Financial Performance - Revenue for 2024 was HK$1,359,456 thousand, a decrease from HK$1,483,733 thousand in 2023[36] - Net profit for 2024 was HK$13,314 thousand, compared to a net loss of HK$320,852 thousand in 2023[36] - Total assets decreased to HK$10,205,513 thousand in 2024 from HK$10,791,316 thousand in 2023[36] - Annual revenue for the fiscal year ending June 30, 2024, was HKD 1,359.5 million, compared to HKD 1,483.7 million in the previous year[51] - The company achieved an annual profit of HKD 13.3 million for the fiscal year ending June 30, 2024, with earnings per share of HKD 0.008[51] - Revenue for the fiscal year 2024 decreased to 1,359.5 million HKD from 1,483.7 million HKD in 2023, primarily due to a decline in merchandise sales and commission income from counter sales[89] - Total sales proceeds for 2024 were 4,347.6 million HKD, down from 4,914.5 million HKD in 2023[89] - Gross profit margin for merchandise sales in 2024 improved to 13.5% compared to 12.7% in 2023[89] - Rental income for 2024 was 585.0 million HKD, slightly up from 583.8 million HKD in 2023[89] - Other income increased to 333.5 million HKD in 2024 from 291.9 million HKD in 2023, mainly due to the write-off of long-aged payables[89] - Operating profit for 2024 was 254.7 million HKD, a significant improvement from an operating loss of 79.4 million HKD in 2023[98] - Employee benefit expenses decreased to 342.2 million HKD in 2024 from 408.7 million HKD in 2023, reflecting cost control measures and store closures[94] - Depreciation expenses reduced to 353.9 million HKD in 2024 from 382.7 million HKD in 2023, due to the closure of certain department stores[95] - Financial costs increased to 217.5 million HKD in 2024 from 203.2 million HKD in 2023, driven by higher average borrowing costs due to rising HIBOR[99] - Income tax expense decreased to 23.9 million HKD in 2024 from 38.3 million HKD in 2023, primarily due to deferred tax credits[100] - Annual profit for the fiscal year 2024 is HKD 13.3 million, compared to a loss of HKD 320.9 million in the fiscal year 2023[101] - Revenue for the year 2024 decreased to 1,359,456 thousand HKD from 1,483,733 thousand HKD in 2023, representing a decline of approximately 8.4%[199] - Other income increased to 333,507 thousand HKD in 2024 from 291,936 thousand HKD in 2023, showing a growth of about 14.2%[199] - Operating profit for 2024 was 254,710 thousand HKD, a significant improvement from an operating loss of 79,395 thousand HKD in 2023[199] - Net profit for 2024 was 13,314 thousand HKD, compared to a net loss of 320,852 thousand HKD in 2023[199] - Basic and diluted earnings per share for 2024 were 0.008 HKD, recovering from a loss of 0.190 HKD per share in 2023[199] - Other comprehensive loss for 2024 was 8,208 thousand HKD, a substantial reduction from 307,388 thousand HKD in 2023[200] - Total comprehensive income for 2024 was 5,106 thousand HKD, compared to a comprehensive loss of 628,240 thousand HKD in 2023[200] - Investment property fair value changes resulted in a loss of 119,286 thousand HKD in 2024, compared to a loss of 22,527 thousand HKD in 2023[199] - Financial costs net of income were 217,522 thousand HKD in 2024, slightly higher than 203,172 thousand HKD in 2023[199] - Depreciation expenses decreased to 353,854 thousand HKD in 2024 from 382,656 thousand HKD in 2023, reflecting a reduction of approximately 7.5%[199] Store Operations and Revenue Streams - Rental income remained stable at HK$584,977 thousand in 2024, compared to HK$583,840 thousand in 2023[37] - Commission income from counter sales decreased to HK$435,932 thousand in 2024 from HK$479,918 thousand in 2023[37] - Self-operated sales revenue dropped to HK$322,103 thousand in 2024 from HK$402,350 thousand in 2023[37] - Rental income accounted for 43.0% of the total revenue, followed by sales commission income at 32.1%, self-operated goods sales at 23.7%, and financing lease interest income at 1.2%[51][53] - The company operates 15 stores under the "New World" brand and 7 stores under the "Paris Spring" brand in Shanghai, covering 12 major locations in mainland China[4] - Total gross floor area of the stores is approximately 920,000 square meters[4] - The company operates 22 department stores and shopping malls across 12 major locations in mainland China, with a total gross floor area of approximately 920,000 square meters[52] - The company reduced one store due to the expiration of a lease contract, specifically the Wuhan Wuchang store[52] - The company focused on brand introduction and category management, upgrading