Financial Performance - The company's revenue for the six months ended December 31, 2022, was HKD 709.4 million, down from HKD 1,084.6 million in the same period last year, reflecting a decline due to reduced foot traffic and overall business performance [10]. - The company reported a loss of HKD 166.1 million for the period, with a loss per share of HKD 0.10 [10]. - The group's operating loss for the first half of the 2023 fiscal year was HKD 46.2 million, compared to an operating profit of HKD 207.3 million in the same period of 2022 [25]. - The group's gross profit margin for the first half of the 2023 fiscal year was 12.0%, down from 13.1% in the same period of 2022 [44]. - The group reported a total loss of HKD 166,118,000 for the six months ended December 31, 2022, compared to a loss of HKD 146,540,000 before tax in the same period of the previous year [83]. - The group reported a net profit of HKD 41,002 thousand for the period, reflecting a decrease compared to previous earnings [105]. - The group reported a loss attributable to shareholders of HKD 166,118,000 for the six months ended December 31, 2022, compared to a profit of HKD 41,002,000 in 2021, resulting in a basic loss per share of HKD (0.10) versus HKD 0.02 in the previous year [162]. Revenue Sources - Rental income accounted for 42.6% of total revenue, followed by commission income from counter sales at 30.2% and self-operated merchandise sales at 25.9% [10]. - Total revenue from department store operations was HKD 1,649,789,000, down 41.3% from HKD 2,816,883,000 in the previous year [81]. - Revenue from department store sales decreased to HKD 398,122 thousand, down 41.6% from HKD 680,090 thousand in the previous period [103]. - Rental income declined to HKD 302,334 thousand, a decrease of 23.2% compared to HKD 393,373 thousand in the prior period [103]. - The group experienced a significant drop in commission income from counter sales, which fell to HKD 214,053 thousand, down 46.2% from HKD 398,311 thousand [103]. Membership and Customer Engagement - The number of members for the "New Flash Purchase Mini Program" increased by 26.1% year-on-year to over 1.3 million [14]. - Membership sales accounted for 67.7% of supermarket sales, an increase of 1.6% year-on-year [17]. - The company has introduced various marketing activities to attract customers, including themed events and collaborations with leasing merchants [12]. - The company is actively enhancing its digital marketing system and integrating online and offline sales strategies to improve customer experience [10]. Operational Metrics - Foot traffic in stores located in cities like Wuhan and Shanghai has recovered to over 80% of pre-pandemic levels, with Wuhan's Xudong store seeing an increase of over 18.0% year-on-year [10]. - The company operates 24 department stores and shopping centers across 13 major locations in mainland China, covering a total floor area of approximately 978,900 square meters [10]. - The group is focusing on enhancing online retail capabilities and diversifying online platforms to drive sales to physical stores [18]. Financial Position - The group's net debt as of December 31, 2022, was HKD 520.9 million, an increase from HKD 410.1 million as of June 30, 2022 [27]. - The group’s net current liabilities amounted to approximately HKD 2,792,887,000, which includes short-term bank borrowings of about HKD 774,093,000 [66]. - The cash and cash equivalents decreased by HKD 55,652,000, ending at HKD 530,564,000 as of December 31, 2022, compared to HKD 808,368,000 at the end of the previous period [63]. - The group recorded a decrease in cash flow from financing activities, with a net outflow of HKD 374,382,000 [63]. - The total cash and bank balances as of December 31, 2022, were HKD 27,022,000, indicating liquidity position [122]. Cost Management - The net amount of inventory purchases and changes decreased from HKD 261.5 million in the first half of 2022 to HKD 171.2 million in the first half of 2023, aligning with the decrease in self-operated product sales [47]. - Employee benefits expenses decreased to HKD 174,564,000 for the six months ended December 31, 2022, down from HKD 219,658,000 in the previous year, representing a reduction of about 20% [129]. - The company incurred a net loss of HKD 236,923,000 in other operating expenses for the six months ended December 31, 2022, compared to HKD 148,084,000 in the same period of 2021, indicating an increase of approximately 60% [135]. - Interest expenses on lease liabilities were HKD 86,616,000 for the six months ended December 31, 2022, down from HKD 120,757,000 in the previous year, a decrease of about 28% [136]. Asset Management - The group acquired investment properties amounting to approximately HKD 1,080,000 for the six months ended December 31, 2022, compared to HKD 4,526,000 in 2021 [153]. - The company reported a net impairment loss of HKD 3,515,000 for property, plant, and equipment during the period, reflecting management's assessment of market conditions [151]. - The inventory of finished goods increased to HKD 99,322,000 as of December 31, 2022, compared to HKD 94,606,000 as of June 30, 2022 [197]. - The group’s cash-generating units for goodwill allocation were approximately HKD 816,610,000 for the department store business and HKD 240,845,000 for the property investment business [172]. Future Outlook - The group expects to have sufficient resources to continue operations and meet financial obligations for the foreseeable future [68]. - The company plans to continue evaluating its asset impairment based on market conditions and management's future business outlook [151]. - If total revenue is 15% lower than management's estimate, the loss before tax for the period would increase by approximately HKD 489,338,000 [174].

