Financial Performance - Shareholders' profit attributable to the company for the year ended December 31, 2019, was HKD 62 million, a decrease of HKD 35 million or 36% compared to HKD 97 million in the previous year[11]. - Earnings per share decreased to HKD 0.02 from HKD 0.032 in 2018[11]. - Total sales revenue for self-operated goods decreased by 7% to HKD 404 million from HKD 433 million in 2018[21]. - Total sales revenue for licensed and consignment counters decreased by 9% to HKD 1,364 million from HKD 1,493 million in 2018[21]. - Overall sales revenue decreased by 8% to HKD 1,768 million from HKD 1,926 million in 2018[21]. - The net asset value attributable to shareholders as of December 31, 2019, was HKD 1.288 billion, or HKD 0.42 per share, down from HKD 1.401 billion or HKD 0.46 per share in 2018[11]. - The company proposed a final dividend of HKD 0.01 per share, totaling HKD 0.03 per share for the year, down from HKD 0.04 per share in 2018[12]. - The overall after-tax profit contribution from "Citistore" and "UNY Hong Kong" combined was HKD 54 million, a decrease of HKD 35 million or 36% compared to the previous year[37]. - The company reported a pre-tax profit of HKD 91 million, down 15% from HKD 107 million in the previous year[54]. - The net profit attributable to shareholders decreased by 15% to HKD 76 million in 2019, compared to HKD 89 million in 2018[54]. Sales and Revenue Trends - The overall retail sales value in Hong Kong decreased by 11.1% year-on-year in 2019[15]. - Sales revenue from self-operated products decreased by 7% to HKD 404 million, with a slight decline in gross margin to 33% from 34% in the previous year[22][23]. - Commission income from franchise and consignment counters fell by 7% to HKD 406 million, driven by a decrease in sales amounts from both franchise and consignment counters[26][27]. - "UNY Hong Kong" reported a total sales amount decrease of 18%, with self-operated product sales down 16% to HKD 816 million and consignment sales down 24% to HKD 313 million[31][32]. - The retail business generated a total revenue of HKD 404 million in 2019, a decrease of 7% compared to HKD 433 million in 2018[54]. Operational Developments - The company plans to open a new Japanese supermarket in Yuen Long in mid-2020 to enhance its product offerings and mitigate potential negative impacts from the ongoing pandemic[39]. - The group aims to integrate the operations of "Citistore" and "UNY Hong Kong" to achieve operational synergies and improve cost efficiency[39]. - The company opened a limited-time store in Tsim Sha Tsui in April 2019, focusing on pet products and workshops, which increased brand awareness[18]. Cost Management - The direct costs associated with sales amounted to HKD 817 million, reflecting a 7% decrease from HKD 877 million in the previous year[54]. - Total depreciation expense for right-of-use assets amounted to HKD 140 million, with HKD 136 million classified as direct costs and HKD 4 million as administrative expenses[56]. - Rental and related expenses decreased by HKD 20 million year-on-year to HKD 226 million, attributed to social movements in Hong Kong affecting normal operating hours and reduced commission rental expenses[57]. Employee and Workforce Insights - The company had 934 full-time employees and 254 part-time employees as of December 31, 2019, a decrease from 1,017 full-time and 271 part-time employees in 2018[78]. - The total employee cost was HKD 250 million, an increase from HKD 218 million in 2018, primarily due to the full-year recognition of employee costs for UNY Hong Kong[78]. - The average training hours per employee is 10.5 hours[146]. - The employee turnover rate for males was 20.9%, while for females it was 19.2%[161]. Environmental and Social Responsibility - The company actively participated in the "Earth Hour" campaign in 2019, turning off neon lights and display window power for one hour to raise awareness about energy consumption[112]. - The company collected 639 kilograms of used red packets for recycling during the 2019 Lunar New Year, supporting the Green Action initiative[122]. - The company recycled a total of 318,332 electronic devices in collaboration with ECO Drive Hong Kong[123]. - The company showcased various eco-friendly products as alternatives to single-use plastics during the "Don't Go Plastic" campaign[123]. Corporate Governance - The company has a commitment to good corporate governance and compliance with applicable codes and standards[171]. - The board of directors is responsible for overall management and strategic direction, ensuring effective risk management and internal controls[172]. - The company has arranged for directors and officers liability insurance to cover potential liabilities arising from business operations[187]. - The board consists of nine members, including executive and independent non-executive directors, ensuring compliance with listing rules[178].
恒基发展(00097) - 2019 - 年度财报