Financial Performance - The company reported a revenue increase to HKD 8,316 million for the fiscal year ending December 31, 2021, marking a return to profitability with a net profit attributable to shareholders of HKD 381 million, the first profit since the fiscal year ending June 30, 2017[11]. - The company reported a net profit of approximately HKD 386 million for the fiscal year ending December 31, 2021, compared to a net loss of HKD 396 million in the same period last year[78]. - Gross profit was HKD 4,042 million, with a gross margin of 48.6%, an increase of 7.0 percentage points compared to the previous period[93]. - The company raised approximately HKD 689 million through a one-for-two rights issue to support profitable business opportunities[78]. - The company has allocated a total of HKD 689 million for various expenses, with HKD 501 million already utilized and HKD 188 million remaining unutilized[121]. - The company did not declare a dividend for the fiscal year ending December 31, 2021, due to recent losses, marking the first profitable year since the fiscal year ending June 30, 2017[117]. - The company anticipates a cautious economic rebound in the fashion retail sector due to successful vaccination programs and the acceptance of living with COVID[125]. Sustainability Initiatives - Over 78% of the company's apparel was made from sustainable materials as of December 31, 2021, up from 60% in 2020, demonstrating a commitment to sustainability[15]. - The company has begun replacing single-use plastic bags with recyclable materials, aiming for 30% of materials used in bags to be recyclable[15]. - ESPRIT has achieved 78% of its target for using sustainable materials in the current year[19]. - Cotton accounts for over 50% of the total fiber usage, with 74.8% of the cotton being organically grown[25]. - The company aims to increase the use of recycled cotton, although current availability and quality remain challenges[25]. - 32% of the synthetic fibers used are recycled polyester, marking a 10% increase from the previous year[30]. - 62% of the sustainable man-made cellulosic fibers used are sourced from responsibly managed wood[36]. - The company has been certified under the "Green Button" standard by the German government, focusing on social, environmental, and governance risk assessments[40]. - The company has implemented a worker code of conduct based on Fair Labor Association standards, although full implementation was delayed due to the pandemic[52]. - The company aims to eliminate harmful chemicals from its supply chain by 2020, having initiated a large-scale detoxification program[68]. - The company has reduced plastic packaging usage by 55%-86% for certain products, with plans to expand green initiatives to other product categories[74]. - The company has become one of the first members of the Zero Discharge of Hazardous Chemicals (ZDHC) alliance to promote sustainable practices in the fashion manufacturing process[68]. E-commerce and Digital Strategy - The company is focusing on enhancing its e-commerce capabilities to improve customer experience and retention, prioritizing digital infrastructure investments[12]. - Online business revenue grew from HKD 197 million to HKD 3,621 million, making it the best-performing channel due to restrictions on physical store access[89]. - The company successfully reopened online stores in 29 European countries, laying a solid foundation for future global expansion[83]. - A digital customer journey personalization initiative has been launched, which is expected to be a milestone for customer acquisition and retention[83]. - The company has implemented a new E2B wholesale platform to increase online orders, focusing on a digital-first model[83]. - The company anticipates further growth in online business channels in the future, driven by increased digital marketing efforts[89]. Supply Chain and Procurement - Cost control measures and improved inventory and procurement management contributed to the company's financial performance[11]. - The logistics and supply chain will be optimized to ensure efficient product delivery to selected markets[12]. - The company has achieved 100% distribution data for primary and secondary suppliers, with 33% for tertiary suppliers, indicating a commitment to supply chain transparency[39]. - The company has collected wage data from 67 factories in Bangladesh, India, and Turkey since 2020, despite challenges posed by the global pandemic[60]. - The company has completed detailed analysis on 16 aspects of its procurement practices, with scores above average in most areas, showing significant improvements in incentives, compliance, and ordering[58]. - The company has optimized its supplier base to ensure better product cost and quality, as well as faster time-to-market[83]. Corporate Governance - The company has adopted high standards of corporate governance, aiming to enhance transparency and risk management[36]. - The board of directors consists of five independent non-executive directors, accounting for over one-third of the board[140]. - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange regulations[36]. - The board has reviewed its governance practices and will make necessary adjustments as needed[36]. - The company has adopted a code of conduct for securities trading that meets or exceeds the standards set out in the listing rules[153]. - The company emphasizes compliance with established policies and procedures in its risk management and internal control assessments[162]. Market Expansion and Future Outlook - The company plans to expand its product range and increase revenue from loyal core customers while attracting new customer segments[12]. - The company is entering new markets, including South America and Central America, and plans to launch products on e-commerce platforms in Hong Kong, Taiwan, and South Korea by mid-2022[128]. - The company is exploring the possibility of opening a limited number of physical stores and pop-up shops in key Asian markets[128]. - The management team is confident in re-establishing ESPRIT as a global market leader through ongoing investments and employee dedication[12]. - The company is committed to improving customer experience and product quality while enhancing brand recognition through sustainable development initiatives[78].