Financial Performance - Total revenue for the year 2022 was HKD 1,934,557, a decrease of 13.8% from HKD 2,245,966 in 2021[12] - The company reported a net loss of HKD 483,381 for 2022, compared to a net loss of HKD 229,359 in 2021, indicating a significant increase in losses[15] - Total assets decreased to HKD 12,513,402 in 2022 from HKD 14,177,638 in 2021, reflecting a decline of 11.7%[14] - For the fiscal year ending June 30, 2022, the group's annual revenue was HKD 1,934.6 million, down from HKD 2,246.0 million in the previous year[41] - The group reported a loss of HKD 483.4 million for the fiscal year, compared to a loss of HKD 229.4 million in the previous year, resulting in a loss per share of HKD 0.29[41] - The gross profit margin for merchandise sales in fiscal year 2022 was 13.3%, compared to 13.9% in fiscal year 2021[105] - Total sales proceeds for the fiscal year 2022 amounted to HKD 5,984.3 million, down 20.0% from HKD 7,472.7 million in the fiscal year 2021[105] Revenue Sources - Revenue breakdown for the fiscal year: rental income accounted for 38.5%, commission income from counters was 34.4%, and self-operated merchandise sales made up 25.9%[41] - Rental income increased to HKD 745,607 in 2022 from HKD 703,394 in 2021, showing a growth of 6.0%[17] - The net operating loss for fiscal year 2022 was HKD 199.6 million, compared to an operating profit of HKD 89.5 million in fiscal year 2021[121] Store Operations and Strategy - The company operated 19 department stores under the "New World" brand and 7 stores under the "Paris Spring" brand, covering 15 major locations in mainland China as of June 30, 2022[3] - The company implemented a "one store, one strategy" approach to adapt to market conditions and consumer preferences[5] - The company is focusing on enhancing product variety, improving store quality, and establishing a distinctive brand strategy to meet evolving consumer demands[40] - The company is actively developing a retail and customer management system to attract younger, personalized potential members while leveraging emerging social media platforms[25] - The company reduced its store count by three locations, including stores in Harbin, Shanghai Qibao, and Chengdu, to optimize resource allocation[48] Customer Engagement and Marketing - The company launched over 100 themed marketing activities, including the "825 Shopping Carnival," which achieved over 40 million exposures across multiple channels[58] - The "New Flash Purchase Mini Program" contributed to a 46.8% year-on-year increase in membership to 1.17 million, enhancing promotional capabilities and member engagement[71] - The total number of official social media followers increased by 5.32% year-on-year to nearly 4.4 million, while total membership grew by 9.1% to 7.01 million[71] - The "New Flash Purchase" platform conducted nearly 600 live streaming sessions, achieving a year-on-year sales growth of 28.7%[80] Corporate Governance - The company is committed to corporate governance, with independent directors actively participating in audit and remuneration committees to ensure transparency and accountability[151] - The board of directors consists of two executive directors and four independent non-executive directors as of the report date[161] - The company emphasizes high standards of corporate governance to enhance shareholder and stakeholder interests[161] - The independent non-executive directors are tasked with making independent judgments on the group's development and risk management[169] - The company has implemented a whistleblowing policy to encourage reporting of fraud and misconduct, with the audit committee overseeing its effectiveness[180] Human Resources and Management - The company is focused on enhancing its human resources strategies, including talent recruitment and development, with over 20 years of experience in human resources and corporate management[139] - The company has a strong management team with extensive experience in retail, including over 40 years in the industry and significant expertise in managing retail operations in Mainland China, Hong Kong, and Taiwan[143] - The company aims to provide competitive remuneration to attract and retain high-quality talent, with annual reviews based on comparable companies[186] Market Challenges and Adaptation - The company experienced a significant decline in revenue and profit due to the repeated impacts of COVID-19, particularly from April to May 2022 when several stores in Beijing and Shanghai were closed or had reduced operating hours[48] - The ongoing pandemic and market uncertainties are expected to impact the company's operations, necessitating a focus on innovation and business upgrades[102] - The company plans to enhance its digital infrastructure, shifting focus from front-end to back-end development for integrated online and offline operations[102] Sustainability and Future Plans - The company is committed to environmental sustainability, health, intelligence, and care as part of its corporate values and daily operations[25] - The company aims to introduce high-quality brands and flagship stores to enrich customer shopping experiences[23] - The company is focusing on expanding its product lines to include outdoor, camping, and skiing equipment to cater to high-end consumer demands[98]

Financial Performance - Revenue for the six months ended December 31, 2021, was HKD 1,084,559,000, a decrease of 4.0% compared to HKD 1,130,834,000 for the same period in 2020[17]. - The operating profit for the period was HKD 207,281,000, compared to a loss of HKD 42,284,000 in the previous year[17]. - Net profit for the period was HKD 41,002,000, recovering from a loss of HKD 203,882,000 in the same period last year[17]. - For the six months ended December 31, 2021, the group's revenue was HKD 1,084.6 million, a decrease from HKD 1,130.8 million in the same period last year[29]. - The group's profit for the period was HKD 41.0 million, with earnings per share at HKD 0.02[29]. - The group reported a profit of HKD 41.0 million for the six months ended December 31, 2021, a significant recovery from a loss of HKD 203.9 million in the same period of 2020[85]. - The total comprehensive income for the period was HKD 125.3 million, compared to HKD 143.5 million in the same period of 2020[91]. Assets and Liabilities - Total assets as of December 31, 2021, were HKD 13,999,162,000, down from HKD 14,177,638,000 as of June 30, 2021[17]. - Total liabilities decreased to HKD 9,405,501,000 from HKD 9,709,311,000[17]. - The group's total borrowings stood at HKD 1,412.8 million as of December 31, 2021, compared to HKD 1,412.3 million on June 30, 2021[76]. - The group's current liabilities