store images, and enhancing offline activities to attract potential members[54] - The Shanghai Wujiaochang store completed a comprehensive upgrade, introducing approximately 30% of first-in-the-area brands, adding dining, entertainment, and sports formats[55] - The Beijing Chongwen store introduced a "second-dimensional" street, featuring brands like "Chaowan Xingqiu" and "Gufan Tian," and added lifestyle brands such as "Muji"[55] - The Shanghai Huaihai store introduced the first indoor cycling venue "TANGO LIVEHOUSE" and the Japanese网红烘焙 brand "Kimuraya"[55] - The Shanghai Pujian store upgraded with "Manner Coffee" and "Nike SPORT M" stores, enhancing the store's appeal to different customer groups[55] - The company launched a new membership system with eight exclusive benefits, enhancing the overall member experience and attracting users for long-term private domain operations[57] - The company's self-operated e-commerce platform "New Flash Purchase Mini Program" saw double-digit year-on-year growth in sales, driven by collaborations with platforms like Douyin, Meituan, and Gaode[58] - The company introduced several first-of-their-kind stores, including the national debut of the indoor music cycling venue "TANGO LIVEHOUSE" at Shanghai Huaihai Store and the "MAXUS" yo-yo club at Shanghai Wujiaochang Store[61] - The company focused on introducing high-quality lifestyle dining options, such as the national debut of the pufferfish paper hotpot restaurant "Fugu Paper" at Shanghai Huaihai Store and the "Baoyue Lou" Cantonese restaurant at Shanghai Pujian Store[68] - The company expanded its presence in the "Z Generation" market by renovating the "Anime Street" at Beijing Chongwen Store and hosting events like "ACG Guiguzi" and "Pokémon Card Tournaments"[71] - The company organized large-scale marketing events like the "66 Butterfly Festival," which attracted diverse consumer groups and overlapped with store anniversary celebrations[73] - The company held various outdoor market events, such as the "V Future Market" and "Spring Vitality Market" at Shanghai Huaihai Store, significantly boosting foot traffic[75] - Shanghai Huaihai Store's "Huaihai Wool Plan" exhibition attracted a large number of customers, with a 197% year-on-year increase in foot traffic and 63,000 views on Xiaohongshu[76] - The company launched a national first-of-its-kind children's membership system, adding over 7,000 new child members annually[77] - Shanghai Huaihai Store's "2024 Happy Huaihai Carnival" achieved over 400,000 exposures[80] - The company's live streaming business saw significant growth, with a total GMV of nearly RMB 300,000 during a joint live streaming event in Central China[82] - The online platform "New Flash Sale" achieved double-digit high growth in sales during the review period[82] - The company operates five LOL (Love‧Original‧Life) original lifestyle concept stores, with three in Shanghai and two in Beijing[84] - LOL concept stores introduced popular international brands such as "TRIDO" and "MARSHALL," gaining significant exposure on social platforms like Xiaohongshu[85] - The company operates three "New World Supermarkets," with themed sections like the Russian Pavilion in Wuhan Construction Store[87] - The company reduced one supermarket location, specifically the Lanzhou store, to optimize resource allocation[87] Corporate Governance and Board Structure - The company is committed to maintaining high standards of corporate governance and has complied with all applicable code provisions of the Corporate Governance Code as of June 30, 2024[109] - The company has adopted the standard code for securities transactions by directors as set out in Appendix C3 of the Listing Rules, and all directors have confirmed compliance with this code for the year ending June 30, 2024[110] - The company has established written guidelines for employee securities transactions, and no violations were reported for the year ending June 30, 2024[111] - The Board of Directors consists of three executive directors, one non-executive director, and five independent non-executive directors as of the report date[113] - The Board held four regular meetings and one meeting with independent non-executive directors without other directors present during the year ending June 30, 2024[115] - Dr. Cheng Chi Kong resigned as non-executive director and Chairman on September 26, 2024, and Mr. Cheung Fai Yip was appointed as Chairman on the same day[113][116] - The roles of Chairman and CEO are held by separate individuals to ensure a balanced distribution of