香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部份內容而產 生或因倚賴該等內容而引致的任何損失承擔任何責任。 DAPHNE INTERNATIONAL HOLDINGS LIMITED * 達 芙 妮 國 際 控 股 有 限 公 司 (於開曼群島註冊成立之有限公司) (股份代號： 210) 截至二零二三年六月三十日止六個月之 中期業績公告 摘要  收益增加134%至123.0百萬港元  股東應佔盈利增加81%至34.5百萬港元  每股基本盈利為1.9港仙  現金及現金等價物金額為356.2百萬港元，上升14% ...

Financial Performance - In 2022, the Group's total revenue amounted to approximately HK$199.8 million, a significant increase from HK$105.7 million in 2021, representing an increase of 88.6% year-on-year[16]. - The Group's licensing fee income increased by 62% year-on-year to approximately HK$94.1 million, up from HK$58.2 million in 2021[16]. - The Group achieved an operating profit of approximately HK$49.2 million for the year ended December 31, 2022, compared to an adjusted operating loss of approximately HK$19.5 million in 2021[18]. - For the year ended 31 December 2022, the Group's total revenue increased by 89% to HK$199.8 million compared to HK$105.7 million in 2021[32]. - Licensing fee income rose by 62% to HK$94.1 million from HK$58.2 million, primarily due to the increase in online stores operated by franchisees[29]. - Sales of goods surged by 123% to HK$105.7 million, up from HK$47.5 million, with gross margin improving by 4.8 percentage points to 57.2%[33]. - Overall gross profit increased by 106% to HK$114.2 million from HK$55.4 million in 2021[27]. - Profit attributable to shareholders for the year was HK$43.1 million, down from HK$52.7 million in 2021, with basic earnings per share at 2.4 HK cents compared to 2.9 HK cents[44]. Market Environment - China's GDP growth slowed to a multi-decade low of 3.0% year-on-year in 2022, impacting consumer sentiment and the retail sector[12]. - The e-commerce market in China continued to grow, with online retail sales increasing by 4% year-on-year to approximately RMB 13.8 trillion in 2022[14]. - The macro environment remains volatile and unpredictable, with challenges and uncertainties expected in 2023, impacting the foundation of China's economic recovery[79]. Strategic Initiatives - The Group plans to enhance its product design and diversify its product mix to attract young consumers aged 18 to 28[21]. - The "Bubble Gum Series" launched in summer 2022 received enthusiastic market feedback, exceeding the Group's expectations[22]. - The Group will continue to expand its online presence and marketing efforts on high-traffic social media platforms to boost brand awareness and customer loyalty[25]. - The Group is well-positioned to capitalize on the recovery of consumption in the post-pandemic era by expanding its online and offline licensing networks[10]. - The Group plans to expand its online licensing network and enhance its presence on various e-commerce platforms to increase market share, while also recruiting more franchisees for offline channels[80][88]. - The Group's new collections with original designs received positive responses, and it aims to provide more high-quality yet affordable footwear products to attract younger consumers[90]. - The Group plans to actively and selectively recruit more online and offline franchisees to penetrate new markets, leveraging the synergy between online and offline channels[193]. - The Group has shifted to a light-asset business model focusing on brand management and licensing, optimizing its licensing network in response to market changes[194]. Operational Efficiency - Operating expenses were approximately HK$120.0 million, a decrease from adjusted operating expenses of HK$125.9 million in 2021[35]. - The Group incurred capital expenditure of HK$1.1 million in 2022, down from HK$3.5 million in 2021, mainly for leasehold improvements and office equipment[62][71]. - The Group's investment in a wealth management product amounted to approximately HK$34.3 million, with an unrealized gain of approximately HK$0.8 million for the year[47]. - The company has enhanced supply chain flexibility and responsiveness, leading to improved operational stability and resilience[195]. - The implementation of the "small orders quick returns" strategy has streamlined the supply chain, optimizing profitability for franchisees[195]. - The company established a special team to facilitate efficient collaboration between franchisees and suppliers, allowing for early feedback on product samples[195]. Corporate Governance - The Company has complied with all applicable code provisions set out in the Corporate Governance Code throughout the year ended December 31, 2022[122]. - The Board of Directors consists of executive directors with extensive experience in footwear distribution and retail, as well as independent non-executive directors with professional qualifications in various industries[133]. - The Company is committed to enhancing its corporate governance practices to align with statutory and professional standards and the latest developments[122]. - The Nomination Committee assesses the independence of independent non-executive directors annually based on character, integrity, expertise, and experience[129]. - The Company has adopted the Model Code for Securities Transactions by Directors, ensuring compliance throughout the year ended December 31, 2022[125]. - The Board will continue to review and improve corporate governance practices to support the operation and growth of the business[122]. - The independent non-executive directors contribute to the effective direction of the Company and safeguard the interests of shareholders[133]. Cash Flow and Financial Position - As at 31 December 2022, cash and cash equivalents amounted to HK$312.8 million, an increase from HK$227.5 million in 2021[45]. - The Group's net gearing ratio remained in net cash position, with a current ratio of 2.2 times, down from 2.7 