exceeded its current assets by HKD 2,476.6 million as of December 31, 2021, compared to HKD 2,367.8 million on June 30, 2021[76]. - Total equity rose to HKD 4,593,661 thousand as of December 31, 2021, up from HKD 4,468,327 thousand, marking an increase of about 2.81%[99]. Digital Transformation and Innovation - The company is focusing on digital transformation and enhancing its online-offline ecosystem to improve customer experience and loyalty[20]. - The company has introduced a new online shopping platform, "New Flash Purchase Mini Program," which integrates online and offline services[21]. - The group is focusing on digital transformation and has launched the "K Dollar Rebate Program" to enhance customer engagement and integrate various business lines[35]. - The overall sales of the "New Flash Purchase" platform achieved significant breakthroughs, with the cosmetics category, primarily driven by female consumers, leading in sales proportion[41]. - The company has integrated a digital membership ecosystem, enhancing online shopping platforms and offline store interactions, which has improved member sales and retention[41]. Operational Efficiency and Cost Management - The gross profit margin for merchandise sales decreased to 13.1% in the first half of 2022 from 14.1% in the previous year[55]. - Employee benefits expenses rose to HKD 219.7 million from HKD 210.3 million, reflecting ongoing cost control measures despite some compensation payments due to store closures[63]. - The company reported a significant decrease in cash flow from operating activities, which was impacted by a reduction in bank borrowings and financial costs[109]. - The company continues to adopt a going concern basis for preparing financial statements, expecting sufficient resources to meet its obligations[117]. Market and Consumer Trends - The retail industry is experiencing a digital transformation driven by changing consumer demands, with a significant increase in online shopping[37]. - The company has introduced high-quality lifestyle products in supermarkets, focusing on fresh produce and improving delivery efficiency to attract customers[45]. - The LOL (Love•Original•Life) concept stores focus on high-quality, unique products to meet the demands of young consumers, enhancing customer experience[47]. Impairment and Financial Risks - The group recognized an impairment loss of approximately HKD 64,107,000 during the period, reflecting management's assessment of the business outlook[191]. - The estimated recoverable amount of the cash-generating unit was approximately HKD 292,850,000, based on fair value less costs to sell[199]. - If total revenue were to decrease by 10% from management's current estimates, pre-tax profit would decrease by approximately HKD 201,893,000[199]. - The impairment assessment utilized recent independent valuations of the related properties[198].

Financial Performance - Total revenue for the year 2021 was HKD 2,245,966, a slight increase from HKD 2,232,691 in 2020[21]. - The operating profit for 2021 was HKD 89,491, compared to an operating loss of HKD 197,960 in 2020[21]. - Net loss for the year 2021 was HKD 229,359, significantly improved from a net loss of HKD 483,668 in 2020[21]. - The group's annual revenue for the year ended June 30, 2021, was HKD 2,246.0 million, slightly up from HKD 2,232.7 million in the previous year[45]. - The group reported a loss of HKD 229.4 million for the year, an improvement from a loss of HKD 483.7 million in the previous year, with a loss per share of HKD 0.14[45]. - The group's gross profit margin for merchandise sales in the fiscal year was 13.9%, down from 14.9% in the previous fiscal year[100]. - The group's other losses for the fiscal year amounted to HKD 349.2 million, primarily due to goodwill impairment losses of HKD 232.7 million and property, plant, and equipment impairment losses of HKD 176.6 million[100]. - The annual loss for the fiscal year was HKD 229.4 million, an improvement from a loss of HKD 483.7 million in the previous fiscal year[113]. Assets and Liabilities - Total assets increased to HKD 14,177,638 in 2021 from HKD 13,119,276 in 2020[21]. - As of June 30, 2021, the group's cash and bank balances were HKD 1,569.4 million, an increase from HKD 1,514.1 million in the previous year[114]. - The group's current liabilities exceeded its current assets by HKD 2,367.8 million as of June 30, 2021[114]. Business Operations and Strategy - The company operates 21 department stores under the "New World" brand and 8 stores under the "Paris Spring" brand, covering 17 major locations in mainland China[3]. - The company is focusing on digital transformation and integrating online and offline operations to enhance customer experience[25]. - The company plans to continue renovating physical stores to improve brand image and attract new customers[26]. - The company aims to expand its self-operated e-commerce platform "New Flash Purchase" to promote omnichannel development[26]. - The group is cautiously optimistic about the retail market situation in the second half of 2021, despite uncertainties such as variant viruses[29]. - The group plans to enhance its core business competitiveness and operational efficiency while actively deploying post-pandemic business development strategies[29]. - The group is focusing on digital operations and expanding diverse sales channels to improve revenue generation capabilities[30]. - The company has been actively optimizing its tenant brand mix, introducing popular and emerging brands to enhance competitiveness and attract younger consumers[53]. - The company is enhancing its physical store operations while adapting to changing consumer shopping habits towards contactless and portable shopping methods[55]. - The company is actively promoting marketing activities to improve foot traffic in stores, especially during traditional holidays and peak shopping periods[50]. Customer Engagement and Marketing - As of June 30, 2021, the total number of VIP members exceeded 6.41 million, indicating a strong growth in customer engagement[84]. - The group introduced 48 new brands during the year, enhancing brand image and strengthening the women's apparel market influence[81]. - The group is actively promoting online and offline integrated marketing, utilizing various channels such as live streaming and social media to drive customer engagement[84]. - Customer satisfaction scores have improved, with a reported increase of H% in positive feedback from users[130]. Corporate Governance - The board of directors consists of two executive directors, two non-executive directors, and four independent non-executive directors[144]. - The company adopted all applicable