Financial Performance - The group's revenue for the fiscal year ending March 31, 2025, was HKD 13.34 billion, a decrease of 12.9% compared to the previous year[4] - Net profit for the year decreased by 39.3% to HKD 1.07 billion, primarily due to increased gold hedging losses of HKD 493 million and a comparison with one-time gains from the previous year's acquisition[4] - Operating profit decreased by 33.3% to HKD 1.41 billion, with an operating margin of 10.6%, down 3.2 percentage points[4] - The company reported a total comprehensive income of HKD 976.88 million for the year, down from HKD 1.38 billion in the previous year[6] - Total revenue for the year ended March 31, 2025, reached HKD 13,341,295, an increase from the previous year's HKD 15,325,962[19] - The net profit attributable to equity holders of the company for the year was HKD 1,099,864, down from HKD 1,767,305 in the prior year, indicating a decline of about 38%[19] - The company reported external customer sales of HKD 12,436,940, which is a decrease from HKD 14,291,496 in the previous year, representing a decline of approximately 13%[18] - Total revenue decreased by 12.9% to HKD 13,341,295,000 compared to HKD 15,325,962,000 in 2024[36] - Operating profit fell by 33.3% to HKD 1,412,051,000, with an operating margin decline of 3.2 percentage points to 10.6%[36] - Profit attributable to equity holders decreased by 37.8% to HKD 1,099,864,000, resulting in basic earnings per share dropping by 37.9% to HKD 1.87[29][36] Dividends - The proposed final dividend is HKD 0.55 per share, with a total annual dividend of HKD 1.10 per share, resulting in a payout ratio of 59%[4] - The board of directors proposed a final dividend of HKD 0.55 per share for the year ending March 31, 2025, totaling HKD 645,818,000 in annual dividends[85] - The total dividend for the year, including interim dividends, amounts to HKD 1.10 per share, compared to HKD 1.41 per share in the previous year[85] Store Operations - The company closed 296 stores during the fiscal year[3] - The total number of global stores decreased by 296 to 3,287, including a net decrease of 312 "Lukfook" stores[37] - The number of stores in Mainland China decreased to 3,179, down from 3,490, with a net reduction of 329 "Luk Fook" brand stores[64] - The group opened 10 new overseas stores, increasing the total to 31, including 5 in the USA and Australia each[55] - The company plans to open 50 new stores in the mainland market by the fiscal year 2025/26, reflecting a cautious optimism about long-term business prospects in the region[80] - The company aims to increase its overseas store count by approximately 20 stores in the current fiscal year, targeting significant growth potential in international markets[80] Revenue Breakdown - Retail revenue decreased by 13.5% to HKD 11,031 million, accounting for 82.7% of total revenue[42] - Wholesale revenue declined by 8.8% to HKD 1,406 million, representing 10.5% of total revenue[43] - Brand business revenue fell by 12.6% to HKD 904 million, contributing 6.8% to total revenue[44] - Gold and platinum sales dropped by 15.0% to HKD 8,822 million, making up 70.9% of total sales[46] - The overall revenue from the mainland market decreased by 0.2% to HKD 5,273 million, representing 39.5% of the group's total revenue[69] Profit Margins - Gross profit increased by 5.8% to HKD 4.42 billion, with a gross margin improvement of 5.9 percentage points to 33.1%[4] - The gross profit for gold and platinum products increased by 16.2% to HKD 2,325 million, with a gross margin of 26.4%[47] - The adjusted segment profit for retail was HKD 1,418 million, up 8.4% when excluding gold hedging losses[42] - The overall segment profit decreased by 22.6% to HKD 1,666,000,000, with a profit margin of 12.5%[51] Financial Position - Total assets as of March 31, 2025, amounted to HKD 17.90 billion, an increase from HKD 16.85 billion in the previous year[7] - The company’s total liabilities were reported at HKD 4,755,533, indicating a significant financial obligation[20] - The group’s net debt increased to HKD 205 million, with a debt-to-equity ratio of 36.0%[71] - Inventory increased by 12.2% to HKD 10,739 million, with an average inventory turnover days of 427 days[73] Strategic Initiatives - The company plans to focus on expanding its brand and service fee income, which reached HKD 785,487 for the year[18] - A new three-year corporate strategy starting from the fiscal year 2025/26 will focus on "overseas market expansion," "market-oriented products," and "operational efficiency optimization" to drive future growth[80] - The company is committed to enhancing its e-commerce business and optimizing its platform to boost sales, particularly targeting the young consumer market with its light luxury jewelry offerings[82] - The company will continue to develop market-oriented products, extending its offerings to both high-end and light luxury segments, while utilizing market data for targeted product development[83] - Operational efficiency will be improved through supply chain management, automation, big data analytics, and the application of artificial intelligence technologies[84] Corporate Governance - The company has maintained good corporate governance practices, adhering to the principles of the corporate governance code as per the Hong Kong Stock Exchange[87] - No purchases, sales, or redemptions of the company's listed securities were conducted by the company or its subsidiaries during the review year[89] - The group has confirmed that the preliminary performance announcement aligns with the draft consolidated financial statements for the year ending March 31, 2025[91] - The full-year performance announcement is available on the Hong Kong Stock Exchange website and the company's website[92] Market Performance - Same-store sales improved significantly, with nearly 20% growth in mainland China and stable performance in Hong Kong and Macau from April 1 to June 21, 2025[3] - Overall same-store sales declined by 25.1%, with gold and platinum products down by 28.5% and priced jewelry products down by 14.1%[48] - Retail revenue in Hong Kong dropped by 20.0% to HKD 5,087,290,000, while revenue from Macau fell by 28.5% to HKD 2,068,985,000[54] - Revenue from Hong Kong, Macau, and overseas markets decreased by 19.6% to HKD 8,067,968,000, accounting for 60.5% of total group revenue[59] - Retail revenue in mainland China increased by 10.4% to HKD 3,160,312,000, representing 59.9% of mainland market revenue[62]
六福集团(00590) - 2025 - 年度业绩