Financial Performance - Bauhaus reported a slight decline in overall revenue due to poor performance in Taiwan and mainland China, despite stable profits in Hong Kong and Macau[5]. - The company reported a basic loss per share of HK$16.9 for the fiscal year 2018/19, compared to a profit of HK$11.1 in the previous year[65]. - The total revenue for the fiscal year 2018/19 was HK$1,300.6 million, a decrease of 6.3% from HK$1,387.5 million in the previous year[76]. - Revenue from Hong Kong, Macau, and other regions was HK$868.6 million, a decline of 4.9% from HK$912.9 million[76]. - Revenue from Taiwan decreased by 14.6% to HK$289.8 million, compared to HK$339.5 million in the previous year[76]. - Revenue from mainland China increased by 5.3% to HK$142.2 million, up from HK$135.1 million[76]. - The net loss for the fiscal year was approximately HKD 62.1 million, a decline from a net profit of HKD 40.6 million in 2018[94]. - Gross profit decreased by approximately 14.0% to about HKD 725.4 million, with the gross margin dropping to approximately 55.8%[102]. - Net profit margin fell to -4.8%, a decline of 7.7 percentage points year-over-year[83]. - Average return on equity dropped to -7.9%, down by 12.8 percentage points compared to the prior year[83]. Inventory and Operational Efficiency - The primary short-term goal is to clear slow-moving inventory and streamline operations to strengthen financial strength and operational efficiency[7]. - The company aims to identify and close underperforming stores to streamline the retail network and improve operational efficiency[5]. - In Taiwan, Bauhaus plans to reduce the retail network size and offer significant discounts to clear inventory, which may decrease profit margins but will enhance financial stability[5]. - The company focused on clearing excess inventory and maintaining a stable cash flow amid long-term challenges[94]. - Inventory turnover days improved to 183 days, a reduction of 14 days from the previous year[83]. Market Conditions and Strategic Response - All major expansion plans in mainland China have been put on hold due to the ongoing trade war and depreciation of the Renminbi[5]. - In Hong Kong and Macau, Bauhaus will adopt a cautious approach to business expansion and strategically adjust store locations to improve cost structure[6]. - The company has suspended all major new investment projects in mainland China due to unsatisfactory sales performance[99]. - The overall retail market for fashion apparel and accessories in Hong Kong and Macau remained relatively stable in the first half of the fiscal year, but signs of weakness emerged in the second half[96]. - Same-store sales growth decreased by approximately 10% for the fiscal year, down from a growth of 3% in 2018[93]. Environmental, Social, and Governance (ESG) Initiatives - Environmental, social, and governance (ESG) initiatives are a priority, with efforts to reduce greenhouse gas emissions and comply with environmental regulations[19]. - Greenhouse gas emissions from purchased electricity increased to 1,435.70 tons in 2018/19 from 71.23 tons in 2017/18[22]. - Total greenhouse gas emissions increased slightly by approximately 2% due to expanded packaging materials, resulting in a density of 0.01 tons per square foot[22]. - Energy consumption decreased by approximately 7%, with store energy density reducing by about 8%[26]. - The company has installed energy-saving LED lights and motion sensor switches, contributing to reduced energy consumption[25]. - The company has implemented a digital document storage system to reduce paper usage, with a significant increase in the use of recycled paper[29]. Employee and Community Engagement - The total number of employees decreased from 551 in 2017/18 to 543 in 2018/19, with a slight increase in part-time employees[39]. - The company provided a total of 6,398 hours of training for employees during the review year, a decrease from 7,575 hours in 2018[43]. - The company participated in community service initiatives, providing 11 internship opportunities for unemployed youth through collaboration with the Hong Kong Christian Service[60]. - The company received a "Caring Company" certificate for over 15 years of commitment to social responsibility from the Hong Kong Council of Social Service[60]. Corporate Governance - The board of directors consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[118]. - The company has arranged suitable liability insurance for directors to protect against legal actions arising from corporate activities[122]. - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, all composed of independent non-executive directors[127]. - The company has implemented a whistleblowing policy to ensure effective investigation and handling of any reported misconduct[164]. - The audit committee has been tasked with receiving and reviewing any reported cases of misconduct with appropriate evidence[164]. Financial Position and Shareholder Returns - The company declared a final dividend of HK$6.0 per share for the fiscal year 2018/19, down from HK$7.5 in the previous year[65]. - The company's available distributable reserves as of March 31, 2019, amounted to HKD 423,838,000, with HKD 22,043,000 suggested for the final dividend[188]. - The group had no borrowings as of March 31, 2019, maintaining a debt-to-asset ratio of zero[110]. - The total number of shares held by the executive director Huang Rui Lin is 212,100,000, representing 57.73% of the company's issued share capital[199].
包浩斯国际(00483) - 2019 - 年度财报