code provisions of the corporate governance code, except for E.1.2, which requires the chairman to attend the annual general meeting[141]. - The company has complied with the listing rules regarding the appointment of sufficient independent non-executive directors with relevant professional qualifications[158]. - The company has established written guidelines for employees regarding the trading of the company's securities, with no known incidents of non-compliance during the year[143]. - The board will continue to review and improve corporate governance practices to ensure proper regulation of business and decision-making processes[141]. Risk Management - The audit committee has reviewed the effectiveness of the group's risk management and internal control systems for the year ending June 30, 2021, and found them to be effective and adequate[192]. - The company has implemented a system to manage risks that may prevent achieving business objectives, providing reasonable assurance against significant losses[192]. - The board of directors has confirmed its responsibility for the risk management and internal control systems, ensuring they are effective and adequate[192]. Future Outlook and Investments - The company is investing in new technology development, allocating $D million towards R&D initiatives aimed at enhancing user experience[130]. - Strategic acquisitions are being considered to bolster market presence, with potential targets identified in the E sector[130]. - The company plans to enhance its digital marketing efforts, increasing the budget by I% to drive user acquisition and retention[130]. Dividend Policy - The company will distribute remaining funds to all shareholders after retaining operational needs, subject to certain conditions[200]. - The distribution of dividends is subject to compliance with applicable laws and regulations, as well as any bank or funding agreements[200]. - External economic and market conditions will also influence the company's dividend policy[200].

Financial Performance - For the six months ended December 31, 2020, the company's revenue was HKD 1,130.8 million, down from HKD 1,360.7 million in the same period last year, representing a decrease of approximately 16.8%[19] - The company reported a net loss of HKD 203.9 million for the period, compared to a profit of HKD 142.4 million in the previous year, marking a significant decline[20] - The group's revenue for the first half of the 2021 fiscal year was HKD 1,130.8 million, a decrease of 16.8% compared to HKD 1,360.7 million in the same period of the 2020 fiscal year[38] - Total sales revenue for the first half of the 2021 fiscal year was HKD 3,754.6 million, down 16.2% from HKD 4,479.8 million in the previous year[38] - The operating loss for the period was HKD 42,284, compared to an operating profit of HKD 319,192 in the previous year, indicating a significant downturn in operational performance[103] - The net loss for the period was HKD 203,882, a substantial increase from a profit of HKD 142,447 in the same period of 2019, reflecting a negative shift in financial health[103] Revenue Breakdown - The revenue breakdown shows that commission income from counters accounted for 40.5% of total revenue, self-operated merchandise sales contributed 29.5%, rental income made up 29.4%, and finance lease interest income represented 0.6%[19] - The group's rental income accounted for 29.4% of total revenue, while self-operated merchandise sales contributed 40.5% in the southern region and 59.5% in the northern region[22] - The group's revenue from consignment sales commissions was 40.5%, indicating a strong performance in this segment[22] - Commission income from counter sales was HKD 457,741,000, down 23.7% from HKD 600,730,000 in the previous year[93] - Self-operated sales revenue was HKD 334,078,000, a decline of 5.9% from HKD 355,031,000 in the prior year[93] - Rental income decreased to HKD 332,056,000 from HKD 397,737,000, reflecting a 16.5% drop[93] Assets and Liabilities - Total assets as of December 31, 2020, were HKD 13,756.9 million, an increase from HKD 13,119.3 million as of December 31, 2019[13] - Total liabilities increased to HKD 9,404.1 million from HKD 8,910.0 million year-on-year, indicating a rise of approximately 5.5%[13] - The company's net debt ratio was -9.8% as of December 31, 2020, compared to -0.7% in the previous year, reflecting a deterioration in financial leverage[13] - Current liabilities rose to HKD 4,725,661 thousand, up from HKD 4,297,660 thousand, marking an increase of about 9.95%[66] - The company's total equity increased to HKD 4,352,846 from HKD 4,209,321, indicating a strengthening of the balance sheet[64] Cash Flow and Liquidity - As of December 31, 2020, the group's cash and bank balances were HKD 1,839.5 million, an increase from HKD 1,514.1 million as of June 30, 2020[48] - The group's net cash position as of December 31, 2020, was HKD 426.8 million, up from HKD 27.9 million as of June 30, 2020[48] - The company reported a net cash outflow from investing activities of HKD 620,920 thousand, contrasting with a net inflow of HKD 35,480 thousand in the previous year[72] - The company maintains sufficient cash and cash equivalents to manage liquidity risk, with cash generated from operating and financing activities[89] - Cash and cash equivalents decreased to HKD 1,005,190 thousand as of December 31, 2020, down from HKD 1,865,843 thousand, a decline of approximately 46%[72] Impairments and Losses - The net other losses for the period amounted to HKD 326.2 million, primarily due to goodwill impairment losses of HKD 194.3 million and property, plant, and equipment impairment losses of HKD 151.8 million[41] - The company incurred a goodwill impairment loss of HKD 194,253 during the period, significantly higher than HKD 21,111 in the previous year, highlighting increased concerns over asset valuations[109] - The company recognized an impairment loss of approximately HKD 151,811,000 during the period, reflecting the estimated recoverable amount of certain cash-generating units[132] - The company reported a fair value loss on investment properties of HKD 619, contributing to the overall financial losses[103] Strategic Initiatives - The company has implemented a series of tenant support measures to stabilize merchant operations during the pandemic[17] - The company is enhancing its online presence and community marketing strategies to adapt to the new consumer behavior driven by the pandemic[17] - Future strategies include upgrading existing stores and introducing new experiential formats to attract younger consumers and strengthen customer engagement[17] - The group plans to deepen its multi-platform online layout and accelerate digital transformation, aiming to enhance the integration of online and offline operations[35] - The group is focusing on enhancing community-type department stores, supermarkets, and convenience stores to continuously create better experiences and value for consumers[35] Governance and Compliance - The audit committee, composed of four independent non-executive directors, reviewed the unaudited interim results for the six months ended December 31, 2020[198] - The company complied with all applicable provisions of the corporate governance code during the six months ended December 31, 2020, except for provision E.1.2[199] - The chairman of the board was unable to attend the annual general meeting held on November 25, 2020, but the CEO and other board members were present to address questions[200]