times in 2021[42]. - For the year ended 31 December 2022, net cash generated from operating activities was HK$137.8 million, a significant improvement from a cash usage of HK$28.8 million in 2021[146]. - Cash and cash equivalents increased by 37% to HK$312.8 million from HK$227.5 million in 2021[186]. - The company maintained a net cash position, indicating no net gearing ratio applicable[186]. - Total assets as of December 31, 2022, were HK$870,324,000, a slight increase from HK$836,721,000 in 2021[188]. - Total liabilities increased to HK$179,546,000 in 2022 from HK$134,990,000 in 2021, representing an increase of about 32.9%[188]. Future Outlook - The Group is still in the process of business transformation despite initial successes in 2022[91]. - The Group will maintain a cautious market outlook and make timely adjustments to its business model to enhance operations[91]. - Efforts will be strengthened to improve the supply chain management system and licensing business[91]. - Continuous optimization of the business model will be pursued to adapt to changing consumer preferences and market conditions, ensuring sustainable growth[197]. - The easing of COVID-19 restrictions in China is expected to support consumer growth, enabling the company to leverage its asset-light business model in the post-pandemic era[197]. - For 2023, the company anticipates potential consumer recovery challenges due to economic uncertainties, despite a positive long-term growth outlook for the Chinese economy[197].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對 其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部份 內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 DAPHNE INTERNATIONAL HOLDINGS LIMITED * 達 芙 妮 國 際 控 股 有 限 公 司 (於開曼群島註冊成立之有限公司) (股份代號：210) 截至二零二二年十二月三十一日止年度之 全年業績公告 二零二二全年業績摘要  收益總額增加89%至199.8百萬港元  股東應佔盈利減少18%至43.1百萬港元  每股基本盈利為2.4港仙  現金及現金等價物金額為312.8百萬港元 ...

Financial Performance - Revenue for the first half of 2022 was HK$52.6 million, a 4% increase from HK$50.4 million in 2021[16] - Operating profit decreased significantly to HK$22.3 million, down 70% from HK$74.7 million in the previous year[16] - Profit attributable to shareholders was HK$19.1 million, representing a 57% decline from HK$44.8 million in 2021[16] - Operating margin fell to 42.4%, down 106.0 percentage points from 148.4% in the previous year[16] - Net margin decreased to 36.3%, a drop of 52.6 percentage points from 88.9% in 2021[16] - Basic earnings per share were HK$1.1, down 56% from HK$2.5 in the previous year[16] - For the six months ended 30 June 2022, the Group's total revenue amounted to HK$52.6 million, an increase of 4% compared to HK$50.4 million in the same period of 2021[43] - Profit for the period was HK$19,500,000, down from HK$46,459,000 in 2021, showing a decline of 58%[88] - Basic earnings per share for the period were 1.1 HK cents, compared to 2.5 HK cents in 2021, indicating a reduction in shareholder returns[85] - The company reported a total comprehensive loss of HK$9,798,000 for the period, contrasting with a comprehensive income of HK$54,698,000 in the previous year[88] Cash Flow and Liquidity - Cash and cash equivalents stood at HK$226.4 million, a slight decrease of 1% from HK$227.5 million[17] - The current ratio improved to 2.9 times, up 7% from 2.7 times in the previous period[17] - The Group generated net cash from operating activities of HK$42.6 million in the first half of 2022, compared to a cash outflow of HK$73.3 million in the same period of 2021[63] - As of June 30, 2022, cash and cash equivalents amounted to HK$226,373,000, a decrease from HK$227,489,000 at the beginning of the year[96] - The net cash used in investing activities was HK$32,916,000, compared to a net cash generated of HK$71,867,000 in the same period of 2021[96] Revenue Sources - Total revenue for the Group was approximately HK$52.6 million, up from HK$50.4 million in 2021, with licensing fee income contributing HK$35.4 million and sales of goods contributing HK$17.2 million[35] - In the first half of 2022, the Group's licensing fee income increased by 141% year-on-year to HK$35.4 million, driven by the growing e-commerce economy[27] - Revenue from sales of goods decreased to HK$17.2 million from HK$35.6 million, with a gross profit of HK$3.1 million and a gross margin of approximately 18.0%[47] - Licensing fee income for the Group was HK$35,428,000, while sales of goods amounted to HK$17,176,000 for the six months ended June 30, 2022[115] Operational Highlights - The number of online shops operated by licensees increased to approximately 480, up from 250 in December 2021, while physical shops operated by franchisees decreased to approximately 160 from 190[35] - The Group is focusing on brand management and licensing of footwear products, including women's dress shoes and casual shoes, to franchisees and licensees[32] - The Group launched the "Bubble Gum Series" this summer, which received enthusiastic responses from young consumers, exceeding expectations[36] - The Group aims to enhance product competitiveness and brand awareness by strengthening product design and development, as well as supply chain systems[36] - The Group's strategy includes a prudent approach to expanding both offline and online networks to tap into new markets[35] Economic Outlook - Despite economic challenges, the fundamentals of China's long-term economic growth remain unchanged[24] - The Group maintains a cautious outlook for the second half of the year due to ongoing economic uncertainties[80] Cost Management - Operating expenses decreased to approximately HK$45.0 million from HK$66.6 million in the previous year, primarily due to reduced impairment losses[54] - The cost of inventories sold, net of provision, was