Financial Performance - The Group recorded a revenue growth of approximately 14.7% for the six months ended September 30, 2019, compared to the same period last year[7]. - Profit attributable to owners of the Company decreased by approximately 6.0% during the same period, primarily due to adverse impacts from social movements in Hong Kong[7]. - For the six months ended 30 September 2019, the Group recorded revenue of approximately HK$609,857,000, representing an increase of approximately 14.7% compared to HK$531,492,000 for the same period in 2018[13]. - The gross profit for the six months ended 30 September 2019 was approximately HK$209,282,000, up from approximately HK$179,251,000 for the same period in 2018[15]. - Profit attributable to owners of the Company for the six months ended 30 September 2019 was approximately HK$13,457,000, a decrease of approximately 6.0% compared to HK$14,317,000 for the same period in 2018[15]. - The gross profit margin for the Group was approximately 34.3%, an increase of 0.6 percentage points from 33.7% for the same period in 2018[29]. - Operating profit increased to HK$23,584,000, up 17.5% from HK$20,067,000 in the previous year[121]. - Profit before income tax was HK$16,520,000, a decrease of 6.4% from HK$18,709,000 in 2018[121]. - Net profit for the period was HK$13,457,000, down 6.0% from HK$14,317,000 in the same period last year[121]. Retail Operations - The Group operates under the brand "Best Mart 360˚," offering a wide range of imported prepackaged leisure foods and grocery products[6]. - The decline in tourist numbers visiting Hong Kong since June 2019 has negatively affected the Group's retail operations[7]. - The number of retail stores increased from 77 as at 30 September 2018 to 98 as at 30 September 2019, with 14 new stores opened and 5 closed during the period[17]. - As of September 30, 2019, the Group operated a total of 98 retail stores in Hong Kong, an increase from 77 stores as of September 30, 2018[19]. - The Group aims to create a comfortable shopping environment and pleasurable shopping experience for its customers[6]. Economic Environment - The overall economic deterioration in Hong Kong has been influenced by US-China trade tensions and a decline in private consumption expenditure[7]. - The provisional estimated value of total retail sales in Hong Kong decreased by 20.4% in September 2019 compared to the same month in 2018[10]. - Visitor arrivals in Hong Kong dropped significantly from July to September 2019, with decreases of 4.8%, 39.1%, and 34.2% compared to the same months in 2018[10]. - Hong Kong's GDP decreased by 2.9% in real terms in Q3 2019, with private consumption expenditure falling by 3.4%[35]. - Consumer spending on food in Hong Kong dropped by 12.1% in Q3 2019, reflecting a challenging retail environment[35]. - The ongoing social unrest and global economic factors are significantly impacting the retail business environment in Hong Kong[35]. Cost and Expenses - Rental expenses for retail stores were approximately HK$77,179,000 for the six months ended 30 September 2019, representing an increase of approximately 29.2% compared to HK$59,739,000 for the same period in 2018[17]. - The average monthly rental for the six months ended 30 September 2019 was approximately HK$126.8 per square foot, an increase of approximately 2.0% from HK$124.3 per square foot for the same period in 2018[17]. - The percentage of rental expenses to sales revenue for the six months ended 30 September 2019 was approximately 12.7%, slightly higher than 11.2% for the same period in 2018[17]. - Selling and distribution expenses amounted to approximately HK$168,050,000 for the six months ended September 30, 2019, reflecting an increase of approximately 25.1% from HK$134,329,000 for the same period in 2018[48]. - Finance costs increased to approximately HK$7.1 million, representing an increase of approximately 420.2% from approximately HK$1.4 million for the same period in 2018, primarily due to interest expenses on lease liabilities[53]. Employee and Staffing - The total number of employees increased from 624 to 816, with staff costs rising by approximately 23.8% to HK$65,536,000 for the six months ended September 30, 2019[21]. - The remuneration policy is based on employee performance, with a total employee cost increase of approximately 23.8% from the previous year[72][77]. Digitalization and Expansion - The Group opened its first WeChat Pay Smart Store in Hong Kong, marking a significant step in its digitalization strategy[32]. - The Group launched two WeChat Mini Programs: "Best Mart Scan & Go" and "Best Mart Card," enhancing customer engagement and payment options[32]. - The Group is preparing to expand its market coverage by establishing a retail presence in Mainland China, with the first store expected to open in the upcoming financial year[38]. - The Group aims to actively expand its retail network in Macau as part of its growth strategy[40]. Corporate Governance - The Company has adopted and complied with all applicable code provisions in the Corporate Governance Code during the reporting period[99]. - The Board is responsible for overseeing the overall management of the Group's business and has established three committees: audit, remuneration, and nomination[100]. - The audit committee reviewed the unaudited interim condensed consolidated financial statements for the six months ended 30 September 2019, confirming compliance with applicable accounting standards[111]. - The Company is committed to maintaining high standards of corporate governance to enhance accountability and transparency[98]. Accounting Standards - The Group adopted HKFRS 16 "Leases" effective from April 1, 2019, resulting in right-of-use assets of approximately HK$223.6 million and lease liabilities of approximately HK$230.9 million as of September 30, 2019[49]. - The Group's financial statements do not include all information required for a complete set of financial statements prepared in accordance with HKFRSs[131]. - The impact of adopting HKFRS 16 Leases has been summarized, indicating potential changes in accounting treatment for leases[136]. - The Group recognized right-of-use assets amounting to HK$156,474,000 and lease liabilities of HK$158,089,000 as of April 1, 2019[142][146].
优品360(02360) - 2020 - 中期财报