周生生(00116) - 2023 - 年度财报

Financial Performance - The company recorded a profit of HK$1,013 million in 2023, a 124$25,013 million in 2023, with profit attributable to owners of the company rising by 124% to HK$1,013 million[21] - Gross profit margin increased slightly by 0.1 percentage point from 26.3$24,274,496 thousand, a 22.9% increase compared to HK$19,751,940 thousand in 2022[58] - Total profit before tax for 2023 was HK$1,357,452 thousand, a 129.0% increase from HK$592,764 thousand in 2022[58] - Profit for the year from continuing operations in 2023 was HK$1,046,862 thousand, up 120.1% from HK$475,761 thousand in 2022[58] - Total assets as of December 31, 2023, amounted to HK$19,156,156 thousand, a 2.7% increase from HK$18,650,857 thousand in 2022[65] Growth Strategies and Market Expansion - The company is focusing on enhancing logistics, marketing, merchandising, and cost control to drive future growth[8] - The company is selectively and judiciously expanding its store networks and markets[8] - The company anticipates growth from mainland China due to relaxed travel schemes and government policies[7] - The company is hopeful for economic revival efforts by the Hong Kong government to make progress[7] - The company is seeking relief from labor shortages and rental increases in Hong Kong[7] - The company is preparing to welcome new guests from mainland China under relaxed travel schemes[7] - Retail networks in key markets expanded with a net increase of 55 stores, primarily located in Mainland China[20] - Mainland China segment revenue grew by 15$15,818 million, with segment results increasing by 64% to HK$872 million[23] - Hong Kong and Macau segment revenue increased by 40$8,175 million, with segment results rising by 87% to HK$598 million[23] - Taiwan segment revenue grew by 22$282 million, with segment results increasing by 45% to HK$29 million[23] - Total jewellery and watch sales in 2023 grew by 23$2.974 billion in 2023, maintaining a 19% share of total Mainland China sales[35] - The company invested in over 22,000 hours of live-streaming in 2023, up from 19,000 hours in 2022, to drive online sales[35] - The company expanded its presence in Hong Kong with 3 new Chow Sang Sang stores and 1 new PROMESSA store, while maintaining 8 點睛品 stores in Macau[32] - The Group plans to open 50 new stores in Mainland China, primarily in second-tier cities and above, as part of its expansion strategy[49] - The Group's gold sales are increasing, putting downward pressure on gross profit margins, prompting a focus on higher-margin products like gemstone-set jewelry and gold pieces with higher design value[49] - The Group is planning a series of marketing events in 2024, including an exhibition in Chengdu showcasing the "Infini Love Diamond" collection, to strengthen its brand image[49] Leadership and Governance - Mr. Stephen TING Leung Huel, aged 70, has over 40 years of experience in accounting, auditing, and management, and serves as a Non-executive Director and member of the Audit, Remuneration, and Nomination Committees[14] - Mr. CHUNG Pui Lam, aged 83, is a Non-executive Director and member of the Audit, Remuneration, and Nomination Committees, with extensive legal and corporate governance experience[14] - Mr. Winston CHOW Wun Sing, aged 66, has been with the Group since 1984 (except 1988-1992) and serves as the Group Deputy General Manager, focusing on product development and staff training in the Greater China jewellery business[14] - Mr. LEE Ka Lun, aged 68, is an Independent Non-executive Director with over 25 years of experience in banking and auditing, and currently serves as an independent non-executive director for two other listed companies in Hong Kong[15] - Dr. LO King Man, aged 86, is an Independent Non-executive Director with extensive experience in higher education management and public service, and currently serves as the Chairman of the Hong Kong Arts Festival Programme Committee[15] - Mr. Stephen LAU Man Lung, aged 78, is an Independent Non-executive Director with over 30 years of management and marketing experience, particularly in the textile and apparel field[16] - Ms. Genevieve CHOW Karwing, aged 39, is an Executive Director and the Group's General Manager of Omni-channel Development, leading the e-Commerce business and overseeing the branding and product management of EMPHASIS and PROMESSA since 2018[17] - Ms. Genevieve CHOW holds a dual Bachelor of Arts Degree in Science of Earth Systems and Economics from Cornell University and is a GIA Applied Jewellery Professional (A.J.P.) and GIA Diamonds Graduate[17] - The company's executive directors include Mr. Vincent CHOW Wing Shing, Dr. Gerald CHOW King Sing, Mr. Winston CHOW Wun Sing, and Ms. Genevieve CHOW Karwing[73] - The company's independent non-executive directors include Dr. CHAN Bing Fun, Mr. LEE Ka Lun, Dr. LO King Man, Mr. Stephen LAU Man Lung, and Mr. HSU Rockson (appointed on 1 June 2023)[73] - The company's directors' interests in shares are recorded as per the Securities and Futures Ordinance, with long positions noted as of 31 December 2023[83] - Mr. Vincent CHOW Wing Shing holds 136,271,595 shares, representing 20.12% of the company's total shareholding[85] - Dr. Gerald CHOW King Sing holds 76,026,394 shares, representing 11.22% of the company's total shareholding[85] - Mr. Winston CHOW Wun Sing holds 75,594,220 shares, representing 11.16% of the company's total shareholding[85] - Everwin Company Limited holds 120,000,000 shares, representing 17.71% of the company's total shareholding[89] - Speed Star Holdings Limited holds 74,995,996 shares, representing 11.07% of the company's total shareholding[89] - Schroders plc holds 54,276,447 