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。 ...

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].