Financial Performance - The company recorded revenue of approximately HKD 2,670.2 million for the fiscal year 2019, a decrease of about 9.9% compared to the previous year[23]. - The net profit attributable to the company's owners increased to approximately HKD 305.4 million, representing a growth of about 4.8%[23]. - Earnings per share for the fiscal year 2019 were HKD 0.147, an increase of approximately 5.0% from HKD 0.140 in the previous year[23]. - The gross profit margin for the fiscal year 2019 was 70.6%, slightly up from 70.2% in the previous year[12]. - The gross profit for the group fell from approximately HKD 2,079.2 million in fiscal year 2018 to about HKD 1,885.3 million in fiscal year 2019, a decline of approximately HKD 194.0 million or about 9.3%[39]. - Other income, gains, and losses increased by approximately HKD 29.3 million or about 67.8% to HKD 72.6 million in fiscal year 2019[40]. - The group's financing costs decreased by approximately HKD 0.7 million or about 7.4% to HKD 8.3 million due to reduced borrowings in the watch movement trading business[43]. - The company's distributable reserves for the fiscal year 2019 amount to approximately HKD 1,318.4 million, an increase from HKD 895.1 million in the fiscal year 2018[154]. Revenue Breakdown - The Tian Wang watch business contributed approximately 73.5% of total revenue, amounting to about HKD 1,963.1 million[25]. - The Baige watch brand contributed approximately HKD 77.4 million, accounting for 2.9% of total revenue[25]. - The Tian Wang watch business accounted for approximately 73.5% of total revenue in fiscal year 2019, with revenue decreasing by about HKD 209.8 million or approximately 9.7% to HKD 1,963.1 million[34]. - The Baigao watch business saw a revenue decline of approximately HKD 38.7 million or about 33.4%, down to HKD 77.4 million in fiscal year 2019[35]. - Revenue from other brands (China) decreased by approximately HKD 20.2 million or about 8.8% to HKD 209.2 million, accounting for approximately 7.8% of total revenue[36]. - E-commerce sales for the group slightly declined by 1.5% to approximately HKD 566.4 million in fiscal year 2019, despite remaining a key revenue driver[52]. Dividend Policy - The company plans to maintain a balanced and stable dividend policy, proposing a final dividend of HKD 0.043 per share, up from HKD 0.0375 in the previous year[24]. - The proposed final dividend for the fiscal year 2019 is HKD 0.043 per share, totaling approximately HKD 89.4 million, subject to shareholder approval[152]. - The company has maintained a sustainable and stable dividend policy, balancing shareholder expectations and prudent capital management[141]. Sales and Distribution - As of June 30, 2019, the group had a total of 2,955 sales points in China, with a plan to replace underperforming department store locations with more stylish points in shopping centers[26]. - The sales points for Tianwang watches decreased by 53 to 2,532 as of June 30, 2019, while Baige watches saw a reduction of 40 sales points to 353[46]. - The group continues to optimize its sales network by closing underperforming sales points and opening new ones in strategic locations[49]. - The company aims to expand its retail presence by opening more sales points in shopping centers, replacing underperforming department store locations[73]. Corporate Governance - The company has a strong focus on corporate governance, adhering to the corporate governance code as per the listing rules, and has established a corporate governance committee[93]. - The board consists of seven directors, including four executive directors and three independent non-executive directors as of June 30, 2019[96]. - The company has adopted a code of conduct for directors' securities trading, confirming full compliance with the standards set forth in the listing rules for the fiscal year 2019[95]. - The board has delegated daily responsibilities to executive directors and senior management under strict supervision to ensure compliance with company policies and strategies[97]. - Independent non-executive directors have confirmed their independence according to the listing rules, with an initial term of two years followed by automatic renewal[105]. - The company ensures that all directors participate in ongoing professional development to enhance their knowledge and skills relevant to their roles[105]. Market Strategy - The company aims to continue focusing on existing business development while leveraging its established market reputation in the Chinese watch market[25]. - The company is implementing strategies to improve Baige watch performance, including optimizing sales and distribution channels[48]. - The company anticipates challenges in the watch market over the next few years but is prepared to seize opportunities in the "New Retail" era in China[74]. - The company is focusing on diversifying its product lines, particularly targeting younger customers[73]. Social Responsibility - The company is committed to social responsibility, participating in charitable activities and focusing on education initiatives[79]. - Charitable donations for the fiscal year 2019 were approximately HKD 3.7 million, an increase from HKD 2.7 million in the fiscal year 2018[199]. Shareholder Engagement - The company has established procedures for shareholders to convene special meetings and submit proposals[131]. - Shareholders must provide detailed contact information when submitting inquiries to ensure timely responses[134]. - The company has a dedicated contact for shareholder inquiries regarding share ownership and dividend payments[133]. Management and Staffing - Employee costs for the fiscal year 2019 were approximately HKD 485.5 million, a decrease from HKD 532.3 million in the previous fiscal year[64]. - The company is committed to employee development through training and career advancement opportunities[149]. Financial Position - As of June 30, 2019, the total assets of the company amounted to approximately HKD 2,159.0 million, an increase of about HKD 105.9 million from HKD 2,053.1 million on June 30, 2018[59]. - The company’s cash and cash equivalents, net of bank overdrafts, were approximately HKD 397.9 million as of June 30, 2019, down from HKD 754.1 million a year earlier[57]. - The company’s total equity increased to approximately HKD 2,159.0 million as of June 30, 2019, compared to HKD 2,053.1 million on June 30, 2018[59].
时计宝(02033) - 2019 - 年度财报