Financial Performance - The group's annual revenue for the year ended June 30, 2020, was HKD 2,232.7 million, a decrease of 36.6% from HKD 3,519.0 million in the previous year[19]. - The annual loss for the group was HKD 483.7 million, compared to a profit of HKD 32.7 million in the previous year, resulting in a loss per share of HKD 0.29[19]. - The total assets as of June 30, 2020, were HKD 13,119.3 million, an increase of 11.2% from HKD 11,797.5 million in the previous year[17]. - The total liabilities increased to HKD 8,909.9 million from HKD 5,954.9 million, indicating a significant rise in financial obligations[17]. - The group's revenue for the fiscal year 2020 was HKD 2,232.7 million, a decrease from HKD 3,519.0 million in the fiscal year 2019, reflecting a decline of approximately 36.6%[75]. - Total sales revenue for the fiscal year 2020, including department store sales and self-operated merchandise sales, was HKD 7,101.2 million, down from HKD 10,897.3 million in the fiscal year 2019, representing a decrease of about 34.3%[75]. - The group's gross profit margin for merchandise sales was 14.9% in fiscal year 2020, compared to 17.5% in fiscal year 2019, indicating a decline of 2.6 percentage points[75]. - Other income for the fiscal year 2020 was HKD 93.5 million, down from HKD 150.3 million in the fiscal year 2019, a decrease of approximately 37.8%[76]. - The group reported a net other loss of HKD 469.3 million for the fiscal year 2020, primarily due to goodwill impairment losses of HKD 459.2 million related to eight department stores[75]. - The group reported a comprehensive income statement for the year ending June 30, 2020, which is detailed on page 64 of the annual report[171]. Operational Strategy - The group has implemented a "one store, one strategy" management approach to adapt to market conditions and capitalize on domestic consumption upgrades[4]. - The group aims to enhance its operational efficiency and cost management in response to the economic challenges posed by the COVID-19 pandemic[19]. - The company focused on enhancing its online presence and integrating online and offline shopping experiences amid the COVID-19 pandemic[48]. - The company has implemented upgrades to several stores to improve customer experience and product offerings[48]. - The company plans to enhance the layout and product configuration of its "New World Supermarket" in Beijing, integrating it with the "New Flash Purchase" platform for better synergy[64]. - The company has implemented cost-cutting measures, including negotiating rent reductions and restructuring internal operations to maintain cash flow during the pandemic[50]. - The company aims to strengthen its supply chain for convenience stores and supermarkets to stabilize supply and pricing[43]. - The company is committed to a prudent and practical operational strategy to solidify its existing business foundation[43]. Market Expansion - The group plans to gradually complete the launch of "New World Supermarket" and "New Flash Purchase" as part of its market expansion strategy[22]. - The company plans to continue expanding its "N+ Convenience Store" and "New World Supermarket" networks in Beijing, particularly in the Dongcheng and Chaoyang districts[43]. - The "New Flash Purchase" online mall registered 400,000 VIP members, with nearly 70% of customers from Beijing, and a significant portion of sales coming from cosmetics[59]. - The company opened two new "N+ Convenience Stores" in Beijing, focusing on ready-to-eat food products and other convenient services[63]. Corporate Governance - The company has established an audit committee to oversee financial reporting and risk management, consisting of four independent non-executive directors[188]. - The board consists of 8 members, with a mix of executive and non-executive directors, ensuring diverse expertise in finance, management, and retail[134]. - The company has adopted a diversity policy for board members, considering factors such as gender, age, and professional experience[132]. - The company has established written guidelines for employees regarding the buying and selling of company securities[105]. - The company has confirmed that its financial reporting and internal control systems are effective and sufficient, covering financial, operational, compliance, and resource adequacy risks[146]. Shareholder Relations - The company has a sustainable dividend distribution policy, retaining most of its available funds and future earnings for operational and business development needs[157]. - The company will continue to review and update its dividend distribution policy, balancing shareholder expectations and prudent capital management[165]. - The company did not declare a final dividend for the year ending June 30, 2020, consistent with the previous year[173]. - The company has received recognition for its leadership and contributions to the industry, reflecting its commitment to excellence and innovation[90]. Risk Management - The company is subject to various risks and uncertainties as discussed in the annual report, which may impact future business development[172]. - The company has implemented a robust risk management and internal control system, which has been reviewed for effectiveness as of June 30, 2020[145]. - The internal audit department conducts audits based on risk assessment to ensure the effectiveness of major internal control measures[118]. Employee and Community Engagement - The company has received various awards for employee welfare and environmental protection, including the "Happy Company" label in 2020[165]. - The company is committed to complying with labor laws in China and Hong Kong, ensuring fair employment practices[160]. - Charitable donations made by the company during the year amounted to approximately HKD 7,000, a significant decrease from HKD 179,000 in 2019[181].