HK$14,078,000, significantly lower than HK$40,840,000 in the same period of 2021, indicating a reduction of about 65.5%[7] Shareholder Information - As of June 30, 2022, the Group's equity attributable to shareholders was HK$585.0 million, a slight decrease from HK$590.1 million as of December 31, 2021[62] - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2022, compared to no dividend in 2021[130] - The total interests of directors in underlying shares amounted to 95,200,000 shares, representing approximately 5.25% of the total issued shares[199] Accounting and Compliance - The Group has adopted new and amended accounting standards effective from January 1, 2022, with no material impact on its accounting policies[109] - The Group's financial statements are unaudited for the six months ended June 30, 2022, and 2021, indicating a preliminary assessment of financial performance[183]

Financial Performance - Revenue for the year ended December 31, 2021, was HK$105.7 million, a decrease of 71% compared to HK$363.9 million in 2020[9] - Gross profit for 2021 was HK$55.4 million, down 58% from HK$133.2 million in 2020[9] - Operating profit for 2021 was HK$84.6 million, a significant recovery from an operating loss of HK$237.1 million in 2020[9] - Profit attributable to shareholders for 2021 was HK$52.7 million, compared to a loss of HK$242.0 million in 2020[9] - Gross margin improved to 52.4% in 2021, up 15.8 percentage points from 36.6% in 2020[9] - Basic earnings per share for 2021 was HK$2.9, a recovery from a loss of HK$14.4 per share in 2020[9] - The Group's profit attributable to shareholders for the full year of 2021 was HK$52.7 million, compared to a basic loss of HK$14.4 million per share in 2020[49][50] - Licensing fee income increased significantly to HK$58.2 million from HK$5.2 million, representing a growth of 1,029%[68] - Revenue from sales of goods decreased by 87% to HK$47.5 million from HK$358.7 million due to the ongoing phase-out of retail operations[69] Liquidity and Financial Position - Cash and cash equivalents increased by 83% to HK$227.5 million in 2021, up from HK$124.6 million in 2020[10] - Equity attributable to shareholders rose by 12% to HK$590.1 million in 2021, compared to HK$528.2 million in 2020[10] - The current ratio improved to 2.7 times in 2021, up from 1.5 times in 2020, indicating better liquidity[10] - Total assets for the Group reached 4,153,860 million, with total equity at 3,035,661 million[15] - Current liabilities amounted to 1,104,790 million, while total liabilities were 1,118,199 million[15] - Shareholders' equity increased to 2,874,907 million, reflecting a solid financial position[15] Business Transformation and Strategy - The company is focusing on operational improvements and market expansion strategies to enhance future performance[8] - In 2021, the Group's operations turned profitable in the second half of the year, following a major transformation to an asset-light business model[24] - The Group shifted from a retailer to an asset-light brand owner, transforming its retail network into a franchising and licensing network[25] - The Group's strategic shift includes exploring collaborations with other brands to attract a younger demographic[30] - The Group's transformation efforts are anticipated to promote sustainable development moving forward[32] - The Group successfully transformed its business model to an asset-light approach, leading to a turnaround in the second half of 2021[32] - The Group's focus on brand management and licensing has shifted its operations towards a franchising model, enhancing its role as a brand owner[55] Market Trends and Consumer Insights - The total retail sales of consumer goods in China posted double-digit growth year on year, indicating a strong market recovery[24] - The Group's online retail sales grew by 14.1% year-on-year, with online retail sales of physical goods increasing by 12.0%, accounting for 24.5% of total consumer goods sales[41] - The data collected from the new platform will help the Group understand consumer preferences and identify market trends[26] - The "Sugar Cube Collection" targeting young consumers received positive feedback since its debut[30] - The "Sugar Cube Series" launched in the fall/winter season has become a popular product, with over 70% of purchases made by consumers born in the 1990s[61] Operational Efficiency and Cost Management - The disposal of inventories related to directly-managed and partnership stores significantly reduced operating and administrative costs, enhancing resource allocation[25] - The Group's operating expenses decreased to approximately HK$125.9 million from HK$411.4 million in the previous year, primarily due to the scaling down of operations[72] - Employee benefits expense decreased by 69% to HK$38.5 million, down from HK$126.0 million in 2020, due to headcount reduction and cost control measures[94] - The asset-light business model has alleviated pressure from operating and administrative costs, leading to profitability in the second half of 2021[48] Corporate Governance - The company emphasizes the importance of good corporate governance for its success and sustainability, committing to high standards of corporate governance practices[132] - Throughout the year ended December 31, 2021, the company complied with all applicable code provisions of the Corporate Governance Code, except for a brief period when it had only two independent non-executive directors[134] - The board of directors will continue to enhance corporate governance practices to align with statutory and professional standards[135] - The Company has adopted the Model Code for Securities Transactions by Directors, ensuring compliance by all directors throughout