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].

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].