Dear Non-Registered Holder(1) , 1 August 2025 Arrangement of Electronic Dissemination of Corporate Communications Pursuant to Rule 2.07A of the Rules Governing the Listing of Securities (the "Listing Rules") on The Stock Exchange of Hong Kong Limited (the "Stock Exchange"), New World Department Store China Limited (the "Company") has adopted new arrangement to disseminate corporate communications ("Corporate Communications" (2)) electronically. No printed copies of Corporate Communications will be mailed to ...

登記股東之名稱及地址 根據香港聯合交易所有限公司（「聯交所」）證券上市規則（「上市規則」）第 2.07A 條以及新世界百貨中國 有限公司（「本公司」）的組織章程細則，本公司將以電子通訊方式向其股東 2 發佈本公司日後的公司通訊 （「公司通訊」1 ），並僅應股東要求向其寄發印刷本形式的公司通訊。 2025 年 8 月 1 日 安排 1. 可供採取行動的公司通訊 3 本公司將以電子通訊方式（通過電子郵件）向股東個別地發送可供採取行動的公司通訊。如果本公司沒有 獲取股東的電子郵箱地址或其提供的電子郵箱地址無效 4 ，本公司將以印刷本形式向其發送可供採取行動的 公司通訊，連同一份索取股東有效電子郵箱地址的表格，以便將來以電子通訊方式發送可供採取行動的公 司通訊。 2. 公司通訊 New World Department Store China Limited 新世界百貨中國有限公司 ( 於開曼群島註冊成立的有限公司 ) (股份代號: 825) 尊敬的登記股東： 發佈公司通訊之新安排 簡介 4. 索取公司通訊及可供採取行動的公司通訊的印刷本 對於希望收取所有日後公司通訊及可供採取行動的公司通訊的印刷本，或因任何原因難以 ...

Financial Performance - The company's revenue for the six months ended December 31, 2024, was HKD 612,703,000, a decrease of 11.8% compared to HKD 694,900,000 for the same period in 2023[10]. - Commission income from counters was HKD 178,649,000, down 21.8% from HKD 228,255,000 in the previous year[13]. - Self-operated sales revenue was HKD 131,162,000, a decline of 20.4% from HKD 164,835,000 in the same period last year[13]. - The net profit for the period was HKD 3,108,000, compared to HKD 1,657,000 in the previous year, indicating a significant increase[13]. - The group's profit for the period was HKD 3.1 million, compared to HKD 1.7 million in the previous year, with earnings per share increasing to HKD 0.002 from HKD 0.001[23]. - The operating profit for the group was HKD 114,563,000, compared to HKD 121,292,000 in the previous year, representing a decrease of 5.7%[124]. - The group reported a net loss of HKD 46.2 million in fair value changes of investment properties for the first half of the 2025 fiscal year, primarily due to decreases in properties in Shanghai and Wuhan[59]. - The company reported a total comprehensive income of HKD 24,452,000 for the six months ended December 31, 2024, compared to HKD 68,064,000 for the same period in 2023, a significant decline of approximately 64.0%[91]. Revenue Breakdown - Rental income increased slightly to HKD 295,893,000 from HKD 293,381,000, reflecting a growth of 0.5%[13]. - Rental income accounted for 48.3% of total revenue, while sales commission from counters contributed 29.2%, and self-operated merchandise sales made up 21.4%[23][26]. - Department store sales revenue was HKD 1,272,022,000, down 19.2% from HKD 1,574,327,000 year-on-year[120]. - Customer contract revenue decreased to HKD 309,811,000 from HKD 393,090,000, reflecting a decline of 21.2%[120]. - Total sales proceeds for the first half of the 2025 fiscal year amounted to HKD 1,877.2 million, down from HKD 2,228.2 million in the first half of the 2024 fiscal year[54]. Assets and Liabilities - The total assets as of December 31, 2024, were HKD 9,876,029,000, down from HKD 10,205,513,000 at the end of June 2024[13]. - Total liabilities decreased from HKD 6,825,391,000 as of June 30, 2024, to HKD 6,471,455,000 as of December 31, 2024, representing a reduction of approximately 5.2%[88]. - Current liabilities amounted to HKD 3,662,390,000 as of December 31, 2024, compared to HKD 3,777,306,000 as of June 30, 2024, indicating a decrease of about 3.0%[88]. - The company's borrowings decreased from HKD 1,469,297,000 as of June 30, 2024, to HKD 1,417,976,000 as of December 31, 2024, a reduction of about 3.5%[88]. - The total amount of borrowings as of December 31, 2024, is HKD 1,417,976, with a total cash flow of HKD 1,494,387 due within one year[112]. Membership and Customer Engagement - The total number of members reached 7.87 million, representing a year-on-year growth of 4.7%[29]. - The company successfully registered over 8,000 new members during the "V Friends Festival" event, focusing on member benefits and engagement[39]. - The company reported a significant increase in member activity, with over 15,000 new members registered through innovative marketing strategies[40]. - The company is focusing on improving member service quality and diversifying member benefits to drive consumption growth[39]. Marketing and Retail Strategy - The company plans to enhance its retail experience by integrating various lifestyle brands and creating immersive consumption spaces[18]. - The group is focusing on enhancing the shopping experience by introducing flagship stores and diverse product categories, including sports, dining, and lifestyle offerings[28][34]. - The group has initiated a comprehensive marketing strategy, actively developing online platforms and collaborating with local lifestyle platforms to integrate online and offline traffic[30]. - The company introduced various entertainment and dining options in its stores, enhancing consumer engagement and attracting younger customers[35]. - The group aims to strengthen its market competitiveness by focusing on consumer-centric strategies and enhancing retail capabilities[23]. Financial Management - The net debt ratio increased slightly to 18.1% from 17.6% in the previous period, indicating a stable financial position[13]. - Net financial costs decreased from HKD 111.4 million in the first half of FY2024 to HKD 89.1 million in the first half of FY2025, primarily due to reduced interest expenses on lease liabilities from rent reductions[67]. - Employee benefits expenses decreased from HKD 160.5 million in the first half of FY2024 to HKD 151.6 million in the first half of FY2025, primarily due to ongoing cost control measures by management[62]. - The group maintains a strong liquidity position with sufficient cash and bank financing to manage its financial obligations[111]. Operational Changes - The company is actively expanding its IP ecosystem by integrating various cultural and culinary experiences in its stores[36]. - The company is focusing on a diversified membership strategy to maintain consumer engagement and drive sales through targeted marketing campaigns[19]. - The company is leveraging its marketing capabilities to enhance the overall shopping experience and attract a younger demographic[40]. - The company has established long-term partnerships with local brands to create unique community events, enhancing customer interaction[42].

