Corporate Governance - The board of directors held five meetings in 2022 with an average attendance rate of 93%[3] - The audit committee and remuneration committee are chaired by independent non-executive directors to ensure independent perspectives[8] - The board is responsible for monitoring and implementing effective risk management and internal control systems[1] - The board has reviewed corporate governance practices and confirmed compliance with the Corporate Governance Code during the year ended December 31, 2022[48] - The company has implemented the Corporate Governance Code within its governance framework, delegating responsibilities to the audit committee[70] - Independent non-executive directors confirmed their independence in accordance with the listing rules, and the company considers them independent as of December 31, 2022[76] - The board is responsible for selecting, appointing, and reappointing directors, with the nomination committee tasked with reviewing board composition[69] - The chairman and CEO positions are held by separate individuals to enhance independence and accountability[83] - The company has established a shareholder communication policy to ensure shareholders receive relevant information to exercise their rights[74] - The board consists of two female members, representing 22% of the total board members, aligning with the company's diversity policy[63] - The company aims to maintain a gender diversity ratio of at least 20% on the board and is committed to gradually increasing the proportion of female members[78] - The board has adopted a revised diversity policy, considering various factors such as skills, industry experience, and gender in its composition[78] Financial Performance - Revenue increased by 7% to HKD 1,462,864,000 compared to HKD 1,361,840,000 in the previous year[99] - Core operating profit decreased by 4% to HKD 83,758,000 from HKD 87,663,000 year-on-year[99] - The company reported a 9% decline in profit attributable to shareholders from continuing operations, totaling HKD 67,785,000 compared to HKD 74,399,000 in the previous year[99] - The company maintains a strong financial position with net cash of HKD 257,000,000 and no bank borrowings[100] - The company aims for double-digit stable growth in revenue and profit over the next three years, focusing on expanding its store network in Hong Kong and the Greater Bay Area[100] - The company declared a final dividend of HKD 0.05 per share[107] - The dividend payout ratio was reported at 169.1%, indicating a strong return to shareholders[194] - Basic earnings per share from continuing operations decreased by 9.4% to HKD 0.087[176] - In 2022, the company achieved earnings per share (EPS) of 450 HKD cents, representing a year-on-year increase of 600%[194] - The total equity return was reported at 542.5% for the year, indicating strong financial performance[194] Risk Management and Compliance - The company has established a risk management and internal control framework with three levels of oversight[23] - The audit committee conducted an annual review of the effectiveness of the group's risk management and internal control systems, confirming they are established, sufficient, and effective[46] - The company has implemented measures to manage financial risks, including foreign exchange, credit, liquidity, and interest rate risks[40] - The company has adopted a policy to handle and disclose inside information, ensuring confidentiality until timely disclosure is made[45] - The company maintains a zero-tolerance approach towards bribery and emphasizes ethical standards across all operational areas[41] - The internal audit function is overseen by the governance department, ensuring compliance with established policies and procedures[42] - There were no significant breaches of the Code of Conduct and Business Ethics reported in 2022 that could impact the company's operations[26] Operational Performance - The total number of stores increased to 174, up from 153, with 19 new stores opened in Hong Kong and Macau during the year[100][106] - The company achieved high single-digit sales growth due to store network expansion, despite a slight decline in comparable same-store sales[127] - The company has opened three new Mon cher stores in Japan, enhancing its presence in the premium cake market[130] - The "corporate-to-corporate" business segment has shown satisfactory growth, supplying products to two major retail chains[127] - The company has implemented measures to ensure a safe working environment amid the COVID-19 pandemic, including employee training and regular disinfection of facilities[190] - The company is focused on sustainable business practices and corporate social responsibility, aligning its values with its operational culture[199] - The company plans to explore new sustainable long-term business opportunities in the Greater Bay Area[200] Strategic Initiatives - The company has implemented a three-year business plan and annual budget, with quarterly reviews of operational and financial performance[25] - The company plans to continue expanding its store network and enhance its digital marketing efforts on platforms like Douyin and WeChat to boost sales[122] - The group is actively seeking surrounding business and acquisition opportunities to increase revenue sources and expand its footprint[115] - The company is actively exploring acquisition targets to enhance brand value and achieve synergies[147] - The company has implemented energy-saving measures, including installing LED lights and energy-efficient glass, as part of its commitment to corporate responsibility[1] - The company plans to enhance its "online-to-offline" customer relationship management platform to improve digital experience[173] Employee and Community Engagement - The company has been recognized with the "10-year Plus Caring Company" logo by the Hong Kong Council of Social Service, reflecting its commitment to community and employee care[191] - Female employees, including senior management, accounted for 63% of the total workforce as of December 31, 2022, reflecting the nature of the retail and bakery industry[64] - The company is focused on maintaining a strong employer brand and supporting employee development amid rising operational costs[115] - The company provides regular training for directors to ensure compliance with new regulations and to promote ongoing professional development[35]

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佈之內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部分內容而產生或因倚賴該等內容而引 致之任何損失承擔任何責任。 CONVENIENCE RETAIL ASIA LIMITED 利亞零售有限公司 （於開曼群島註冊成立之有限公司） （股份代號：00831） 業績公佈 截至二零二二年十二月三十一日止年度 財務摘要 二零二二年 二零二一年 變動 千港元 千港元 • 收益 +7% 1,462,864 1,361,840 • 核心經營溢利 -4% 83,758 87,663 • 核心經營溢利 (包括租賃負債利息開支) -6% 76,843 81,627 • 公司股東應佔溢利 ...

