Financial Performance - Total revenue for the year 2021 was HKD 2,245,966, a slight increase from HKD 2,232,691 in 2020[21]. - The operating profit for 2021 was HKD 89,491, compared to an operating loss of HKD 197,960 in 2020[21]. - Net loss for the year 2021 was HKD 229,359, significantly improved from a net loss of HKD 483,668 in 2020[21]. - The group's annual revenue for the year ended June 30, 2021, was HKD 2,246.0 million, slightly up from HKD 2,232.7 million in the previous year[45]. - The group reported a loss of HKD 229.4 million for the year, an improvement from a loss of HKD 483.7 million in the previous year, with a loss per share of HKD 0.14[45]. - The group's gross profit margin for merchandise sales in the fiscal year was 13.9%, down from 14.9% in the previous fiscal year[100]. - The group's other losses for the fiscal year amounted to HKD 349.2 million, primarily due to goodwill impairment losses of HKD 232.7 million and property, plant, and equipment impairment losses of HKD 176.6 million[100]. - The annual loss for the fiscal year was HKD 229.4 million, an improvement from a loss of HKD 483.7 million in the previous fiscal year[113]. Assets and Liabilities - Total assets increased to HKD 14,177,638 in 2021 from HKD 13,119,276 in 2020[21]. - As of June 30, 2021, the group's cash and bank balances were HKD 1,569.4 million, an increase from HKD 1,514.1 million in the previous year[114]. - The group's current liabilities exceeded its current assets by HKD 2,367.8 million as of June 30, 2021[114]. Business Operations and Strategy - The company operates 21 department stores under the "New World" brand and 8 stores under the "Paris Spring" brand, covering 17 major locations in mainland China[3]. - The company is focusing on digital transformation and integrating online and offline operations to enhance customer experience[25]. - The company plans to continue renovating physical stores to improve brand image and attract new customers[26]. - The company aims to expand its self-operated e-commerce platform "New Flash Purchase" to promote omnichannel development[26]. - The group is cautiously optimistic about the retail market situation in the second half of 2021, despite uncertainties such as variant viruses[29]. - The group plans to enhance its core business competitiveness and operational efficiency while actively deploying post-pandemic business development strategies[29]. - The group is focusing on digital operations and expanding diverse sales channels to improve revenue generation capabilities[30]. - The company has been actively optimizing its tenant brand mix, introducing popular and emerging brands to enhance competitiveness and attract younger consumers[53]. - The company is enhancing its physical store operations while adapting to changing consumer shopping habits towards contactless and portable shopping methods[55]. - The company is actively promoting marketing activities to improve foot traffic in stores, especially during traditional holidays and peak shopping periods[50]. Customer Engagement and Marketing - As of June 30, 2021, the total number of VIP members exceeded 6.41 million, indicating a strong growth in customer engagement[84]. - The group introduced 48 new brands during the year, enhancing brand image and strengthening the women's apparel market influence[81]. - The group is actively promoting online and offline integrated marketing, utilizing various channels such as live streaming and social media to drive customer engagement[84]. - Customer satisfaction scores have improved, with a reported increase of H% in positive feedback from users[130]. Corporate Governance - The board of directors consists of two executive directors, two non-executive directors, and four independent non-executive directors[144]. - The company adopted all applicable code provisions of the corporate governance code, except for E.1.2, which requires the chairman to attend the annual general meeting[141]. - The company has complied with the listing rules regarding the appointment of sufficient independent non-executive directors with relevant professional qualifications[158]. - The company has established written guidelines for employees regarding the trading of the company's securities, with no known incidents of non-compliance during the year[143]. - The board will continue to review and improve corporate governance practices to ensure proper regulation of business and decision-making processes[141]. Risk Management - The audit committee has reviewed the effectiveness of the group's risk management and internal control systems for the year ending June 30, 2021, and found them to be effective and adequate[192]. - The company has implemented a system to manage risks that may prevent achieving business objectives, providing reasonable assurance against significant losses[192]. - The board of directors has confirmed its responsibility for the risk management and internal control systems, ensuring they are effective and adequate[192]. Future Outlook and Investments - The company is investing in new technology development, allocating $D million towards R&D initiatives aimed at enhancing user experience[130]. - Strategic acquisitions are being considered to bolster market presence, with potential targets identified in the E sector[130]. - The company plans to enhance its digital marketing efforts, increasing the budget by I% to drive user acquisition and retention[130]. Dividend Policy - The company will distribute remaining funds to all shareholders after retaining operational needs, subject to certain conditions[200]. - The distribution of dividends is subject to compliance with applicable laws and regulations, as well as any bank or funding agreements[200]. - External economic and market conditions will also influence the company's dividend policy[200].
新世界百货中国(00825) - 2021 - 年度财报