Financial Performance - The company's profit attributable to shareholders for the year ended December 31, 2021, was HKD 34 million, a decrease of HKD 93 million or 73% compared to HKD 127 million in the previous year[14]. - Earnings per share decreased to HKD 0.011 from HKD 0.042 in 2020[14]. - The total sales value of the supermarket business decreased by 8.4% year-on-year due to reduced demand for food and daily necessities[17]. - The total sales revenue for Citistore increased by 7% to HKD 1,616 million, compared to HKD 1,515 million in the previous year[21]. - The sales revenue from self-operated products increased by 3% to HKD 394 million, maintaining a stable gross margin of 31%[22]. - The net asset value attributable to shareholders as of December 31, 2021, was HKD 1.324 billion, or HKD 0.43 per share[14]. - The company proposed a final dividend of HKD 0.01 per share, totaling HKD 0.02 per share for the year, consistent with the previous year[15]. - The overall retail sales value in Hong Kong increased by 8.1% in 2021 compared to the previous year, indicating a recovery in consumer activity[17]. - The total sales amount for franchise and consignment counters increased by 8% year-on-year to HKD 1,222 million, with commission income rising by 2% to HKD 350 million[24]. - Unicorn's total sales decreased by 5% year-on-year to HKD 1,282 million, with self-operated product sales down 8% to HKD 939 million, while consignment sales increased by 5% to HKD 343 million[32]. - Unicorn recorded a post-tax loss of HKD 340 million for the year, compared to a profit of HKD 330 million the previous year, which included government wage subsidies of HKD 220 million[35]. - The group's cash and bank balance as of December 31, 2021, was HKD 360 million, down from HKD 410 million in 2020, with no bank borrowings[37]. - The gross profit margin for self-operated products decreased to 29% from 30% year-on-year, with gross profit down to HKD 269 million from HKD 311 million[33]. - Operating profit decreased by 21% to HKD 103 million from HKD 130 million year-on-year[49]. - Profit before tax declined by 18% to HKD 88 million from HKD 107 million[49]. - Net profit attributable to shareholders fell by 22% to HKD 73 million from HKD 94 million[49]. - The company opened five new "C生活" stores, contributing HKD 15 million in revenue during the year[52]. - Rental and related expenses increased significantly by 84% to HKD 59 million from HKD 32 million[49]. - The company maintained a strong brand presence with established retail operations in densely populated areas, enhancing market competitiveness[44]. - For the year ended December 31, 2021, the group reported a revenue decrease of HKD 78 million or 7% compared to the previous year, primarily due to reduced customer demand for food and daily necessities following the easing of COVID-19 social distancing measures[61]. - The group's total revenue from Unicorn for the year ended December 31, 2021, included sales revenue of HKD 939 million, a decrease of HKD 82 million or 8% year-on-year[58]. - The operating loss for the year ended December 31, 2021, was HKD 30 million, a decline of HKD 78 million or 163% compared to a profit of HKD 48 million in the previous year[58]. - The group did not receive any employment support subsidy from the Hong Kong government for the year ended December 31, 2021, compared to HKD 32 million received in the previous year[63]. - The total employee cost for the year ended December 31, 2021, was HKD 272 million, slightly up from HKD 270 million in 2020[76]. - The group had capital commitments of HKD 14 million for fixed asset projects as of December 31, 2021, down from HKD 15 million in 2020[74]. - The group reported no contingent liabilities as of December 31, 2021, similar to the previous year[75]. - The group maintained a net asset value of HKD 1,324 million as of December 31, 2021, compared to HKD 1,347 million in 2020[81]. - The group had a total of 1,134 full-time employees as of December 31, 2021, an increase from 1,118 in 2020[76]. - The group had no bank borrowings as of December 31, 2021, consistent with the previous year[69]. - The group has no significant interest or exchange rate risks as of December 31, 2021[71]. Sustainability and Corporate Social Responsibility - The company established a dedicated Sustainability Committee within the board to oversee environmental, social, and governance (ESG) strategies and performance, meeting at least once a year[88]. - The company aims to reduce carbon intensity per square foot of store area by 12% by the end of 2025 compared to the 2016 baseline[120]. - The company plans to decrease electricity intensity per square foot of store area by 12% by the end of 2025 compared to the 2016 baseline[121]. - The company reported a greenhouse gas emission of 720,000 tons of CO2 equivalent, with a reduction of 9.37% from the previous year[116]. - The company has implemented energy-saving measures, including monitoring indoor temperatures and using energy-efficient