思捷環球控股有限公司 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佈的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部分內容而產生或因依賴該等內 容而引致的任何損失承擔任何責任。 （於百慕達註冊成立之有限公司） 股份代號：00330 公司秘書及 授權代表之變更 思捷環球控股有限公司（「本公司」）之董事會（「董事會」）宣佈魏偉健先生（「魏先生」） 已辭任(i)本公司之公司秘書（「公司秘書」）；及(ii)香港聯合交易所有限公司證券上 市規則第3.05條項下本公司之授權代表（「授權代表」），由二零二五年一月十五日起 生效。魏先生已確認彼與董事會並無意見分歧，亦無任何有關彼辭任事宜需要提請 本公司證券持有人垂注。 思捷環球控股有限公司 主席 邱素怡 香港，二零二五年一月十五日 除非另有指定，本公佈所列的日期乃指香港時間。 於本公佈日期，董事會由以下董事組成： 執行董事： 董事會亦宣佈文惠存先生（「文先生」）已獲委任為公司秘書及授權代表，由二零二五 年一月十五日起生效。文先生獲得英國謝菲爾德大學工商管理碩士學位。彼為香港 公司治理公會資深會員、香港會計師公會會員及英國 ...

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佈的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部分內容而產生或因依賴該等內 容而引致的任何損失承擔任何責任。 Conyers Corporate Services (Bermuda) Limited Clarendon House, 2 Church Street Hamilton HM11 Bermuda 卓佳秘書商務有限公司仍為本公司之香港股份過戶登記分處，於香港進行股份過戶 登記的申請須送交卓佳秘書商務有限公司，其地址為香港夏慤道16號遠東金融中心 17樓。 承董事會命 思捷環球控股有限公司 公司秘書 魏偉健 香港，二零二四年十二月十九日 – 1 – 思捷環球控股有限公司 （於百慕達註冊成立之有限公司） 股份代號：00330 於百慕達之主要股份過戶登記處 及過戶代理之變更 思捷環球控股有限公司（「本公司」）董事會（「董事會」）宣佈，自二零二四年十二月 三十一日起，本公司於百慕達之主要股份過戶登記處及過戶代理將變更為： 於本公佈日期，董事會由以下董事組成： 執行董事： 獨立非執行董事： 邱素怡女士 鍾國斌先 ...

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佈的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部分內容而產生或因依賴該等內 容而引致的任何損失承擔任何責任。 思捷環球控股有限公司 （於百慕達註冊成立之有限公司） 股份代號：00330 自願公佈 美國附屬公司提交破產申請 本公佈乃思捷環球控股有限公司（「本公司」，連同其附屬公司稱為「本集團」）自願作 出，以知會其股東及有意投資者有關本集團的近期發展。 美國附屬公司提交破產申請 本公司董事會（「董事會」）宣佈，Esprit US Distributions Limited（「USDS」，本公司 的間接全資附屬公司）及Esprit US Retail Inc.（「USRI」，USDS的直接全資附屬公 司，連同USDS稱為「美國附屬公司」）各自董事會議決(i)根據《美國破產法》第7章 的條文向美國紐約南區破產法院（「破產法院」）提交自願申請以尋求救濟（「破產申 請」）；及(ii)批准破產申請。隨後，破產申請已於二零二四年十月二十五日（美國東 部時間）作出。 有關USDS的資料 USDS是一家特拉華州公司，主要在美利堅 ...

