MOISELLE MOISELLE INTERNATIONAL HOLDINGS LIMITED 系 許 國 際 集 團 有 限 公 司 l 於 開疊 群島 胜 回 永 文 之 有限 立 可 | 匿名代號:130 2020/2021 中 期 報 告 PRINTED WITH SOYINI MIX FSC" C017167 目 錄 公司資料 2 簡明綜合損益及其他全面收益表 3 簡明綜合財務狀況表 5 簡明綜合權益變動表 7 簡明綜合現金流量表 8 未經審核中期財務報表附註 9 管理層討論及分析 17 其他資料 23 2 慕詩國際集團有限公司 中期報告 2020/2021 公司資料 | --- | --- | |----------------------------------|-------------------------------------------| | | | | 董事會 | 總辦事處及主要營業地點 | | 執行董事 | 香 港 | | 陳欽杰先生 （主席） | 北 角 | | 徐巧嬌女士 | 健康東街 39 號 | | 陳思俊先生 | 柯達大廈第二期 | | | 11 樓 1–5 室 | ...

Financial Performance - The company reported revenue of HKD 103,434,000 for the six months ended September 30, 2019, a decrease of 15.3% compared to HKD 122,181,000 in the same period of 2018[5]. - Gross profit for the period was HKD 78,209,000, down 17.7% from HKD 95,052,000 year-on-year[5]. - The company incurred an operating loss of HKD 35,271,000, compared to an operating loss of HKD 32,907,000 in the previous year, reflecting a deterioration in performance[5]. - The net loss attributable to shareholders was HKD 37,600,000, compared to a net loss of HKD 26,764,000 in the same period last year, representing a 40.5% increase in losses[7]. - The total comprehensive loss for the period was HKD 38,105,000, compared to HKD 33,579,000 in the previous year, indicating a 13.5% increase in comprehensive losses[5]. - The company reported a basic loss per share of HKD 0.13, compared to HKD 0.09 in the same period last year, indicating a worsening of loss per share[7]. - The group reported a total revenue of HKD 126,734,000 for the six months ended September 30, 2019, compared to HKD 152,555,000 in the same period of 2018, reflecting a decrease of approximately 17%[28]. - The group's loss for the period was approximately HKD 37,600,000, compared to a loss of HKD 26,764,000 in the same period of 2018, indicating an increase in loss of about 40%[36]. - The gross profit margin for the period was 76%, down from 78% in the same period last year[42]. Assets and Liabilities - The company's total assets amounted to HKD 800,877,000 as of September 30, 2019, compared to HKD 713,544,000 as of March 31, 2019, showing a growth of 12.2%[9]. - The company's total equity decreased to HKD 644,545,000 from HKD 686,203,000, reflecting a decline of 6.1%[11]. - The total lease liabilities recognized on April 1, 2019, amounted to HKD 117,337,000, with a corresponding right-of-use asset of HKD 104,926,000[19]. - The group's non-current assets, including property, plant, and equipment, were adjusted to HKD 402,085,000 as of April 1, 2019, down from HKD 402,444,000 previously reported[23]. - The group's total liabilities included lease liabilities of HKD 61,519,000 as of April 1, 2019[23]. Cash Flow - Cash generated from operating activities was HKD 10,260,000, a decrease from HKD 38,511,000 in the same period last year[15]. - The company incurred a net cash outflow of HKD 8,227,000, compared to a net outflow of HKD 13,164,000 in the previous year[15]. - The cash and cash equivalents at the end of the period were HKD 22,339,000, down from HKD 47,206,000 at the beginning of the period[15]. - The group reported a financing cost of HKD 2,405,000 for the period, compared to HKD 281,000 in the same period of 2018, indicating a significant increase in financing costs[28]. - The group’s cash and cash equivalents totaled approximately HKD 22,000,000, down from HKD 31,000,000 as of March 31, 2019[58]. - The current ratio as of September 30, 2019, was approximately 1.0, down from 2.5 as of March 31, 2019[58]. Business Operations - The company has not reported any new product