Financial Performance - Same-store sales decreased by 15.9%, compared to a growth of 3.3% in the same period last year[3]. - Revenue for the period was HKD 612.7 million, down from HKD 694.9 million in the same period last year, representing a decline of approximately 11.6%[3][5]. - Operating profit for the period was HKD 114.6 million, compared to HKD 121.3 million in the previous year, reflecting a decrease of about 5.8%[3][5]. - Net profit for the period was HKD 3.1 million, an increase from HKD 1.7 million in the same period last year, marking a growth of approximately 82.0%[3][5]. - Earnings per share for the period was HKD 0.002, up from HKD 0.001 in the previous year[3][5]. - For the six months ending December 31, 2024, the group reported total revenue of HKD 612,703,000, a decrease from HKD 694,900,000 in the same period of 2023, representing a decline of approximately 11.8%[17]. - The group recorded a profit before tax of HKD 25,425,000 for the six months ending December 31, 2024, compared to HKD 6,461,000 for the same period in 2023, indicating a significant increase[21]. - The group’s operating profit for the six months ending December 31, 2024, was HKD 114,563,000, down from HKD 121,292,000 in the previous year[21]. - The group’s financial costs for the period were HKD 96,141,000, leading to a net financial cost of HKD 89,138,000[21]. - The company reported a net profit attributable to shareholders of HKD 3,108,000 for the six months ended December 31, 2024, compared to HKD 1,657,000 for the same period in 2023, indicating a significant increase[31]. - The gross profit margin for merchandise sales was 13.4%, slightly down from 13.9% in the previous year[60]. - Operating profit for the first half of the 2025 fiscal year was HKD 114.6 million, compared to HKD 121.3 million in the same period last year[71]. - The net profit for the first half of the 2025 fiscal year was HKD 3.1 million, an increase from HKD 1.7 million in the previous year[74]. Assets and Liabilities - Total assets as of December 31, 2024, were HKD 9,876.0 million, compared to HKD 10,205.5 million as of June 30, 2024[8][9]. - Total liabilities amounted to HKD 6,471.5 million, down from HKD 6,825.4 million in the previous period[9]. - The net accounts receivable as of December 31, 2024, was HKD 25.782 million, compared to HKD 21.303 million as of June 30, 2024[33]. - The company’s accounts payable as of December 31, 2024, was HKD 461.76 million, compared to HKD 442.928 million as of June 30, 2024[35]. - As of December 31, 2024, the group's cash and bank balances were HKD 803.2 million, down from HKD 875.3 million as of June 30, 2024[75]. - The group's borrowings amounted to HKD 1,418.0 million as of December 31, 2024, compared to HKD 1,469.3 million as of June 30, 2024[75]. - The net debt position of the group was HKD 614.8 million as of December 31, 2024, an increase from HKD 594.0 million as of June 30, 2024[75]. - Current liabilities exceeded current assets by HKD 2,558.8 million as of December 31, 2024, compared to HKD 2,606.4 million as of June 30, 2024[75]. - The group's capital commitments were HKD 60.7 million as of December 31, 2024, up from HKD 42.6 million as of June 30, 2024[75]. Cash Flow and Financial Forecast - The group reported a net cash flow forecast covering the next twelve months, considering available internal funds and financial resources[11]. - The group expects sufficient resources to continue operations and meet financial obligations for the foreseeable future, based on anticipated cash flows and the successful renewal of shareholder loans[14]. Shareholder and Dividend Information - The group has confirmed that shareholder loans from New World Development will be renewed for another 12 months after their maturity on December 31, 2024, with short-term bank borrowings of approximately HKD 699,857,000 guaranteed by New World Development[12]. - The company did not declare an interim dividend for the six months ended December 31, 2024, consistent with the previous year[29]. - The board decided not to declare an interim dividend for the six months ended December 31, 2024, consistent with the previous year[81]. Membership and Customer Engagement - The total number of members reached 7.87 million, representing a year-on-year growth of 4.7%[40]. - The company is focusing on enhancing member engagement through marketing activities such as "V Friends Festival" and "Tuesday Member Day"[40]. - The company launched a member consumption event "V Friend Festival," resulting in over 8,000 new member registrations across all stores[48]. - The company implemented a weekly member day, leading to over 7,000 new members during the Beijing Chongwen store's 26th anniversary celebration[49]. - The company is focusing on enhancing member engagement through innovative activities, such as the "Crazy Animal City" live role-playing show in Shanghai[51]. - The company is enhancing its marketing strategies by integrating online and offline channels, resulting in significant member growth through social media promotions[50]. Business Operations and Expansion - The company operates 22 department stores and shopping centers across 12 major cities in China, with a total floor area of approximately 920,000 square meters[38]. - The company is actively expanding its product offerings by introducing flagship stores and enhancing the shopping experience with new brands[44]. - The company is actively expanding its dining ecosystem by introducing various food brands, including "Popeyes" and "Yeye Bu Pao Tea" in different locations[46]. - The company is leveraging digital trends by integrating its membership system with "China UnionPay Cloud Quick Payment" to improve operational efficiency[40]. - The company is creating immersive experiences through themed restaurants and events, such as the "潮玩星球" (Trendy Play Planet) in Beijing, targeting the growing two-dimensional culture market[47]. - The company is leveraging online platforms like "Meituan" and "JD Instant Delivery" to improve business delivery efficiency and adapt to the growing demand for in-store and home delivery services[53]. - The company plans to launch "LOL Shared Fitness" in Nanjing to promote a healthier lifestyle and diversify its business[56]. - The group is actively seeking new growth points and aims to enhance product categories and improve online and offline integration[57]. Employee Information - The total number of employees as of December 31, 2024, was 1,734, a decrease from 2,011 in 2023[82]. Other Information - The group did not purchase, sell, or redeem any of its listed securities during the six-month period ended December 31, 2024[83]. - There were no significant acquisitions or disposals in the first half of the fiscal year 2025[80]. - The group's mid-term performance for the six months ended December 31, 2024, was reviewed by the audit committee but not audited by external auditors[88].