Financial Performance - The company recorded a net loss of approximately HKD 56 million for the six months ended June 30, 2024, compared to a net loss of approximately HKD 714 million for the corresponding period in 2023, representing a significant reduction in losses [3]. - Total sales for the period were approximately HKD 1.557 billion, a decrease of about 49% from approximately HKD 3.025 billion in the corresponding period [3]. - Gross profit for the period was approximately HKD 652 million, down about 52% from approximately HKD 1.352 billion in the corresponding period [3]. - The company experienced an operating loss of approximately HKD 85 million, a reduction of about 88% compared to an operating loss of approximately HKD 703 million in the corresponding period [3]. - The company reported a total loss of HKD 85 million for the six months ended June 30, 2024, compared to a loss of HKD 703 million in the same period last year, showing an improvement in financial performance [53][57]. - The company reported a net loss attributable to shareholders of approximately HKD 56 million for the six months ended June 30, 2024 [35]. - The company reported a total loss attributable to shareholders of HKD 56 million for the six months ended June 30, 2024, compared to a loss of HKD 714 million for the same period in 2023, indicating a significant improvement [67]. - Basic loss per share for the six months ended June 30, 2024, was HKD (0.020), compared to HKD (0.252) for the same period in 2023, reflecting a reduction in losses [67]. Revenue and Sales - The company's revenue for the six months ended June 30, 2024, was HKD 1,557 million, a decrease of 48.5% compared to HKD 3,025 million for the same period in 2023 [24]. - The group's revenue distribution across channels is approximately 38% e-commerce, 35% wholesale, 24% own retail stores, and 3% licensing [6]. - E-commerce revenue decreased by 47%, wholesale revenue decreased by 51%, and own retail store revenue decreased by 50% during the period [6]. - Revenue from Europe was HKD 917 million, while Asia contributed HKD 7 million, and online stores generated HKD 584 million, indicating a significant drop in all regions compared to the previous year [49][57]. Cost Management and Expenses - Operating expenses were approximately HKD 737 million, a 64% decrease from approximately HKD 2.055 billion in the corresponding period [8]. - Employee costs decreased to HKD 533 million for the six months ended June 30, 2024, from HKD 632 million in the previous year, indicating cost management efforts [62]. - Logistics expenses were reduced to HKD 162 million for the six months ended June 30, 2024, compared to HKD 241 million for the same period in 2023, showing improved operational efficiency [62]. - The total cash outflow for lease liabilities was HKD 233 million for the six months ended June 30, 2024, compared to HKD 348 million for the same period last year [32]. - The company incurred a total depreciation expense of HKD 34 million for property, plant, and equipment for the six months ended June 30, 2024, down from HKD 58 million in the previous year [62]. Asset and Liability Management - Trade payables as of June 30, 2024, were HKD 79 million, a decrease of approximately 79% from HKD 374 million as of December 31, 2023 [10]. - Inventory balance as of June 30, 2024, was HKD 8 million, a 99% decrease from HKD 1.301 billion as of December 31, 2023 [10]. - The group maintained a zero external interest-bearing debt ratio as of June 30, 2024 [12]. - Current assets decreased from HKD 2,588 million as of December 31, 2023, to HKD 361 million as of June 30, 2024 [27]. - Total liabilities decreased from HKD 3,796 million as of December 31, 2023, to HKD 790 million as of June 30, 2024 [27]. Strategic Initiatives - The company is focusing on expanding its licensing business and transforming into an intellectual property management company to maximize the monetization of the Esprit brand [4]. - The management team has begun restructuring to reduce legacy business infrastructure and personnel, aiming to limit overall costs and conserve cash [4]. - The company is actively discussing with multiple potential strategic partners to explore licensing opportunities for Esprit's intellectual property [4]. - The company is shifting its focus towards a licensing business model, aiming to maximize the value of its brand through strategic partnerships [19]. - The company is exploring new strategies for growth, including potential market expansion and product development, to enhance its competitive position [48]. Impairment and Provisions - Impairment losses on trademarks, rights-of-use assets, and property, plant, and equipment totaled approximately HKD 1.721 billion, along with provisions for inventory and trade receivables amounting to approximately HKD 1.361 billion [4]. - The company reported a significant impairment loss of HKD 1,721 million, which includes losses from retail and authorized operations, reflecting ongoing challenges in asset management [54][55]. - The company recognized an additional inventory provision of HKD 1.053 billion for the six months ended June 30, 2024, compared to a net increase of HKD 37 million for the same period in 2023 [62]. Corporate Governance and Compliance - The audit committee consists of four independent non-executive directors and has reviewed the group's accounting policies and practices during the period [104]. - The company has complied with the principles of the Corporate Governance Code as per the listing rules during the reporting period [104]. - The board decided not to declare an interim dividend for the period due to a net loss recorded by the group [16]. Future Outlook and Challenges - The group is facing high costs due to inflation, interest rates, energy prices, and the aftermath of the COVID-19 pandemic, which have weakened its financial condition [38]. - The ability to execute fundraising plans, cost control measures, and restructuring initiatives remains subject to significant uncertainty [41]. - The group is actively exploring various fundraising options, including seeking licensing opportunities, forming joint ventures, and selling part of its assets [38]. - The group is focused on improving liquidity and ensuring adequate financing for future business development [38].

