Shop Expansion and Network - Total number of shops increased to 2,938 as of March 31, 2023, representing a year-on-year increase of 219 shops or 8.0%[8] - The number of self-operated shops in Mainland China decreased by 8 to 69, while licensed shops increased by 224 to 2,793[8] - The company plans to expand its distribution network, with a focus on Tier I and Tier II cities in Mainland China[9] - The Group added a net total of 296 "Lukfook" shops worldwide during the year, including 224 licensed shops in Mainland China[59] - The Group plans to net add 350 shops in Mainland China and 10 shops in Hong Kong and overseas in the upcoming year[60] - The Group had a total of 3,029 shops in Mainland as of 31 March 2023, an increase from 2,736 shops in 2022[88] Financial Performance - Revenue for the year was HK$11,978 million, reflecting a year-on-year growth of 2.0%[25] - Profit for the year decreased by 7.7% to HK$1,285 million, down from HK$1,392 million in the prior year[50] - Basic earnings per share decreased to HK$2.19, a decline of 7.6% from HK$2.37 in the previous year[50] - The Group's total revenue for FY2023 increased by 2.0% to HK$11,977,844,000 compared to HK$11,737,803,000 in FY2022[59] - Operating profit fell by 4.1% to HK$1,576 million, compared to HK$1,643 million in FY2021/22[50] - The overall segment profit for the mainland market decreased by 26.6% to HK$1,147 million, indicating challenges in profitability[25] Profit Margins and Earnings - Segment profit margin for Hong Kong, Macau, and overseas markets was 55.0%, while the mainland segment profit margin was 45.0%[25] - Gross profit decreased slightly to HK$3,230 million, down 0.1% from HK$3,234 million in the previous year[50] - Gross margin decreased to 27.0%, down 0.6 percentage points from 27.6%[50] - Operating margin decreased to 13.2%, down 0.8 percentage points from 14.0%[50] - Net margin decreased to 10.7%, down 1.2 percentage points from 11.9%[50] Sales Performance - Same store sales growth (SSSG) for overall sales was +18% for 2023, compared to +50% in 2022[49] - Same-store sales growth (SSSG) in Hong Kong and Macau was approximately +70.0% from April to June 2023, indicating a strong recovery[60] - Overall same-store sales growth (SSSG) was +24.4%, with Hong Kong and Macau at +34.0% and Mainland at -16.9%[76] - Retail revenue in Hong Kong increased by 57.9% to HK$4,239,220,000, driven by a significant rise in Mainland tourist arrivals[81] Product Performance - Gold and platinum sales rose by 24.6% to HK$6,887,000,000, with a gross profit margin of 17.4%[75] - Fixed price jewellery sales decreased by 18.5% to HK$4,038,000,000, with a gross profit margin of 30.3%[75] - Sales of gold and platinum products increased by 24.6% to HK$6,886,227,000, accounting for 63.0% of overall sales[76] - Segment profit from retailing rose by 88.5% to HK$681,982,000, with a profit margin of 7.8%[70] E-commerce and Digital Strategy - Revenue from e-commerce business in Mainland increased by 7.5% to HK$1,457,853,000, accounting for 63.2% of retailing revenue in Mainland[93] - The Group aims for a 10% sales growth in its e-commerce business in the upcoming year, enhancing cooperation with various e-commerce platforms[106] Corporate Governance and Structure - The Board of Directors consists of five executive directors, three non-executive directors, and four independent non-executive directors, ensuring a balance of skills and experiences relevant to the jewellery industry[172] - The Company is committed to maintaining high corporate governance standards, emphasizing integrity, transparency, accountability, and independence to enhance shareholder value[163] - The Company has complied with all code provisions of the Corporate Governance Code during the year under review, with a noted deviation regarding the separation of the roles of chairman and chief executive officer[167][170] Environmental and Social Responsibility - A long-term carbon reduction goal will be established to enhance the Group's contribution to environmental protection[61] - The Group aims to enhance operational efficiency through supply chain management improvements and automation[61] - The Group is committed to establishing long-term carbon neutrality goals to contribute to environmental protection[109] Marketing and Branding Strategies - The Group's marketing strategies target the middle-class, wedding, and Generation Z markets, focusing on quality and detail in product offerings[119] - The Group actively participated in wedding expos across major cities to increase brand exposure and build an innovative brand image[127] - The Group launched the sub-brand "Love LUKFOOK JEWELLERY" in May 2023, targeting the affordable luxury market to attract young consumers seeking quality lifestyles[109] Employee Engagement and Culture - The number of employees remained stable at 6,000 as of March 31, 2023, with regular reviews of remuneration policies to ensure fair compensation[100] - The Group emphasizes a caring culture for employees, fostering a harmonious working atmosphere to enhance their sense of belonging[113]
六福集团(00590) - 2023 - 年度财报