appliances[109]. - The company actively participates in environmental initiatives, such as the "Earth Hour" event to raise public awareness about energy consumption[109]. - The company promotes the use of reusable shopping bags to reduce plastic waste and supports local waste reduction projects[114]. - The company has established a risk management plan to address climate-related risks, including monitoring for typhoons and heavy rain[123]. - The company emphasizes the importance of maintaining a safe and healthy work environment for all employees as part of its corporate social responsibility[107]. - In 2021, the company recycled a total of 319,017 kilograms of cardboard boxes and 39 electronic devices at Citistore[127][128]. - The company collected 1,450 kilograms of used red packets during the Lunar New Year for recycling and reuse[129]. - The company has implemented various health measures in stores, including temperature checks and regular cleaning, to ensure customer and employee safety during the pandemic[90]. - The company encourages non-contact payment methods to minimize social interactions and has adopted flexible working hours to comply with social distancing measures[93]. - The company collaborates closely with supply chain partners to continuously improve service quality and gather customer feedback[94]. - The company strictly adheres to various regulations to ensure product quality and has no reported violations in health and safety, advertising, labeling, or privacy during the reporting period[102]. - The company has established a robust customer privacy policy, ensuring that personal data collected is securely stored and accessed only by authorized personnel[101]. - The company has implemented safety measures in its department stores following a notice from the Labour Department regarding workplace safety[147]. - The company continues to promote a sustainable lifestyle by offering reusable items at Citistore[129]. - The company has maintained a zero-violation record regarding anti-corruption regulations during the reporting period[153]. - The company made community investments exceeding HKD 271,000 in 2021[159]. - The company donated over 270 items of clothing and household goods to various NGOs in 2021[164]. - The total amount of recyclable materials collected was 1,450 kilograms, with a donation of HKD 63,000 for the recycling initiative[164]. Corporate Governance - The board consists of eight members, including three independent non-executive directors, ensuring a balanced composition[188]. - The company has established mechanisms to ensure independent viewpoints within the board, with at least one independent non-executive director possessing appropriate professional qualifications[191]. - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange rules for the year ending December 31, 2021[183]. - There were no corruption lawsuits filed against the company or its employees during the reporting period[7.1]. - The company emphasizes the importance of good corporate governance practices and procedures[182]. - The board is responsible for overall decision-making, including risk management and internal control systems[184]. - Independent non-executive directors do not receive performance-related equity compensation to maintain their objectivity and independence[193]. - The company has a policy for community investment focusing on areas such as education, environment, and health[8.1]. - The company has implemented measures to prevent bribery, extortion, fraud, and money laundering[7]. - The board held four meetings during the year to approve interim and annual results, discuss important matters, and review corporate governance policies[200]. - Independent non-executive directors confirmed their independence and were deemed free from any relationships that could significantly interfere with their independent judgment[197]. - The company established a corporate governance committee in December 2021 to fulfill corporate governance responsibilities as per the Corporate Governance Code[200]. - The board ensures that each director, including independent non-executive directors, is subject to re-election at least once every three years[197]. - The company received independent confirmation letters from all independent non-executive directors regarding their independence[197]. - The board is empowered to appoint any individual as a director to fill temporary vacancies or as new members[197]. - The company’s independent non-executive director, Mr. Au, holds positions that do not affect his independence according to the Listing Rules[198]. - The board discussed the level of dividends during the meetings, indicating a focus on shareholder returns[200]. - The company’s governance practices were reviewed, ensuring compliance with established policies and regulations[200]. - The board's meetings included discussions on the training and continuous professional development of directors and senior management[200].
恒基发展(00097) - 2021 - 年度财报