locations and a diverse range of products[35]. Employee and Training - The total employee cost for the year ended December 31, 2018, was HKD 218 million, an increase from HKD 154 million in 2017, primarily due to the acquisition of UNY Hong Kong[64]. - The company had 1,017 full-time employees and 271 part-time employees as of December 31, 2018, an increase from 586 full-time and 144 part-time employees in 2017[64]. - The average training hours for employees was 6.7 hours[121]. - The percentage of trained employees in 2018 was 80% for junior staff, 90% for mid-level managers, and 70% for senior managers[125]. - The number of employees participating in training courses was 481, with a total training hours of 3,266.5[142]. Corporate Governance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange Listing Rules, ensuring compliance with applicable codes and standards[149]. - The board of directors consists of ten members, including the chairman and managing director, with a mix of executive and independent non-executive directors[156]. - The company has established clear guidelines for the powers of management and reporting requirements to ensure effective governance[150]. - The board is responsible for overall decision-making, including business strategy formulation and risk management, with daily operations delegated to the management team[150]. - The company has implemented a monthly reporting system for directors, providing financial data and summaries of significant events and business outlook[154]. Environmental and Social Responsibility - In 2018, the company recycled a total of 396,353 kilograms of cardboard boxes, demonstrating its commitment to waste management[103]. - The company participated in the "Earth Hour" event on March 24, 2018, to raise awareness of energy consumption[92]. - The company implemented various energy-saving measures, including the installation of LED lighting in sales areas[97]. - The total consumption of shopping bags decreased from 760,000 in 2016 to 710,000 in 2018, reflecting a reduction of approximately 6.58%[97]. - The company aims to continuously improve its environmental performance through an internal environmental policy established in 2015[91]. Risk Management - The company has established a robust risk management policy, regularly assessing and monitoring environmental, social, and governance-related risks[75]. - The company employs a comprehensive risk management approach, integrating both top-down and bottom-up strategies[195]. - Major risks identified include regulatory and compliance risks related to consumer safety and occupational health, which could impact business operations[200].