Financial Performance - Revenue for 2024 was HK$1,359,456 thousand, a decrease from HK$1,483,733 thousand in 2023[36] - Net profit for 2024 was HK$13,314 thousand, compared to a net loss of HK$320,852 thousand in 2023[36] - Total assets decreased to HK$10,205,513 thousand in 2024 from HK$10,791,316 thousand in 2023[36] - Annual revenue for the fiscal year ending June 30, 2024, was HKD 1,359.5 million, compared to HKD 1,483.7 million in the previous year[51] - The company achieved an annual profit of HKD 13.3 million for the fiscal year ending June 30, 2024, with earnings per share of HKD 0.008[51] - Revenue for the fiscal year 2024 decreased to 1,359.5 million HKD from 1,483.7 million HKD in 2023, primarily due to a decline in merchandise sales and commission income from counter sales[89] - Total sales proceeds for 2024 were 4,347.6 million HKD, down from 4,914.5 million HKD in 2023[89] - Gross profit margin for merchandise sales in 2024 improved to 13.5% compared to 12.7% in 2023[89] - Rental income for 2024 was 585.0 million HKD, slightly up from 583.8 million HKD in 2023[89] - Other income increased to 333.5 million HKD in 2024 from 291.9 million HKD in 2023, mainly due to the write-off of long-aged payables[89] - Operating profit for 2024 was 254.7 million HKD, a significant improvement from an operating loss of 79.4 million HKD in 2023[98] - Employee benefit expenses decreased to 342.2 million HKD in 2024 from 408.7 million HKD in 2023, reflecting cost control measures and store closures[94] - Depreciation expenses reduced to 353.9 million HKD in 2024 from 382.7 million HKD in 2023, due to the closure of certain department stores[95] - Financial costs increased to 217.5 million HKD in 2024 from 203.2 million HKD in 2023, driven by higher average borrowing costs due to rising HIBOR[99] - Income tax expense decreased to 23.9 million HKD in 2024 from 38.3 million HKD in 2023, primarily due to deferred tax credits[100] - Annual profit for the fiscal year 2024 is HKD 13.3 million, compared to a loss of HKD 320.9 million in the fiscal year 2023[101] - Revenue for the year 2024 decreased to 1,359,456 thousand HKD from 1,483,733 thousand HKD in 2023, representing a decline of approximately 8.4%[199] - Other income increased to 333,507 thousand HKD in 2024 from 291,936 thousand HKD in 2023, showing a growth of about 14.2%[199] - Operating profit for 2024 was 254,710 thousand HKD, a significant improvement from an operating loss of 79,395 thousand HKD in 2023[199] - Net profit for 2024 was 13,314 thousand HKD, compared to a net loss of 320,852 thousand HKD in 2023[199] - Basic and diluted earnings per share for 2024 were 0.008 HKD, recovering from a loss of 0.190 HKD per share in 2023[199] - Other comprehensive loss for 2024 was 8,208 thousand HKD, a substantial reduction from 307,388 thousand HKD in 2023[200] - Total comprehensive income for 2024 was 5,106 thousand HKD, compared to a comprehensive loss of 628,240 thousand HKD in 2023[200] - Investment property fair value changes resulted in a loss of 119,286 thousand HKD in 2024, compared to a loss of 22,527 thousand HKD in 2023[199] - Financial costs net of income were 217,522 thousand HKD in 2024, slightly higher than 203,172 thousand HKD in 2023[199] - Depreciation expenses decreased to 353,854 thousand HKD in 2024 from 382,656 thousand HKD in 2023, reflecting a reduction of approximately 7.5%[199] Store Operations and Revenue Streams - Rental income remained stable at HK$584,977 thousand in 2024, compared to HK$583,840 thousand in 2023[37] - Commission income from counter sales decreased to HK$435,932 thousand in 2024 from HK$479,918 thousand in 2023[37] - Self-operated sales revenue dropped to HK$322,103 thousand in 2024 from HK$402,350 thousand in 2023[37] - Rental income accounted for 43.0% of the total revenue, followed by sales commission income at 32.1%, self-operated goods sales at 23.7%, and financing lease interest income at 1.2%[51][53] - The company operates 15 stores under the "New World" brand and 7 stores under the "Paris Spring" brand in Shanghai, covering 12 major locations in mainland China[4] - Total gross floor area of the stores is approximately 920,000 square meters[4] - The company operates 22 department stores and shopping malls across 12 major locations in mainland China, with a total gross floor area of approximately 920,000 square meters[52] - The company reduced one store due to the expiration of a lease contract, specifically the Wuhan Wuchang store[52] - The company focused on brand introduction and category management, upgrading store images, and enhancing offline activities to attract potential members[54] - The Shanghai Wujiaochang store completed a comprehensive upgrade, introducing approximately 30% of first-in-the-area brands, adding dining, entertainment, and sports formats[55] - The Beijing Chongwen store introduced a "second-dimensional" street, featuring brands like "Chaowan Xingqiu" and "Gufan Tian," and added lifestyle brands such as "Muji"[55] - The Shanghai Huaihai store introduced the first indoor cycling venue "TANGO LIVEHOUSE" and the Japanese网红烘焙 brand "Kimuraya"[55] - The Shanghai Pujian store upgraded with "Manner Coffee" and "Nike SPORT M" stores, enhancing the store's appeal to different customer groups[55] - The company launched a new membership system with eight exclusive benefits, enhancing the overall member experience and attracting users for long-term private domain operations[57] - The company's self-operated e-commerce platform "New Flash Purchase Mini Program" saw double-digit year-on-year growth in sales, driven by collaborations with platforms like Douyin, Meituan, and Gaode[58] - The company introduced several first-of-their-kind stores, including the national debut of the indoor music cycling venue "TANGO LIVEHOUSE" at Shanghai Huaihai Store and the "MAXUS" yo-yo club at Shanghai Wujiaochang Store[61] - The company focused on introducing high-quality lifestyle dining options, such as the national debut of the pufferfish paper hotpot restaurant "Fugu Paper" at Shanghai Huaihai Store and the "Baoyue Lou" Cantonese restaurant at Shanghai Pujian Store[68] - The company expanded its presence in the "Z Generation" market by renovating the "Anime Street" at Beijing Chongwen Store and hosting events like "ACG Guiguzi" and "Pokémon Card Tournaments"[71] - The company organized large-scale marketing events like the "66 Butterfly Festival," which attracted diverse consumer groups and overlapped with store anniversary celebrations[73] - The company held various outdoor market events, such as the "V Future Market" and "Spring Vitality Market" at Shanghai Huaihai Store, significantly boosting foot traffic[75] - Shanghai Huaihai Store's "Huaihai Wool Plan" exhibition attracted a large number of customers, with a 197% year-on-year increase in foot traffic and 63,000 views on Xiaohongshu[76] - The company launched a national first-of-its-kind children's membership system, adding over 7,000 new child members annually[77] - Shanghai Huaihai Store's "2024 Happy Huaihai Carnival" achieved over 400,000 exposures[80] - The company's live streaming business saw significant growth, with a total GMV of nearly