the year ended December 31, 2021[136] - The Company has established three board committees: Audit Committee, Nomination Committee, and Remuneration Committee, to oversee its affairs[178] Management and Board Structure - The Company’s governance structure includes a clear separation of roles between the Chairman and the Chief Executive Officer[181] - The Board has delegated responsibilities to executive directors and senior management for day-to-day operations and management of the Group[152] - The Nomination Committee is responsible for selecting and recommending candidates for directorship, ensuring appropriate professional knowledge and industry experience[153] - The Company has established a training and development program for directors, including induction and ongoing training[170] - The Board meets regularly to formulate overall strategy and monitor financial performance, with notices sent at least 14 days prior to meetings[161]

Financial Performance - Revenue for the six months ended June 30, 2021, was HK$50.4 million, a decrease of 77% compared to HK$215.7 million in 2020[9]. - Gross profit for the same period was HK$9.5 million, down 86% from HK$69.6 million in 2020[9]. - Operating loss for the six months was HK$137.3 million, with a significant change from a profit in the previous year[9]. - Profit attributable to shareholders was HK$44.8 million, compared to a loss of HK$141.3 million in 2020[9]. - Gross margin decreased to 18.9%, down 13.4 percentage points from 32.3% in 2020[9]. - Revenue from sales of goods decreased by 83% to HK$35.6 million from HK$212.1 million year-on-year, resulting in a negative gross margin[42]. - The Group recorded an operating profit of HK$74.7 million for the first half of 2021, compared to an operating loss of HK$137.3 million in the same period of 2020[45]. - Total comprehensive income for the period was HK$54,698,000, compared to a loss of HK$151,460,000 in 2020[76]. - The company reported a profit for the period of HK$46,459,000 for the six months ended June 30, 2021, compared to a loss of HK$139,393,000 for the same period in 2020[87]. Cash and Liquidity - Cash and cash equivalents stood at HK$122.6 million, a slight decrease of 2% from HK$124.6 million at the end of 2020[9]. - As of June 30, 2021, the Group's net gearing ratio was in net cash position, and the current ratio improved to 2.3 times from 1.5 times as of December 31, 2020[55]. - Cash used in operations was HK$70,961,000 for the six months ended June 30, 2021, an improvement from HK$91,657,000 in the previous year[91]. - The company reported a net decrease in cash and cash equivalents of HK$3,288,000 for the six months ended June 30, 2021, a significant improvement from a decrease of HK$86,839,000 in the previous year[91]. - Cash and cash equivalents as of June 30, 2021, were HK$122,647,000, a decrease from HK$124,567,000 at the beginning of the year[91]. Operational Changes - The Group aims to enhance understanding of young consumers' needs and invest more in product R&D to attract a younger demographic[28]. - The Group plans to increase the proportion of athleisure footwear in its product mix to tap into the ongoing athleisure trend[31]. - The supply chain's ability for "quick responses for small orders" will be leveraged to meet fast-changing consumer preferences[33]. - The Group will explore collaboration opportunities with other brands and designers to broaden its customer base and enhance brand value[33]. - The transformation into an asset-light brand owner is largely complete, focusing on brand management and licensing[25]. - The company plans to expand its offline store network to achieve equal contribution from online and offline sales in the long term[71]. Market Conditions - The company is facing ongoing pressure in the footwear industry due to slowing retail sales growth in the second quarter of 2021[14]. - The economic growth in China was 18.3% year-on-year in Q1 2021, but slowed to 7.9% in Q2 2021[14]. - The Group anticipates a prolonged recovery in consumer sentiment and will adopt a cautious approach in the second half of 2021[68]. Shareholder Information - Basic earnings per share for the period was 2.5 HK cents, compared to a loss of 8.6 HK cents in 2020[73]. - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2021, consistent with the previous year[135]. - The number of issued and fully paid ordinary shares increased to 1,814,056,622 as of June 30, 2021, from 1,649,142,384 as of December 31, 2020, representing an increase of approximately 10%[159]. - The weighted average exercise price of share options remained at HK$0.76 as of June 30, 2021, with 12,180,000 options outstanding, unchanged from the previous period[162]. Assets and Liabilities - Non-current assets as of June 30, 2021, amounted to HK$596,629,000, an increase from HK$567,137,000 at the end of 2020[80]. - Total equity increased to HK$692,225,000 as of June 30, 2021, up from HK$637,527,000 at the end of 2020, representing a growth of approximately 8.6%[83]. - The company’s total liabilities and equity amounted to HK$729,638,000 as of June 30, 2021, compared to HK$666,638,000 at the end of 2020, marking an increase of about 9.4%[83]. - As of June 30, 2021, total trade payables amounted to HK$16,968,000, a significant reduction from HK$69,201,000 as of December 31, 2020, reflecting a decrease of approximately 75.5%[156]. Employee and Management - Employee benefits expense decreased by HK$59.2 million or 74% to HK$21.0 million, mainly due to a reduction in headcount and cost control measures[63]. - Key management personnel compensation for the six months ended June 30, 2021, was HK$3,875,000, compared to HK$2,530,000 in 2020, representing an increase of approximately 53.2%[171].

