Financial Performance - For the fiscal year ending June 30, 2023, the company's revenue was HKD 1,483.7 million, a decrease of 23.3% from HKD 1,934.6 million in the previous year[30]. - The company reported a net loss of HKD 320.9 million for the year, compared to a net loss of HKD 483.4 million in the previous year, indicating a 33.6% improvement[21]. - The group reported a loss of HKD 320.9 million for the year ending June 30, 2023, compared to a loss of HKD 483.4 million for the previous year, resulting in a loss per share of HKD 0.19[74]. - The group's revenue recovery is ongoing, impacted by low foot traffic and consumer spending due to pandemic-related adjustments, with offline transaction volumes and average transaction values remaining low[78]. - The group's revenue for the fiscal year 2023 was HKD 1,483.7 million, down from HKD 1,934.6 million in fiscal year 2022, primarily due to the ongoing impact of the COVID-19 pandemic in mainland China[191]. - Total sales proceeds for the fiscal year 2023 amounted to HKD 4,914.5 million, compared to HKD 6,266.1 million in fiscal year 2022[191]. - The gross profit margin for merchandise sales was 12.7% in fiscal year 2023, a decrease from 13.6% in fiscal year 2022[191]. - Other income for the fiscal year 2023 was HKD 291.9 million, compared to HKD 342.2 million in fiscal year 2022, primarily due to a decrease of HKD 45.7 million in administrative and management fees collected from suppliers, counters, and tenants[192]. Assets and Liabilities - Total assets as of June 30, 2023, were HKD 10,791.3 million, down from HKD 12,513.4 million in the previous year, reflecting a decrease of 13.8%[21]. - The company's total liabilities decreased to HKD 7,416.3 million from HKD 8,510.1 million, a reduction of 12.9%[21]. - The net debt ratio increased to 17.2% from 10.2% year-on-year, indicating a rise in financial leverage[21]. - The company's non-current liabilities decreased from HKD 4,223,976,000 in 2022 to HKD 3,397,280,000 in 2023, a reduction of approximately 19.6%[162]. - The company's current liabilities increased from HKD 4,286,170,000 in 2022 to HKD 4,019,020,000 in 2023, showing a decrease of about 6.2%[162]. Business Strategy and Operations - The company is focusing on enhancing consumer shopping experiences and diversifying revenue sources to adapt to changing market demands[12]. - The company plans to continue its long-term strategy of cost reduction and efficiency improvement while integrating sustainability into its operations[25]. - The group has implemented a multi-store and city-radiating development strategy, with 16 stores named "New World" and 7 stores in Shanghai named "Paris Spring" as of June 30, 2023[41]. - The group has reduced its number of stores by closing three locations: Xi'an Fashion Plaza, Kunming Store, and Yanjiao Store, to optimize resource allocation[58]. - The group focuses on enhancing consumer value through innovative marketing and promotional activities, including the launch of the "New World Department Store 66 Festival" to stimulate customer traffic and sales[38]. - The group is expanding its digital business by operating online platforms like Douyin and "New Flash Purchase Mini Program," leveraging big data to connect with members more effectively[38]. - The group aims to improve operational efficiency by enhancing the exclusive advantages of high-quality and differentiated products, particularly in the light luxury beauty category[38]. - The group has adopted a "one store, one strategy" approach to encourage stores to implement tailored strategies based on local market conditions[61]. - The company plans to focus on enhancing operational efficiency and improving customer experience through brand upgrades and digital services, aiming for a sustainable development model[91]. - The company will invest more resources in omnichannel operations and digital supply chains, emphasizing the development of e-commerce platforms like Douyin and live streaming[91]. Customer Engagement and Marketing - The group achieved a 61% year-on-year increase in overall sales during the "New 66 Festival" promotional event, with online sales through the "New Flash Purchase Mini Program" rising by 232% year-on-year[111]. - Membership sales accounted for 57.2% of total sales as of May 2023, reflecting the effectiveness of the group's member marketing strategies[123]. - The group launched various promotional activities, including the "Coffee Slow Enjoyment Life Festival" targeting young office workers, to attract new members[123]. - The group conducted nearly 1,000 live streaming events throughout the year, utilizing innovative models to enhance customer engagement and drive sales[117]. - The group implemented a seamless points system for members, allowing automatic point accumulation without the need for in-store customer service interaction[120]. - The group expanded its interactive entertainment offerings by introducing brands like LADY.V Yoga and "Karl Tribe" go-karting in various stores[131]. Employee and Shareholder Information - The group has a workforce of 2,117 employees as of June 30, 2023, emphasizing talent development and innovative management practices[61]. - The total number of employees in the group as of June 30, 2023, is 2,117, a decrease from 2,412 in 2022, indicating a reduction of approximately 12.2%[154]. - As of June 30, 2023, major shareholders include Cheng Yu Tung Family (Holdings) Limited, holding 74.99% of shares, indicating strong control by a few entities[82]. - The company ensures competitive salary levels for all employees and evaluates performance-related bonuses annually[154]. - The total number of members increased by 4.5% year-on-year to 7.33 million as of June 30, 2023[174]. Product and Service Offerings - The company introduced popular brands and experiences, including the first YONEX store in China and various dining and entertainment options, enhancing customer engagement[180]. - The company continues to focus on emerging business formats and brands appealing to younger consumers, such as comedy theaters and esports venues[184]. - The group introduced high-end skincare brands such as La Mer and Helena Rubinstein, enhancing its beauty product offerings and strengthening its market position[108]. - The "New World Supermarket" has enhanced member benefits, with member sales accounting for 64% of total sales, leveraging online platforms for increased customer convenience[85]. - The LOL store in Shanghai's K11 shopping center underwent a comprehensive upgrade, resulting in a 21% year-on-year sales increase, with new member sales exceeding RMB 1.3 million[88]. Environmental and Social Responsibility - The group actively integrated public welfare and environmental concepts into its marketing strategies, such as providing emergency items for women in stores[111]. - The company aims to provide green, high-quality, and sustainable products and services, promoting positive interactions between consumers and suppliers[91].
新世界百货中国(00825) - 2023 - 年度财报