RMB 300,000 during a joint live streaming event in Central China[82] - The online platform "New Flash Sale" achieved double-digit high growth in sales during the review period[82] - The company operates five LOL (Love‧Original‧Life) original lifestyle concept stores, with three in Shanghai and two in Beijing[84] - LOL concept stores introduced popular international brands such as "TRIDO" and "MARSHALL," gaining significant exposure on social platforms like Xiaohongshu[85] - The company operates three "New World Supermarkets," with themed sections like the Russian Pavilion in Wuhan Construction Store[87] - The company reduced one supermarket location, specifically the Lanzhou store, to optimize resource allocation[87] Corporate Governance and Board Structure - The company is committed to maintaining high standards of corporate governance and has complied with all applicable code provisions of the Corporate Governance Code as of June 30, 2024[109] - The company has adopted the standard code for securities transactions by directors as set out in Appendix C3 of the Listing Rules, and all directors have confirmed compliance with this code for the year ending June 30, 2024[110] - The company has established written guidelines for employee securities transactions, and no violations were reported for the year ending June 30, 2024[111] - The Board of Directors consists of three executive directors, one non-executive director, and five independent non-executive directors as of the report date[113] - The Board held four regular meetings and one meeting with independent non-executive directors without other directors present during the year ending June 30, 2024[115] - Dr. Cheng Chi Kong resigned as non-executive director and Chairman on September 26, 2024, and Mr. Cheung Fai Yip was appointed as Chairman on the same day[113][116] - The roles of Chairman and CEO are held by separate individuals to ensure a balanced distribution of power and authority[117] - The company has implemented a mechanism to ensure the independence of the Board, including procedures for seeking independent professional opinions and criteria for selecting independent non-executive directors[119] - The Board reviewed the company's environmental, social, and governance (ESG) development, including the "New World 2030 Sustainability Vision," during two regular meetings in the review year[119] - The Audit Committee held two meetings during the review period to review the audited consolidated financial statements for the year ended June 30, 2023, and the unaudited interim financial information for the six months ended December 31, 2023[122] - The Audit Committee reviewed the effectiveness of the company's risk management and internal control systems, including resources, staff qualifications, and training budgets related to accounting, internal audit, and financial reporting functions[122] - The Internal Audit Department conducted risk-based audits to ensure the effectiveness of major internal control measures and managed key business and operational risks, including environmental, social, and governance risks[122] - The Audit Committee met with external auditors twice a year to discuss audit-related matters and any issues raised by the external auditors[121] - The Remuneration Committee held two meetings during the year ended June 30, 2024, to review the company's remuneration policies and assess the performance of executive directors[126] - The Remuneration Committee is responsible for determining the remuneration packages of executive directors and senior management, including benefits, pension provisions, and compensation amounts[126] - The company has adopted a formal and transparent remuneration policy for directors and employees to attract and retain experienced and high-quality talent[126] - The Audit Committee reviewed the company's whistleblowing policy, which aims to effectively uncover fraud, misconduct, or significant risks within the company[124] - The Remuneration Committee consists of eight members, with the majority being independent non-executive directors, and is chaired by an independent non-executive director[125] - The Audit Committee is composed of five independent non-executive directors, with the chairman possessing specialized knowledge in financial management[121] - The company has a total of 9 directors, with 3 being female, representing 33.33% of the board, achieving gender diversity[132] - The company's total number of employees as of June 30, 2024, is 1,838, with female employees accounting for approximately 48% of the workforce[132] - The gender pay ratio between male and female employees is 1.03, indicating a balanced gender pay structure[132] - The company has adopted a Board Diversity Policy, considering factors such as gender, age, cultural and educational background, ethnicity, professional experience, skills, and knowledge[130] - The company has set measurable objectives to implement the Board Diversity Policy and will review these objectives periodically to ensure their appropriateness and progress[130] - The Nomination Committee held one meeting during the fiscal year to review the re-election of retiring directors and propose recommendations to the board[128] - The Nomination Committee reviewed the company's nomination policy and board diversity policy during the fiscal year[128] - The company's nomination policy outlines criteria and procedures for appointing and re-electing directors, ensuring a balanced mix of skills, experience, and diversity[129] - The Nomination Committee evaluates director candidates based on criteria such as integrity, qualifications, time commitment, and potential conflicts of interest[129] - The company's Board Diversity Policy aims to enhance the effectiveness of the board by maintaining diversity among its members[130] - All directors participated in continuous professional development to update their knowledge and skills during the review year[134] - The company adopted a share option plan on June 26, 2023, allowing the issuance of share options to all directors[135] - The company's annual and interim results were published in a timely manner, and the directors confirmed compliance with applicable laws and accounting standards[136] - The audit committee reviewed the effectiveness of the risk management and internal control systems, confirming they are adequate and effective[137] - The company has implemented a continuous disclosure policy to ensure timely and accurate disclosure of material information[138] - The directors approved the adoption of all applicable Hong Kong Financial Reporting Standards issued by the HKICPA for the financial statements as of June 30, 2024[139] - The company secretary participated in at least 15 hours of relevant professional training during the year ended June 30, 2024[140] - The company is committed to enhancing shareholder value and ensuring timely access to comprehensive and understandable information[141] - The company has adopted a shareholder communication policy to enhance effective communication with shareholders and encourage active engagement[142] - The company's dividend distribution policy prioritizes operational needs and retains