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 1,557 million, a decrease of 48.5% compared to HKD 3,025 million for the same period in 2023[2] - Gross profit for the same period was HKD 652 million, down 51.8% from HKD 1,352 million year-on-year[2] - The company reported a net loss attributable to shareholders of HKD 56 million, significantly improved from a loss of HKD 714 million in the previous year[2] - The operating loss for the group was HKD 85 million, compared to a loss of HKD 703 million in the previous year, showing an improvement in financial performance[20] - The company reported a basic loss attributable to shareholders of HKD 56 million for the six months ended June 30, 2024, compared to a loss of HKD 714 million for the same period in 2023, representing a significant improvement[27] - The basic loss per share for the six months ended June 30, 2024, was HKD (0.020), compared to HKD (0.252) for the same period in 2023, indicating a reduction in losses per share[27] - The gross margin for the period was 41.9%, a decline of 2.8 percentage points from 44.7% in the corresponding period, attributed to increased sales discounts due to a challenging market environment[42] - The company's operating expenses were approximately HKD 737 million, a decrease of 64% from HKD 2.055 billion in the corresponding period[43] Assets and Liabilities - The total assets decreased to HKD 904 million from HKD 5,762 million as of December 31, 2023[3] - The current liabilities net amount was approximately HKD 256 million, with no external borrowings reported[6] - The company has a net debt of HKD 1,684 million, with a cancellation of consolidation resulting in a gain of HKD 3,651 million[9] - The company’s total liabilities included a financing cost of HKD 22 million related to lease liabilities for the six months ended June 30, 2024[25] - Accounts payable and accrued expenses totaled HKD 334 million as of June 30, 2024, compared to HKD 1,307 million as of December 31, 2023, indicating a significant decrease[31] - Trade payables were HKD 79 million as of June 30, 2024, down from HKD 374 million as of December 31, 2023, reflecting a reduction of approximately 78.9%[31] Cash Flow and Financing - The company faced a net cash outflow of approximately HKD 363 million during the six months ended June 30, 2024[6] - The company reported a cash inflow of HKD 167 million from business operations after excluding lease liabilities and tax payments, while total cash outflows amounted to HKD 233 million due to lease repayments and interest[48] - The company had no external interest-bearing borrowings as of June 30, 2024, resulting in a debt-to-asset ratio of 0%[50] - The total financing costs amounted to HKD 22 million for the six months ended June 30, 2024, slightly down from HKD 23 million in the same period of 2023[25] Restructuring and Strategic Initiatives - The company is actively exploring various fundraising options, including joint ventures and asset sales, to improve liquidity[7] - The company is undergoing restructuring measures to minimize liabilities and has significant uncertainties regarding the success of these plans[8] - The company plans to prioritize the expansion of its licensing business and transform into an intellectual property management company, aiming to maximize the monetization of the Esprit brand sustainably[37] - The company is actively discussing strategic opportunities with potential partners to explore licensing its intellectual property rights[59] Operational Changes - The company has lost control over certain subsidiaries in Europe, leading to the cessation of their financial performance being consolidated into the group[12] - A Dutch subsidiary, Esprit Europe B.V., filed for bankruptcy on July 22, 2024, which will result in the cessation of its business operations[35] - Two Hong Kong subsidiaries, Esprit Regional Distribution Limited and Esprit Retail (Hong Kong) Limited, are undergoing voluntary liquidation, leading to the cessation of their business operations[36] - The company’s subsidiary in Macau was dissolved and liquidated as of March 25, 2024, after settling all outstanding external debts[11] - The company’s workforce has decreased to approximately 538 full-time equivalent employees as of June 30, 2024, down from about 2,250 a year earlier[53] Inventory and Receivables - Inventory as of June 30, 2024, was HKD 8 million, a dramatic decrease of 99% from HKD 1.522 billion in the corresponding period due to the cancellation of mergers[43] - The net trade receivables as of June 30, 2024, were HKD 9 million, down approximately 98% from HKD 516 million as of December 31, 2023, primarily due to the cancellation of mergers[44] - The