Financial Performance - The total revenue for the group reached HKD 1,487,090,000, an increase from HKD 1,462,864,000 in the previous year, representing a growth of approximately 1.66%[46] - Core operating profit decreased to HKD 72,973,000 from HKD 83,758,000, reflecting a decline of about 12.5%[46] - Basic earnings per share fell by 14.9% to HKD 7.4 from HKD 8.7[40] - The group recorded a net profit attributable to shareholders of HKD 57,709,000 in 2023, a decrease from HKD 67,785,000 in 2022[84] - Other income decreased to HKD 8,529,000 from HKD 9,877,000, a decline of approximately 13.6%[46] - Total expenses for sales, store operations, distribution, and administrative costs increased to HKD 1,422,646,000 in 2023 from HKD 1,388,983,000 in 2022[79] - The income tax expense for the year 2023 was HKD 13,417,000, an increase from HKD 11,255,000 in 2022, representing a rise of approximately 19.3%[194] Store Expansion and Operations - The group opened 10 new Saint Anna stores in Hong Kong and Macau, ending the year with a total of 134 stores, an increase of 7 stores from 2022[10] - The group operates a total of 155 stores under the Saint Anna brand across Hong Kong, Macau, and Guangzhou as of December 31, 2023[41] - The number of Mon cher cake shop locations increased to 6, while Zoff eyewear stores rose to 15, reflecting a focus on retail expansion[116][130] - The company aims to expand the Zoff store network and enhance brand awareness through marketing activities to maintain its leading position in the fast-fashion eyewear retail sector in Hong Kong[168] Financial Position and Cash Flow - The group maintained a strong financial position with net cash of HKD 222 million and no bank borrowings, positioning itself favorably for business development or acquisitions[1] - Total liabilities for the group amounted to HKD 613,623,000[34] - Total liabilities on the consolidated balance sheet were HKD 625,898,000 in 2023, down from HKD 668,023,000 in 2022[60] - The net cash balance as of December 31, 2023, was HKD 222,000,000, with no bank borrowings, indicating strong operational cash generation[172] - The company has a backup bank financing capacity of HKD 148,000,000 to assist in capital planning and management[172] Marketing and Customer Engagement - The online-to-offline customer relationship management program "Saint Anna Cake Online" now serves over 1.3 million members in Hong Kong and Macau, enhancing marketing and sales efforts[5] - The group’s marketing initiatives and new product launches contributed to sales growth in festive products[67] - The group has partnered with WeChat and PayMe to enhance marketing efforts and leverage government consumption voucher schemes[141] Dividends and Shareholder Returns - The board declared a final dividend of HKD 0.04 per share[18] - The group proposed a final dividend of HKD 0.04 per share, totaling HKD 31,097,000, compared to HKD 0.05 per share in 2022[69] - Basic earnings per share for 2023 were HKD 0.074, down from HKD 0.087 in 2022, based on a weighted average of 777,001,040 shares[84] Strategic Initiatives and Acquisitions - The group achieved a successful acquisition, expanding its geographical presence from the Greater Bay Area to Southeast Asia[3] - The company completed the acquisition of Zoff Singapore, aiming to strengthen its position in the Southeast Asian market[122] - The company completed the acquisition of Zoff Singapore in January 2024, which operates five stores in key areas, marking a significant milestone in its expansion strategy into Southeast Asia[167] Economic Outlook and Market Conditions - The group maintains a cautiously optimistic outlook for its core business in the medium to long term, despite concerns about local and global economic conditions affecting consumer confidence and spending recovery[86] - The company adopts a cautious approach for 2024, prioritizing growth while strategically allocating resources to higher-return areas[131] - The group anticipates that shopping behavior will normalize, and inflation and interest rates will decline, positively impacting the retail sector in Hong Kong and the Greater Bay Area[86] Operational Efficiency and Cost Management - Operating expenses as a percentage of revenue increased from 45.5% to 49.1%, primarily due to rising employee-related costs in a tight labor market[17] - Employee benefits expenses increased to HKD 492,000,000 in 2023 from HKD 446,000,000 in 2022, with total employees numbering 3,209[149] - The gross profit margin improved due to effective category management, streamlined production processes, and favorable foreign exchange rates[1] - The gross profit margin increased by 2.8 percentage points to 53.4%, attributed to effective pricing strategies and improved production efficiency[170] Customer Behavior and Sales Trends - The number of Hong Kong residents traveling abroad increased, while the growth of mainland Chinese tourists visiting Hong Kong was slower than expected, impacting local consumption[1] - Sales in the bakery segment, including Saint Anna and Mon cher, decreased by 2.9% due to changing consumer behavior post-pandemic[118] - Revenue from bakery products increased due to the resumption of business operations, offsetting declines in cake sales[67] - The "business-to-business" bakery sales recorded double-digit growth, expanding the customer base despite a 10.7% decline in Guangzhou bakery revenue due to weak economic conditions[134] Compliance and Governance - The company has adopted a securities trading code for directors and relevant employees, ensuring compliance with regulations without any reported violations in 2023[96] - The board confirmed compliance with all provisions of the Corporate Governance Code for the year ending December 31, 2023[100] - The company has adopted revised Hong Kong Financial Reporting Standards effective from January 1, 2023, to ensure compliance with operational requirements[160] Asset Management - Total segment assets amounted to HKD 1,234,320,000, with non-current assets additions of HKD 235,661,000[59] - Total assets decreased to HKD 1,286,088,000 in 2023 from HKD 1,323,846,000 in 2022[154] - Non-current assets in Hong Kong totaled HKD 821,436,000, an increase from HKD 780,017,000 in 2022[78]
利亚零售(00831) - 2023 - 年度业绩