Revenue and Profit Performance - Revenue for the first half of 2022 increased by 11.1% to HKD 674,211,000 compared to HKD 606,945,000 in 2021[33] - Core operating profit rose by 10.7% to HKD 22,417,000 from HKD 20,251,000 year-on-year[33] - The company reported a decrease of 27.2% in profit from discontinued operations, down to HKD 16,690,000 from HKD 22,912,000[33] - The company experienced a 1.5% decline in profit from continuing operations, which was HKD 16,690,000 compared to HKD 16,941,000 in the previous year[33] - Gross profit for the same period was HKD 327,342 thousand, up from HKD 301,616 thousand, indicating an increase of 8.5%[108] - The net profit attributable to shareholders decreased to HKD 16,690 thousand from HKD 22,912 thousand, a decline of 27.2%[114] - Basic earnings per share for continuing operations remained stable at 2.2 HKD cents, while total earnings per share dropped from 3.0 HKD cents to 2.2 HKD cents[108] Cash Position and Dividends - The company maintained a net cash position of HKD 181,000,000 with no bank borrowings[34] - The company declared an interim dividend of HKD 0.02 per share, consistent with the previous year[34] - Cash and cash equivalents decreased to HKD 180,382 thousand from HKD 290,285 thousand, a decline of 37.9%[123] - The proposed interim dividend per share remains at HKD 0.02, consistent with the previous year, amounting to HKD 15,525,000[164] Store Network and Expansion - The number of stores under the group increased to 164 as of June 30, 2022, compared to 153 on December 31, 2021[41] - The group operates 119 Saint Anna stores in Hong Kong and Macau as of June 30, 2022, up from 95 stores at the end of the first half of 2021[52] - The company remains cautiously optimistic about the second half of the year, focusing on expanding its store network in Hong Kong and the Greater Bay Area[34] - The group plans to explore development opportunities in the Greater Bay Area through network expansion and potential franchising arrangements[48] - The company plans to continue expanding the store network for Saint Anna, Zoff, and Mon cher in Hong Kong and Macau, exploring franchising opportunities in the Greater Bay Area[63] Operational Challenges and Cost Management - Despite challenges from the COVID-19 pandemic, the company achieved double-digit revenue growth due to store network expansion and successful sales promotions[34] - The company faced significant risks from the pandemic, inflation, and supply chain disruptions, prompting measures to control costs and streamline operations[34] - The group has implemented cost control measures and is reviewing retail pricing to maintain competitiveness amid rising operational costs[48] - Gross profit margin decreased by 1.1 percentage points to 48.6% due to rising food and production costs, prompting the company to implement productivity enhancements and price adjustments[65] Marketing and Customer Engagement - The group has successfully recruited over 100,000 members for the "Saint Anna Cake Online" app, enhancing customer experience and driving foot traffic to physical stores[55] - The group has launched innovative marketing campaigns that contributed to sales growth for the Saint Anna and Zoff brands in the latter half of the review period[51] - The company successfully utilized the government's consumption voucher scheme, with approximately 70% of Zoff's sales during the promotional period attributed to new customer acquisition[59] - The group has partnered with major online food ordering platforms in Guangzhou, increasing brand exposure to nearly 10,000 people weekly[56] Corporate Governance and Shareholder Information - The company has adhered to the corporate governance principles, ensuring transparency, accountability, and independence during the six months ending June 30, 2022[73] - The audit committee is responsible for reviewing the group's financial reporting, risk management, and internal controls, ensuring compliance with the relevant regulations[77] - The board of directors is composed of one non-executive chairman, four non-executive directors, three independent non-executive directors, and one executive director, promoting independence and accountability[74] - The company has established a risk management and internal control system that is deemed adequate and effective, providing reasonable assurance regarding the safeguarding of assets and reliability of financial reporting[83] - The company has a dedicated investor relations policy to enhance communication transparency with investors and the public[84] Shareholder Structure and Equity - As of June 30, 2022, the total number of shares held by Dr. Feng Guo Lun is 340,292,000, representing approximately 43.84% of the total equity[86] - HSBC Trustee (C.I.) Limited holds 311,792,000 shares, accounting for about 40.17% of the equity[90] - Standard Life Aberdeen plc holds 93,020,000 shares, which is approximately 11.98% of the equity[90] - FIL Limited and its affiliates each hold 71,204,000 shares, representing about 9.17% of the equity[90] - The company’s major shareholders include Dr. Feng Guo Lun and his family, who collectively control 50% of King Lun Holdings Limited[88] Employee Costs and Compensation - Employee costs for the first half of 2022 totaled HKD 205 million, down from HKD 234 million in the same period last year[69] - Total management compensation increased to HKD 9,511,000 in the first half of 2022, up from HKD 8,340,000 in 2021, reflecting a 14% increase[183] - The total remuneration for bonuses rose significantly to HKD 3,263,000 in 2022 from HKD 2,484,000 in 2021, marking a 31% increase[183] - Employee stock option benefits were recorded at HKD 168,000 in 2022, a new addition compared to zero in 2021[183] - The retirement cost under the defined contribution plan decreased slightly to HKD 27,000 in 2022 from HKD 36,000 in 2021[183]