shares, representing 8.01% of the company's total shareholding[89] - Happy Family Limited holds 53,909,932 shares, representing 7.96% of the company's total shareholding[89] - Pandanus Associates Inc., Pandanus Partners L.P., and FIL Limited each hold 34,009,000 shares, representing 5.02% of the company's total shareholding[89][92] - The company has maintained the prescribed public float under the Listing Rules throughout the year and up to the date of this report[94] - Pandanus Partners L.P. holds a 38.71% stake in FIL Limited, which in turn holds 34,009,000 shares of the company[95] - The company has maintained the required public float throughout the year and as of the report date[96] ESG and Sustainability - The Environmental Sustainability Department was established to define and promote sustainability strategies, expanding the reporting boundary to include Greater China (Hong Kong, Mainland China, Macau, and Taiwan) from 2023 onwards[99] - The number of retail stores included in the ESG report has increased due to the company's continued expansion[99] - The company established a Carbon Neutrality Task Force in 2023, comprising senior management from key operational units across all business locations, to define and execute the company's carbon neutrality strategy[102] - The company has set a series of environmental targets to decarbonize its business portfolio, covering greenhouse gas emissions and resource consumption[102] - The Board oversees the company's ESG strategy, material ESG-related risks, and the effectiveness of ESG risk management and internal control systems[102] - The ESG Working Group is responsible for monitoring important ESG trends, targets, and associated risks and opportunities, as well as assessing the adequacy and effectiveness of the company's ESG-related implementations[102] - The company has implemented relevant policies and procedures to manage ESG-related risks, with clearly delegated roles and responsibilities to all relevant parties[105] - The company maintains close communication with stakeholders including employees, customers, shareholders, and suppliers through various channels such as company websites, meetings, and online communications to align business practices with stakeholder expectations[108][110] - The company has implemented systems to monitor product quality, ensuring materials meet national standards for fineness, absence of toxic elements, and workmanship levels[113] - The company conducts product testing using surface spectrometric and destructive methods at externally-accredited laboratories in Hong Kong and Shunde[113] - The company's subsidiary, Hong Kong Gemological Research and Authentication Centre Company Limited, has been designated as a "Designated Local Research Institution" by the Hong Kong Innovation and Technology Commission[113] - The company has established a Quality Standard for Incoming Goods to ensure products are free from harmful elements such as lead, mercury, and hexavalent chromium[113] - The company has policies in place to ensure advertising and labeling comply with applicable laws and regulations, and respects intellectual property rights in business dealings[116] - The company has a dedicated customer relations team to address inquiries and complaints through various channels including service hotlines, emails, and social media platforms[116] - All store staff are trained to handle product-related queries, maintenance, and repair, with all customer correspondence logged and documented[117] - The company evaluates risks and initiates recall procedures for defective or substandard products, notifying relevant parties promptly and developing action plans for recalls[115] - The company reviews stakeholder feedback periodically to identify and prioritize material ESG issues, ensuring alignment with business practices[108][110] - The company was awarded the "Customer Service Power Brand Award" by the Hong Kong Institute of Marketing (HKIM) in July 2023[120] - The company received the "Excellence in Personalisation Marketing – Gold" and "Excellence in Loyalty Marketing – Bronze" awards from MARKETING-INTERACTIVE[120] - The company was commended as a long-term participating retailer member of the "No Fakes Pledge" Scheme at the 25th Anniversary Celebration[121] - The company was awarded the "Most Valuable Brand Award in Greater Bay Area" at the Third Navigator "9+2" Greater Bay Area Navigation Award Ceremony[121] - The company's Chow Sang Sang Precious Metal Laboratory was awarded the Gold Award of the "Testing and Certification Manpower Development Award Scheme" 2023-2024[122] - The company has policies and procedures in place to ensure compliance with data privacy laws, including the Personal Data (Privacy) Ordinance of Hong Kong, the Personal Information Protection Law of China, and the General Data Protection Regulation of the European Union[123] - The company only collects and retains the minimum amount of personal data of customers in its database, which is well-protected both in policy and technological terms[123] - The company regularly reviews the impact of updates in data privacy regulations on its business operations and enhanced its Privacy Policies and internal guidelines in 2023[123] - The company provides provisions in relevant guidelines, operation manuals, and customer data management codes for frontline staff regarding the collection, use, retention, processing, and management of customer data[126] - The company has implemented comprehensive procurement and supply chain management policies, prioritizing suppliers with responsible and sustainable operations, and conducts background checks and ESG evaluations on new suppliers[127] - Diamond suppliers