Financial Performance - Total sales for the year ending December 31, 2023, remained stable at HKD 1,542 million, compared to HKD 1,786 million in 2022, reflecting a decrease of approximately 13.6%[5][27] - Revenue from self-operated products was HKD 319 million, down from HKD 359 million in the previous year, representing a decline of 11.1%[6][27] - The company reported a net loss attributable to shareholders of HKD 72 million for the year ended December 31, 2023, compared to a profit of HKD 5 million in 2022[80] - Total revenue for the year was HKD 1,551 million, a decrease from HKD 1,786 million in the previous year, representing a decline of approximately 13.1%[182] - Sales revenue decreased to HKD 1,118 million in 2023 from HKD 1,359 million in 2022, representing a decline of 17.7%[195] - The group reported a post-tax loss of HKD 120 million for the year, compared to a loss of HKD 63 million in 2022[154] Operational Performance - The operating loss before tax for the year was HKD 81 million, compared to a profit of HKD 16 million in 2022, indicating a significant downturn in operational performance[27] - The company has optimized its product mix, focusing on travel goods, apparel, and cosmetics to meet changing market demands[5] - The company continues to enhance collaboration with suppliers and implement various promotional activities to improve overall operational performance[5] - The integration of Citistore and Unicorn's operations aims to enhance operational synergy and efficiency, with a unified online shopping platform launched[157] Cash Flow and Liquidity - Cash and bank balances decreased by HKD 175 million or 67% to HKD 85 million as of December 31, 2023, primarily due to cash outflows from various activities[103] - The company had no bank borrowings as of December 31, 2023, and had fully repaid its bank loans[82] - The total liabilities increased to HKD 1,362 million in 2023 from HKD 1,203 million in 2022, primarily due to an increase in lease liabilities[184] Employee and Cost Management - Employee costs (excluding directors' remuneration) increased slightly to HKD 264 million from HKD 261 million[24] - The group had a total of 962 full-time employees and 115 part-time employees as of December 31, 2023, with total employee costs amounting to HKD 277 million, reflecting a slight increase from HKD 274 million in the previous year[108] Impairment and Asset Valuation - The impairment assessment for Citistore was based on the use value of cash-generating units, with future net cash inflows projected for the next five budget years, ending December 31, 2028, reflecting a discount cash flow model[35] - If total sales revenue decreases by 3% or gross margin decreases by 1.5% over the next five budget years, potential impairment losses for Citistore goodwill could be estimated at HKD 33 million and HKD 156 million respectively[37] - The impairment assessment for Unicorn was similarly based on the use value of cash-generating units, with future net cash inflows projected for the same five-year period[39] - If total sales revenue decreases by 3% or gross margin decreases by 1.5% over the next five budget years, potential impairment losses for Unicorn goodwill could be estimated at HKD 25 million[41] Lease Liabilities and Financing Costs - Lease liabilities increased to HKD 924 million as of December 31, 2023, up from HKD 745 million in 2022, representing a growth of approximately 24%[66] - The financing cost of lease liabilities for the year was HKD 34 million, down from HKD 41 million in the previous year, reflecting a decrease of approximately 17%[66] - The company’s total liabilities related to leases due within one year increased to HKD 255 million in 2023 from HKD 228 million in 2022, a rise of about 12%[66] Market Conditions and Sales Trends - The overall retail market in Hong Kong showed a decline, with supermarket sales value dropping by 7.1% year-on-year, influenced by increased outbound travel and cross-border shopping[137] - Total sales for Unicorn, including self-operated goods and consignment counters, decreased by 16% year-on-year, with specific sales figures showing a decline in self-operated goods sales to HKD 799 million (down 20%) and consignment sales to HKD 322 million (down 4%) for the year ended December 31, 2023[120][133] Governance and Compliance - The group has complied with the corporate governance code as per the Hong Kong Stock Exchange Listing Rules, although there is no distinction between the roles of the chairman and CEO[114] - The company confirmed that all directors have fully complied with the standards set out in the code for securities trading by directors[117] - The group has no contingent liabilities as of December 31, 2023[107] Future Outlook - The company plans for an average annual sales revenue growth of 11% over the next five budget years[66] - The average gross margin is expected to increase by 0.6 percentage points annually over the next five budget years[66] - The company plans to expand its membership base and enhance customer relationship management (CRM) to better understand customer needs and increase spending[180]
恒基发展(00097) - 2023 - 年度业绩