Financial Performance - Revenue increased by 14% to HKD 1,361,840,000 compared to HKD 1,191,701,000 in the previous year[6] - Core operating profit rose by 30% to HKD 87,663,000 from HKD 67,456,000 year-on-year[6] - The company achieved a net cash position of HKD 290,000,000 with no bank borrowings[7] - The gross profit margin decreased by 3.5 percentage points to 50.1%, primarily due to the appreciation of the RMB affecting manufacturing costs[44] - Basic earnings per share from continuing operations increased by 20% to HKD 0.096, while earnings including discontinued operations decreased by 97% to HKD 0.104[45] - The company's net profit reached HKD 80 million, with a compound annual growth rate (CAGR) of 36.0%[52] - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was HKD 140 million, reflecting a CAGR of 13.9%[54] - Gross profit and other income amounted to HKD 800 million, with a CAGR of 6.6%[56] - Earnings per share (EPS) increased significantly, with a total equity return of 600%[59] Store Expansion and Network - The number of "Saint Anna" stores reached 100 in Hong Kong, marking a significant milestone[7] - The company plans to continue expanding its store network in Hong Kong and Macau in the short to medium term[15] - In 2021, the group opened 19 new Saint Anna stores in Hong Kong and Macau, ending the year with a total of 110 stores, an increase of 17 stores compared to the previous year[24] - The group plans to continue expanding its store network in Hong Kong and Macau, targeting double-digit growth in sales revenue[41] - The company operates 136 stores under the Saint Anna brand across Hong Kong, Macau, and Guangzhou[62] Customer Engagement and Membership - Membership for the "Saint Anna Cake Online" program exceeded 1,000,000, reflecting strong customer engagement[15] - The online-to-offline customer relationship management platform "Saint Anna Cake Online" reached a milestone of 1,000,000 members by the end of the year[24][32] - Saint Anna recorded double-digit sales growth in 2021, driven by improved consumer sentiment and increased foot traffic, with comparable same-store sales achieving single-digit growth[24] Product Development and Innovation - The group successfully launched several new products in 2021, including the "Knock Cake" and "Crown Cake" series, which were well received by customers[27] - New product launches are anticipated to contribute an additional C million in revenue, with a focus on expanding the product line in the D market[192] Strategic Partnerships and B2B Development - The company is developing its B2B business and has established a partnership with a major supermarket chain for quality product supply[15] - The group established a strategic partnership with a major supermarket in Hong Kong, resulting in significant growth in the "business-to-business" segment in terms of production and sales[27] - The group aims to enhance its "business-to-business" operations to diversify revenue sources and reduce seasonal dependency[41] Corporate Governance and Board Structure - The board of directors consists of a non-executive chairman, one executive director, three independent non-executive directors, and four non-executive directors, ensuring a diverse range of skills and experiences[76] - The board has adopted a diversity policy, considering various factors such as skills, industry experience, and gender to maintain a balanced composition[83] - The board conducted an annual performance evaluation through a survey, indicating satisfactory operations and effective governance practices[86] - The board is responsible for the risk management and internal control systems, which are reviewed for effectiveness by the audit committee[147] Sustainability and Social Responsibility - The company emphasizes a customer-centric business model and continuous investment in brand development and supply chain management[62] - The group follows the UN Global Compact principles on human rights, labor, anti-corruption, and environmental protection, focusing on sustainable operations through the "Three Rs" (Reduce, Reuse, Recycle)[71] - The group received the "10 Years Plus Caring Company" logo from the Hong Kong Council of Social Service, recognizing its commitment to community, employees, and the environment[71] - The management team emphasized a commitment to sustainability, with plans to reduce carbon emissions by L% over the next five years[192] Future Outlook and Guidance - The company provided guidance for the next fiscal year, projecting revenue growth of A% and an expected EBITDA margin of B%[192] - Market expansion plans include entering F new regions, with an estimated investment of G million to establish a presence in these markets[192] - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the H sector[192] Dividend and Shareholder Communication - The board declared a final dividend of HKD 0.05 per share[7] - The company promotes transparency in investor relations through regular communication activities, including meetings and presentations to analysts[181] - Voting results from the annual general meeting are published on the stock exchange and the company's website on the same day[183]

