周生生(00116) - 2020 - 年度财报

Financial Performance - Total turnover for 2020 was HK$15,032,420, a decrease of 15% from HK$17,736,226 in 2019[6] - Profit attributable to equity holders of the Company was HK$544,464, down 15% from HK$643,533 in the previous year[6] - Basic and diluted earnings per share were both 80.4 cents, a decline of 15% compared to 95.0 cents in 2019[6] - The Group's consolidated turnover for 2020 decreased by 15% to HK$15,032 million, with profit attributable to equity holders also decreasing by 15% to HK$544 million[20] - In the first quarter of 2020, quarterly revenue dropped 45% year-on-year due to the COVID-19 pandemic, but the decline started to narrow from the second quarter[19] - Retail turnover in Hong Kong and Macau fell to HK$4,261 million, a 34% decrease from HK$6,436 million in 2019, with segment results showing a loss of HK$310 million[24] - The Group's retail turnover for the year ended 31 December 2020 was HK$13,097,720, a decrease of 19.5% from HK$16,258,416 in 2019[76] - The Group's operating profit for the year was HK$920,920, representing an increase of 4.3% compared to HK$883,291 in 2019[76] Dividend and Payout - Total dividend per share for the year increased to 47.0 cents from 39.0 cents in 2019[6] - The dividend payout ratio was 39%, slightly down from 41% in the previous year[6] - The Company intends to distribute between 30% to 40% of the Group's annual consolidated net profits as dividends to shareholders[86] - The Company declared an interim dividend of HK5.0 cents per ordinary share and recommended a final dividend of HK26.0 cents and a special final dividend of HK16.0 cents per ordinary share[74] Market and Sales Trends - Retail turnover was HK$13,097,720, a decrease of 19% from HK$16,258,416 in 2019[6] - The recovery in Mainland China has been encouraging, while Hong Kong and Macau continue to face economic challenges due to ongoing shop leases and a scarcity of visitors[12] - E-commerce sales in Hong Kong showed remarkable progress in 2020, with increased demand for online shopping, including mid- to low-end jewellery[12] - Jewellery and watch sales in Mainland China showed growth momentum in the second half of 2020, while sales in Hong Kong and Macau dropped 34% due to the absence of tourists[19] - Retail turnover in Mainland China was HK$8,686 million in 2020, a decrease of 10% from HK$9,688 million in 2019, while segment results improved by 11% to HK$1,213 million[24] - Retail turnover in Taiwan increased by 13% to HK$151 million, with segment results improving by 71% to HK$12 million[24] Store Operations and Expansion - The company opened 62 new stores and closed 32, resulting in a net increase of 30 stores, bringing the total to 591 by the end of 2020[42] - 72 new Chow Sang Sang stores were opened in Mainland China, while 32 stores were closed, resulting in a net increase of 40 stores[44] - The Group plans to open approximately 100 new stores in 2021 as part of its multi-brand strategy[71] - The new store category "生生 • 活宇" (Oasis by Chow Sang Sang) aims to enhance geographical coverage and penetrate lower-tier cities in Mainland China[71] Financial Position and Assets - Equity attributable to equity holders of the Company rose to HK$12,019,114, an increase of 13% from HK$10,632,385 in 2019[6] - The company maintained a strong financial position with a significant equity per share increase to HK$17.7 from HK$15.7[6] - Cash and cash equivalents as of December 31, 2020, amounted to HK$1,654 million, up from HK$1,028 million in 2019[62] - The Group's total assets as of 31 December 2020 were HK$16,826,467, an increase from HK$16,236,438 in 2019[76] - The Group's total liabilities as of 31 December 2020 were HK$4,807,353, a decrease from HK$5,604,053 in 2019[76] Governance and Management - The company has a strong board with members having diverse backgrounds in finance, law, and education, enhancing its governance and strategic direction[15][16] - The Group emphasizes the importance of independent non-executive directors in its governance structure, ensuring accountability and transparency[16] - The Board consists of nine Directors, including three Executive Directors, two Non-executive Directors, and four Independent Non-executive Directors[161] - The Board is responsible for formulating the Group's ESG strategy and reporting, while management implements ESG management and objectives[108] - The Group's independent external auditor, Ernst & Young, reported audit fees of HK$3,741,000 for 2020, down from HK$4,063,000 in 2019, indicating a decrease of approximately 7.9%[192] Corporate Social Responsibility and ESG - The Group is actively involved in community and cultural initiatives, reflecting its commitment to corporate social responsibility[16] - The Group made charitable contributions totaling HK$2,136,000 during the year[78] - The Group's ESG report covers performance for the year ended 31 December 2020, focusing on luxury product manufacturing and retailing in Greater China[108] - The Group has established comprehensive procurement and supply chain management policies, prioritizing suppliers with strong ESG performance[115] - The Group has maintained zero reported cases of corruption, bribery, extortion, fraud, and money laundering in the past year, consistent with 2019[119] Environmental Initiatives - The Group has committed to environmental sustainability by banning shark fins and other endangered species from corporate functions and promoting the use of reusable cups[124] - The Group's total wastewater discharged in 2020 was 21,681 tonnes, a reduction of 50.6% compared to 43,831 tonnes in 2019[138] - The Group has set energy and carbon reduction targets for its factories to enhance climate resilience against future low-carbon policies[134] - The Group received the Wastewi$e Certificate (Excellence Level) from Hong Kong Green Organisation Certification for its waste reduction efforts[140] Risk Management - The Group faces risks from disruptions in the retail market due to COVID-19, with a focus on adopting omni-channel retailing to enhance customer loyalty[198] - The Board is responsible for ensuring adequate risk management and internal controls to safeguard the Group's assets and manage risks[193] - Risk assessments are conducted biannually, with key risks and action plans reported to the Audit Committee and the Board[196]