are required to provide documented proof of ethical provenance, and all materials and finished goods are monitored, with only those passing tests being accepted[127] - The company maintains relationships with multiple suppliers to mitigate risks of over-reliance and promotes fair competition during supplier selection[127] - The company has a zero-tolerance policy on bribery and corruption, with employees required to comply with anti-corruption policies and undergo regular training[130] - The company's operating subsidiaries in Hong Kong registered as Dealers in Precious Metals and Stones (DPMS) under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance since December 2023[131] - Over 200 staff members attended pilot training on statutory requirements such as customer due diligence and record-keeping prior to DPMS registration[131] - The company has a total of 12,175 employees as of 31 December 2023, with detailed employment data provided in the ESG Data Table[138] - The company strictly prohibits child and forced labor in all business operations, including suppliers, and no cases were identified in 2023[137] - The company won the title of "Foshan Harmonious Labour Relations Enterprises" in 2023, awarded by the Foshan Municipal Human Resources and Social Security Bureau[132] - The company ensures diversity in its workforce and prohibits discrimination in recruitment and promotion based on ethnicity, age, gender, marital status, and other factors[136] - The company had a total of 12,175 employees as of December 31, 2023[139] - In 2023, there were 1,924 lost days due to work-related injuries, compared to 1,308 in 2022[144] - The company achieved ISO 45001 certification in 2023 to improve occupational health and safety performance[144] - The company has a Management Trainee Programme in Mainland China, launched in 2020, to align with its omni-channel retailing strategy[148] - The company subsidizes employees requiring professional qualifications or advanced studies for specific positions[148] - The company conducts a significant portion of its training virtually via platforms like Zoom, "WeCom," and "Channel T"[148] - The company has zero work-related fatalities in the last three years[144] - General staff accounted for 58.2% of total working hours, middle management for 37.4%, and upper management for 4.4%[151] - The company has set a target to reduce electricity consumption and greenhouse gas emissions intensity by 7% at jewelry manufacturing factories by 2030[156] - The company aims to increase the use of e-receipts to 70% of transaction records issued to customers by 2030 as part of its paper waste reduction program[156] - The company has developed a roadmap towards decarbonization, with medium-term goals to enhance emission reduction disclosure and long-term goals to achieve decarbonization beyond regulatory requirements[158] - The company has won the "2023 Green Sustainable Development Contribution Award" for its contributions to carbon neutrality and environmental protection[158] - The company's Manufacturing Technology and Production Centre in Hong Kong has implemented energy-saving measures, including replacing lighting systems with energy-saving LEDs and upgrading air conditioners[158] - The company has signed up for the "Charter on External Lighting" and "Energy Saving Charter" organized by the Hong Kong Government, committing to reducing energy use in stores[159] - The company is upgrading lighting in offices and stores to LED lights, with replacement works in four factories expected to be completed by 2024[159] - The company has implemented multiple energy and water efficiency measures, including controlling billboard lighting with timers and replacing conventional vehicles with electric vehicles[160] - The company has adopted green building design and materials in the construction of the Xian flagship store, including solar panels for electricity generation[161] - The company aims to reduce water consumption and intensity by 7% at jewelry manufacturing factories by 2030[163] - The company is upgrading air conditioners to Grade 1 energy efficiency at its Hong Kong factory[163] - The company plans to complete the upgrade of lighting to LED in four factories by 2024[162] - The company implemented a lights-off initiative during lunch hours to conserve energy, reducing electricity consumption[163] - The company has set water and energy consumption reduction targets for its factories to enhance climate resilience[165] - The company is developing an automated planting area in its Taiwan office using LED lights and soil condition detection technology[163] - The company observed higher energy consumption in 2023 due to resumed operations and business growth[163] - The company is monitoring energy efficiency performance to reduce environmental impact and comply with relevant laws[166] - The company has established emergency response plans for flooding and placed production equipment above ground level in factories[165] - The company is incorporating sustainability as a key priority in supplier screening and assessment[166] - The company faces physical risks from extreme weather events such as cyclones, floods, and water shortages in mainland China and Hong Kong, which could disrupt operations and supply chains[167] - The company has implemented measures to mitigate climate change impacts, including emergency plans, flood prevention, and energy/water conservation targets for its factories[167] - The company identified market risks from increasing customer environmental and social awareness, which could harm its reputation if sustainability expectations are not met[168] - The company is sourcing recycled gold to reduce