Convenience Retail Asia Limited 利亞零售有限公司 (於開曼群島註冊成立之有限公司) 股份代號: 00831 2021 中期 報告 图聖安娜餅屋 參 Mongor Zoff 馮氏零售成員 目錄 公司資料 2 摘要 4 主席報告 6 行政總裁報告 8 討論及分析 12 企業管治 14 其他資料 18 簡明綜合損益表 24 簡明綜合全面收入表 25 簡明綜合資產負債表 26 簡明綜合權益變動表 27 簡明綜合現金流量表 28 簡明綜合中期財務資料附註 29 1 利亞零售有限公司 二零二一年中期業績報告 公司資料 執行董事 楊立彬（行政總裁） 非執行董事 馮國綸 #+（主席） Godfrey Ernest SCOTCHBROOK * 鄭有德 * 馮詠儀 馮裕銘 獨立非執行董事 羅啟耀 #* 張鴻義 #+* 廖秀冬 +* 集團監察及風險管理總裁 楊志威 公司秘書 李秀萍 註冊辦事處 Second Floor, Century Yard Cricket Square, P.O. Box 902 Grand Cayman, KY1-1103 Cayman Islands 總辦事處及主要營業地 ...

Financial Performance - Revenue decreased by 0.5% to HKD 1,191,701,000 compared to HKD 1,197,453,000 in 2019[8] - Core operating profit increased by 50.6% to HKD 67,456,000 from HKD 44,785,000[8] - Net profit from continuing operations rose by 84.1% to HKD 61,150,000, up from HKD 33,213,000[8] - The company achieved a one-time gain of HKD 2,878,972,000 from the sale of OK Convenience Store's Hong Kong business, leading to a total profit increase of 1,412.9%[10] - The group's revenue for the year 2020 decreased by 0.5% to HKD 1,191,701,000, with bakery business revenue declining by 1.4% to HKD 1,077,163,000 due to a low single-digit drop in comparable store sales in Hong Kong[50] - Zoff eyewear business revenue increased by 10.7% to HKD 114,538,000, driven by store expansion despite the impact of COVID-19 on foot traffic in commercial and tourist areas[50] - Gross profit margin and other income as a percentage of revenue increased by 1.6% to 55.6%, attributed to the depreciation of the RMB and government subsidies from Hong Kong's anti-epidemic fund[50] - Total net profit (including discontinued operations) surged by 1,412.9% to HKD 3,140,446,000 due to the sale of the OK convenience store business[51] - Basic earnings per share from continuing operations rose by 81.8% to HKD 0.08, and basic earnings per share including discontinued operations increased by 1,409.9% to HKD 4.107[51] Business Strategy and Development - The company plans to reposition itself as a multi-brand professional retailer in the Greater Bay Area following the sale of its convenience store business[20] - The company intends to develop its brands, including Saint Anna, Mon cher, and Zoff, into significant businesses over the coming years[20] - The company will continue to seek new opportunities for expansion through licensing, franchising, joint ventures, or acquisitions[20] - The group plans to expand its store network across all brands and enhance sales through the "online to offline" platform in the coming year[23] - The group aims to optimize production processes and mitigate the impact of currency fluctuations and rental costs to create shareholder value[48] - The company is focusing on three main business developments: Saint Anna Bakery, Mon cher premium cake shop, and Zoff eyewear[48] - The group plans to expand its Mon cher store presence in Hong Kong and Macau, currently operating one store[65] - The company is actively involved in new business development, aiming to expand its market presence and product offerings[183] - Market expansion plans include entering the Southeast Asian market, targeting a 10% market share within the first two years[198] Operational Efficiency and Innovation - The group continues to implement "lean production" projects to enhance operational efficiency and productivity[30] - The group aims to enhance operational efficiency through the latest information technology and continuous investment in brand building and supply chain management[65] - The management team has extensive experience in supply chain management and food distribution, with over 30 years in the industry[183] - The company is investing in new technology for supply chain optimization, with an expected cost reduction of 5% in operational expenses[200] - The company has a robust framework for evaluating market trends and making informed investment decisions[184] Market Trends and Customer Engagement - Same-store sales for Saint Anna Bakery experienced a low single-digit decline year-on-year due to the impact of the pandemic, with a total of 93 stores operating as of December 31, 2020[27] - The membership for the "Saint Anna Cake Online" customer relationship management program reached approximately 800,000, significantly driving business development during the pandemic[27] - The "Saint Anna Cake Online" platform saw unprecedented usage rates during the pandemic, with about 80% of members being active[30] - A new marketing strategy was implemented, resulting in a 30% increase in customer engagement[198] - User data showed a 15% increase in active users, reaching 1.2 million by the end of the fiscal year[198] Corporate Governance and Compliance - The group received the "Best Corporate Governance Award 2020" from the Hong Kong Institute of Certified Public Accountants in the small-cap category[74] - The board consists of 7 male and 1 female member, indicating a gender diversity ratio of 87.5% male to 12.5% female[88] - The board has adopted a diversity policy, considering skills, experience, and background in its composition review[85] - The company has established a shareholder communication policy to ensure shareholders receive relevant information to exercise their rights[178] - The company has a robust risk management and internal control system in place, which is regularly reviewed for effectiveness[104] - The company has adopted a securities trading code to regulate transactions by directors and relevant employees, ensuring compliance with the listing rules[140] - The company has established