Financial Performance - The group reported a net profit attributable to shareholders of HKD 121 million for the six months ended June 30, 2021, compared to a net loss of HKD 3,661 million for the same period in 2020[40]. - The group recorded an unaudited profit attributable to shareholders of HKD 121 million, compared to a loss in the previous period, driven by a 17.3% growth in digital business operations[6]. - The group reported a total comprehensive loss of HKD 3,575 million for the six months ended June 30, 2020[56]. - The company recorded a slight profit for the six months ending June 30, 2021, despite previous losses, leading to the board's decision not to declare an interim dividend[32]. - The basic and diluted earnings per share for the period was HKD 0.05, compared to a loss per share of HKD 1.79 in the previous year[44]. - The group reported a loss before interest and tax of HKD 3,119 million, with retail operations showing a loss of HKD 1,640 million[73]. - The company reported a cash outflow of HKD 278 million for the six months ended June 30, 2021, compared to cash outflows of HKD 131 million and HKD 422 million for the previous two six-month periods[57]. - The company’s profit attributable to shareholders for the six months ended June 30, 2021, was HKD 121 million, a significant recovery from a loss of HKD 3,661 million in the same period of 2020[87]. Revenue and Sales - Total revenue for the six months ended June 30, 2021, was HKD 3,872 million, a decrease of 5.8% from HKD 4,111 million for the same period in 2020[67]. - Revenue from Europe was HKD 1,859 million, down 15.5% from HKD 2,199 million in the previous year[67]. - Online store revenue increased to HKD 1,967 million, up 17.3% from HKD 1,678 million in the prior year[67]. - Retail segment generated HKD 2,541 million in revenue, with a loss before interest and tax of HKD 110 million[71]. - Wholesale revenue was HKD 1,285 million, with a profit before interest and tax of HKD 105 million[71]. Cost Management and Optimization - The company implemented several cost control measures, including closing unprofitable stores and terminating low-margin product lines[11]. - The group recorded a decrease in employee costs to HKD 539 million from HKD 742 million, reflecting cost optimization measures[44]. - The total cash outflow for leases was HKD 336 million, down from HKD 689 million in the previous year[51]. - The company is focused on cost optimization and active store portfolio management to enhance financial performance[60]. - Cost optimization measures will be implemented, including active management of the store portfolio to enhance profitability[133]. Operational Improvements - The company is transforming its e-commerce platform to enhance user experience and attractiveness[11]. - The company has implemented a new customer relationship management system to enhance customer engagement[35]. - The company aims to improve operational processes and reduce costs while targeting global growth opportunities[35]. - The company is investing in new technology development, with a capital expenditure (CAPEX) budget of HKD 50 million for the upcoming year[146]. - The company anticipates a reduction in operating costs by 10% through strategic restructuring initiatives[146]. Future Growth Strategies - The company is focusing on expanding its operations in Europe while exploring rapid growth opportunities in the Asia-Pacific and U.S. markets[7]. - The company plans to launch a redefined brand identity, including its purpose, values, and behaviors, to drive growth and regain market position[35]. - The company plans to continue its market expansion and product development strategies to enhance future growth prospects[87]. - Future outlook indicates a projected revenue growth of 20% for the next fiscal year, driven by new product launches and market expansion strategies[146]. - The company is exploring potential acquisitions to enhance its product portfolio, with a focus on companies that align with its strategic goals[146]. Financial Position and Liquidity - The company has a solid financial foundation, supported by a robust balance sheet and a dedicated global team[11]. - The group maintained a low debt level with total outstanding