most available funds for business development, with no fixed dividend payout ratio[143] - The company's sustainability report follows the Global Reporting Initiative (GRI) standards and aligns with the Climate-Related Financial Disclosures Task Force guidelines[143] - The company paid HKD 3,976,000 for audit services and HKD 794,000 for non-audit services to external auditors for the fiscal year ending June 30, 2024[145] - The company emphasizes employee development, compliance with labor laws, and maintaining a fair and transparent recruitment process[146] - The company's distributable reserves as of June 30, 2024, amounted to HK$929.5 million, compared to HK$1,025.5 million in 2023[154] - The company made charitable donations of approximately HK$150,000 during the fiscal year, up from HK$18,000 in 2023[154] - No final dividend was recommended for the fiscal year ending June 30, 2024, consistent with the previous year[152] - The company did not issue any shares or bonds during the fiscal year[153] - The company received multiple awards and certifications, including the "ESG Gold Award" from The Asset and the "Green Office 10+" certification from the World Green Organization[147] - The company's financial performance and key performance indicators are detailed in the "Management Discussion and Analysis" section on pages 12-35 of the annual report[152] - The company's environmental policies and climate-related risks are discussed in the standalone "Sustainability Report 2024"[152] - The company's major investment properties are detailed on page 164 of the annual report[154] - The company's five-year financial summary is provided on page 163 of the annual report[154] - The company's board of directors underwent changes, with Dr. Adrian Cheng resigning as Chairman and Mr. Cheung Fai-yat being appointed as the new Chairman[154] - The company has maintained directors' liability insurance to provide appropriate protection for directors and subsidiary directors during the review year[161] - Dr. Cheng Chi Kong and Ms. Chiu Wai Han hold interests in entities considered to be in direct or indirect competition with the group's business, including New World Development and Chow Tai Fook Enterprises[162] - New World Development is restricted from engaging in certain businesses in mainland China, including department stores, supermarkets, and convenience stores, under a non-compete deed[163] - Independent non-executive directors have confirmed that New World Development has not violated the non-compete deed[164] - The company has a comprehensive leasing agreement with New World Development, with fixed leasing costs capped at RMB 534 million, RMB 523 million, and RMB 436 million for the respective years, and variable leasing and service costs capped at RMB 121 million, RMB 153 million, and RMB 162 million[165] - The total fixed leasing costs paid by the group as a lessee under the comprehensive leasing agreement amounted to approximately RMB 146.677 million during the review year[165] - The total variable leasing costs paid by the group as a lessee under the comprehensive leasing agreement amounted to approximately RMB 86.426 million during the review year[165] - The company has a comprehensive counter agreement with Chow Tai Fook Jewelry Group, with annual caps of RMB 89 million, RMB 95 million, and RMB 100 million for the respective years[166] - The total transaction value under the comprehensive counter agreement was approximately RMB 27.954 million during the review year[166] - The company has a comprehensive service agreement with Mr. To Wai Kwok, with an annual cap of RMB 57 million[167] - The total transaction amount under the Comprehensive Service Agreement was approximately RMB 13,909,000 in the review year (2023: approximately RMB 6,431,000)[168] - The annual caps for the Comprehensive Service Agreement are

Financial Performance - Same-store sales growth for the year was -7.2%, compared to -10.2% in the previous year[1] - Annual revenue was HKD 1,359.5 million, down from HKD 1,483.7 million in the previous year[2] - Operating profit for the year was HKD 254.7 million, a significant improvement from an operating loss of HKD 79.4 million in the previous year[2] - Annual profit was HKD 13.3 million, recovering from a loss of HKD 320.9 million in the previous year[2] - Earnings per share for the year was HKD 0.008, compared to a loss per share of HKD 0.190 in the previous year[2] - Other income increased to HKD 333.5 million from HKD 291.9 million in the previous year[2] - Total revenue for the year ended June 30, 2024, was HKD 1,359,456, a decrease from HKD 1,483,733 for the year ended June 30, 2023, representing a decline of approximately 8.4%[15] - The operating profit for the year ended June 30, 2024, was HKD 254,710, compared to an operating loss of HKD 79,395 for the year ended June 30, 2023[15] - The company reported a net profit of HKD 13,314 for the year ended June 30, 2024, recovering from a net loss of HKD 320,852 for the year ended June 30, 2023[15] - The annual profit for fiscal year 2024 was HKD 13.3 million, compared to an annual loss of HKD 320.9 million in fiscal year 2023[60] Assets and Liabilities - Total assets decreased to HKD 10,205.5 million from HKD 10,791.3 million in the previous year[4] - Total liabilities decreased to HKD 6,825.4 million from HKD 7,416.3 million in the previous year[5] - Non-current liabilities related to lease liabilities decreased to HKD 2,212.8 million from HKD 2,500.9 million[5] - Cash and bank balances increased to HKD 569.6 million from HKD 307.2 million in the previous year[4] - As of June 30, 2024, the group's net current liabilities amounted to approximately HKD 2,606,373,000, which includes short-term bank borrowings of about HKD 756,297,000 and shareholder loans from New World Development of HKD 713,000,000[6] - The group's borrowings as of June 30, 2024, were HKD 1,469.3 million, up from HKD 1,412.5 million in the previous year[61] - The net debt position of the group was HKD 594.0 million as of June 30, 2024, compared to HKD 581.0 million a year earlier[61] - Current liabilities exceeded current assets by HKD 2,606.4 million as of June 30, 2024, down from HKD 2,867.2 million as of June 30, 2023[62] - The group's capital commitments were HKD 42.6 million as of June 30, 2024, a decrease from HKD 72.7 million in the previous year[62] Revenue Sources - The group's retail sales revenue for 2024 was HKD 3,090,527,000, a decrease from HKD 3,618,718,000 in 2023, representing a decline of approximately 14.6%[10] - Commission income from retail sales for 2024 was HKD 435,932,000, down from HKD 479,918,000 in 2023, indicating a decrease of about 9.2%[10] - Rental income for the group was HKD 584,977,000 in 2024, compared to HKD 882,268,000 in 2023, reflecting a significant decline of approximately 33.8%[12] - The group reported customer contract revenue of HKD 758,035,000 for 2024, with no prior year comparison provided[12] - Rental income accounted for 43.0% of total revenue, while sales commission from counters contributed 32.1%, and self-operated goods sales made up 23.7%[34] Market and Operational Strategies - The company plans to expand its market presence