Financial Performance - Turnover for the year ended March 31, 2020, was HK$2,914 million, a decrease of 28.3% compared to HK$4,065 million for the previous year[22]. - Loss attributable to owners of the company for the year was HK$90 million, compared to a profit of HK$54 million in the previous year[22]. - Net assets attributable to owners per share decreased to HK$3.61 from HK$4.37 in the previous year, representing a decline of 17.4%[22]. - The company did not declare any dividend for the year, compared to a dividend payout ratio of 48% in the previous year[22]. - Market capitalization decreased to HK$224 million from HK$447 million, a decline of 50%[22]. - The Group reported a full-year loss of HK$89.8 million due to the impact of the coronavirus pandemic, with retail sales in February 2020 hitting a record low for the year[36]. - The Group's turnover decreased by 28.3% to HK$2,913.8 million from HK$4,064.9 million for the year ended 31 March 2019[43]. - The Group recorded a loss attributable to owners of the Company of HK$89.7 million compared to a profit of HK$54.2 million in 2018/19, with a loss per share of 36.0 HK cents[43]. Cash Flow and Financial Position - Cash and cash equivalents increased to HK$337 million from HK$251 million in the previous year, reflecting a growth of 34.2%[22]. - The net gearing ratio rose to 49% from 35% in the previous year, indicating increased financial leverage[22]. - Borrowings increased to HK$1,014 million from HK$788 million, an increase of 28.7%[22]. - As of March 31, 2020, total interest-bearing liabilities increased to approximately HK$1,013.8 million from HK$787.7 million, with net borrowings rising from HK$377.1 million to HK$445.0 million[59]. - The Group had cash, time deposits, and undrawn banking facilities totaling approximately HK$816 million, which is deemed sufficient for current working capital needs[62]. - The Group's capital expenditure for the year was approximately HK$98.6 million, down from HK$105.9 million in the previous year, primarily financed by borrowings and internal resources[59]. Market Challenges - The Group's business faced significant challenges due to the prolonged US-China trade dispute, social unrest in Hong Kong, and the COVID-19 pandemic, leading to unprecedented difficulties[33]. - In Hong Kong, inbound tourist numbers dropped approximately 39% in the second half of 2019 compared to the same period in 2018, severely impacting consumer sentiment and retail sales[33]. - The value of sales in the jewellery, watches, and clocks sector recorded double-digit declines since June 2019, reflecting the adverse effects of political and economic uncertainty[33]. - Despite the weakened consumer sentiment in Mainland China due to the trade war, the Group's retail business there experienced only a modest decline in turnover during the first half of the financial year ended March 31, 2020[33]. - Retail businesses in Hong Kong and Macau saw a turnover decrease of 44.6% compared to 2018/19, with same store sales growth declining by 41.6%[46]. Strategic Initiatives - Cost-saving measures implemented since August 2019 included negotiating rental relief, shortening shop hours, and enacting no-pay leave arrangements to mitigate financial strain[36]. - The Group is restructuring its retail store network, including store closures, and increasing focus on online retailing to adapt to changing consumer habits[36]. - An IT development blueprint has been formulated to support medium- to long-term business strategies, enhancing operational efficiency[36]. - The Group plans to capitalize on opportunities arising from the Greater Bay Area development plan introduced by the Central Government post-pandemic[39]. - The Group plans to enhance online-to-offline and offline-to-online synergies as part of its e-business strategy[56]. Employee and Management Changes - The total number of employees decreased to approximately 2,870 from 3,300, attributed to restructuring and natural turnover under market stress[62]. - The management team emphasized the importance of sustainability initiatives, aiming for a 50% reduction in carbon footprint by 2025[10]. - The roles and functions of senior management have changed to align with the Group's continued development, expanding Mr. Tommy Tse's responsibilities[197]. Corporate Governance - The company has a diverse board with members holding significant experience in finance, accounting, and management across various sectors[88]. - The board includes independent directors with extensive backgrounds in public service and corporate governance[87]. - The Company is compliant with relevant laws and regulations that significantly impact its operations for the Year[134]. - The Directors proposed for re-election at the 2020 AGM do not have service contracts that are not determinable within one year without compensation[142]. Shareholder Information - As of March 31, 2020, the company had issued a total of 249,182,030 ordinary shares[160]. - Partner Logistics Limited holds 180,691,775 ordinary shares, representing approximately 72.51% of the total issued share capital[162]. - The interests of substantial shareholders are recorded in compliance with the Securities and Futures Ordinance (SFO)[160]. - The five largest customers accounted for less than 30% of the Group's turnover for the Year[140]. - The five largest suppliers accounted for approximately 67.0% of the Group's total purchases, with the largest supplier accounting for 23.9%[140]. Awards and Recognition - The Group has received multiple awards, including the 2019 Mystery Shopper Programme Excellence Award in the Watch & Jewellery Category[101]. - The Group was recognized as the Best Employer Brand in the Asia Pacific region, highlighting its commitment to corporate culture and employee satisfaction[101]. - The Group's design achievements include the 2019 Bazaar Jewelry Outstanding Jewellery Design of the Year award for the Papilio collection[102]. - The Group achieved significant recognition at the LACP Spotlight Awards, winning Platinum for Print and Gold for Annual Report[105].
谢瑞麟(00417) - 2020 - 年度财报