loans of approximately HKD 8 million and cash and cash equivalents totaling HKD 2,631 million, an increase of about HKD 360 million[25]. - The equity attributable to shareholders increased to HKD 4,959 million from HKD 4,239 million, an increase of 16.96%[54]. - The company raised at least HKD 707.7 million through a rights issue, with net proceeds amounting to HKD 689 million after expenses[32]. - The board has reviewed cash flow forecasts for the next twelve months and believes the company has sufficient working capital to meet its financial obligations[60]. Impact of COVID-19 - The company noted that the ongoing COVID-19 pandemic continues to pose significant uncertainties that may affect its ability to continue as a going concern[40]. - The board acknowledges the uncertainty related to potential new COVID-19 variants and the possibility of government-imposed lockdowns affecting the company's financial condition[132]. - The company will continue to closely monitor the impact of the COVID-19 pandemic and adjust its business strategies accordingly[60]. - The uncertainty surrounding the COVID-19 pandemic may lead to further lockdowns, impacting the company's financial situation[60]. Shareholder Information - The company did not declare an interim dividend for the six months ended June 30, 2021, consistent with the previous year[83]. - The company has not purchased, sold, or redeemed any of its shares during the six months ended June 30, 2021[140]. - The total number of issued shares increased to 2,831 million as of June 30, 2021, from 1,887 million at the beginning of the year[94]. - The company issued rights shares amounting to HKD 689 million during the period[54]. - As of June 30, 2021, the major shareholders include Ms. Lo with 425,614,200 shares (27.92%) and North Point Talent Limited with 364,782,600 shares (12.88%)[128].

ESPIRIT 2020 年度報告 思捷環球控股有限公司 截至二零二零年十二月三十一日止六個月之報告 香港股份代號 00330 7 and and and and and and the first of the f ESPIRIT 公司資料 | --- | --- | --- | |---------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------- ...

邁向可持續盈利之路 年度報告 思捷環球控股有限公司 二零二零年六月三十日止財政年度 香港股份代號 00330 傳遞沉實與知性時尚的 價值觀–迸發喜悅。 Esprit有望成為世界上最具創新性和可持續性的生活時尚品牌。 憑藉明確的策略重點、 卓越的產品和強烈的情感，我們突破知性時尚的界限。 我們推出的新系列簡化了服飾的 選擇並採用永恆、靈活及優質等元素，令產品無懼季節變化亦同樣獲喜愛。 具意義。 積極。 負責。 創新。 二零一九╱二零二零年報 公司資料 2 公司資料 | --- | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------- ...

Financial Performance - The company's revenue for the first half of the fiscal year 2019/2020 was HKD 5.8 billion, with a distribution network covering over 40 countries[19]. - The company reported a near break-even loss of HKD 15 million before interest, taxes, depreciation, and amortization, indicating improved profitability due to increased productivity and cost reductions[15]. - The group's financial performance for the first half of the fiscal year 2019/2020 was in line with management expectations, showing positive growth despite a challenging market environment[23]. - The adjusted EBITDA loss (excluding interest, tax, depreciation, and amortization) was HKD (15) million, a substantial improvement compared to the previous year's loss of HKD (94) million[23]. - The company reported a notable improvement in business conditions compared to previous months, indicating a more streamlined and efficient operational structure[23]. - The company reported a loss attributable to shareholders of HKD 331 million, significantly improved from a loss of HKD 1,773 million in the previous year[88]. - The group reported a loss before tax of HKD 334 million, compared to a loss of HKD 1,737 million in the previous year, indicating an improvement in financial performance[126]. Revenue Breakdown - Women's apparel accounted for 68% of total revenue, while men's apparel contributed 17%[16]. - Revenue for women's apparel decreased by 14.1% to HKD 3,925 million, accounting for 68.1% of total group revenue[61]. - The company's revenue for the first half of the fiscal year 2019/2020 was HKD 5,763 million, representing a year-on-year decrease of 11.8% in local currency[30]. - In Germany, the largest market, revenue was HKD 3,007 million, accounting for 52.2% of total revenue, with a year-on-year decrease of 9.8% in local currency[34]. - Revenue from Germany wholesale (excluding electronic stores) was HKD 1,060 million, showing a nearly flat performance after eleven consecutive years of decline, with a year-on-year decrease of -0.9%[35]. - Revenue from Asia, primarily from China, Singapore, Malaysia, Taiwan, Hong Kong, Macau, Thailand, and the Philippines, was HKD 414 million, a significant year-on-year decrease of -40.0%[36]. - Revenue from other European regions (excluding electronic stores) was HKD 2,342 million, reflecting a year-on-year decrease of -6.8% in local currency[35]. Cost Management - The cost of operations significantly decreased by HKD 717 million, representing a year-on-year reduction of 20.1%, due to ongoing efforts to reduce workforce and close non-profitable stores[23]. - The company's basic operating expenses decreased significantly, with employee costs down 25.2% and marketing expenses down 16.3%[30]. - The company's operating expenses decreased by HKD 717 million or -20.1%, reflecting cost-cutting measures and a focus on financial control[40]. - Employee costs and rental costs decreased by -25.2% and -17.8% respectively, contributing to significant cost savings[40]. Store Operations - The company operates 389 retail stores, 19 e-stores, and 4,793 wholesale points of sale globally[19]. - The total number of retail stores decreased by 106, resulting in a total of 389 stores, with a net sales area of 188,182 square meters, down 19.5%[66]. - The company opened 527 new stores while closing 998, resulting in a net change of -471 stores[58]. - Total retail store count decreased by 79 stores, representing a decline of 12.7% to 653 stores[72]. Strategic Initiatives - The management team expressed confidence in the company's recovery trajectory following a restructuring of its operations in China[15]. - The company is focused on executing its strategic plan amidst a challenging market environment[15]. - The group is committed to continuing its transformation strategy with a focus on rapid implementation of key initiatives in the second half of the fiscal year[23]. - The company plans to focus on market expansion and new product development to counteract declining sales figures[72]. - Future outlook includes a focus on expanding e-commerce capabilities and enhancing customer engagement strategies[126]. Governance and Leadership - The company has established various committees, including risk management and nomination committees, to ensure effective governance and oversight[167]. - The leadership team has a diverse background in finance and management, contributing to the company's strategic direction and operational efficiency[167]. - The company emphasizes the importance of corporate governance and compliance with regulatory standards in its operations[167]. - The company appointed Dr. Johannes Georg Schmidt-Schultes as Executive Director and Group CFO since October 2019, bringing extensive international financial experience[167]. Sustainability and Corporate Responsibility - Management emphasized the importance of sustainability as a core value of the group, focusing on profitability rather than sales growth[23]. - The company is actively managing foreign exchange risks, particularly related to the Euro, to mitigate potential impacts on profitability[54]. Financial Position - The group reported a net cash position of HKD 2,740 million as of December 31, 2019, down from HKD 3,282 million as of June 30, 2019, with a net cash outflow of (HKD 542 million) during the first half of the fiscal year[44]. - The company has no external borrowings as of December 31, 2019, maintaining a strong financial position[51]. - The total liabilities decreased to HKD 10,000 million from HKD 6,997 million, indicating improved financial stability[91]. Stock Options and Shareholder Information - The total number of stock options granted as of December 31, 2019, is 62,965,000, with 4,400,000 options that have expired[178]. - The company has a total of 8,450,000 unexercised options under the 2009 Share Option Scheme as of December 31, 2019[176]. - The company has not entered into any arrangements that would allow directors or their associates to profit from purchasing shares or debentures of the company or any other corporate body during the review period[174].