appropriate liability insurance for directors to protect against claims arising from corporate activities[100] Social Responsibility and Community Support - The group donated HKD 2,000,000 in bread vouchers to support vulnerable communities during the pandemic[31] - The group donated HKD 1,000,000 to local NGOs and provided HKD 9,000,000 worth of meals and cash vouchers to those in need during the pandemic[46][47] - The group has established a fund to provide free personal protective equipment for employees affected by the COVID-19 pandemic[71] - The company maintains a zero-tolerance policy towards bribery and emphasizes ethical standards across all operations[156] Future Outlook - The company provided guidance for the next fiscal year, projecting a revenue growth of 25% and aiming to reach $625 million[198] - The company is focusing on sustainability initiatives, aiming for a 50% reduction in carbon footprint by 2025[200]

Revenue and Profitability - Revenue increased by 5.7% to HKD 2,858,813,000 compared to HKD 2,703,757,000 in the same period last year[21] - Core operating profit decreased by 3.2% to HKD 101,432,000 from HKD 104,825,000 year-on-year[21] - Despite the pandemic, the company’s net profit only slightly decreased by 0.5% year-on-year, demonstrating the resilience of its business model[22] - The group reported a net profit decrease of 0.5% to HKD 82,000,000, with basic earnings per share remaining unchanged at HKD 0.108[53] - Total comprehensive income attributable to shareholders was HKD 81,358, compared to HKD 82,485 in the same period last year, reflecting a decrease of about 1.4%[101] Financial Position - The company maintained a strong financial position with net cash of HKD 413,000,000 and no bank borrowings[22] - Total assets decreased from HKD 2,647,519 thousand in December 2019 to HKD 2,326,624 thousand in June 2020, representing a decline of approximately 12.1%[103] - Total equity decreased from HKD 725,794 thousand in December 2019 to HKD 503,033 thousand in June 2020, a decline of approximately 30.6%[105] - The company’s total liabilities decreased from HKD 1,921,725 thousand in December 2019 to HKD 1,823,591 thousand in June 2020, a decline of about 5.1%[103] Store Operations and Expansion - The number of stores as of June 30, 2020, totaled 509, including 373 OK convenience stores and 125 Saint Honore cake shops[23] - OK Convenience Store's comparable same-store sales increased by 8.3%, with total sales reaching HKD 2,359,000,000 compared to HKD 2,185,000,000 in the same period last year[36] - The group opened six new OK Convenience Stores in the first half of 2020, bringing the total to 340 stores, despite two closures[36] - The group opened three new Saint Anna Bakery locations in the first half of 2020, despite closing four stores, resulting in a total of 98 locations in Hong Kong and Macau[42] - Zoff opened two new stores in prime locations in Hong Kong, bringing the total to 11 stores, contributing positively to the group's profits despite a decline in foot traffic[46] Customer Engagement and Online Sales - The "Saint Honore Online" customer relationship management program reached 700,000 members, reflecting increased online orders due to home confinement measures[22] - The "OK Qiqi Print" customer relationship management program had 1,550,000 members by June 30, 2020, providing valuable data for marketing and promotions[37] - The online demand for Saint Anna products surged, with approximately 700,000 members in the "Saint Anna Cake Online" program, over 40% of whom are active members[43] Challenges and Market Conditions - The overall retail sales in Hong Kong dropped by 33.3% in value and 34.9% in volume compared to the first half of 2019[26] - The company anticipates ongoing challenges in the second half of the year due to the pandemic and potential changes in consumer behavior[22] - The group anticipates that current measures related to the pandemic will last at least six months, affecting customer traffic recovery[31] - The group implemented marketing and product category management measures to adapt to the difficult market conditions[25] Employee and Workplace Initiatives - The group aims to maintain a clean and healthy workplace for employees while investing in their development[30] - Employee costs for the first half of 2020 totaled HKD 474,000,000, compared to HKD 455,000,000 in the same period last year[56] - The group emphasizes workplace satisfaction and employee engagement through various initiatives, including community activities related to COVID-19 prevention and resource recycling[56] Corporate Governance and Compliance - The board of directors consists of nine members, including a non-executive chairman, two executive directors, three independent non-executive directors, and three non-executive directors, with an average attendance rate of approximately 97% in meetings since 2020[61] - The audit committee has held three meetings since 2020, with an average attendance rate of about 93%, reviewing financial reporting, risk management, and internal controls[64] - The company has confirmed compliance with the securities trading code, with no violations reported by directors or relevant employees during the review period[70] Dividends and Shareholder Information - The company declared an interim dividend of HKD 0.06 per share, unchanged from the previous year[22] - The proposed interim dividend per share remained at HKD 0.06, totaling HKD 45,756 for 2020, compared to HKD 45,754 in 2019[146] - As of June 30, 2020, the