Store Expansion - As of September 30, 2023, the total number of "Lukfook" shops reached 3,068, an increase of 130 from the previous period[8]. - Self-operated shops in Mainland China decreased by 2 to 67, while Hong Kong saw an increase of 5 to 50[8]. - The number of licensed shops in Mainland China increased by 123 to 2,916, contributing to a total of 2,925 licensed shops globally[8]. - The company reported a year-on-year increase of 184 shops globally, with a total of 3,289 shops as of September 30, 2023[8]. - The number of shops in Tier I cities remained stable at 880, while Tier II and III cities saw a net increase of 20 shops[12]. - The Group added a net of 184 shops globally, bringing the total to 3,289 shops, including 3,068 "Lukfook" shops[46]. - The Group operated a total of 50 self-operated shops in Hong Kong as of September 30, 2023, up from 44 shops in 2022[57]. - The Group expanded its overseas presence, operating 19 overseas shops as of September 30, 2023, compared to 13 shops in 2022[59]. - The annual target for net addition of "Lukfook" shops in Mainland is 300 shops, focusing on fourth and fifth-tier cities, with an additional target of 50 new licensed shops for new brands[100]. Financial Performance - Revenue for the six months ended September 30, 2023, increased by 34.3% to HK$7,486 million compared to the same period last year[15]. - Segment profit for Hong Kong, Macau, and Overseas reached HK$4,830 million, reflecting a year-on-year increase of 66.6%[15]. - Overall retail sales performance showed a significant increase of 56% year-on-year, with same-store sales (SSS) rising by 44%[37]. - Gold and Platinum product sales increased by 55% year-on-year, with a gross profit margin of 19.1%, up by 3.8 percentage points[36]. - Fixed Price Jewellery sales surged by 59% year-on-year, with a gross profit margin of 35.9%, an increase of 5.8 percentage points[36]. - Total revenue increased by 34.3% to HK$7,486 million for the six months ended 30 September 2023, compared to HK$5,573 million in the same period last year[39]. - Gross profit rose by 42.9% to HK$2,081 million, with a gross margin improvement of 1.7 percentage points to 27.8%[44]. - Operating profit increased by 39.3% to HK$1,140 million, resulting in an operating margin of 15.2%, up from 14.7%[44]. - Profit attributable to equity holders surged by 43.3% to HK$943 million, marking the second-highest interim performance in the company's history[44]. - Basic earnings per share rose by 43.8% to HK$1.61, compared to HK$1.12 in the previous year[44]. - Total comprehensive income for the period was HK$552,781, compared to a loss of HK$45,695 in the same period last year[160]. Market Performance - Revenue from Mainland retailing was HK$2,656 million, showing a slight decline of 0.7% year-on-year[15]. - The Group's retailing revenue increased by 55.7% to HK$6,029,948,000, accounting for 80.5% of total revenue, driven by improved tourist traffic and gold sales[49]. - Wholesaling revenue declined by 21.4% to HK$910,558,000, representing 12.2% of total revenue, due to sluggish demand for diamond products in Mainland China[49]. - Licensing income remained flat at HK$545,525,000, accounting for 7.3% of total revenue, with a segment profit margin of 71.8%[49]. - Retail revenue in the Hong Kong market increased by 57.4% to HK$3,103,413,000, returning to pre-pandemic levels[57]. - Revenue from the Macau market surged by 142.3% to HK$1,349,753,000, exceeding pre-pandemic levels[58]. - The overall same-store sales (SSS) in these markets was +49.3%, with gold and platinum products at +49.1% and fixed price jewellery products at +50.0%[63]. Operational Highlights - The operational highlights indicate a strong performance in the licensing segment, with a notable increase in the number of licensed shops[12]. - Future outlook includes continued expansion in both self-operated and licensed shop formats, aiming for a robust growth trajectory in the coming quarters[12]. - The Group's overall same-store sales (SSS) maintained double-digit growth, with over 50% growth in SSS during October and the first three weeks of November 2023 in Hong Kong and Macau[94]. - The Group aims to enhance operational efficiency through supply chain management revamps, full automation, and big data analytics[104]. Sustainability and Corporate Governance - The Group signed its first sustainability-linked loan of HK$326 million with DBS Bank, with interest rates tied to sustainability performance against specific KPIs[108]. - The Group aims to reduce total energy consumption intensity and greenhouse gas emissions intensity through environmentally friendly practices[108]. - The Group has committed to a long-term goal of carbon neutrality to enhance its contribution to environmental protection[108]. - The Group received multiple ESG-related awards, including recognition as a leading brand in the gold jewelry retail industry[107]. - The Group has been awarded the "Happy Company" honor for ten consecutive years, reflecting its commitment to corporate governance and social responsibility[107]. - The company has maintained good corporate governance practices and procedures, focusing on risk management and internal controls[126]. Financial Position and Risks - Cash and bank balances decreased by 4.0% to HK$2,254 million compared to HK$2,348 million at the end of March 2023[40]. - The debt-to-equity ratio increased to 28.3% from 22.2%[81]. - The Group's liquidity risk remains stable with no material changes in contractual undiscounted cash outflows for financial liabilities[190]. - The Group is exposed to various financial risks, including foreign exchange risks, cash flow and fair value interest rate risks, credit risk, liquidity risk, and commodity price risk[188]. - The Group's financial risk management information and disclosures required in the annual financial statements are not included in the interim financial information[188]. Shareholder Information - The Group's total interest in shares is 263,209,777, representing 44.83% of the total shares[113]. - The Group's sustainability efforts are recognized as a key factor for long-term success, integrating ESG principles into business planning and operations[107]. - The Trust indirectly controls over one-third of the voting power of Luk Fook (Control) Limited, indicating significant influence over corporate decisions[119]. - The company has provided a shareholder loan to China Gold Silver Group Company Limited as general working capital, with financial assistance exceeding 8% of the asset ratios defined in Rule 14.07(1) of the Listing Rules as of September 30, 2023[128].
六福集团(00590) - 2024 - 中期财报