Financial Performance - Revenue for 2020 was HK$363.9 million, a decrease of 83% from HK$2,126.4 million in 2019[8] - Gross profit for 2020 was HK$133.2 million, down 83% from HK$781.1 million in 2019[8] - Operating loss for 2020 was HK$237.1 million, a reduction of 77% compared to the loss of HK$1,019.5 million in 2019[8] - Loss attributable to shareholders for 2020 was HK$242.0 million, down 77% from HK$1,070.1 million in 2019[8] - Basic loss per share for 2020 was HK(14.4) cents, a decrease of 78% from HK(64.9) cents in 2019[8] - Total revenue decreased by 83% to HK$363.9 million in 2020 from HK$2,126.4 million in 2019[15] - Sales from the brands business dropped by 89% to HK$210.4 million, while e-commerce sales fell by 31% to HK$148.3 million[15] - Operating expenses decreased by 77% to HK$411.4 million from HK$1,826.5 million, aligning with the sales decline[69] - The Group incurred an operating loss of HK$237.1 million, narrowing by 77% compared to HK$1,019.5 million in the previous year[70] - Loss attributable to shareholders decreased by 77% to HK$242.0 million, with a basic loss per share of 14.4 HK cents[76] Assets and Liabilities - Cash and cash equivalents as of December 31, 2020, were HK$124.6 million, a decline of 32% from HK$182.3 million in 2019[10] - Total assets decreased to HK$858,678,000 in 2020 from HK$1,231,364,000 in 2019, a decline of 30.2%[15] - Total liabilities decreased to HK$221,151,000 in 2020 from HK$435,011,000 in 2019, a reduction of 49.3%[15] - Total equity for 2020 was HK$637,527,000, down from HK$796,353,000 in 2019, a decrease of 20.0%[15] - Inventories decreased by 74% to HK$41.6 million from HK$162.0 million, with an average inventory turnover of 161 days[77] - Trade receivables decreased by 63% to HK$24.3 million, with an average debtors turnover of 45 days[78] - Trade payables decreased by 50% to HK$69.2 million, with an average creditors turnover of 323 days[79] Business Strategy and Market Trends - The Group implemented an "asset-light" business model, which reduced operating costs and inventory pressure, successfully minimizing losses during the year[25]. - A large-scale structural adjustment of distribution channels was carried out, significantly shrinking the store network to support the asset-light transformation[24]. - The Group launched its first designer brand, "Ascent," incorporating Chinese cultural elements into modern footwear, targeting young consumers[30]. - The Group is actively promoting an omni-channel retail strategy by integrating online and offline channels to enhance brand influence and customer interaction[31]. - Future marketing strategies will leverage big data to meet diverse customer needs, reflecting a commitment to adapt to changing consumer behaviors[31]. - The pandemic has created significant business opportunities in the "stay-at-home" economy, which the Group plans to capitalize on moving forward[32]. - The Group is focusing on e-commerce, collaborating with major social platforms like "Kuaishou," "Tik Tok," and "Xiaohongshu" to enhance brand exposure and reach more consumers[58]. - The athleisure product series targets young consumers and incorporates trendy culture into shoe designs, with a strong emphasis on online promotion[57]. - The Group aims to integrate online and offline channels to create interactive sales experiences and stimulate consumer engagement[59]. - The "stay-at-home" economy has accelerated the shift to online consumption, presenting immense opportunities for the Group's e-commerce business[62] Corporate Governance - The company has committed to high standards of corporate governance, aligning with the Corporate Governance Code as per the Listing Rules on The Stock Exchange of Hong Kong[116]. - Throughout 2020, the company complied with all applicable code provisions in the Corporate Governance Code, with one noted deviation explained in the report[118]. - The board of directors is focused on enhancing corporate governance practices to ensure compliance with statutory and professional standards[119]. - The Company has adopted the Model Code for Securities Transactions by Directors, ensuring all directors complied with the required standards throughout the year ended December 31, 2020[120]. - The Company requires relevant officers to adhere to the Model Code, prohibiting them from trading securities while possessing inside information, with no incidents of non-compliance reported during the year[120]. - The Board of Directors consists of executive and independent non-executive directors, with at least three independent non-executive directors representing at least one-third of the Board[127]. - The Board meets regularly throughout the year to monitor financial performance and formulate overall strategy, with notices sent at least 14 days prior to meetings[141]. - The Audit Committee held three meetings during the financial year, reviewing the audit plan, financial statements, and risk management systems[159]. - The company has established three board committees: Audit, Nomination, and Remuneration, each with defined terms of reference[157]. - The Company has adopted a board diversity policy to enhance effectiveness through various factors including gender and professional experience[168]. Management Changes - Mr. Chang Chih-Chiao was appointed CEO in October 2020, emphasizing strategic and business planning, alongside product design and marketing[107]. - Mr. Wang Jungang, appointed COO in October 2020, is responsible for overall sales operations and licensing business development, bringing extensive experience from his previous roles[107]. - The Group's workforce decreased to 150 employees as of December 31, 2020, from 948 in 2019, reflecting a significant restructuring effort[103].