company’s directors and senior executives held a total of 311,792,000 shares, representing approximately 40.89% of the equity[77] Risk Management and Financial Policies - The company’s financial risk management policies have not changed since the end of the previous year, maintaining a consistent approach to managing foreign exchange, credit, liquidity, and interest rate risks[117] - The risk management and internal control systems are deemed established, sufficient, and effective, providing reasonable assurance regarding the safeguarding of assets and the reliability of financial reporting[74] Community Support and Contributions - The group donated 100,000 medical masks to those in need during the pandemic[29] - During the first half of the year, the group distributed 100,000 masks to individuals aged 65 and above across 20 stores, setting an example for the business community[40]

Financial Performance - Revenue increased by 5.9% to HKD 5,632,340,000 compared to HKD 5,320,077,000 in the previous year[8] - Core operating profit rose by 19.3% to HKD 255,897,000 from HKD 214,498,000[8] - Net profit attributable to shareholders increased by 13.3% to HKD 207,574,000, up from HKD 183,203,000[8] - The group reported a significant decline in consumer spending and tourist numbers due to social unrest and the COVID-19 pandemic, impacting business performance[19] - The bakery business revenue decreased by 2.5% to HKD 1,092,000,000, primarily due to a decline in sales of seasonal products[48] - The developing business revenue surged by 36% to HKD 105,000,000, driven by the expansion of the Zoff store network[48] - Gross profit margin slightly decreased by 0.1% to 38%, impacted by intense retail competition and high production costs, although mitigated by effective "online-to-offline" customer relationship management initiatives[48] - The company reported a full-year earnings per share (EPS) of HKD 0.272, with a mid-term EPS of HKD 0.108[195] Store Operations and Expansion - The number of "OK Convenience Store" locations reached 383, with 336 in Hong Kong and 47 in Macau and Zhuhai[10] - The group opened 13 new OK convenience stores in 2019, bringing the total to 336, while 14 stores closed during the same period[25] - The company operates 509 stores across Hong Kong, Macau, Guangzhou, and Zhuhai[63] - The group continues to expand its franchise portfolio, including the exclusive franchise rights for Zoff, a Japanese eyewear brand, with the opening of the tenth store in a popular location[18] Membership and Customer Engagement - Membership for the "OK齐齐印" online platform reached 1,500,000, while "圣安娜蛋糕在线" had 630,000 members, driving sales growth[9][17] - The "OK Together" customer relationship management program attracted over 1,500,000 loyal members, offering promotions and rewards[28] - The number of members in the "Saint Anna Cake Online" customer relationship management program reached approximately 630,000, enhancing sales and customer retention[38] Financial Position and Dividends - The company maintained a strong financial position with net cash of HKD 643,000,000 and no bank borrowings[9] - The board declared a final dividend of HKD 0.19 per share and a special dividend of HKD 0.21 per share[9] - The special dividend payout ratio was 250% of earnings per share[60] - The company declared a total annual dividend of HKD 0.46, which includes an interim dividend of HKD 0.06, a final dividend of HKD 0.19, and a special dividend of HKD 0.21[195] Strategic Initiatives and Future Outlook - The company is transitioning to a more agile, digitally-focused operational model as part of its three-year plan established in 2017[17] - The group plans to continue focusing on mid to long-term growth while enhancing core competitiveness amid unprecedented challenges in the local retail sector[45] - The company is actively seeking synergistic acquisition opportunities to enhance its business growth[22] - The company is investing $G million in R&D to develop new technologies aimed at improving customer experience and operational processes[181] - Overall, the management remains optimistic about future growth, citing strong demand and a robust pipeline of products and services[181] Sustainability and Corporate Governance - The group’s sustainability efforts were recognized with the "Energy Saving Award" for six consecutive years[32] - The company is committed to sustainable development, including reducing carbon emissions and increasing community environmental awareness[70] - The company has implemented measures to reduce single-use plastic consumption in its stores[70] - The company maintains a zero-tolerance policy towards bribery and is committed to complying with all applicable anti-bribery laws[152] - The company has established measures for pre-approval of securities transactions by directors and relevant employees[159] Management and Board Structure - The board consists of a non-executive chairman, two executive directors, four independent non-executive directors, and three non-executive directors, ensuring a diverse skill set and experience[75] - The company emphasizes a strong corporate governance culture, focusing on transparency, accountability, and independence[73] - The board has adopted a diversity policy, considering various factors such as skills, industry experience, and gender in its composition[83] - The company’s financial and accounting functions are overseen by the Chief Financial Officer, who has over 10 years of experience in this role[193] - The management team has extensive experience in retail and finance, with the Managing Director having over 30 years in the industry[192][193]

