Financial Performance - The group's annual revenue for the year ended June 30, 2020, was HKD 2,232.7 million, a decrease of 36.6% from HKD 3,519.0 million in the previous year[19]. - The annual loss for the group was HKD 483.7 million, compared to a profit of HKD 32.7 million in the previous year, resulting in a loss per share of HKD 0.29[19]. - The total assets as of June 30, 2020, were HKD 13,119.3 million, an increase of 11.2% from HKD 11,797.5 million in the previous year[17]. - The total liabilities increased to HKD 8,909.9 million from HKD 5,954.9 million, indicating a significant rise in financial obligations[17]. - The group's revenue for the fiscal year 2020 was HKD 2,232.7 million, a decrease from HKD 3,519.0 million in the fiscal year 2019, reflecting a decline of approximately 36.6%[75]. - Total sales revenue for the fiscal year 2020, including department store sales and self-operated merchandise sales, was HKD 7,101.2 million, down from HKD 10,897.3 million in the fiscal year 2019, representing a decrease of about 34.3%[75]. - The group's gross profit margin for merchandise sales was 14.9% in fiscal year 2020, compared to 17.5% in fiscal year 2019, indicating a decline of 2.6 percentage points[75]. - Other income for the fiscal year 2020 was HKD 93.5 million, down from HKD 150.3 million in the fiscal year 2019, a decrease of approximately 37.8%[76]. - The group reported a net other loss of HKD 469.3 million for the fiscal year 2020, primarily due to goodwill impairment losses of HKD 459.2 million related to eight department stores[75]. - The group reported a comprehensive income statement for the year ending June 30, 2020, which is detailed on page 64 of the annual report[171]. Operational Strategy - The group has implemented a "one store, one strategy" management approach to adapt to market conditions and capitalize on domestic consumption upgrades[4]. - The group aims to enhance its operational efficiency and cost management in response to the economic challenges posed by the COVID-19 pandemic[19]. - The company focused on enhancing its online presence and integrating online and offline shopping experiences amid the COVID-19 pandemic[48]. - The company has implemented upgrades to several stores to improve customer experience and product offerings[48]. - The company plans to enhance the layout and product configuration of its "New World Supermarket" in Beijing, integrating it with the "New Flash Purchase" platform for better synergy[64]. - The company has implemented cost-cutting measures, including negotiating rent reductions and restructuring internal operations to maintain cash flow during the pandemic[50]. - The company aims to strengthen its supply chain for convenience stores and supermarkets to stabilize supply and pricing[43]. - The company is committed to a prudent and practical operational strategy to solidify its existing business foundation[43]. Market Expansion - The group plans to gradually complete the launch of "New World Supermarket" and "New Flash Purchase" as part of its market expansion strategy[22]. - The company plans to continue expanding its "N+ Convenience Store" and "New World Supermarket" networks in Beijing, particularly in the Dongcheng and Chaoyang districts[43]. - The "New Flash Purchase" online mall registered 400,000 VIP members, with nearly 70% of customers from Beijing, and a significant portion of sales coming from cosmetics[59]. - The company opened two new "N+ Convenience Stores" in Beijing, focusing on ready-to-eat food products and other convenient services[63]. Corporate Governance - The company has established an audit committee to oversee financial reporting and risk management, consisting of four independent non-executive directors[188]. - The board consists of 8 members, with a mix of executive and non-executive directors, ensuring diverse expertise in finance, management, and retail[134]. - The company has adopted a diversity policy for board members, considering factors such as gender, age, and professional experience[132]. - The company has established written guidelines for employees regarding the buying and selling of company securities[105]. - The company has confirmed that its financial reporting and internal control systems are effective and sufficient, covering financial, operational, compliance, and resource adequacy risks[146]. Shareholder Relations - The company has a sustainable dividend distribution policy, retaining most of its available funds and future earnings for operational and business development needs[157]. - The company will continue to review and update its dividend distribution policy, balancing shareholder expectations and prudent capital management[165]. - The company did not declare a final dividend for the year ending June 30, 2020, consistent with the previous year[173]. - The company has received recognition for its leadership and contributions to the industry, reflecting its commitment to excellence and innovation[90]. Risk Management - The company is subject to various risks and uncertainties as discussed in the annual report, which may impact future business development[172]. - The company has implemented a robust risk management and internal control system, which has been reviewed for effectiveness as of June 30, 2020[145]. - The internal audit department conducts audits based on risk assessment to ensure the effectiveness of major internal control measures[118]. Employee and Community Engagement - The company has received various awards for employee welfare and environmental protection, including the "Happy Company" label in 2020[165]. - The company is committed to complying with labor laws in China and Hong Kong, ensuring fair employment practices[160]. - Charitable donations made by the company during the year amounted to approximately HKD 7,000, a significant decrease from HKD 179,000 in 2019[181].
新世界百货中国(00825) - 2020 - 年度财报