Financial Performance - The company reported a significant turnaround in its financial performance, aiming for sustainable growth and profitability after a challenging fiscal year[15]. - The fiscal year has been marked by significant changes, with a focus on achieving long-term profitability goals[15]. - The company's core business recorded a loss before interest and tax of HKD 587 million, an improvement from a loss of HKD 909 million in the previous fiscal year[18]. - The underlying loss before interest and tax was HKD 587 million, an improvement from a loss of HKD 909 million in the previous fiscal year[48]. - The company experienced a net loss of HKD 2,144 million, compared to a net loss of HKD 2,554 million in the previous year, indicating a slight improvement[83]. - The company does not recommend a final dividend due to the losses incurred during the fiscal year[18]. Strategic Initiatives - A clear strategic plan has been established to reduce losses and streamline operations, focusing on enhancing brand strength and customer experience[15]. - The management team has made initial positive progress in various operational metrics, laying a solid foundation for future business performance improvements[15]. - The company aims to improve its product offerings and customer experience to enhance competitiveness in the market[17]. - The company is focused on creating a more efficient structure and eliminating loss-making stores as part of its strategic plan initiated in November 2018[26]. - The management team has been optimized to support the company's strategy for long-term value creation[22]. - The restructuring plan has begun to show positive effects, with initial progress noted in the company's operational and financial metrics[26]. Cost Management - Cost control measures led to a reduction in regular operating expenses by HKD 1,742 million or -16.6% year-on-year, aiming to achieve a target of HKD 2 billion in savings over two years[18]. - Regular operating expenses were reduced by 16.6% year-on-year, achieving a healthier cost base and on track to save HKD 2 billion over two years compared to FY 2017/18[29]. - The total operating expenses amounted to HKD 7,088 million, down 19.7% from HKD 8,830 million in the previous year[83]. Market Presence and Sales - The company has expanded its footprint globally, operating in over 40 countries since its inception[5]. - Revenue decreased by 12.9% year-on-year in local currency, with a corresponding decrease in total controllable area of 14.3%[29]. - Comparable store sales in Europe showed positive growth of 1.4% year-on-year in Q4, with significant improvement from a decline of 9.9% in the first half of the fiscal year[29]. - The wholesale business accounted for 97.5% of total wholesale revenue (excluding e-stores), with a year-on-year decline narrowing from -16.2% in the first half to -11.1% in the second half of the fiscal year 2018/2019[37]. - The company closed 169 unprofitable stores and reduced non-store staff, leading to a nearly one-third reduction in related expenses[28]. Sustainability Efforts - The company has initiated a campaign to embrace sustainability and core values, including the introduction of eco-friendly products in the past[5]. - The company achieved over 50% usage of sustainable cotton, moving towards a goal of 100% by July 2021[41]. - The company is focused on sustainability, with 38% of cotton sourced being good cotton and 14% being organic and regenerated cotton[54]. - The company replaced down jackets with vegan alternatives and increased the use of recycled polyester from old plastic bottles[138]. - The company plans to publish its sustainability report three months after the annual report release on its website[138]. Governance and Management - The board of directors consists of 3 executive directors and 3 independent non-executive directors, ensuring over one-third independence[174]. - The company emphasizes the importance of risk management and internal control systems, which are monitored by the board[173]. - The company has established five committees under the board, including the audit committee, nomination committee, remuneration committee, risk management committee, and executive committee, to assist in fulfilling its responsibilities[181]. - The company has implemented a structured onboarding process for new directors to familiarize them with its operations and governance[176]. - The company aims to ensure a consistent approach to risk measurement, control, monitoring, and reporting across all levels of the organization[189]. Future Outlook - Revenue is expected to decline by a low double-digit percentage in the fiscal year 2019/2020 due to economic challenges[112]. - The company plans to continue focusing on market expansion and product development to drive future growth despite current challenges[83]. - Future guidance remains cautious, with expectations of continued volatility in revenue streams across different regions[123].

