英皇钟表珠宝(00887) - 2019 - 中期财报

Financial Performance - Total revenue for the six months ended June 30, 2019, was HKD 2,403 million, a decrease of 2.1% compared to HKD 2,454 million for the same period in 2018[3] - Gross profit increased by 12.0% to HKD 758 million, with a gross margin of 31.5%, up 3.9 percentage points from 27.6% in the previous year[3] - Net profit reported was HKD 118 million, down 24.8% from HKD 157 million in the first half of 2018, while adjusted net profit rose by 3.8% to HKD 163 million[3] - The group reported revenue of HKD 2,402,664,000 for the six months ended June 30, 2019, a decrease of 2.1% compared to HKD 2,453,978,000 in the same period of 2018[23] - Gross profit for the same period was HKD 757,946,000, reflecting an increase of 11.9% from HKD 677,270,000 in 2018[23] - The net profit for the period was HKD 117,586,000, a decrease from HKD 157,184,000 in the same period of 2018[23] - Basic earnings per share for the period were HKD 1.73, down from HKD 2.29 in 2018[23] - The pre-tax profit for the six months ended June 30, 2019, was HKD 147,342, compared to HKD 185,159 for the same period in 2018, indicating a decrease of approximately 20.4%[70] - The basic earnings per share attributable to the company's owners decreased to HKD 0.0173 for the first half of 2019, down from HKD 0.0229 in the same period of 2018, representing a decline of about 24.5%[79] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.35 per share, reduced from HKD 0.70 per share in the previous year[8] - The board declared an interim dividend of HKD 0.35 per share, totaling approximately HKD 23,700,000, down from HKD 47,500,000 in 2018[21] - The total dividend declared for the first half of 2019 was HKD 23,728,000, a decrease of 50% compared to HKD 47,456,000 in the first half of 2018[77] Cash Flow and Financial Position - As of June 30, 2019, the group had cash and cash equivalents of HKD 623 million, with total bank borrowings of HKD 1,127 million, resulting in a net debt ratio of 11.1%[9] - The net cash generated from operating activities for the six months ended June 30, 2019, was HKD 253,283 thousand, compared to a net cash used of HKD 49,979 thousand for the same period in 2018[30] - The cash and cash equivalents at the end of June 30, 2019, were HKD 623,135 thousand, down from HKD 1,348,588 thousand at the end of June 30, 2018[30] - The company’s bank borrowings as of June 30, 2019, were HKD 639,232 thousand, an increase from HKD 594,673 thousand as of December 31, 2018[27] - The company’s total assets net value was HKD 2,838,735 thousand as of June 30, 2019, compared to HKD 2,988,148 thousand as of December 31, 2018[27] - The company’s total liabilities decreased to HKD 1,071,895 thousand as of June 30, 2019, from HKD 1,071,895 thousand as of December 31, 2018[27] - The company’s retained earnings increased to HKD 1,474,885 thousand as of June 30, 2019, from HKD 1,402,463 thousand as of January 1, 2019[28] Store and Market Expansion - The retail network consists of over 95 stores across Hong Kong, Macau, mainland China, Singapore, and Malaysia, with a total of 97 stores as of June 30, 2019[11] - The watch business contributed HKD 1,884 million in revenue, accounting for 78.4% of total revenue, while jewelry revenue slightly increased to HKD 519 million[6] - The company opened one watch specialty store each in mainland China and Singapore during the period to enhance market penetration[13] - The group opened one new "Emperor Jewelry" store in Tsuen Wan, Hong Kong, and two stores in mainland China and one in Singapore during the reporting period[15] - The company continues to focus on strategic locations in Hong Kong, benefiting from high tourist traffic in prime retail areas[12] - The group aims to expand its coverage to capture opportunities from different customer segments globally[18] Employee and Operational Costs - The total employee cost for the group was approximately HKD 178,400,000, an increase from HKD 150,700,000 in the first half of 2018[19] - Employee costs, including director remuneration, totaled HKD 165,283, an increase from HKD 139,614 in the previous year[70] Compliance and Governance - The company has complied with all provisions of the Corporate Governance Code, except for the separation of the roles of Chairman and CEO[115] - The interim financial statements have not been audited or reviewed by the company's auditors but have been reviewed by the audit committee[119] - The company has adopted its own code of conduct for securities transactions by directors, which meets the standards set out in the Listing Rules[117] Lease Liabilities and Accounting Standards - The company adopted HKFRS 16, resulting in a recognition of lease liabilities amounting to HKD 462,174,000 and right-of-use assets of HKD 442,974,000 as of January 1, 2019[51] - The company recognized a significant increase in lease liabilities amounting to HKD 462,174 due to the application of HKFRS 16[62] - The weighted average incremental borrowing rate applied by the company was 3% for the calculation of lease liabilities[51] - The company applied exemptions for short-term leases, resulting in a reduction of lease liabilities by HKD 74,004,000[54] - The company recognized a decrease in retained earnings of HKD 7,877 as a result of the initial application of HKFRS 16[62] Related Party Transactions - Related party transactions for the six months ended June 30, 2019, totaled HKD 11,049,000, a significant decrease from HKD 105,582,000 in the same period of 2018[101] - The company has recognized lease liabilities of approximately HKD 188,694,000 as of June 30, 2019, related to leases with related companies[104] Shareholder Information - As of June 30, 2019, the company’s major shareholder, Ms. Yang, held 63.29% of the voting shares, amounting to 4,290,850,000 shares[106] - The beneficial owner of Emperor Watch and Jewellery Holdings holds 4,290,850,000 shares, representing 63.29% of the issued voting shares[111] - The total issued and paid-up ordinary shares as of June 30, 2019, remained at 6,779,458,129, unchanged from the previous year[98] - The company repurchased and cancelled 102,990,000 shares, with a total cost of HKD 51,194,000 deducted from retained earnings[98]