周生生(00116) - 2024 - 年度财报

Financial Performance - In 2024, the company recorded a 15% decline in turnover to HK$21,176 million compared to HK$25,013 million in 2023[9]. - Profit attributable to owners of the company decreased by 20% to HK$806 million from HK$1,012 million in the previous year[9]. - Retail turnover fell by 15% to HK$20,697 million, while other businesses saw a 35% decline to HK$479 million[9]. - Earnings per share decreased to 119.1 cents from 149.5 cents, reflecting a 20% drop[9]. - The Group's consolidated turnover from continuing operations for 2024 decreased by 15% to HK$21,176 million[50]. - Profit attributable to owners of the Company decreased by 20% to HK$806 million, while profit from continuing operations decreased by 27% to HK$772 million[50]. - Profit before tax for the year was HK$996,338, down 26.6% from HK$1,357,452 in the previous year[123]. - The profit for the year from continuing operations was HK$760,121, a decline of 27.4% compared to HK$1,046,862 in 2023[123]. - Total assets as of December 31, 2024, increased to HK$19,649,732 from HK$19,156,156 in 2023, reflecting a growth of 2.6%[127]. - Total liabilities rose to HK$7,265,256, up from HK$6,985,962 in 2023, indicating an increase of 4.0%[127]. Store Network and Operations - The company is upgrading its physical store network in Mainland China, closing underperforming stores in certain locations[16]. - The Group opened 48 new stores and closed 122 stores, mainly in Mainland China, as part of its store network consolidation efforts[49]. - The Group opened 43 and closed 112 jewellery stores in Mainland China, resulting in a net decrease of 69 stores, bringing the total to 842 stores by December 31, 2024[63]. - The company is consolidating its physical store network, trimming stores in lower-tier cities while increasing presence in high-end locations in major cities[104]. - The Group's strategy includes a focus on cost control, enhancing customer experience, and improving operational efficiency[107]. Investment and Financial Management - The Group's investment properties had a total carrying value of HK$418 million, generating rental income of HK$10 million in 2024[76]. - The Group's investment in HKEC shares was valued at HK$981 million, representing 5% of total assets as of December 31, 2024[77]. - The fair value of the strategic investment in Hong Kong Exchanges and Clearing Limited was HK$981 million, representing 5% of the group's total assets[82]. - The group repurchased a total of 4,714,000 shares for approximately HK$30 million during the year, with all repurchased shares subsequently cancelled[83][90]. - Capital expenditure for the group was HK$214 million, with HK$169 million allocated for new store openings and refurbishments[84][91]. - As of December 31, 2024, the group had cash and cash equivalents of HK$1,336 million, an increase from HK$1,096 million in 2023[85][92]. - The total unutilised banking facilities amounted to HK$6,183 million as of December 31, 2024, compared to HK$6,111 million in 2023[86][92]. - The net gearing ratio was 29.7%, calculated as total bank borrowings and bullion loans of HK$3,692 million against equity attributable to owners of the company of HK$12,430 million[87][92]. - The group maintained 18% of its bank borrowings at fixed rates as of December 31, 2024, down from 35% in the previous year[88][93]. Market and Sales Performance - Same-store sales growth (SSSG) for gold jewellery in Mainland China and Hong Kong declined by 13% and 19% respectively[59]. - Gem-set jewellery SSSG in Mainland China and Hong Kong decreased by 38% and 24% respectively, primarily due to a drop in diamond sales[59]. - The overall retail segment revenue declined by 15% year-on-year, reflecting challenging market conditions[55]. - Online sales in Mainland China accounted for approximately 22% of total sales in that market, an increase from 19% in 2023[71]. - The Group's online sales in Hong Kong, Taiwan, and other regions grew by 13% to HK$310 million in 2024[69]. - The wholesale turnover of precious metals decreased by 37% to HK$451 million during the year due to a decline in gold and platinum demand[73]. Corporate Governance and Management - The Group's management team includes members with extensive experience in various sectors, enhancing its operational capabilities[26]. - The Group's strategic direction is influenced by its experienced board members, who have diverse backgrounds in finance, healthcare, and education[30]. - The board includes independent directors with significant experience in corporate governance and financial oversight, ensuring robust management practices[29]. - The long-established performance-based emolument policy rewards performance while considering experience and industry practices[139]. - The Directors' emoluments are determined based on comparable companies, time commitment, responsibilities, and individual performance[140]. - The Company has arranged appropriate directors' and officers' liability insurance coverage for the Directors and officers during the year ended December 31, 2024[165]. Community Engagement and Sustainability - The company has committed to carbon reduction with a target aligned to 1.5°C, recognized by the Science Based Targets initiative (SBTi)[18]. - The Group made charitable contributions totaling HK$1,974,000 during the year[128]. - The ESG Report outlines the Group's management approach and performance for sustainable development strategies covering the period from January 1 to December 31, 2024[200]. Future Outlook and Strategy - The company aims to cultivate the high-end segment and focus its product portfolio to target specific market segments[20]. - The company expects demand for gem-set jewellery to require more positive economic signals for an uptick, while gold product sales will remain volatile due to high gold prices[103]. - The Group plans to expand its "YUYU" gold jewellery collection, which features diamond inlays, rapidly[105]. - The Group plans to expand its new "YUYU" series of diamond-studded gold jewelry rapidly[107].