Financial Performance - Total revenue for the six months ended December 31, 2019, was HKD 1,360,748, a decrease of 24.7% compared to HKD 1,809,880 for the same period in 2018[14]. - Net profit for the period increased to HKD 142,447, representing a growth of 58.8% from HKD 89,690 in the previous year[14]. - Operating profit rose significantly by 65.8% to HKD 319,192, compared to HKD 192,535 in the prior period[14]. - For the six months ended December 31, 2019, the company's revenue was HKD 1,360.7 million, a decrease of approximately 24.8% compared to HKD 1,809.9 million in the same period last year[22]. - The company's net profit increased to HKD 142.4 million from HKD 89.7 million in the previous year, representing an annual growth of approximately 58.8%[23]. - Earnings per share for the period were HKD 0.08[23]. - Total sales revenue for the first half of the 2020 fiscal year was HKD 4,479.8 million, down from HKD 5,732.5 million in the first half of the 2019 fiscal year, representing a decline of approximately 21.9%[38]. - The group's gross profit margin for merchandise sales was 15.7% in the first half of the 2020 fiscal year, compared to 17.3% in the same period of the previous year[38]. Assets and Liabilities - The company reported a total asset increase to HKD 14,219,836, up from HKD 11,797,523, reflecting a growth of 20.5%[14]. - Total liabilities increased to HKD 9,341,486 from HKD 5,954,914, indicating a rise of 56.5%[14]. - As of December 31, 2019, the group had cash and bank balances of HKD 2,024.8 million, compared to HKD 1,866.7 million as of June 30, 2019[41]. - The group's borrowings as of December 31, 2019, amounted to HKD 1,412.8 million, down from HKD 1,628.0 million as of June 30, 2019[41]. - The company’s total equity decreased to HKD 4,878,350 from HKD 5,842,609, reflecting a decline in shareholder value[56]. - The company’s total liabilities included accounts payable of HKD 1,546,949,000 and other payables of HKD 799,222,000[106]. Revenue Breakdown - Revenue breakdown for the period: 44.2% from counter sales commission, 29.2% from rental income, 26.1% from self-operated merchandise sales, and 0.5% from financing lease interest income[22][25]. - Commission income from counter sales was HKD 600,730,000 for the six months ended December 31, 2019, down from HKD 748,207,000 in the previous year, reflecting a decrease of about 19.7%[118]. - The group reported a total of HKD 3,660,147,000 in counter sales revenue for the six months ended December 31, 2019, compared to HKD 4,570,414,000 in the same period of 2018, indicating a decline of approximately 19.9%[118]. - The group’s rental income for the six months ended December 31, 2019, was HKD 397,737,000, slightly down from HKD 419,019,000 in the previous year[118]. Operational Strategy - The company operates 22 department stores under the "New World" brand and 9 stores under the "Paris Spring" brand, covering 17 major locations in China[5]. - The company has been actively expanding its self-operated business, including the LOL (Love • Original • Life) concept stores and N+ series private labels[6]. - The company is focusing on a multi-store strategy in key regions such as Greater Beijing, Greater Shanghai, and Southwestern China to enhance its market presence[5]. - The company plans to enhance its operational efficiency and sales contribution through the LOL original lifestyle concept stores, with a focus on adjusting product procurement and marketing strategies[20]. - The company intends to expand its "N+ convenience store" business in Beijing, with plans to open two new stores in the second half of the 2020 fiscal year[20]. Consumer Engagement and Marketing - The group has surpassed 6 million VIP members through a series of membership management and marketing strategies[29]. - The "New Flash Purchase" online mall accumulated 250,000 registered VIP members by December 31, 2019, with cosmetics sales accounting for nearly 70%[29]. - The group plans to enhance the cosmetics area layout in Beijing New World Department Store by the end of 2020, capitalizing on the growth opportunities in the local beauty market[28]. - The group aims to enrich the "New Flash Purchase" online mall by launching a mini-program by the end of June 2020, enhancing consumer experience with added value services[22]. - The group has accumulated nearly 4.32 million followers on its official WeChat and Weibo accounts through effective online promotions[29]. Economic Outlook and Challenges - The contribution ratio of consumption to China's GDP growth fell to 57.8% due to weak domestic demand, despite stable growth in residents' income[35]. - The economic outlook for China in 2020 is expected to face severe challenges, including the impact of the COVID-19 pandemic on the retail sector[35]. - The total retail sales of consumer goods in China exceeded RMB 40 trillion for the first time, indicating a trend of consumption upgrading[35]. Accounting and Financial Reporting - The group adopted new accounting standards effective from July 1, 2019, including HKFRS 16 on leases, which did not have a significant impact on the group's performance and financial position[78]. - The total impact of lease liabilities recognized on July 1, 2019, amounted to HKD 4,401,582,000, which includes current lease liabilities of HKD 599,639,000 and non-current lease liabilities of HKD 3,801,943,000[86]. - The company adopted practical expedients under HKFRS 16 "Leases," including using a single discount rate for similar lease portfolios and classifying leases with a remaining term of less than 12 months as short-term leases[91]. - The functional currency of a significant overseas operation changed from HKD to RMB, resulting in a decrease in pre-tax profit by approximately HKD 20,410,000 due to foreign exchange differences[100]. - Financial risks faced by the company include foreign exchange risk, credit risk, liquidity risk, and interest rate risk, with no changes in risk management policies since the last fiscal year-end[103][104].