and invest in new technologies to enhance operational efficiency[15] - The retail industry is experiencing a continuous recovery, with a focus on brand introduction and category management, enhancing store image upgrades, and increasing offline activities to attract potential members[36] - The introduction of new member benefits and the launch of a children's membership system have improved user engagement and family consumption experiences[36] - Online sales through the "New Flash Purchase" platform achieved double-digit growth year-on-year, driven by promotional activities and collaborations with platforms like Douyin and Meituan[37] - The company is targeting the "Z Generation" market by expanding its offerings in the two-dimensional culture sector, including themed restaurants and events[40] - The company has successfully integrated dining and entertainment options in its stores, enhancing the overall customer experience and increasing foot traffic[39] - The group implemented diverse marketing strategies, including collaborations with local businesses to enhance customer experience and drive traffic[42] Cost Management - The company reduced its employee benefits expenses from HKD 408.7 million in fiscal year 2023 to HKD 342.2 million in fiscal year 2024, reflecting ongoing cost control measures[53] - Other operating expenses decreased from HKD 615.0 million in fiscal year 2023 to HKD 432.3 million in fiscal year 2024, primarily due to a reduction in foreign exchange losses[56] - The net financial costs increased to HKD 217.5 million in fiscal year 2024 from HKD 203.2 million in fiscal year 2023, mainly due to rising borrowing costs[58] Corporate Governance - The company has established an audit committee to oversee financial reporting and risk management, consisting of five independent non-executive directors[68]

Store Operations - As of December 31, 2023, the group operates 15 department stores under the "New World" brand and 7 stores in Shanghai under the "Paris Spring" brand, covering 12 major locations in mainland China with a total floor area of approximately 922,900 square meters[4]. - As of December 31, 2023, the group has a total of 2,011 employees, reflecting its commitment to talent development and employee engagement[5]. - The company has reduced one store in Wuhan due to lease contract expiration during the review period[45]. - The group operated 22 department stores and shopping centers across 12 major locations in mainland China, covering a total floor area of approximately 922,900 square meters[45]. Revenue Sources - The group's revenue sources include rental income (42.2%), sales commission from counters (32.9%), self-operated product sales (23.7%), and financing lease interest income (1.2%)[24]. - The total sales revenue for the first half of the 2024 fiscal year was HKD 2,228.2 million, a decrease of 2.9% compared to HKD 2,295.3 million in the same period of the previous fiscal year[56]. - The group's revenue for the first half of the 2024 fiscal year was HKD 694.9 million, compared to HKD 709.4 million in the same period last year, reflecting a decrease of 2.0%[58]. - The group's rental income for the first half of the 2024 fiscal year was HKD 293.4 million, down from HKD 302.3 million in the same period last year, representing a decline of 2.9%[57]. Customer Engagement and Marketing - The group has seen a steady recovery in customer traffic and consumption demand, leading to improved performance and revenue growth during the reporting period[20]. - The company is actively enhancing its digital operations and expanding online retail channels, including the launch of a new flash purchase mini-program and a K-point membership system[20]. - The group aims to deepen member service experiences and marketing activities to attract more customers and drive sales[20]. - Membership sales accounted for 60% of total sales by the end of December 2023, reflecting strong consumer engagement and loyalty[30]. - The company launched a children's membership program to attract family customers, indicating a strategic move to expand its customer base[28]. - The company successfully integrated online and offline marketing strategies, leveraging platforms like Douyin and Meituan to boost sales[25]. - The group actively engaged in diverse marketing activities during the National Day holiday, achieving significant customer traffic and sales[56]. Financial Performance - The group's profit for the period was HKD 1.7 million, with earnings per share at HKD 0.001[45]. - The gross profit margin for merchandise sales during the period was 13.6%, an increase from 12.0% in the first half of the 2023 fiscal year[35]. - Operating profit for the period was HKD 121,292,000, compared to a loss of HKD 46,180,000 in the previous year[67]. - Net profit for the period was HKD 1,657,000, a significant recovery from a loss of HKD 166,118,000 in the prior year[67]. - The total comprehensive income for the six months ended December 31, 2023, was HKD 68.06 million, compared to a total comprehensive loss of HKD 344.08 million for the same period in 2022[94]. Strategic Initiatives - The management team emphasizes a "one store, one strategy" approach to encourage stores to adopt diverse strategies tailored to local market conditions[5]. - The company is focused on continuous improvement in store upgrades and operational measures to enhance customer traffic and retention capabilities[22]. - The company plans to enhance member management and innovate member experiences to improve store traffic and customer engagement[42]. - The company aims to optimize its supply chain and enhance operational efficiency through a multi-format and omni-channel collaboration strategy[42]. - The company is committed to providing high-quality services and products, maintaining its consumer-oriented approach since its establishment in 1993[12]. Employee and Management - The total remuneration for key management personnel decreased from HKD 12.037 million in the first half of fiscal year 2022 to HKD 8.829 million in the first half of fiscal year 2023[139]. - As of December 31, 2023, the total number of employees in the group was 2,011, a decrease from 2,214 in 2022[165]. Assets and Liabilities - Total assets as of December 31, 2023, increased to HKD 10,929,458,000 from HKD 10,791,316,000 as of June 30, 2023[67]. - Total liabilities rose to HKD 7,486,378,000 from HKD 7,416,300,000 over the same period[67]. - The net debt to equity ratio was 18.5%, compared to 17.2% as of June 30, 2023[67]. - The group’s net borrowings stood at HKD 1,479.0 million, an increase from HKD 1,412.5 million as of June 30, 2023[116]. Cost Management - Employee benefits expenses decreased to HKD 160.5 million from HKD 183.9 million, reflecting cost control measures[116]. - Depreciation expenses reduced to HKD 176.5 million from HKD 193.0 million, primarily due to asset write-downs[116]. Market Environment - The retail environment remains competitive and dynamic, with the group adapting to market changes while pursuing growth opportunities[22]. - The company emphasized the introduction of high-demand beauty and women's fashion brands, enhancing its market competitiveness[25].

