Financial Performance - The company reported a comprehensive income statement for the fiscal year ending February 28, 2019, with detailed financial statements provided in the annual report[2]. - The total revenue for the fiscal year ending February 28, 2019, was HKD 311.9 million, a decrease of 12% compared to HKD 355.9 million in 2018[19]. - The loss attributable to equity holders for the year was HKD 132.1 million, an increase of 45.9% from HKD 90.5 million in 2018, primarily due to increased losses in the department store segment[19]. - The gross loss in the department store business was HKD 104 million, up 21.4% from HKD 85.6 million in 2018, influenced by the US-China trade war and an unusually warm winter[21]. - The company reported a classification loss of HKD 13,300,000 for the fiscal year, compared to a classification profit of HKD 4,500,000 in the previous year[25]. - The company reported a loss before tax of HKD 134,727,000, compared to a loss of HKD 92,862,000 in the previous year, representing a 45.0% increase in losses[162]. - The net loss attributable to equity holders of the company was HKD 132,068,000, up from HKD 90,497,000 in 2018, indicating a 46.0% increase in net losses[162]. - Total comprehensive loss for the year was HKD 149,725,000, compared to HKD 74,621,000 in 2018, reflecting a 100.0% increase in comprehensive losses[163]. Shareholder and Governance - The board of directors includes key executives such as Mr. Ma Jingxuan (Chairman and CEO) and Mr. Chen Wenwei (Non-executive Director) who are pivotal in strategic decision-making[6]. - The company plans to hold its annual general meeting on August 2, 2019, to discuss the audited financial statements and other key resolutions[7]. - The company is authorized to repurchase up to 10% of its issued shares during the specified period, reflecting a commitment to shareholder value[12]. - The board is also empowered to issue additional shares not exceeding 20% of the total issued shares, which may facilitate future capital raising efforts[14]. - The company emphasizes its mission and governance structure, aiming for transparency and accountability in its operations[5]. - The company has complied with listing rules regarding the appointment of at least three independent non-executive directors, ensuring they constitute at least one-third of the board[37]. - The company has established three committees: the audit committee, remuneration committee, and nomination committee to oversee various aspects of the company's affairs[42]. - The company has granted stock options totaling 6,139,871 shares to Mr. Ma Jingxuan, with an exercise price of HKD 0.332 per share[90]. Financial Position and Liquidity - Cash and bank balances as of February 28, 2019, were HKD 110.7 million, slightly down from HKD 111.4 million in 2018, with HKD 78.4 million being pledged[23]. - The capital to debt ratio increased significantly from 56% to 666% compared to the previous year[23]. - The current ratio decreased to 1.1 from 1.8 in the previous year, indicating a decline in liquidity[23]. - The company’s total equity as of February 28, 2019, was HKD 62,656,000, a decrease from HKD 204,832,000 the previous year[172]. - The company’s cash and cash equivalents at the end of the fiscal year were HKD 32,318,000, down from HKD 36,078,000 at the beginning of the year[175]. - The company’s cash flow from operating activities showed a net outflow of HKD 90,336,000, worsening from an outflow of HKD 75,370,000 in the prior year[174]. Risk Management and Compliance - The board conducted an annual review of the effectiveness of the group's risk management and internal control systems, ensuring appropriate resources and training for accounting and internal audit functions[49]. - The company engaged an external firm to assist in identifying and assessing risks and to conduct independent internal control audits[50]. - The risk register is maintained to track all identified major risks, with evaluations conducted at least annually based on likelihood and potential impact[50]. - The company will continue to hire external independent professionals to audit its internal control and risk management systems annually[50]. - The auditor identified and assessed risks of material misstatement due to fraud or error in the financial statements[156]. Environmental, Social, and Governance (ESG) Practices - The company is committed to environmental, social, and governance (ESG) practices, as highlighted in its ESG report[6]. - The company emitted 141 grams of sulfur oxides (SOx), 66,238 grams of nitrogen oxides (NOx), and 6,432 grams of particulate matter (PM) during the year, showing a reduction from the previous year's emissions of 198 grams SOx, 117,661 grams NOx, and 11,050 grams PM[110]. - The company recycled 1,417 kg of waste paper and 263.08 kg of toner cartridges in the fiscal year, compared to 3,136 kg of waste paper and 333.39 kg of toner cartridges in the previous year[114]. - The company has implemented energy-saving measures, including the installation of energy-efficient lighting in offices and stores, to reduce electricity consumption[117]. - The company plans to participate in more charitable programs to support social welfare services and assist those in need in Hong Kong[143]. Investments and Shareholdings - The company holds 208,000 shares of Yao Feng Holdings Limited, with a cost of HKD 20,297,000 and a fair value of HKD 13,343,000, representing 3.34% of total assets[75]. - The company has a significant investment in China Mobile Limited, holding 110,000 shares with a cost of HKD 5,737,000 and a fair value of HKD 9,086,000, accounting for 2.28% of total assets[75]. - The company received dividends totaling approximately HKD 7,000,000 from its securities holdings during the fiscal year[79]. - The company’s major customers and suppliers accounted for less than 30% of total sales and purchases, respectively[79]. Changes in Accounting Standards - The company adopted the new and revised Hong Kong Financial Reporting Standards, including HKFRS 9, which replaced HKAS 39, effective from January 1, 2018, impacting classification and measurement of financial instruments[190]. - The transition to HKFRS 9 did not result in significant changes to the financial position or performance of the company, with no restatement of comparative information required[191]. - The company implemented HKFRS 15, which establishes a five-step model for revenue recognition from customer contracts, enhancing the measurement and recognition of revenue[195]. - The financial statements include extensive qualitative and quantitative disclosures as required by HKFRS 15, detailing revenue recognition and contract liabilities[195].
先施(00244) - 2018 - 年度财报