Financial Performance - Turnover for the six months ended June 30, 2020, was HK$212.1 million, a decrease of 85% compared to HK$1,402.8 million in 2019[14] - Gross profit for the same period was HK$66.0 million, down 90% from HK$651.3 million in 2019[14] - Operating loss narrowed to HK$137.3 million, a 63% improvement from a loss of HK$373.5 million in 2019[14] - Loss attributable to shareholders decreased by 64% to HK$141.3 million from HK$389.9 million in 2019[14] - Gross margin fell to 31.1%, down 15.3 percentage points from 46.4% in 2019[14] - The Group's turnover decreased by HK$1,190.7 million to HK$212.1 million for the six months ended 30 June 2020, compared to HK$1,402.8 million in the same period last year, primarily due to an 87% year-on-year decrease in the number of sales points from 2,208 to 293[32] - The Group's gross profit fell to HK$66.0 million, down from HK$651.3 million in 2019, with a gross profit margin decline to 31.1% from 46.4%[32] - The operating loss for the first half of 2020 was HK$137.3 million, an improvement from the operating loss of HK$373.5 million in the same period last year[36] - The loss attributable to shareholders was HK$141.3 million, compared to HK$389.9 million in 2019, with a basic loss per share of 8.6 HK cents, down from 23.6 HK cents per share[36] - The total comprehensive loss for the period was HK$151,460,000, compared to HK$362,786,000 in the same period of 2019, reflecting a reduction in overall losses[119] Cash Flow and Liquidity - Cash and bank balances decreased by 49% to HK$93.5 million from HK$182.3 million at the end of 2019[15] - The Group reported a net cash used in operating activities of HK$91.9 million, a significant decline from HK$20.6 million in 2019[83] - As of June 30, 2020, the Group maintained a net cash position with a current ratio of 1.4 times, slightly down from 1.5 times at the end of 2019[84] - The Group plans to dispose of non-core properties valued at approximately HK$52,212,000 within twelve months to enhance liquidity[1] - The Chairman intends to arrange a loan facility of approximately HK$50,000,000 to support the Group's financial needs[1] Inventory and Receivables - Average inventory turnover improved to 153 days, a reduction of 42 days from 195 days in 2019[15] - Inventories decreased by HK$78.3 million or 48% to HK$83.7 million from HK$162.0 million as of December 31, 2019[70] - Trade receivables decreased by HK$7.3 million or 11% to HK$57.6 million, with average debtors turnover increasing by 33 days to 53 days[71] - Trade payables decreased by HK$22.8 million or 16% to HK$115.9 million as of June 30, 2020, with average creditors turnover increasing by 163 days to 384 days[80] Strategic Changes and Market Impact - The retail market for women's shoes was significantly impacted by COVID-19, with customer traffic dropping rapidly during the first quarter, leading to a halt in offline sales activities[37] - The Group's strategic transformation included a shift to an "asset-light" business model, focusing on its Core Brands Business and withdrawing from mid-range and high-end retail operations[38] - The Group closed 132 points of sale (POS) in the first half of 2020, including 67 from its Core Brands Business and 65 from Other Brands Business, resulting in a total of 293 POS as of 30 June 2020[38] - The Group's gross profit margin fell significantly due to decreased sales and operational challenges posed by the pandemic[32] - The Chinese government's policies aimed at economic recovery have started to show positive effects, contributing to a gradual recovery in the consumer goods market[30] Online Sales and Marketing Strategies - The Group increased its commitment to online sales channels, capitalizing on the "stay-at-home" economy, and explored new marketing approaches through collaborations with social platforms like Tik Tok and Kuaishou[55][56] - The Group launched "Must-buy KOL Items" as part of its online-only strategy, which received overwhelming consumer responses and contributed to the profitability of its e-commerce business[58][59] - An "omnichannel marketing" strategy will be implemented to expand online sales channels and increase customer repeat business[103] Employee and Operational Costs - Employee benefits expense for the period was HK$80.2 million, a decrease of 74% or HK$224.9 million compared to HK$305.1 million in 2019, primarily due to reduced headcount and cost control measures[91] - Operating expenses dropped by HK$817.9 million or 79% to HK$219.2 million from HK$1,037.1 million in the same period of 2019[66] Future Outlook and Challenges - The economic outlook for the second half of 2020 remains uncertain due to the ongoing COVID-19 situation, with expectations of structural volatility in the consumer market[99] - The Group plans to enhance its online business as a new growth driver, focusing on developing "online-only items" and improving supply chain responsiveness[101] - The Group aims to consolidate its position in the women's footwear market through targeted pricing strategies and a diverse range of athleisure products[102] Asset and Equity Changes - Total equity attributable to shareholders declined by 22% to HK$540.6 million from HK$692.7 million at the end of 2019[15] - The Group's non-current assets are primarily located in mainland China, highlighting the geographical focus of its operations[149] - As of June 30, 2020, total assets amounted to HK$934,444,000, a decrease from HK$1,231,364,000 as of December 31, 2019, representing a decline of approximately 24.1%[158]