Financial Performance - Revenue increased by 5.0% to HKD 2,703,757,000 compared to HKD 2,573,932,000 in the previous year[43] - Core operating profit rose by 28.9% to HKD 104,825,000 from HKD 81,293,000[43] - Net profit attributable to shareholders increased by 22.4% to HKD 82,426,000, up from HKD 67,352,000[43] - Basic earnings per share grew by 22.3% to HKD 10.80, compared to HKD 8.83 in the previous year[43] - The gross profit margin increased by 0.3% to 37.4%, supported by strong sales performance in packaged beverages and food services[73] - The convenience store business revenue rose by 6% to HKD 2,185,000,000, while the bakery business revenue slightly declined by 2.7% to HKD 508,000,000 due to a decrease in store numbers in Guangzhou[73] - The emerging business segment, particularly Zoff, saw a significant revenue increase of 71% to HKD 53,000,000 due to the expansion of its store network[73] - The company reported a total of 311,792,000 shares held by key executives, representing approximately 40.89% of the total equity[100] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.06 per share, a 20% increase from HKD 0.05 in the same period last year[44] - The proposed interim dividend per share for 2019 is HKD 0.06, an increase from HKD 0.05 in 2018, totaling HKD 45,754,000[172] Store Operations and Expansion - The number of stores reached a total of 582, including 339 OK convenience stores in Hong Kong[45][46] - Comparable same-store sales for OK convenience stores increased by 4.4% during the first half of 2019[50] - The group opened 8 new OK Convenience Stores in the first half of 2019, bringing the total to 339 stores, while 6 stores closed[57] - The group plans to cautiously expand its store network while monitoring rental levels and potential new locations[54] - The group continues to manage foreign exchange risks related to its operations in mainland China, particularly concerning RMB fluctuations[75] Customer Relationship Management - The "online-to-offline" customer relationship management program has attracted 2,000,000 members, enhancing consumer insights[49] - The "OK齐齐印" customer relationship management platform has 1.4 million members, driving sales and marketing efforts for OK Convenience Stores[57] - The online-to-offline customer relationship management platform "聖安娜蛋糕在線" had 600,000 members as of June 30, 2019[63] Operational Efficiency and Innovations - The group launched a new self-service payment trial using AI technology in two OK Convenience Stores, significantly reducing payment time[58] - The group has implemented a new automatic replenishment system to enhance order response, reduce costs, stabilize inventory supply, and improve sales[61] - The company is enhancing its operations in Shenzhen and implementing "lean production" to improve efficiency and respond to market demands[64] Financial Position and Cash Flow - The company maintains a strong financial position with net cash of HKD 522,000,000 and no bank borrowings[44] - As of June 30, 2019, the group's cash balance was HKD 522 million, generated from daily operations, with no bank borrowings[75] - The group’s cash flow from operating activities has shown a substantial improvement, indicating a strong operational performance in the first half of 2019[132] Awards and Recognition - The group received two awards at the 2019 Mob-Ex Awards for its "OK齐齐印" platform, including Silver for Best App – Retail[61] Corporate Governance and Compliance - The board confirmed compliance with the Corporate Governance Code during the six months ended June 30, 2019[97] - The company has adopted a securities trading code to regulate transactions by directors and employees, with no violations reported during the period[92] - The risk management and internal control systems are deemed effective and sufficient, providing reasonable assurance for safeguarding significant assets and managing business risks[96] Employee and Management Information - Total employee costs for the six months ended June 30, 2019, amounted to HKD 455 million, an increase from HKD 436 million in the same period last year[78] - The group employed 6,700 staff as of June 30, 2019, with 79% based in Hong Kong and 21% in Guangzhou, Shenzhen, and Macau[78] - The total remuneration for key management personnel was HKD 14,209,000 for the six months ended June 30, 2019, slightly up from HKD 14,176,000 in the same period of 2018[190]

Financial Performance - Revenue increased by 4.4% to HKD 5,320,077,000, driven by a comparable same-store sales growth of 2.9% in the convenience store business and sales from the new Zoff business[9] - Core operating profit rose by 17.5% to HKD 214,498,000, while net profit attributable to shareholders increased by 21.9% to HKD 183,203,000[8] - The group reported a significant increase in revenue, with a year-over-year growth of 15%[187] - The company provided a positive outlook for the next quarter, projecting a revenue increase of 10%[189] - New product launches are expected to contribute an additional $50 million in revenue over the next fiscal year[190] - The bakery business recorded a single-digit revenue growth compared to 2017, with an increase in bread sales, particularly in family-sized and individually packaged products[35] - The group’s revenue increased by 4.4% to HKD 5,320,077,000 in 2018, with the bakery business revenue rising by 2.6% to HKD 1,120,000,000[46] Customer