launches or significant market expansions during this period[5]. - There were no mentions of mergers or acquisitions in the financial report[5]. - The group operates 49 retail stores as of September 30, 2019, down from 50 stores as of March 31, 2019, reflecting ongoing network consolidation[48]. - The group is enhancing the shopping experience by integrating elements of fashion, art, and environmental awareness into store designs, including a new MOISELLE store at K11 MUSEA[49]. - The group is expanding its e-commerce efforts, including discussions to sell products on an Asian online marketing platform, marking its first attempt to enter overseas markets through e-commerce[45]. - The group has established partnerships with three local online marketing platforms in China and launched a sales and marketing platform on WeChat[45]. - The group continues to negotiate with landlords for rent reductions to navigate the difficult business environment[44]. - The group is increasing the proportion of mid-range fashion apparel in its total stock-keeping units (SKUs) to adapt to market changes[44]. - The group is implementing rigorous cost management and effective sales and marketing initiatives, including VIP membership services in Hong Kong[47]. - The group upgraded its information systems for retail stores, management, production, inventory, and logistics to improve operational efficiency[57]. Revenue Breakdown - Revenue from the Hong Kong business decreased by 16% to approximately HKD 56,292,000, influenced by social movements and intense competition from e-commerce and fast fashion[49]. - Revenue from mainland China decreased by 18% year-on-year to approximately HKD 16,144,000[53]. - Revenue from Macau operations decreased by 19% year-on-year to approximately HKD 18,256,000, accounting for a significant portion of the group's revenue[54]. - Revenue from Taiwan operations declined by 16% year-on-year to approximately HKD 7,540,000, representing about 7% of the group's total revenue[55]. - Singapore operations saw a revenue increase of 44% year-on-year to approximately HKD 5,202,000[56]. - The group's external customer revenue from Hong Kong was HKD 56,292,000 for the six months ended September 30, 2019, down from HKD 67,345,000 in the same period of 2018, a decrease of approximately 16%[28]. - The group's external customer revenue from overseas operations was HKD 103,434,000 for the six months ended September 30, 2019, compared to HKD 122,181,000 in the same period of 2018, reflecting a decrease of about 15%[28]. Shareholder Information - Super Result Consultants Limited holds 190,000,000 shares, representing 65.99% of the company's total issued shares[64]. - Both Mr. Chen and Ms. Xu beneficially own 46.7% of Super Result, indicating significant family ownership in the company[64]. - As of September 30, 2019, no other individuals held interests or short positions in the company's shares or related securities[64]. - The company paid dividends of HKD 11,517,000 last year, reflecting a commitment to shareholder returns despite current losses[15]. - The group did not declare an interim dividend for the six months ended September 30, 2019, compared to no dividend declared in the same period of 2018[37]. Governance and Compliance - The company has complied with the corporate governance code, except for deviations regarding the roles of the chairman and CEO, which are held by the same individual[69]. - The audit committee, consisting of three independent non-executive directors, has reviewed the accounting principles and practices adopted by the group[71].