Financial Performance - Turnover for the year ended December 31, 2019, was HK$2,126.4 million, a decrease of 48% from HK$4,127.1 million in 2018[9] - Gross profit for 2019 was HK$781.1 million, down 62% from HK$2,061.0 million in 2018[9] - Operating loss increased to HK$1,019.5 million in 2019, compared to a loss of HK$786.6 million in 2018, representing a 30% increase in losses[9] - Loss attributable to shareholders was HK$1,070.1 million, an 8% increase from HK$994.4 million in 2018[9] - Gross margin decreased to 36.7% in 2019 from 49.9% in 2018, a decline of 13.2 percentage points[9] - The turnover for the year ended December 31, 2019, was HK$2,126,362, a decrease of 48.6% from HK$4,127,087 in 2018[16] - Gross profit for 2019 was HK$781,138, down 62.1% from HK$2,061,029 in 2018[16] - The operating loss for 2019 was HK$1,019,535, compared to a loss of HK$786,577 in 2018, indicating a worsening operational performance[16] - Loss attributable to shareholders in 2019 was HK$1,070,127, an increase from HK$994,397 in 2018[16] - The Group's revenue decreased by 48% to HK$2,126.4 million in 2019, down from HK$4,127.1 million in 2018, primarily due to a significant reduction in the number of stores from 2,820 to 425[46] Assets and Liabilities - The total assets as of December 31, 2019, were HK$1,231,364, a significant decline from HK$2,969,370 in 2018[17] - Current liabilities decreased to HK$411,854 in 2019 from HK$1,054,064 in 2018, reflecting a reduction in short-term obligations[17] - Cash and bank balances as of December 31, 2019, were HK$182.3 million, down 50% from HK$363.0 million in 2018[11] - The current ratio decreased to 1.5 times in 2019 from 2.1 times in 2018, a decline of 28%[11] - Trade receivables decreased by HK$95.2 million, or 59%, to HK$64.9 million compared to HK$160.1 million in 2018, with an average debtors turnover increasing to 19 days[86] - Trade payables decreased by HK$391.9 million, or 74%, to HK$138.7 million, with the average creditors turnover increasing by 144 days to 259 days[86] Inventory Management - Average inventory turnover days improved to 157 days in 2019 from 198 days in 2018, a reduction of 41 days[11] - Inventory levels were significantly reduced by 84% to HK$162.0 million as of December 31, 2019, from HK$992.3 million at the end of 2018, with average inventory turnover days decreasing by 41 days to 157 days[47] Strategic Initiatives - The Group implemented a "partnership system" for most directly-managed stores to reduce operational risks and transition to an "asset-light" business model[22] - The decision was made to gradually withdraw from mid-to-high-end retailing to concentrate on e-commerce development[25] - The Group enhanced its supply chain management to launch "Must-buy KOL Items," which received positive responses from online consumers[25] - The Group plans to focus on e-commerce as a strategic growth area, enhancing collaboration between its e-commerce, product design, and supply chain teams[30] - The introduction of "Must-buy KOL Items" is aimed at boosting online sales and responding to consumer preferences[30] - The Group aims to enhance product trendiness and comfort through ongoing research and development, while also introducing more athleisure products[31] - The Group will strengthen its brand-building efforts and consumer insights through creative marketing campaigns[32] Corporate Governance - The Company complied with all applicable code provisions of the Corporate Governance Code throughout the year ended 31 December 2019, except for deviations from provisions A.2.1 and A.6.7[124] - The Board of Directors consists of executive directors with extensive experience in the footwear distribution business and independent non-executive directors with relevant professional qualifications[133] - The Company has adopted the principles of the Corporate Governance Code as set out in the Listing Rules of the Stock Exchange of Hong Kong Limited[128] - The independent non-executive directors actively participate in board meetings and contribute to the effective direction of the Company[133] - The Company aims to achieve board diversity through measurable objectives set by the Board[168] Operational Challenges - The Group anticipates that the Chinese consumer market will face significant pressure in the short term due to the COVID-19 outbreak, but aims for medium to long-term recovery[33] - The Group's operating profit margin for the Core Brands Business was -50.5% in 2019, compared to -20.7% in 2018, reflecting the impact of restructuring efforts[62] - The Group recorded an operating loss of HK$951.6 million in the Core Brands Business, compared to a loss of HK$788.2 million in the previous year[80] - The Other Brands Business experienced an operating loss of HK$48.7 million, up from a loss of HK$26.7 million in 2018[69] Future Outlook - The Group's transformation into a brand-driven company with an "asset-light" business model is expected to yield results in the second half of 2020[98] - The Group intends to strengthen its marketing efforts on social media to project a youthful and fashionable image, enhancing consumer engagement[104] - The company plans to launch a richer range of sports and leisure products to capitalize on the growing trend in this market segment[106] - Future strategies include strengthening brand marketing through partnerships with external consulting firms to better understand consumer preferences and adjust marketing strategies accordingly[107]

