Financial Performance - Total revenue for the year 2022 was HKD 1,934,557, a decrease of 13.8% from HKD 2,245,966 in 2021[12] - The company reported a net loss of HKD 483,381 for 2022, compared to a net loss of HKD 229,359 in 2021, indicating a significant increase in losses[15] - Total assets decreased to HKD 12,513,402 in 2022 from HKD 14,177,638 in 2021, reflecting a decline of 11.7%[14] - For the fiscal year ending June 30, 2022, the group's annual revenue was HKD 1,934.6 million, down from HKD 2,246.0 million in the previous year[41] - The group reported a loss of HKD 483.4 million for the fiscal year, compared to a loss of HKD 229.4 million in the previous year, resulting in a loss per share of HKD 0.29[41] - The gross profit margin for merchandise sales in fiscal year 2022 was 13.3%, compared to 13.9% in fiscal year 2021[105] - Total sales proceeds for the fiscal year 2022 amounted to HKD 5,984.3 million, down 20.0% from HKD 7,472.7 million in the fiscal year 2021[105] Revenue Sources - Revenue breakdown for the fiscal year: rental income accounted for 38.5%, commission income from counters was 34.4%, and self-operated merchandise sales made up 25.9%[41] - Rental income increased to HKD 745,607 in 2022 from HKD 703,394 in 2021, showing a growth of 6.0%[17] - The net operating loss for fiscal year 2022 was HKD 199.6 million, compared to an operating profit of HKD 89.5 million in fiscal year 2021[121] Store Operations and Strategy - The company operated 19 department stores under the "New World" brand and 7 stores under the "Paris Spring" brand, covering 15 major locations in mainland China as of June 30, 2022[3] - The company implemented a "one store, one strategy" approach to adapt to market conditions and consumer preferences[5] - The company is focusing on enhancing product variety, improving store quality, and establishing a distinctive brand strategy to meet evolving consumer demands[40] - The company is actively developing a retail and customer management system to attract younger, personalized potential members while leveraging emerging social media platforms[25] - The company reduced its store count by three locations, including stores in Harbin, Shanghai Qibao, and Chengdu, to optimize resource allocation[48] Customer Engagement and Marketing - The company launched over 100 themed marketing activities, including the "825 Shopping Carnival," which achieved over 40 million exposures across multiple channels[58] - The "New Flash Purchase Mini Program" contributed to a 46.8% year-on-year increase in membership to 1.17 million, enhancing promotional capabilities and member engagement[71] - The total number of official social media followers increased by 5.32% year-on-year to nearly 4.4 million, while total membership grew by 9.1% to 7.01 million[71] - The "New Flash Purchase" platform conducted nearly 600 live streaming sessions, achieving a year-on-year sales growth of 28.7%[80] Corporate Governance - The company is committed to corporate governance, with independent directors actively participating in audit and remuneration committees to ensure transparency and accountability[151] - The board of directors consists of two executive directors and four independent non-executive directors as of the report date[161] - The company emphasizes high standards of corporate governance to enhance shareholder and stakeholder interests[161] - The independent non-executive directors are tasked with making independent judgments on the group's development and risk management[169] - The company has implemented a whistleblowing policy to encourage reporting of fraud and misconduct, with the audit committee overseeing its effectiveness[180] Human Resources and Management - The company is focused on enhancing its human resources strategies, including talent recruitment and development, with over 20 years of experience in human resources and corporate management[139] - The company has a strong management team with extensive experience in retail, including over 40 years in the industry and significant expertise in managing retail operations in Mainland China, Hong Kong, and Taiwan[143] - The company aims to provide competitive remuneration to attract and retain high-quality talent, with annual reviews based on comparable companies[186] Market Challenges and Adaptation - The company experienced a significant decline in revenue and profit due to the repeated impacts of COVID-19, particularly from April to May 2022 when several stores in Beijing and Shanghai were closed or had reduced operating hours[48] - The ongoing pandemic and market uncertainties are expected to impact the company's operations, necessitating a focus on innovation and business upgrades[102] - The company plans to enhance its digital infrastructure, shifting focus from front-end to back-end development for integrated online and offline operations[102] Sustainability and Future Plans - The company is committed to environmental sustainability, health, intelligence, and care as part of its corporate values and daily operations[25] - The company aims to introduce high-quality brands and flagship stores to enrich customer shopping experiences[23] - The company is focusing on expanding its product lines to include outdoor, camping, and skiing equipment to cater to high-end consumer demands[98]
新世界百货中国(00825) - 2022 - 年度财报