Financial Performance - The group's revenue for the year ended June 30, 2019, was HKD 3,519,017, a decrease of approximately 7.9% from HKD 3,821,120 in 2018[16] - The annual profit increased significantly to HKD 32,663, compared to HKD 11,085 in the previous year, representing a growth of approximately 194.7%[16] - The total assets as of June 30, 2019, were HKD 11,797,523, down from HKD 12,589,234 in 2018, indicating a decrease of about 6.3%[16] - Operating profit for the year was HKD 204,602, an increase of approximately 10.4% from HKD 185,353 in 2018[16] - Total sales revenue for the fiscal year 2019 was HKD 10,897.3 million, down 13.8% from HKD 12,637.3 million in the fiscal year 2018[102] - The gross profit margin for merchandise sales in fiscal year 2019 was 17.5%, compared to 17.3% in fiscal year 2018[102] - Rental income increased by 4.4% from HKD 811.9 million in fiscal year 2018 to HKD 847.3 million in fiscal year 2019, mainly due to an increase in leasable area[102] - Other income for fiscal year 2019 was HKD 150.3 million, down from HKD 196.9 million in fiscal year 2018, primarily due to a one-time insurance compensation in the previous year[104] - Employee benefits expenses rose from HKD 640.9 million in fiscal year 2018 to HKD 651.4 million in fiscal year 2019, attributed to new store openings and compensation for closed stores[109] - Operating lease rental expenses decreased from HKD 1,228.3 million in fiscal year 2018 to HKD 1,057.9 million in fiscal year 2019 due to the closure of several department stores[111] - The annual profit for FY2019 was HKD 32.7 million, significantly higher than HKD 11.1 million in FY2018, representing an increase of approximately 194.6%[115] - Income tax expense for FY2019 was HKD 188.2 million, down from HKD 197.5 million in FY2018, indicating a reduction of about 4.6%[115] Store Operations and Strategy - The group operated 31 department stores and shopping centers with a total floor area of approximately 1,251,950 square meters, covering 17 major locations in mainland China[19] - The group closed six stores during the year to enhance profitability, contributing to the increase in annual profit[19] - The group plans to enhance collaboration with sports brands and strengthen its cosmetics counters in response to consumer upgrades[20] - The group plans to expand its convenience store business in Beijing, with two existing stores showing positive market response[24] - The group aims to create a multi-brand beauty store "N+ Beauty" to attract quality-seeking female consumers[24] - The group is focused on transforming traditional counters into experiential rental spaces to enhance consumer engagement[78] - The group will continue to explore optimal retail and rental ratios for each store based on location and market strategies[24] - The Northern region contributed 50.5% to the group's revenue, while the Eastern region contributed 33.2%, and the Central-Western region contributed 16.3%[72] - Revenue sources are primarily from counter sales commissions (40.4%), followed by self-operated goods sales (35.5%), and rental income (24.1%)[73] Corporate Governance - The board consists of two executive directors, two non-executive directors, and four independent non-executive directors, ensuring effective oversight of the group's management[144] - The company has adopted all provisions of the corporate governance code as of June 30, 2019, demonstrating a commitment to high governance standards[140] - The board held four regular meetings during the fiscal year ending June 30, 2019, to review business strategies and financial performance[144] - The independent non-executive directors have extensive experience in various sectors, contributing to the board's overall expertise and governance[131][132][136][137] - The company is committed to enhancing its corporate governance practices continuously to protect shareholder interests[140] - The company has established written guidelines for employees regarding the trading of company securities, in compliance with the required code provisions[142] - The company has a strong focus on compliance with the Listing Rules and has confirmed adherence to the standard code for directors' securities transactions[141] - The audit committee held a minimum of two meetings annually, with all four independent non-executive directors attending both meetings[156] - The remuneration committee convened three times during the year to review the remuneration policies and assess executive directors' performance[158] - The company has established a risk management and internal control system, reviewed by the audit committee annually[156] Cash Flow and Liabilities - Cash and bank balances as of June 30, 2019, were HKD 1,866,701, a decrease from HKD 1,947,343 in 2018[16] - As of June 30, 2019, the group's current liabilities exceeded current assets by HKD 1,878.0 million, compared to HKD 1,979.3 million on June 30, 2018[114] - The group's borrowings as of June 30, 2019, amounted to HKD 1,628.0 million, down from HKD 1,876.7 million in the previous year, showing a decrease of approximately 13.2%[115] - The group has taken measures to monitor cash flow needs and ensure sufficient cash for business operations and liabilities[114] Market and Consumer Engagement - VIP membership increased to nearly 5.85 million, representing an 8.5% year-on-year growth, while the official WeChat and Weibo accounts accumulated approximately 4.18 million followers, up 9.7% year-on-year[85] - The "New Flash Purchase" online mall launched in November 2017 has over 180,000 registered VIP members, with cosmetics sales accounting for over 60% of total sales on the platform[85] - The sports and cosmetics categories showed significant year-on-year sales growth, driven by the increasing fitness culture