Financial Performance - Turnover for the six months ended June 30, 2019, was HK$1,402.8 million, a decrease of 37.9% compared to HK$2,259.0 million in 2018[17]. - Gross profit for the same period was HK$651.3 million, down 39.7% from HK$1,080.2 million in 2018[17]. - Operating loss narrowed to HK$373.5 million, a 23.7% improvement from a loss of HK$489.7 million in 2018[17]. - Loss attributable to shareholders decreased by 20.9% to HK$389.9 million from HK$492.6 million in 2018[17]. - Basic loss per share improved to HK(23.6) cents, a reduction of 21.1% from HK(29.9) cents in 2018[17]. - The Group's total revenue for the first half of 2019 decreased by 37.9% to HK$1,402.8 million from HK$2,253.5 million in the same period of 2018[65]. - The Group recorded a revenue of HK$1,402.8 million for the six months ended June 30, 2019, a decrease of 37.9% compared to the same period last year[69]. - The loss for the period was HK$394,407,000, an improvement from a loss of HK$499,008,000 in the same period last year, representing a 21% reduction[107]. - Total comprehensive loss for the period was HK$362,786,000, compared to HK$515,930,000 in the previous year, indicating a 30% decrease[107]. Cash and Liquidity - Cash and bank balances decreased by 57.9% to HK$152.8 million from HK$363.0 million at the end of 2018[17]. - The Group's short-term bank loan was HK$34.7 million, down from HK$192.3 million at the end of 2018, resulting in a net cash position of HK$118.1 million[77]. - The group's cash and cash equivalents stood at HK$149,639,000, a decrease from HK$186,521,000 at the end of 2018[112]. - The group had a workforce of approximately 6,800 employees as of June 30, 2019, down from 8,700 as of December 31, 2018[88]. - The Group plans to dispose of non-core properties valued at approximately HK$137,798,000 within twelve months from June 30, 2019, to enhance liquidity[130]. - The Group's cash outflow related to lease payments was HK$133,955,000 during the period, classified as financing activities due to the adoption of HKFRS 16[129]. Inventory and Receivables Management - Average inventory turnover increased to 195 days from 169 days in 2018, indicating slower inventory movement[17]. - Average debtors turnover increased to 20 days from 15 days in 2018, reflecting longer collection periods[17]. - Trade receivables decreased by HK$16.7 million or 10.5% to HK$143.4 million, with an average debtors turnover of 20 days[75]. - As of June 30, 2019, inventories decreased by HK$366.3 million or 36.9% to HK$626.0 million, with an average inventory turnover of 195 days[75]. Operational Adjustments - The Group continued to rationalize its store network, closing 612 POS during the period under review, resulting in a total of 2,208 POS as of June 30, 2019[41]. - The number of POS for the Core Brands Business decreased by 21.6% to 2,075, with a net closure of 573 POS during the review period[44][50]. - Operating expenses dropped by HK$555.0 million or 34.9% to HK$1,037.1 million, aligning with the decrease in sales and number of stores[67]. - The Group plans to optimize its sales network by converting more stores into a partnership or franchise system to mitigate business risks[99]. Strategic Initiatives - The Group launched an upgraded official shopping site on Wechat mini program platform to diversify product offerings and drive traffic[61]. - The Group entered a strategic partnership with a supply chain solution provider to enhance supply chain management and improve production lead time[57]. - E-commerce development will be expedited, with more resources allocated to increase its contribution to total revenue[99]. - The Group aims to expand its athleisure product line to meet growing market demand, recognizing significant opportunities in this category[99]. Accounting and Financial Reporting - The Group has adopted HKFRS 16 "Leases" effective from January 1, 2019, recognizing lease liabilities previously classified as "operating leases" under HKAS 17, amounting to HK$457,269,000[148]. - The impact on the Group's net profit after tax for the six months ended June 30, 2019, due to the adoption of HKFRS 16 was not significant[158]. - The Group's lease liabilities include fixed payments, variable lease payments based on an index, and amounts expected to be payable under residual value guarantees[164]. - The Group's activities expose it to various financial risks, including foreign exchange risk and liquidity risk[168]. Market Conditions and Future Outlook - The business environment is expected to remain challenging in the second half of the year due to uncertainties in the global economy and slowing consumer spending in China[89]. - The management team will regularly review and adjust strategies to align with the latest market trends for sustainable future development[99]. - The directors believe it is appropriate to prepare the financial statements on a going concern basis, contingent on several factors including continuous credit support from suppliers[137].