德永佳集团(00321) - 2020 - 年度财报

Financial Performance - Turnover for 2020 was HK$7,630 million, a decrease of 7% from HK$8,210 million in 2019[8] - Profit attributable to ordinary equity holders was HK$169 million, down 48% from HK$325 million in 2019[8] - Total equity decreased to HK$4,930 million from HK$5,378 million in 2019, reflecting a decline of 8%[8] - Total assets amounted to HK$8,312 million, down from HK$8,579 million in 2019, a decrease of 3%[8] - Basic earnings per share decreased to HK$12.2 cents from HK$23.5 cents in 2019, a decline of 48%[8] - Dividends per share were HK$10.0 cents, down from HK$30.0 cents in 2019, a reduction of 66.7%[8] - For the fiscal year ended March 31, 2020, the Group's total revenue decreased by 7.1% to HK$7,630 million, down from HK$8,210 million in 2019[21] - Profit attributable to shareholders dropped by 48.0% to HK$169 million, compared to HK$325 million in the previous year[21] - Operating profit for the year was HK$540 million, compared to HK$354 million in 2019[26] - Profit before tax for the same period was HK$270,976, down 32% from HK$397,753 in the prior year[79] Business Segments - The textile business turnover rose by 3.4% to HK$4,919 million, representing 64.5% of the Group's total revenue[23] - Retail and distribution business sales fell by 21.4% to HK$2,709 million, accounting for 35.5% of total turnover[29] - Retail and distribution business net sales decreased by 21.4% to HK$2,709 million in 2020, compared to HK$3,448 million in 2019[30] - Gross profit margin for the retail and distribution business was 47.5% in 2020, down from 50.1% in 2019[31] - Comparable store sales growth was (17.1%) in 2020, compared to (12.8%) in 2019[31] - Operating loss for the retail and distribution business was HK$316 million in 2020, compared to a loss of HK$110 million in 2019[31] - Net sales in Mainland China decreased by 25% to HK$2,085 million in 2020, down from HK$2,767 million in 2019[37] - Hong Kong net sales decreased by 8% to HK$624 million in 2020, compared to HK$681 million in 2019[39] Capital Expenditure and Assets - Capital expenditure for the year was HK$76 million, down from HK$160 million in 2019[26] - Total capital expenditure for the Group was HK$222 million in 2020, a slight decrease from HK$236 million in 2019[43] - Total assets as of March 31, 2020, amounted to HK$8,312,332,000, a decrease from HK$8,578,956,000 in 2019[82] - Total liabilities as of March 31, 2020, were HK$3,382,119,000, compared to HK$3,201,402,000 in 2019[82] Employee and Operational Metrics - The number of employees in Mainland China was 11,111, a decrease from 11,879 in 2019[8] - The number of sales associates in Mainland China decreased to 3,446 in 2020 from 4,182 in 2019[37] - The Group had approximately 11,589 employees at year-end, a decrease from 12,657 employees last year, with remuneration based on industry practices and individual performance[48] Financial Stability and Risk Management - Current ratio remained stable at 2.0 times, consistent with previous years[8] - The current ratio remained stable at 2.0, with total bank borrowings decreasing to HK$1,230 million in 2020 from HK$1,529 million in 2019[41] - Cash and cash equivalents at year-end were HK$1,737 million, down from HK$2,080 million in 2019[42] - Interest coverage ratio decreased to 5 times from 12 times last year, primarily due to the adoption of HKFRS 16 and the impact of COVID-19, resulting in a significant decline in profit before tax[45] - The Group's financial risk management details are disclosed in note 40 of the financial statements[66] Corporate Governance and Compliance - The Group is committed to high standards of corporate governance, adhering to the principles of the Corporate Governance Code[151] - The independent non-executive directors confirmed that continuing connected transactions were conducted in the ordinary course of business and on normal commercial terms[143] - Ernst & Young issued an unqualified letter regarding the Group's continuing connected transactions, confirming compliance with relevant listing rules[144] - The Board of Directors consists of six members, including three executive directors and three independent non-executive directors, ensuring compliance with the Listing Rules[160] - All independent non-executive directors confirmed their independence for the year ended 31 March 2020[160] Environmental and Social Responsibility - The Group is committed to environmental sustainability, having established environmental and energy management systems in compliance with ISO standards[50] - The Group complied with applicable environmental protection laws regarding wastewater, greenhouse gas emissions, and solid waste from textile manufacturing operations[52] - Charitable contributions made by the group during the year totaled HK$1,136,000, an increase from HK$684,000 in 2019[90] - The Group plans to continue investing resources in social, educational, and environmental protection activities for community development[60] Management and Leadership - The company has a strong management team with extensive experience in the textile industry, including over 48 years of experience from Mr. Poon Bun Chak[124] - Mr. Chan Chi Hon, the financial controller, has over 33 years of experience in auditing and accounting[124] - The company is focused on expanding its textile business, leveraging the expertise of its senior management team[125] - The principal roles of the Board include setting objectives, monitoring performance, and managing risks[164]