Financial Performance - For the fiscal year ended December 31, 2020, the company's attributable profit was HKD 127 million, an increase of HKD 65 million or 105% compared to HKD 62 million in the previous year[11]. - Earnings per share increased to HKD 0.042 from HKD 0.020 in 2019[11]. - As of December 31, 2020, the net asset value attributable to shareholders was HKD 1.347 billion, or HKD 0.44 per share, compared to HKD 1.288 billion or HKD 0.42 per share in 2019[11]. - The group reported a total net profit attributable to shareholders of HKD 127 million, a 105% increase from HKD 62 million in the previous year[34]. - Profit attributable to shareholders increased by 24% to HKD 94 million, compared to HKD 76 million in the previous year[48]. - The company's annual profit for 2020 was HKD 127 million, a decrease of 10.4% compared to 2019's profit of HKD 142 million[78]. - Revenue for the year ended December 31, 2020, decreased by HKD 85,000,000 or 10% compared to the previous year[51]. - Total sales for Citistore decreased by 14% to HKD 1,515 million for the year ended December 31, 2020, compared to HKD 1,768 million in 2019[20]. - UNY's total sales increased by 19% to HKD 1,347 million, with self-operated product sales rising by 25% to HKD 1,021 million[29][30]. - UNY achieved a net profit of HKD 33 million, compared to a net loss of HKD 22 million in the previous year, supported by government wage subsidies of HKD 22 million[32]. Operational Changes - The company operates six "Citistore" department stores and three "APITA" or "UNY" supermarkets in Hong Kong[6]. - The company plans to continue expanding its supermarket and department store operations in densely populated residential areas[15]. - The company optimized its product mix by introducing more home goods in response to reduced demand for travel-related items due to the pandemic[20]. - The company plans to strategically adjust its store network, including the closure of the Citistore in Tai Kok Tsui within 2021[36]. - The total operating hours for Citistore stores were reduced by 3,123.5 hours due to the pandemic, impacting customer traffic[50]. - The company aims to enhance its online business and diversify shopping channels to improve overall performance[36]. Customer Engagement and Marketing - The "Citi-Fun" membership program has grown to over 350,000 members by the end of December 2020, with increased promotional efforts to enhance customer engagement[16]. - New product offerings included the launch of the "Style One" private label and online grocery delivery services, enhancing customer experience[29]. - The company emphasizes customer-centric operations, aiming to provide high-quality service and products to enhance the shopping experience[99]. - Citistore received 14 customer appreciation letters during the reporting period, reflecting its commitment to providing the best customer experience[103]. - In 2020, Citistore received a total of 44 customer complaints regarding purchased products and services, all of which were resolved according to internal procedures[102]. COVID-19 Response - The company implemented comprehensive preventive measures in stores to ensure a safe environment for customers and staff during the pandemic[16]. - The company has implemented enhanced cleaning and disinfection procedures in response to the COVID-19 pandemic, increasing the frequency of cleaning high-contact areas[97]. - The company has established automatic temperature screening stations at store entrances to ensure visitor safety during the pandemic[94]. - The company has adopted a mask-wearing policy for all employees and customers to mitigate transmission risks[95]. - The company has implemented flexible work arrangements and provided masks and sanitizers to ensure employee health and safety during the pandemic[135]. Financial Management - Cash and bank balances reached HKD 415 million, up from HKD 363 million in 2019, with no bank borrowings reported[35]. - The company had no bank borrowings as of December 31, 2020, consistent with the previous year[67]. - The company recorded zero financing costs for bank borrowings for the year ended December 31, 2020, compared to HKD 64,910 in 2019[66]. - The total employee cost for the year ended December 31, 2020, was HKD 270,000,000, an increase from HKD 250,000,000 in 2019, primarily due to the opening of a new supermarket[75]. - The company received a rental concession of HKD 23,000,000 during the year, contributing to reduced rental expenses[52]. Sustainability and Community Engagement - The company is committed to sustainable development and regularly engages with stakeholders to assess environmental, social, and governance issues[84]. - The company continues to promote sustainable shopping habits through initiatives like the "Bring Your Own Shopping Bag" campaign[122]. - The total donations for community investment exceeded HKD 250,100 in 2020, supporting various charitable organizations and community projects[162]. - The company has a long-term partnership with Green Action to promote recycling initiatives, including the reuse of red packets during the Lunar New Year[131]. - The company has not reported any environmental regulation violations during the reporting period[110]. Corporate Governance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange rules, with no significant deviations noted[177]. - The board of directors is responsible for the overall management of the company, including business strategy formulation and supervision of company affairs[178]. - The board has established a clear framework for risk management and internal control systems, reviewing their effectiveness regularly[178]. - The audit committee is responsible for reviewing and monitoring the company's financial reporting processes and risk management systems[199]. - All independent non-executive directors confirmed their independence and have no relationships that could significantly interfere with their independent judgment[185].
恒基发展(00097) - 2020 - 年度财报