Market Environment - The operating environment for the retail fashion sector has become very challenging due to the rise of e-commerce and fast fashion, which have drastically changed consumer preferences and purchasing behaviors[11]. - Young consumers aged 20 to 30 are increasingly relying on information from the internet and social media, leading to a preference for lower-priced fast fashion products[11]. - The ongoing Sino-United States trade war and slowing economic growth in China have dampened consumer interest in prestigious brands, pushing them towards more affordable options[11]. - Rising costs, particularly in prime locations in Hong Kong and first-tier cities in mainland China, have further complicated the business environment[11]. Company Strategy - The company is focusing on developing online stores while maintaining brick-and-mortar operations and adjusting product offerings to meet changing consumer demands[11]. - Future strategies include enhancing online presence and adapting product positioning to attract younger consumers[11]. - The company is exploring new product lines and technologies to stay competitive in the fast fashion market[11]. - Market expansion efforts are being considered to tap into emerging consumer segments[11]. - The company is committed to maintaining operational efficiency amidst rising costs and competitive pressures[11]. Financial Performance - The company recorded a loss of HK$19,841,000 for the year, primarily due to a 13.6% decrease in turnover to HK$251,021,000, attributed to challenging operating conditions in Hong Kong and China[14]. - The Group's turnover decreased by approximately 13.6% to approximately HK$251,021,000 for the year ended 31 March 2019, compared to HK$290,576,000 in 2018[48]. - Revenue from operations in Hong Kong decreased by 10.3% to approximately HK$139,610,000 due to fierce competition from electronic commerce and unfavorable economic conditions[32]. - Revenue from operations in mainland China fell by 28.3% to approximately HK$34,795,000, impacted by high rents and intense competition from electronic commerce[39]. - Operating expenses increased by approximately 3.5% to approximately HK$257,954,000, compared to HK$249,167,000 in 2018[50]. - The Group recorded an operating loss of HK$44,905,000 for the year, compared to an operating loss of HK$21,622,000 in 2018[50]. Brand and Product Development - The Group has enhanced its shopping experience at retail outlets and expanded its electronic commerce business to stay competitive[16]. - The Group debuted new products under the Rosamund MOISELLE brand, including sportswear and down apparel, during the Shanghai Fashion Week[19]. - The Group aims to enhance its electronic commerce business by offering membership coupons to attract customers from online to physical stores and exploring mass-market fashion apparel for online sales[25]. - The Group reinforced its house brands MOISELLE and Rosamund MOISELLE by running THE EARTH STORE and opened an additional LANCASTER store to accelerate brand development[34]. Operational Adjustments - The Group has implemented various measures to cope with the difficult operating environment over the past four financial years, including the closure of underperforming stores and stringent cost management[21]. - The Group plans to continue rationalizing its retail network, focusing on strategic locations in Hong Kong and Shanghai to enhance brand visibility and customer engagement[25]. - The information system for retail outlets and inventory management has been upgraded to improve operational efficiency, with further upgrades planned for product management and logistics[25]. Governance and Management - The Group's overall operations and design and development functions are overseen by Mr. Chan Pak Hei, who has been with the Group since May 2009[76]. - The Group's management team includes members with extensive qualifications and experience in finance and corporate governance, ensuring robust oversight[76]. - The company emphasizes adherence to principles of corporate governance, including transparency, independence, accountability, responsibility, and fairness[80]. - The independent non-executive directors confirmed their independence as per the Listing Rules, ensuring compliance for the year ended March 31, 2019[93]. Risk Management and Audit - The board acknowledges its responsibility for maintaining effective risk management and internal control systems[117]. - The audit committee reviewed the accounting principles and practices adopted by the group and discussed financial statements with independent auditors[113]. - The audit identified the provision for onerous operating lease contracts and valuation of leasehold improvements as a key audit matter due to significant management judgment and estimation involved[172]. - The auditor's report aims to provide reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[197]. Employee and Supplier Relations - The Group has established a customer loyalty program to enhance customer satisfaction and encourage repeat purchases, offering special discounts and regular activities for VIP customers[63]. - The Group has over 30 suppliers with an average business relationship of more than a decade, contributing to its success through trust and integrity[63]. - The Group provides reasonable remuneration and benefits to employees, ensuring compliance with local labor laws and offering training for career development[63]. Market Presence and Expansion - The Group aims to enhance brand equity by actively exploring new markets and allocating resources for product design, research, and development[63]. - To further develop the mainland China market, the Group will seek cooperation with agents or distributors familiar with local market conditions[25]. - The Group is focused on brand building, marketing, and interior design affairs as part of its operational strategy[76].