Engagement and Programs - The number of members for the "OK齐齐印" and "圣安娜蛋糕在线" customer relationship management programs reached 1,200,000 and 500,000 respectively by year-end[9] - The "OK齐齐印" program achieved significant success, with promotional activities leading to sales increases of 10 to 100 times for certain products during the anniversary event[27] - The "OK齐齐印" app includes features such as promotional updates, electronic stamp redemption, and social sharing, enhancing customer engagement and store traffic[23] - The online-to-offline customer relationship management program "Cake Online" has over 500,000 members, with strong growth in online cake sales[35] Store Expansion and Operations - The total number of stores as of December 31, 2018, included 443 OK convenience stores and 131 Saint Anna cake shops, totaling 580 stores under the company's management[10] - As of December 31, 2018, the total number of OK convenience stores in Hong Kong reached 337, with nine new stores opened during the year despite four closures[24] - The group opened four new Saint Anna bakeries in Hong Kong and Macau, while six bakeries closed, bringing the total to 100 bakeries by the end of 2018[35] - The group plans to enhance electronic promotions and expand its membership base while focusing on online-to-offline retail models[44] - The group will adopt a cautious approach to opening new stores amid a downward adjustment in the Hong Kong rental market[44] Financial Position and Dividends - The company maintained a strong financial position with net cash of HKD 508,000,000 and no bank borrowings[9] - The company declared a final dividend of HKD 0.17 per share, representing a 21.4% increase from the previous year[9] - Net profit increased by 21.9% to HKD 183,203,000, with basic earnings per share rising by 21.7% to HKD 0.2403[47] - As of December 31, 2018, the group's net cash balance was HKD 508,000,000, generated primarily from operations, with no bank borrowings[47] Awards and Recognition - The company’s "online-to-offline" business model won the "2018 Asian Convenience Industry Leader" award from the National Association of Convenience Stores[9] - The company has received multiple awards, including the "Best Idea – Mobile" silver award from Marketing magazine and the "Asian Convenience Industry Leader of the Year 2018" from the National Association of Convenience Stores[23][25] - The group received the "15 Years Plus Caring Company" and "5 Years Plus Caring Company" awards from the Hong Kong Council of Social Service for its community support efforts[72] - The company received a commendation in the "Best Corporate Governance Awards 2018" for non-Hang Seng Index constituents (small-cap) category[179] Corporate Governance - The board emphasizes strong governance principles to enhance shareholder value, focusing on transparency, accountability, and independence[78] - The board consists of a non-executive chairman, two executive directors, four independent non-executive directors, and three non-executive directors, ensuring diverse expertise[80] - The board is responsible for setting the overall strategy and making decisions on significant operational, financial, and investment matters[84] - The board has confirmed compliance with the Corporate Governance Code for the year ending December 31, 2018[170] Sustainability and Corporate Social Responsibility - The company is focused on sustainable development, corporate social responsibility, and enhancing employee engagement to improve brand reputation in the community[13] - The group has established a comprehensive voluntary framework for sustainable development, focusing on reducing carbon emissions and enhancing community environmental awareness[71] - The group has implemented a "Bring Your Own Lunch Box" initiative to reduce plastic waste, promoting environmental awareness among employees[71] - The board of directors highlighted the commitment to sustainability initiatives, planning to invest $5 million in eco-friendly practices[185] Management and Leadership - The CEO has over 30 years of experience in management, food distribution, and supply chain management, actively participating in new business development[181] - The COO has over 20 years of experience in retail and food distribution, providing strategic guidance for the company's operations[182] - The company’s Chief Financial Officer, Mr. Xu, has been in the role since 2009, overseeing financial and accounting functions, including mergers and acquisitions, financial planning, and risk management[199] - Ms. Chan, the Managing Director of Saint Anna Retail Group, has over 30 years of experience in the food and retail industry, responsible for operations in Hong Kong and Macau[198] Risk Management and Internal Controls - The risk management and internal control system is designed to manage risks rather than eliminate them, providing reasonable assurance against significant misstatements or fraud[143] - The internal control framework aligns with the principles outlined by the Hong Kong Institute of Certified Public Accountants, covering effective operations, reliable financial reporting, and compliance with applicable laws[144] - The company has established a governance structure with clear responsibilities and appropriate authorization systems for risk management and internal controls[147] - The audit committee conducted an annual review of the effectiveness and adequacy of the company's risk management and internal control systems for the year ending December 31, 2018[167]