Financial Performance - Total revenue for the fiscal year was approximately HKD 177.5 million, a decrease of about 32.6% compared to HKD 263.3 million in the previous year[22] - Loss attributable to equity holders was approximately HKD 145 million, a reduction of about HKD 2.4 million or 1.6% from HKD 147.4 million in the previous year[22] - The group's revenue from department store operations was approximately HKD 176.7 million, a decrease of about 32.8% compared to HKD 263.1 million in the previous year[33] - The group recorded a net loss attributable to equity holders of approximately HKD 2.977 million, compared to a profit of HKD 142.614 million in the previous year[27] - The group reported a loss for the fiscal year ending February 28, 2021, with detailed financial statements available on pages 68 to 186 of the annual report[144] Cash and Liquidity - Cash and bank balances as of February 28, 2021, were approximately HKD 191.7 million, an increase from HKD 132.8 million in the previous year[23] - The group's cash and bank balances increased to approximately HKD 87.949 million from HKD 13.761 million in the previous year[27] - The company entered into a loan financing agreement of HKD 150 million on February 18, 2021, secured by fixed assets and business rights[26] - The group is exploring opportunities to liquidate certain assets to improve cash flow[28] Cost Management - The company implemented cost-saving measures, including rent reductions and government employment support, which contributed to reduced operating expenses[22] - The group experienced increased impairment losses on right-of-use assets due to ongoing operating losses in the department store business[22] - The group implemented measures to control operating costs and capital expenditures, including renegotiating rent and reducing procurement of high-end products[28] Governance and Board Composition - The board announced changes in its composition, with new appointments effective from June 9, 2021, including Dr. Lin as the new chairman and Ms. Su as the new CEO[62] - The board of directors consists of six members as of February 28, 2021, and has since expanded to thirteen members, including four executive directors[79] - The board held eleven meetings and one annual general meeting during the reporting period[82] - The board is responsible for ensuring the company achieves its objectives and reviews management performance[92] - The board has established an executive committee to enhance governance and oversight[66] Shareholder Matters - The company plans to hold a shareholders' meeting on July 5, 2021, to consider multiple resolutions as requested by Wei Lu[54] - The company has 269,267,198 shares held by the public, representing approximately 20.49% of the total issued share capital, which is below the minimum public float requirement of 25% as per listing rules[70] - To restore the public float to 25%, the company needs to sell at least 59,223,442 shares by the end of July 2021[70] - The company has applied for a temporary exemption from strict compliance with the public float requirement from June 3, 2021, to July 31, 2021, which was granted on June 28, 2021[71] Legal and Compliance - The independent board committee sought independent legal advice regarding the cancellation claim[49] - The company is pursuing legal action to enforce the payment of the WD proceeds from Win Dynamic[53] - The board's independent directors do not agree with the cancellation claim and are taking steps to protect shareholder interests[49] - The company has updated compliance and risk management policies, ensuring adherence to significant legal and regulatory requirements[138] Employee and Management - The group has a total of 222 employees, down from 266 in the previous year[31] - The company emphasizes the importance of employees as its most valuable asset and has implemented comprehensive performance evaluation systems to reward outstanding performance[141] - The company is undergoing a leadership transition with several directors resigning for personal reasons, effective July 1, 2021[58] - Ms. Su has been appointed as the CEO and Executive Director of the company[200] Risk Management - The board conducted an annual review of the risk management and internal control systems, ensuring that the accounting, internal audit, and financial reporting functions are adequately resourced[118] - The company maintains a risk register to track all identified major risks and records actions taken by management to mitigate these risks[121] - There were no significant internal deficiencies identified in the internal control audit and risk assessment conducted for the year ending February 28, 2021[121] Customer Relations - The group has set up a customer complaint handling mechanism to enhance service quality and communication with customers[142] - The group is committed to providing excellent customer service while maintaining long-term profitability and asset growth[142] Donations and Community Engagement - The company made donations amounting to approximately HKD 120,000 during the fiscal year ending February 28, 2021[194]
先施(00244) - 2021 - 年度财报