Revenue Performance - Revenue for the six months ended December 31, 2018, was HKD 6,766 million, a decrease of 14.4% year-on-year in local currency[19] - The company's revenue for the first half of the fiscal year 2018/2019 was HKD 6,766 million, representing a year-on-year decrease of 14.4% in local currency and 15.8% in HKD[44] - Total revenue for the six months ended December 31, 2018, was HKD 6,766 million, down 15.8% from HKD 8,039 million in 2017[78] - Revenue from Germany was HKD 3,467 million, making up 51.3% of total revenue, with a decrease of 15.4%[79] - Revenue from the Asia-Pacific region fell by 27.8% to HKD 698 million, representing 10.4% of total revenue[79] - Revenue from China decreased by 32.1% to HKD 264 million, accounting for 3.9% of total revenue[79] - The lifestyle and other segment saw a revenue increase of 24.3% to HKD 1,029 million, representing 15.2% of total revenue[78] Profitability and Losses - The underlying business performance (excluding interest and tax losses, not including special items) recorded a loss of HKD 332 million[19] - Net loss amounted to HKD 1,773 million, including special items of HKD 1,418 million related to store closures and workforce streamlining[19] - The company reported a loss before tax of HKD 1,737 million, compared to a loss of HKD 949 million in the previous year, reflecting a significant increase in losses[42] - The company incurred a loss attributable to shareholders of HKD 1,773 million, compared to a loss of HKD 954 million in the prior year, representing an increase in loss of 86%[102] - The basic and diluted loss per share was HKD 0.94, compared to HKD 0.50 in the previous year, indicating a significant decline in earnings[99] Cost Management and Expenses - Regular operating expenses decreased by 11.9% in local currency, reflecting cost savings from restructuring activities[19] - The one-time restructuring cost is estimated at HKD 1.6 billion, within the guidance range of HKD 1.5 billion to HKD 1.7 billion[37] - The company aims to reduce non-store staff by approximately 35% to 40% as part of its restructuring efforts[37] - Operating expenses are projected to decrease by a mid-to-high single-digit percentage year-on-year in the second half of the fiscal year 2018/2019, driven by cost savings from restructuring measures[73] Store Operations and Closures - Total controllable area was 508,375 square meters, a decrease of 11.0%[19] - The net retail sales area decreased by 12.2% due to the closure of 91 directly managed retail stores in the first half of the fiscal year[37] - The company closed 57 stores in total, with a net change of -159 stores across all types[84] - The total number of stores was 495, with a net sales area of 233,818 square meters, reflecting a 12.2% decrease in net sales area year-on-year[76] Market and Regional Performance - The Asia-Pacific region generated HKD 698 million, accounting for 10.4% of total group revenue, with a local currency growth decline of 26.6%[27] - Germany's revenue was HKD 2,601 million, making up 38.3% of total group revenue, with a local currency growth decline of 11.0%[27] - Comparable store sales in Germany showed a decline of 10.7% for the first half, with a significant improvement from a 16.3% decrease in the first quarter to a 5.9% decrease in the second quarter[51] - The Asia-Pacific region experienced a significant revenue drop of 31.2% year-on-year, primarily due to the exit from the Australian and New Zealand markets[46] Strategic Initiatives and Future Outlook - The company aims to restore sustainable growth and profitability through strategic restructuring initiatives[19] - The company is focusing on improving direct communication channels with customers and has conducted extensive market research to align product offerings with consumer preferences[39] - A new product team has been established to cater specifically to the Asian market, designing products that meet local wearing habits[39] - The company aims to establish a profitable wholesale model by the fall/winter of 2019, focusing on enhancing service to wholesale customers[52] Financial Position and Cash Flow - Net cash reached HKD 3,635 million with no debt[19] - Cash and cash equivalents at the end of the period were HKD 3,222 million, a decrease from HKD 2,829 million at the end of the previous year[108] - The company reported a net cash outflow from operating activities of HKD 836 million, compared to HKD 558 million in the prior year, reflecting increased operational challenges[108] - The company had no external interest-bearing borrowings as of December 31, 2018[69] Inventory and Receivables - Inventory balance decreased to HKD 2,440 million, a year-on-year reduction of 12.7%, with inventory turnover days increasing to 132 days[64] - Net trade receivables were HKD 1,035 million, down 15.5% year-on-year, primarily due to a 15.9% decrease in wholesale revenue[64] Accounting and Regulatory Changes - The company adopted new accounting standards effective from July 1, 2018, which did not result in significant changes to the financial performance[119] - The group continues to apply hedge accounting under IFRS 9, with no significant impact on financial data from the transition[126] - The group recognized return liabilities and rights to recover products as assets under IFRS 15, enhancing the clarity of financial reporting[130]