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].