Financial Performance - For the fiscal year ending July 31, 2020, the company's revenue decreased to HKD 151,267,000, down 36% from HKD 235,348,000 in 2019[22] - The gross profit fell approximately 36% to HKD 105,310,000, compared to HKD 163,334,000 in the previous year[22] - The "Garment and Related Accessories" segment experienced a revenue decline of 47% to HKD 94,868,000, resulting in a loss of HKD 105,250,000[22] - The company recorded a fair value loss of HKD 161,185,000 on investment properties, compared to a gain of HKD 57,414,000 in the previous year[23] - The "Securities Trading" segment reported a loss of HKD 17,523,000, down from a profit of HKD 5,857,000 in 2019[25] - The total comprehensive expenses attributable to the owners amounted to HKD 292,024,000, compared to a profit of HKD 28,649,000 in the previous year[25] - The company reported a loss attributable to shareholders of HKD (290,483,000) for the fiscal year, compared to a profit of HKD 30,607,000 in the previous year[131] - Total assets as of July 31, 2020, were HKD 2,306,406,000, down from HKD 2,566,190,000 in the previous year, representing a decrease of 10.1%[131] - Total liabilities increased to HKD 779,665,000 from HKD 747,425,000, marking an increase of 4.3%[131] - The total equity of the group decreased to HKD 1,526,741,000 from HKD 1,818,765,000, reflecting a decline of 16.0%[131] Dividends and Shareholder Returns - The board of directors has decided not to recommend a final dividend for the fiscal year ending July 31, 2020[26] - No interim dividend was declared during the year, consistent with the previous year[27] - The group did not recommend the payment of a final dividend for the year, consistent with the previous year[61] Operational Changes - The group operated 17 "Lacoste" retail stores as of July 31, 2020, down from 21 stores in 2019, indicating a reduction of 19.0% in store count[32] - The group has increased its number of self-operated stores in mainland China to 7 as of July 31, 2020, up from 5 in 2019, indicating a strategic focus on direct retail operations[32] - The total number of employees, including part-time sales staff, was 203 as of July 31, 2020, down from 298 in 2019[52] Investment and Financial Strategy - The group plans to enhance the quality of investment properties and offer attractive leasing terms to retain valuable tenants amid a declining non-residential property market in Hong Kong[42] - The group aims to maintain inventory at reasonable levels to mitigate the risk of excess stock, focusing on key products to meet customer preferences[39] - The group will strengthen its investment strategy in managing financial assets at fair value to maintain flexibility in a volatile financial market[42] - The group maintained a conservative treasury management strategy, regularly monitoring interest and foreign exchange risks[44] - The company has not engaged in any major investments, acquisitions, or disposals during the fiscal year ending July 31, 2020, except for a sale completed on September 12, 2019[51] Debt and Financial Position - As of July 31, 2020, the total outstanding borrowings of the group amounted to HKD 634,332,000, which includes mortgage loans of HKD 541,000,000 and margin loans of HKD 13,097,000[47] - The group's cash and cash equivalents as of July 31, 2020, were HKD 86,402,000, a decrease from HKD 105,570,000 in 2019[45] - The debt-to-equity ratio as of July 31, 2020, was 42%, indicating a cautious approach to business development amid global economic uncertainties[48] - The group had pledged assets with a book value of HKD 1,745,104,000 as collateral for bank credit facilities as of July 31, 2020[49] Corporate Governance - The board consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors, meeting the minimum requirements set by listing rules[149] - The company has established specific committees, including an executive committee, audit committee, and remuneration committee, to assist the board in its functions[146] - The company has adopted a corporate governance policy that emphasizes accountability, transparency, fairness, and integrity, which has been in place for several years[169] - The board is responsible for overseeing the company's overall management and ensuring its sustainability while considering the interests of shareholders and other stakeholders[146] - The company has established a nomination policy to enhance the transparency of the nomination process[145] Risk Management - The board confirmed its responsibility to establish and maintain an effective risk management and internal control system to enhance operational efficiency and asset security[192] - The internal control system includes comprehensive budgeting, data reporting, and performance monitoring[192] - A risk assessment was completed, identifying and prioritizing risk factors faced by the group, with results submitted to the management and board for review[197] - The board believes that the risk management system is effective and sufficient, with actions planned to address identified areas for improvement[197] Share Options and Ownership - The company has a total of 94,754,369 shares available for issuance under the 2015 Share Option Scheme, representing 10% of the total issued shares at the time of approval[95] - As of July 31, 2020, the company has unexercised options involving a total of 2,900,000 shares, approximately 0.31% of the total issued shares[96] - The company plans to grant further options under the 2015 Share Option Scheme for up to 91,854,369 shares, which is about 9.69% of the total issued shares as of the reporting date[96] - The total number of stock options granted under the 2015 stock option plan during the year was 5,800,000, with 2,900,000 options expiring[97] - The company’s major shareholders include Lin Jianming and Rich Promise Limited, both of whom have significant control over the company’s shares[112]
鳄鱼恤(00122) - 2020 - 年度财报