Financial Performance - For the fiscal year ending July 31, 2019, the company's revenue decreased to HKD 235.35 million, down 11.2% from HKD 265.00 million in 2018[25]. - The gross profit fell approximately 9% to HKD 163.33 million, compared to HKD 180.47 million in the previous year[25]. - The overall revenue from the "Garment and Related Accessories" segment declined by 14% to HKD 178.05 million, resulting in a loss of HKD 24.49 million, an improvement from the loss of HKD 40.40 million in 2018[25]. - The total comprehensive income attributable to the company's owners for the year was HKD 28.65 million, a significant decrease from HKD 159.69 million in 2018[30]. - Profit attributable to owners of the company for the fiscal year was HKD 30,607,000, down 81.2% from HKD 162,493,000 in 2018[143]. - Total assets as of July 31, 2019, were HKD 2,566,190,000, a decrease from HKD 2,769,161,000 in 2018[143]. - Total liabilities decreased to HKD 747,425,000 in 2019 from HKD 969,570,000 in 2018, representing a reduction of 22.8%[143]. - Total equity increased slightly to HKD 1,818,765,000 in 2019 from HKD 1,799,591,000 in 2018, reflecting a growth of 1.1%[143]. Dividends and Shareholder Returns - The company decided not to declare a final dividend for the fiscal year, compared to a dividend of HKD 0.01 per share in 2018[31]. - The company did not recommend the payment of a final dividend for the year, consistent with the previous year where no interim dividend was declared[67]. - The available reserves for distribution to shareholders as of July 31, 2019, are approximately HKD 1,357,990,000[130]. Revenue Sources and Segments - Rental income from the "Property Investment and Leasing" segment was HKD 57.30 million, slightly up from HKD 57.19 million in 2018[26]. - The fair value gain from investment properties dropped by 69% to HKD 57.41 million, down from HKD 184.05 million in the previous year[26]. - The company's licensing revenue for the "Crocodile" brand in mainland China decreased to HKD 740,000 for the year ended July 31, 2019, down from HKD 908,000 in 2018[35]. - As of July 31, 2019, the company operated 13 stores in mainland China, a reduction from 16 stores in 2018, with total revenue from this category at HKD 10,052,000, down from HKD 11,424,000 in 2018[36]. - Rental income from investment properties in Hong Kong was HKD 56,018,000 for the year ended July 31, 2019, slightly down from HKD 56,042,000 in 2018, while rental income from mainland China increased to HKD 1,282,000 from HKD 1,148,000[42]. Operational Changes and Strategies - The company streamlined its logistics and administrative processes to reduce overhead costs[34]. - The company plans to enhance product displays and improve customer service to strengthen the "Crocodile" brand image amid challenges in the "Apparel and Related Accessories" segment[48]. - The company aims to restructure its sales network and logistics framework to improve operational efficiency and will continue to monitor market conditions in Hong Kong and mainland China for potential business expansion opportunities[48]. - The company will adopt a prudent strategy in managing its financial assets portfolio to avoid performance deviations in the "Securities Trading" category, despite anticipated global monetary easing[48]. Securities Trading and Investments - The company recorded a profit of HKD 5.86 million from "Securities Trading," recovering from a loss of HKD 4.06 million in the first half of the fiscal year[26]. - The company recorded a loss of HKD 4,059,000 in the first half of the fiscal year due to market volatility, but later achieved a profit of HKD 5,857,000 for the year ended July 31, 2019, compared to HKD 5,446,000 in 2018 in the "Securities Trading" category[43]. - The group did not engage in any major investments, acquisitions, or disposals during the fiscal year ending July 31, 2019[58]. - The company did not engage in any share buybacks or securities transactions during the fiscal year[134]. Governance and Management - The company has a strong governance structure with various committees, including the audit and remuneration committees, to oversee operations and executive compensation[99]. - The board consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors, complying with the minimum requirements set by the listing rules[161]. - The company has established specific committees, including an executive committee, audit committee, and remuneration committee, to assist in effective governance[160]. - The company has a governance policy that emphasizes accountability, transparency, fairness, and integrity since March 27, 2012[181]. - The Audit Committee is responsible for monitoring the integrity of the company's financial statements and ensuring compliance with applicable standards[181]. Employee and Director Information - The total number of employees, including part-time sales staff, increased to 298 as of July 31, 2019, up from 274 in 2018[59]. - The current executive directors have extensive experience in the garment industry, with Dr. Lin Jianming having been involved in daily management since 1958[81]. - Ms. Lin Weishan has over 21 years of experience in the fashion industry and has received multiple awards for her contributions[82]. - Dr. Lin Jianyue has rich experience in property development, investment, and media, having served in various leadership roles[85]. - Mr. Lin Jiankang has extensive experience in property development and corporate financing in Hong Kong and mainland China[89]. Share Options and Ownership - The company has a total of 5,800,000 unexercised stock options under the 2015 stock option plan, representing approximately 0.61% of the total issued shares as of July 31, 2019[100]. - The maximum number of shares that can be issued under the 2015 stock option plan is 94,754,369 shares, which accounts for 10% of the total issued shares at the time of approval[100]. - The exercise price for the stock options granted ranges from HKD 0.842 to HKD 0.994 per share[104]. - The company has not granted, exercised, canceled, or expired any stock options under the 2015 stock option plan during the reporting year, aside from those mentioned[106]. - The total number of shares held by Dr. Lin and related entities amounts to 493,003,000 shares, which is 52.03% of the total issued shares[110]. Risk Management and Financial Position - The company maintains a conservative treasury management strategy, regularly monitoring interest rate and foreign exchange risks, with no significant exposure to unforeseen currency exchange risks[52]. - The total outstanding borrowings, including margin loans, amounted to HKD 619,618,000 as of July 31, 2019, with various secured loans contributing to this total[54]. - The debt-to-equity ratio was reported at 34% as of July 31, 2019, indicating a cautious approach to business development amid global economic uncertainties[57]. - As of July 31, 2019, the company reported no significant contingent liabilities[49].
鳄鱼恤(00122) - 2019 - 年度财报