Financial Performance - The earnings per share for the period is HKD 0.001[1] - Revenue for the six months ended December 31, 2023, is HKD 694.9 million, a decrease from HKD 709.4 million in the same period last year, representing a decline of approximately 2.5%[3][7] - Operating profit for the period is HKD 121.3 million, compared to an operating loss of HKD 46.2 million in the previous year[3][7] - Net profit for the period is HKD 1.7 million, a significant recovery from a loss of HKD 166.1 million in the same period last year[3][7] - Total comprehensive income for the period is HKD 68.1 million, compared to a loss of HKD 344.1 million in the previous year[12] - The company reported other income of HKD 187.3 million, an increase from HKD 150.2 million in the previous year[3] - For the six months ended December 31, 2023, the company reported total revenue of HKD 588,152,000, a decrease from HKD 607,800,000 for the same period in 2022, representing a decline of approximately 3.4%[25] - The operating profit for the period was HKD 121,292,000, compared to an operating loss of HKD 19,578,000 in the previous year, indicating a significant turnaround[25] - The net profit for the period was HKD 1,657,000, a recovery from a net loss of HKD 19,578,000 in the same period last year[25] Assets and Liabilities - Total assets as of December 31, 2023, amounted to HKD 10,929,458,000, an increase from HKD 10,791,316,000 as of June 30, 2023[36] - The company’s total liabilities were reported at HKD 7,486,378,000, compared to HKD 7,416,300,000 as of June 30, 2023, reflecting a slight increase[36] - The company has secured committed bank loan facilities of approximately HKD 351,648,000 for operational funding purposes, with unused amounts of about HKD 285,505,000 as of December 31, 2023[40] - The group’s net debt as of December 31, 2023, was HKD 636.5 million, up from HKD 581.0 million as of June 30, 2023[113] - As of December 31, 2023, the group's borrowings amounted to HKD 1,479.0 million, up from HKD 1,412.5 million as of June 30, 2023[138] Operational Highlights - Same-store sales growth for the period is 3.3%, compared to a decline of 29.0% in the previous year[7] - The company operated 22 department stores and shopping centers in mainland China, covering 12 major locations, with a total floor area of approximately 922,900 square meters[86] - The company reduced its store count by one during the review period due to lease expiration, specifically closing the Wuhan Wuchang store[86] - The company introduced new upgraded member benefits to enhance consumer shopping experiences and increase member loyalty[88] - The company focused on introducing new brands and flagship stores, with over 40 new stores opened in emerging business districts during the review period[87] - The company emphasized the importance of beauty and women's fashion brands in its recruitment efforts, enhancing its commercial operational efficiency[89] - The group is actively expanding its membership services, including creating a reading space for members at the Shanghai Pujian store[122] - The group has launched a children's membership program to attract family customers and increase in-store spending[122] Cost Management - Total operating expenses for the six months ended December 31, 2023, were HKD 209,777,000, a decrease from HKD 343,349,000 in the same period of 2022[68] - Employee benefit expenses increased to HKD 106,426,000, reflecting a rise in operational costs[44] - Employee benefit expenses decreased to HKD 160.5 million from HKD 183.9 million in the previous year, attributed to cost control measures[108] - Rental expenses increased from HKD 34.0 million in the first half of fiscal year 2023 to HKD 37.5 million in the first half of fiscal year 2024, mainly due to increased turnover rent in several department stores[133] - Other operating expenses decreased from HKD 343.3 million in the first half of fiscal year 2023 to HKD 209.8 million in the first half of fiscal year 2024, primarily due to a recorded foreign exchange gain of HKD 25.7 million[150] Marketing and Sales - Rental income accounted for 42.2% of total revenue, while sales commission income contributed 32.9% and self-operated merchandise sales made up 23.7%[86] - The number of members reached nearly 1.3 million, with member sales accounting for 60% of total sales by the end of December 2023[95] - The new flash purchase sales increased by 38% year-on-year during the reporting period[93] - The group aims to enhance its multi-channel marketing strategy, focusing on offline interactive experiences and online platforms[92] - The group introduced popular brands such as "霸王茶姬" and "茶顏悅色" in various stores to enhance customer experience and attract more foot traffic[117] - The group is focusing on digital operations and online marketing strategies to enhance customer engagement and sales conversion[127] Government Support and Other Income - The company received government subsidies totaling HKD 7,431,000 during the period, down from HKD 11,951,000 in the previous year[27] - Other income for the first half of the fiscal year 2024 was HKD 187.3 million, up from HKD 150.2 million in the first half of fiscal year 2023, primarily due to the write-off of long-aged payables and an increase in government subsidies[131]

Financial Performance - For the fiscal year ending June 30, 2023, the company's revenue was HKD 1,483.7 million, a decrease of 23.3% from HKD 1,934.6 million in the previous year[30]. - The company reported a net loss of HKD 320.9 million for the year, compared to a net loss of HKD 483.4 million in the previous year, indicating a 33.6% improvement[21]. - The group reported a loss of HKD 320.9 million for the year ending June 30, 2023, compared to a loss of HKD 483.4 million for the previous year, resulting in a loss per share of HKD 0.19[74]. - The group's revenue recovery is ongoing, impacted by low foot traffic and consumer spending due to pandemic-related adjustments, with offline transaction volumes and average transaction values remaining low[78]. - The group's revenue for the fiscal year 2023 was HKD 1,483.7 million, down from HKD 1,934.6 million in fiscal year 2022, primarily due to the ongoing impact of the COVID-19 pandemic in mainland China[191]. - Total sales proceeds for the fiscal year 2023 