power and authority[117] - The company has implemented a mechanism to ensure the independence of the Board, including procedures for seeking independent professional opinions and criteria for selecting independent non-executive directors[119] - The Board reviewed the company's environmental, social, and governance (ESG) development, including the "New World 2030 Sustainability Vision," during two regular meetings in the review year[119] - The Audit Committee held two meetings during the review period to review the audited consolidated financial statements for the year ended June 30, 2023, and the unaudited interim financial information for the six months ended December 31, 2023[122] - The Audit Committee reviewed the effectiveness of the company's risk management and internal control systems, including resources, staff qualifications, and training budgets related to accounting, internal audit, and financial reporting functions[122] - The Internal Audit Department conducted risk-based audits to ensure the effectiveness of major internal control measures and managed key business and operational risks, including environmental, social, and governance risks[122] - The Audit Committee met with external auditors twice a year to discuss audit-related matters and any issues raised by the external auditors[121] - The Remuneration Committee held two meetings during the year ended June 30, 2024, to review the company's remuneration policies and assess the performance of executive directors[126] - The Remuneration Committee is responsible for determining the remuneration packages of executive directors and senior management, including benefits, pension provisions, and compensation amounts[126] - The company has adopted a formal and transparent remuneration policy for directors and employees to attract and retain experienced and high-quality talent[126] - The Audit Committee reviewed the company's whistleblowing policy, which aims to effectively uncover fraud, misconduct, or significant risks within the company[124] - The Remuneration Committee consists of eight members, with the majority being independent non-executive directors, and is chaired by an independent non-executive director[125] - The Audit Committee is composed of five independent non-executive directors, with the chairman possessing specialized knowledge in financial management[121] - The company has a total of 9 directors, with 3 being female, representing 33.33% of the board, achieving gender diversity[132] - The company's total number of employees as of June 30, 2024, is 1,838, with female employees accounting for approximately 48% of the workforce[132] - The gender pay ratio between male and female employees is 1.03, indicating a balanced gender pay structure[132] - The company has adopted a Board Diversity Policy, considering factors such as gender, age, cultural and educational background, ethnicity, professional experience, skills, and knowledge[130] - The company has set measurable objectives to implement the Board Diversity Policy and will review these objectives periodically to ensure their appropriateness and progress[130] - The Nomination Committee held one meeting during the fiscal year to review the re-election of retiring directors and propose recommendations to the board[128] - The Nomination Committee reviewed the company's nomination policy and board diversity policy during the fiscal year[128] - The company's nomination policy outlines criteria and procedures for appointing and re-electing directors, ensuring a balanced mix of skills, experience, and diversity[129] - The Nomination Committee evaluates director candidates based on criteria such as integrity, qualifications, time commitment, and potential conflicts of interest[129] - The company's Board Diversity Policy aims to enhance the effectiveness of the board by maintaining diversity among its members[130] - All directors participated in continuous professional development to update their knowledge and skills during the review year[134] - The company adopted a share option plan on June 26, 2023, allowing the issuance of share options to all directors[135] - The company's annual and interim results were published in a timely manner, and the directors confirmed compliance with applicable laws and accounting standards[136] - The audit committee reviewed the effectiveness of the risk management and internal control systems, confirming they are adequate and effective[137] - The company has implemented a continuous disclosure policy to ensure timely and accurate disclosure of material