Financial Performance - The company's profit attributable to owners was HKD 91.4 million, a decrease of 70.1% from HKD 305.4 million in 2019[5]. - Total revenue for 2020 was HKD 1,726.4 million, down 27.4% from HKD 2,377.9 million in 2019[13]. - Annual profit for the company was approximately HKD 59.4 million, down approximately 79.7% from HKD 293.1 million in the previous fiscal year[28]. - Profit attributable to shareholders decreased from approximately HKD 305.4 million in the previous fiscal year to about HKD 91.4 million, a reduction of approximately 70.1%[28]. - Earnings per share for the fiscal year was HKD 0.044, a decrease of approximately 70.1% from HKD 0.147 in the previous fiscal year[28]. - The group's revenue from continuing operations decreased by approximately HKD 651.5 million or about 27.4% from HKD 2,377.9 million in FY2019 to HKD 1,726.4 million in FY2020, primarily due to the impact of COVID-19 on operations and weakened consumer sentiment[38]. - Gross profit from continuing operations dropped by approximately HKD 481.4 million or about 27.4% from HKD 1,754.6 million in FY2019 to HKD 1,273.2 million in FY2020, aligning with the revenue decline[38]. Assets and Liabilities - The total assets as of June 30, 2020, were HKD 2,496.1 million, a decrease from HKD 2,713.9 million in 2019[14]. - The total liabilities decreased significantly to HKD 302.9 million from HKD 554.8 million in 2019[14]. - The equity attributable to owners was HKD 2,169.5 million, down 2.4% from HKD 2,223.5 million in 2019[5]. - Cash and bank balances increased to approximately HKD 693.6 million, an increase of about HKD 271.9 million or 64.5%[30]. - The total equity as of June 30, 2020, was approximately HKD 2,193.2 million, an increase of about HKD 34.2 million from HKD 2,159.0 million in 2019[58]. - As of June 30, 2020, the company's debt-to-equity ratio decreased to approximately 1.3% from about 9.5% as of June 30, 2019, due to the repayment of all bank borrowings during the fiscal year 2020[59]. Sales and Market Performance - The company's main brand, Tian Wang watches, contributed approximately 84.0% of total revenue, amounting to about HKD 1,450.3 million[29]. - The Tian Wang watch business accounted for approximately 84.0% of total revenue in FY2020, with revenue declining by about HKD 512.8 million or approximately 26.1% to HKD 1,450.3 million[38]. - The Baigao watch business revenue fell by approximately HKD 35.0 million or about 45.2% to HKD 42.4 million in FY2020, mainly due to a decline in sales in the Chinese market[38]. - Other brand watch sales, excluding Tian Wang and Baigao, decreased by approximately HKD 69.2 million or about 33.1% to HKD 140.0 million, representing about 8.1% of total revenue in FY2020[38]. - The number of sales points for Tian Wang watches decreased by 163 to 2,369 as of June 30, 2020, compared to the previous year[48]. - The company has 2,738 sales points in China as of June 30, 2020, down from 2,955 sales points in the previous year[29]. Operational Efficiency - Average inventory turnover days increased to 289 days in 2020 from 247 days in 2019[14]. - Average trade receivables turnover days increased to 63 days in 2020 from 54 days in 2019[14]. - Selling and distribution costs decreased by approximately HKD 285.5 million or about 22.4% to HKD 988.3 million in FY2020, due to reduced franchise fees, rent, and employee costs[41]. - Administrative expenses fell by approximately HKD 21.3 million or about 14.6% to HKD 124.7 million in FY2020, mainly due to strict cost control measures[42]. Future Strategies - The company plans to focus on expanding its core brand Tian Wang and enhancing online sales channels[19]. - The company aims to explore new product development and market expansion strategies in the coming years[19]. - The company plans to continue focusing on e-commerce, having maintained its position as the top seller of watches on Tmall for seven consecutive years[29]. - The company plans to optimize its sales network by closing underperforming sales points and opening new ones in strategic locations[51]. - The company anticipates that the recovery of the economy and consumer sentiment may take longer than expected due to the ongoing impact of COVID-19 in China[45]. - The company plans to allocate more resources to expand its online market share and strengthen online marketing efforts in response to the accelerated shift towards e-commerce[72]. Corporate Governance - The company maintains a high standard of corporate governance, regularly reviewing its practices to ensure compliance with the corporate governance code[106]. - The board consists of seven directors, including four executive directors and three independent non-executive directors[110]. - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with the standards set forth in the listing rules[108]. - The company has established a written terms of reference for the audit committee, which was revised and adopted by the board effective January 1, 2019[120]. - The company has established service contracts for its executive directors, with initial terms of two years and automatic renewal unless terminated with three months' notice[171]. - The company has received annual independence confirmation from its independent non-executive directors, reinforcing its governance framework[170]. Social Responsibility - The company is committed to sustainable development and has actively participated in various charitable activities, focusing on education projects to help underprivileged youth[89]. - The company has made donations to environmental initiatives, contributing to social sustainability efforts over the years[89]. - The company aims to provide opportunities for youth to access higher education through its charitable contributions[89]. - The company has a commitment to social responsibility, engaging in various initiatives to support youth in crisis[89]. Shareholder Information - The company reported a total reserve available for distribution to shareholders of approximately HKD 1,315.6 million for the fiscal year 2020, compared to HKD 1,318.4 million for the fiscal year 2019[165]. - The company did not recommend the payment of a final dividend for the fiscal year 2020, while a final dividend of HKD 0.043 per share was paid for the fiscal year 2019[163]. - The company has a sustainable and stable dividend policy aimed at balancing shareholder expectations and prudent capital management[152]. - The company has a dedicated contact for shareholder inquiries regarding share ownership and dividend payments[145].
时计宝(02033) - 2020 - 年度财报