amounted to HKD 4,914.5 million, compared to HKD 6,266.1 million in fiscal year 2022[191]. - The gross profit margin for merchandise sales was 12.7% in fiscal year 2023, a decrease from 13.6% in fiscal year 2022[191]. - Other income for the fiscal year 2023 was HKD 291.9 million, compared to HKD 342.2 million in fiscal year 2022, primarily due to a decrease of HKD 45.7 million in administrative and management fees collected from suppliers, counters, and tenants[192]. Assets and Liabilities - Total assets as of June 30, 2023, were HKD 10,791.3 million, down from HKD 12,513.4 million in the previous year, reflecting a decrease of 13.8%[21]. - The company's total liabilities decreased to HKD 7,416.3 million from HKD 8,510.1 million, a reduction of 12.9%[21]. - The net debt ratio increased to 17.2% from 10.2% year-on-year, indicating a rise in financial leverage[21]. - The company's non-current liabilities decreased from HKD 4,223,976,000 in 2022 to HKD 3,397,280,000 in 2023, a reduction of approximately 19.6%[162]. - The company's current liabilities increased from HKD 4,286,170,000 in 2022 to HKD 4,019,020,000 in 2023, showing a decrease of about 6.2%[162]. Business Strategy and Operations - The company is focusing on enhancing consumer shopping experiences and diversifying revenue sources to adapt to changing market demands[12]. - The company plans to continue its long-term strategy of cost reduction and efficiency improvement while integrating sustainability into its operations[25]. - The group has implemented a multi-store and city-radiating development strategy, with 16 stores named "New World" and 7 stores in Shanghai named "Paris Spring" as of June 30, 2023[41]. - The group has reduced its number of stores by closing three locations: Xi'an Fashion Plaza, Kunming Store, and Yanjiao Store, to optimize resource allocation[58]. - The group focuses on enhancing consumer value through innovative marketing and promotional activities, including the launch of the "New World Department Store 66 Festival" to stimulate customer traffic and sales[38]. - The group is expanding its digital business by operating online platforms like Douyin and "New Flash Purchase Mini Program," leveraging big data to connect with members more effectively[38]. - The group aims to improve operational efficiency by enhancing the exclusive advantages of high-quality and differentiated products, particularly in the light luxury beauty category[38]. - The group has adopted a "one store, one strategy" approach to encourage stores to implement tailored strategies based on local market conditions[61]. - The company plans to focus on enhancing operational efficiency and improving customer experience through brand upgrades and digital services, aiming for a sustainable development model[91]. - The company will invest more resources in omnichannel operations and digital supply chains, emphasizing the development of e-commerce platforms like Douyin and live streaming[91]. Customer Engagement and Marketing - The group achieved a 61% year-on-year increase in overall sales during the "New 66 Festival" promotional event, with online sales through the "New Flash Purchase Mini Program" rising by 232% year-on-year[111]. - Membership sales accounted for 57.2% of total sales as of May 2023, reflecting the effectiveness of the group's member marketing strategies[123]. - The group launched various promotional activities, including the "Coffee Slow Enjoyment Life Festival" targeting young office workers, to attract new members[123]. - The group conducted nearly 1,000 live streaming events throughout the year, utilizing innovative models to enhance customer engagement and drive sales[117]. - The group implemented a seamless points system for members, allowing automatic point accumulation without the need for in-store customer service interaction[120]. - The group expanded its interactive entertainment offerings by introducing brands like LADY.V Yoga and "Karl Tribe" go-karting in various stores[131]. Employee and Shareholder Information - The group has a workforce of 2,117 employees as of June 30, 2023, emphasizing talent development and innovative management practices[61]. - The total number of employees in the group as of June 30, 2023, is 2,117, a decrease from 2,412 in 2022, indicating a reduction of approximately 12.2%[154]. - As of June 30, 2023, major shareholders include Cheng Yu Tung Family (Holdings) Limited, holding 74.99% of shares, indicating strong control by a few entities[82]. - The company ensures competitive salary levels for all employees and evaluates performance-related bonuses annually[154]. - The total number of members increased by 4.5% year-on-year to 7.33 million as of June 30, 2023[174]. Product and Service Offerings - The company introduced popular brands and experiences, including the first YONEX store in China and various dining and entertainment options, enhancing customer engagement[180]. - The company continues to focus on emerging business formats and brands appealing to younger consumers, such as comedy theaters and esports venues[184]. - The group introduced high-end skincare brands such as La Mer and Helena Rubinstein, enhancing its beauty product offerings and strengthening its market position[108]. - The "New World Supermarket" has enhanced member benefits, with member sales accounting for 64% of total sales, leveraging online platforms for increased customer convenience[85]. - The LOL store in Shanghai's K11 shopping center underwent a comprehensive upgrade, resulting in a 21% year-on-year sales increase, with new member sales exceeding RMB 1.3 million[88]. Environmental and Social Responsibility - The group actively integrated public welfare and environmental concepts into its marketing strategies, such as providing emergency items for women in stores[111]. - The company aims to provide green, high-quality, and sustainable products and services, promoting positive interactions between consumers and suppliers[91].

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告的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不對因本公告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。 全年業績公告2022/2023 摘要 年度的同店銷售(1)增長為–10.2%。上年度增長為–21.3%。 年度收益為1,483.7百萬港元，而上年度為1,934.6百萬港元。 年度經營虧損為79.4百萬港元，而上年度為199.6百萬港元。 年度虧損為320.9百萬港元，而上年度為483.4百萬港元。 年度每股虧損為0.19港元。 ...