information[138] - The directors approved the adoption of all applicable Hong Kong Financial Reporting Standards issued by the HKICPA for the financial statements as of June 30, 2024[139] - The company secretary participated in at least 15 hours of relevant professional training during the year ended June 30, 2024[140] - The company is committed to enhancing shareholder value and ensuring timely access to comprehensive and understandable information[141] - The company has adopted a shareholder communication policy to enhance effective communication with shareholders and encourage active engagement[142] - The company's dividend distribution policy prioritizes operational needs and retains most available funds for business development, with no fixed dividend payout ratio[143] - The company's sustainability report follows the Global Reporting Initiative (GRI) standards and aligns with the Climate-Related Financial Disclosures Task Force guidelines[143] - The company paid HKD 3,976,000 for audit services and HKD 794,000 for non-audit services to external auditors for the fiscal year ending June 30, 2024[145] - The company emphasizes employee development, compliance with labor laws, and maintaining a fair and transparent recruitment process[146] - The company's distributable reserves as of June 30, 2024, amounted to HK$929.5 million, compared to HK$1,025.5 million in 2023[154] - The company made charitable donations of approximately HK$150,000 during the fiscal year, up from HK$18,000 in 2023[154] - No final dividend was recommended for the fiscal year ending June 30, 2024, consistent with the previous year[152] - The company did not issue any shares or bonds during the fiscal year[153] - The company received multiple awards and certifications, including the "ESG Gold Award" from The Asset and the "Green Office 10+" certification from the World Green Organization[147] - The company's financial performance and key performance indicators are detailed in the "Management Discussion and Analysis" section on pages 12-35 of the annual report[152] - The company's environmental policies and climate-related risks are discussed in the standalone "Sustainability Report 2024"[152] - The company's major investment properties are detailed on page 164 of the annual report[154] - The company's five-year financial summary is provided on page 163 of the annual report[154] - The company's board of directors underwent changes, with Dr. Adrian Cheng resigning as Chairman and Mr. Cheung Fai-yat being appointed as the new Chairman[154] - The company has maintained directors' liability insurance to provide appropriate protection for directors and subsidiary directors during the review year[161] - Dr. Cheng Chi Kong and Ms. Chiu Wai Han hold interests in entities considered to be in direct or indirect competition with the group's business, including New World Development and Chow Tai Fook Enterprises[162] - New World Development is restricted from engaging in certain businesses in mainland China, including department stores, supermarkets, and convenience stores, under a non-compete deed[163] - Independent non-executive directors have confirmed that New World Development has not violated the non-compete deed[164] - The company has a comprehensive leasing agreement with New World Development, with fixed leasing costs capped at RMB 534 million, RMB 523 million, and RMB 436 million for the respective years, and variable leasing and service costs capped at RMB 121 million, RMB 153 million, and RMB 162 million[165] - The total fixed leasing costs paid by the group as a lessee under the comprehensive leasing agreement amounted to approximately RMB 146.677 million during the review year[165] - The total variable leasing costs paid by the group as a lessee under the comprehensive leasing agreement amounted to approximately RMB 86.426 million during the review year[165] - The company has a comprehensive counter agreement with Chow Tai Fook Jewelry Group, with annual caps of RMB 89 million, RMB 95 million, and RMB 100 million for the respective years[166] - The total transaction value under the comprehensive counter agreement was approximately RMB 27.954 million during the review year[166] - The company has a comprehensive service agreement with Mr. To Wai Kwok, with an annual cap of RMB 57 million[167] - The total transaction amount under the Comprehensive Service Agreement was approximately RMB 13,909,000 in the review year (2023: approximately RMB 6,431,000)[168] - The annual caps for the Comprehensive Service Agreement are
新世界百货中国(00825) - 2024 - 年度财报