佐丹奴国际(00709) - 2019 - 年度财报

Financial Performance - Sales for 2019 were HK$4,852 million, a decrease of 11.9% from HK$5,509 million in 2018[4] - Gross profit for 2019 was HK$2,846 million, resulting in a gross margin of 58.7%, slightly down from 59.0% in 2018[4] - Operating profit decreased to HK$397 million in 2019, with an operating margin of 8.2%, compared to 11.3% in the previous year[4] - EBITDA for 2019 was HK$1,183 million, with an EBITDA margin of 24.4%, down from 14.9% in 2018[4] - Profit attributable to shareholders was HK$230 million, representing a decrease of 52.1% from HK$480 million in 2018[4] - Total comprehensive income for the year was HK$282 million, a decrease of 39.5% from HK$467 million in 2018[188] - Profit after income taxes for the year was HK$289 million, representing a 46.6% decrease from HK$542 million in 2018[188] - Earnings per share attributable to shareholders decreased to HK$14.6 cents, down from HK$30.5 cents in 2018[186] Store Operations - The total number of stores worldwide at year-end was 2,375, a slight decrease from 2,426 in 2018[4] - The number of stores at year-end decreased by 41 to 1,172 in Greater China[42] - The number of franchised stores in Mainland China increased slightly to 641 from 639 in 2018[17] - The number of directly-operated stores (DOS) in Taiwan decreased to 197 from 200 in 2018[17] - The total number of stores in the Middle East at year-end was 181, a slight decrease from 182[49] Market Conditions - The global economic growth slowdown that began in 2018 rapidly deteriorated in 2019, significantly impacting the retail and hospitality industries, leading to weak performance for the Company[9] - Group sales decreased by 11.9%, or by 11.1% at constant exchange rates, significantly impacted by macro factors such as the Sino-US trade dispute and regional social events[22] - E-commerce revenue generated HK$267 million, representing a decrease of 15.0%, primarily due to unsatisfactory performance in Mainland China[22] Financial Position - The company reported a current ratio of 1.4 times, down from 2.5 times in 2018[4] - The market capitalization at year-end was HK$3,709 million, compared to HK$5,840 million in 2018[4] - Total assets as of the end of 2019 were HK$5,196 million, while total liabilities were HK$2,349 million[6] - Cash and bank balances, net of bank loan, were HK$994 million on December 31, 2019[15] - The retained profits at the end of 2019 were HK$1,069 million, down from HK$1,267 million in 2018, indicating a decrease of about 15.6%[198] Corporate Governance - The Company has adopted the Corporate Governance Code as stated in Appendix 14 to the Listing Rules on the Stock Exchange[70] - The Board is responsible for setting the Group's overall objectives and strategies, monitoring financial performance, and reviewing corporate governance standards[70] - The Company has established three Board Committees: the Audit Committee, the Nomination Committee, and the Remuneration Committee, along with a Management Committee and a Risk Management Committee[76] - The Board is committed to excellence in corporate governance and has implemented policies and practices to ensure compliance with legal and regulatory requirements[72] Dividend Policy - The dividend payout ratio for 2019 was 100.0%, consistent with the previous year[4] - The final dividend recommended is 4.4 HK cents per share, down from 16.5 HK cents per share in 2018, totaling 14.6 HK cents per share for 2019[62] - Proposed dividends for the year were HK$69 million, a decrease from HK$260 million in 2018[189] Employee Management - As of December 31, 2019, the Group had approximately 7,900 employees, a decrease from 8,200 employees on December 31, 2018[64] - Employee sacrifices, including voluntary pay reductions, were acknowledged as crucial for navigating difficulties[14] - The Group offers competitive remuneration packages and generous, goal-oriented bonuses targeted to different levels of staff[64] Strategic Focus - The company plans to focus on market expansion and new product development in the upcoming year[4] - Management plans to expand wholesale and franchise businesses in developing markets, with store openings expected in India and Kenya in 2020[24] - The Company continues to focus on operational factors within its control while adapting to market changes[12] Audit and Compliance - The independent auditor, PricewaterhouseCoopers, has issued an unqualified opinion on the Group's financial statements for the year[169] - The Audit Committee is responsible for the appointment, re-appointment, and removal of external auditors, as well as reviewing the Group's financial information and overseeing risk management and internal control systems[97] - The Company has arranged appropriate directors' and officers' liability insurance in line with the Corporate Governance Code[91] Risk Management - The Group's risk management and internal control systems are evaluated for adequacy and effectiveness on an ongoing basis[104] - The Risk Management Committee is fully accountable to the Board for providing assurance on managing and monitoring the systems of risk management and internal controls[104] Shareholder Communication - The Company utilizes internet and electronic communication to provide timely and transparent information to shareholders[112] - The Board has established a shareholders' communication policy to enhance relationships with shareholders and ensure compliance with relevant rules[112]