in mainland China[84] Environmental and Social Responsibility - The group’s environmental initiatives have been recognized with various certifications, including the "Green Office" and "Healthy Workplace" labels[193] - The group strictly adheres to labor laws in China and Hong Kong, ensuring fair employment opportunities and benefits for employees[188] Miscellaneous - The company has no fixed dividend policy and plans to retain most available funds for operations and business development[1] - The board has resolved not to recommend a final dividend for the year ending June 30, 2019, consistent with the previous year[200] - The group received several awards for corporate governance and innovation, including the "Best Innovation Practice Award" from the China Chain Store & Franchise Association[192] - The auditor's fees amount to approximately HKD 5,790,000 for audit services and HKD 1,348,000 for non-audit services[189] - The group operates in the department store and property investment sectors in mainland China[197] - The financial performance for the year ending June 30, 2019, is detailed in the consolidated income statement on page 54 of the annual report[198]

Financial Performance - Total revenue for the six months ended December 31, 2018, was HKD 1,809,880, a decrease of 3.4% compared to HKD 1,873,339 in 2017[6]. - Net profit for the same period was HKD 89,690, down 12.9% from HKD 102,988 in 2017[6]. - The group's revenue for the first half of the 2019 fiscal year was HKD 1,809.9 million, a decrease of 3.4% from HKD 1,873.3 million in the same period of 2018[29]. - Total sales revenue for the first half of the 2019 fiscal year was HKD 5,732.5 million, down 10.2% from HKD 6,387.3 million in the previous year[29]. - The group reported a total profit of HKD 89,690 for the period, compared to HKD 102,988 in the same period of 2017, reflecting a decrease of 12.9%[112]. - Profit for the period was HKD 89.7 million, down from HKD 103.0 million in the previous year[44]. - Basic and diluted earnings per share for the period were HKD 0.05, down from HKD 0.06 in the previous year[56]. - The company's financial income net was HKD 6,546, compared to HKD 9,755 in the previous year, indicating a decline of 33.5%[112]. Revenue Sources - Commission income from counters accounted for 41.3% of total revenue, while self-operated merchandise sales and rental income represented 35.5% and 23.2%, respectively[17]. - Commission income from department store sales was HKD 748,207, down 10.4% from HKD 835,672 in the previous year[108]. - Rental income increased to HKD 419,019, up 7.7% from HKD 389,190 in the prior period[107]. Operational Changes - The company operated 32 department stores and 2 shopping centers as of December 31, 2018, covering 18 major locations in mainland China[12]. - The company reduced three stores during the reporting period to optimize its operational structure[11]. - The company plans to continue cautious development and resource integration to enhance operational efficiency in the future[12]. - The company aims to enhance its operational efficiency by implementing targeted strategies based on store location, size, and product strength, with a focus on "one store, one strategy" management[20]. Market and Consumer Trends - The Northern region contributed 51.2% of total revenue, followed by Eastern and Central-Western regions at 32.8% and 16.0%, respectively[16]. - The retail industry faces challenges such as changing consumer preferences for high-quality goods and increased competition from new commercial complexes, prompting the company to focus on personalized consumer experiences[27]. - In 2018, China's GDP growth slowed to 6.6%, with consumption contributing approximately 76.2% to economic growth, indicating a stable consumer sentiment despite external pressures[26]. Financial Position - Cash and cash equivalents increased to HKD 2,245,940 from HKD 1,947,343 in 2017, indicating improved liquidity[8]. - Total assets as of December 31, 2018, amounted to HKD 12,506,788, compared to HKD 12,589,234 as of June 30, 2018[63]. - The company's borrowings as of December 31, 2018, were HKD 1,880,996 thousand, an increase from HKD 1,650,519 thousand as of June 30, 2018, representing a rise of about 13.9%[66]. - The total liabilities to equity ratio as of December 31, 2018, was approximately 1.12, indicating a slight increase in leverage compared to the previous period[66]. Employee and Management - Employee benefits expenses increased to HKD 333.5 million from HKD 300.1 million, mainly due to new store openings and full-year operations of acquired subsidiaries[37]. - The total remuneration for key management personnel was HKD 14,360,000 for the six months ended December 31, 2018, compared to HKD 13,734,000 for the same period in 2017, indicating an increase in compensation[184]. - As of December 31, 2018, the total number of employees was 4,293, down from 4,598 as of June 30, 2018[188]. Strategic Initiatives - The company accelerated brand replacement and strengthened its product mix, focusing on cosmetics, personalized women's wear, sports, and children's categories to meet consumer upgrade trends[20]. - The company expanded its self-operated business by developing the N+ series and LOL (Love • Original • Life) concept stores, enhancing brand image and customer loyalty[23]. - The N+ series has derived multiple proprietary brands, including convenience stores and maternal and infant products, with successful entries into new markets such as Beijing and Shanghai[23]. Compliance and Governance - The company has established an audit committee to oversee financial reporting and risk management[188]. - The company has complied with all applicable corporate governance codes during the six months ended December 31, 2018[188].