company recognized an additional inventory provision of HKD 37 million for the six months ended June 30, 2024, due to the reassessment of inventory values[24] Dividends and Share Capital - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[26] - The company’s issued and paid-up share capital remained unchanged at 2,831 million shares with a par value of HKD 0.10 as of June 30, 2024[32] Audit and Governance - The audit committee consists of four independent non-executive directors, overseeing financial reporting and internal control effectiveness[60] - The company did not purchase, sell, or redeem any of its shares during the period[61] - The mid-term performance announcement is available on the company's website and will be sent to shareholders in September 2024[62]

Financial Performance - The company reported a loss attributable to shareholders of HKD 2.339 billion for the year, compared to a loss of HKD 664 million in the previous year[14]. - Total revenue for the year was HKD 5.912 billion, a decrease of 16% from HKD 7.063 billion in the previous year[14]. - The gross profit for the year fell to HKD 25.08 billion from HKD 28.78 billion in the previous year[16]. - The group reported a pre-tax loss of HKD 2,583 million for the year ended December 31, 2023, compared to a loss of HKD 683 million for the previous year[172]. - The adjusted pre-tax loss for the year was HKD 899 million, compared to HKD 176 million in the previous year[172]. - E-commerce revenue declined by 15% to HKD 21.84 billion, with a double-digit percentage decrease in order volume attributed to a reduction in e-commerce visitors and lower conversion rates[33]. - Wholesale revenue decreased by 20% to HKD 21.02 billion, impacted by a sluggish European market, particularly in Germany, and reduced consumer spending[35]. - Retail revenue for the year was HKD 1.501 billion, a decrease of 14% compared to HKD 1.745 billion in the previous year[36]. - Total impairment losses recognized for the year amounted to HKD 344 million, significantly higher than HKD 65 million in the previous year[177]. Revenue Decline Factors - The decline in revenue was primarily due to the weak macroeconomic environment in Europe, particularly in Germany, high inflation, and geopolitical tensions affecting consumer purchasing power[15]. - The company is currently facing ongoing operating losses and increased pressure on cash flow due to a challenging retail environment in Europe[68]. - The Swiss subsidiary ESRA has filed for bankruptcy due to financial unsustainability in the retail business, exacerbated by rising energy and logistics costs, negative consumer sentiment, and high rental costs[68]. Restructuring and Cost Control - The company is actively implementing a restructuring plan to control operating and administrative costs, including workforce optimization and closing unprofitable stores[1]. - The company plans to fully implement its restructuring plan after securing necessary funding, which includes negotiations with suppliers and logistics partners[1]. - The management is actively implementing plans to control operating and administrative costs, including restructuring divisions and optimizing human resources[83]. - The company is focusing on a comprehensive restructuring and strengthening partnerships with wholesale and franchise operators, as well as creating new opportunities in e-commerce[68]. Market Expansion and Strategy - The company is expanding its distribution network in key U.S. cities, including partnerships in Los Angeles and Atlanta, to enhance brand visibility[2]. - The wholesale team is targeting new opportunities in undeveloped U.S. markets such as Denver, San Francisco, Seattle, and Florida[2]. - Significant investments have been made to expand into new markets, particularly in the United States, to drive strong sales growth and enhance brand recognition[84]. - The company is developing high-end styles for the North American market while improving products for existing European customers, focusing on premium fabrics and craftsmanship[24]. Cash Flow and Financial Management - Cash and bank balances totaled HKD 435 million, a decrease of HKD 1.577 billion from the previous year, primarily due to cash outflows from operating activities[50]. - The company continues to strengthen its cash flow management, accelerating receivables collection and negotiating better payment terms with trade suppliers[85]. - The board believes that successful implementation of restructuring plans will provide sufficient operating cash flow to meet financial obligations within the next twelve months[86]. - The company aims to provide sufficient operating cash flow and additional equity funding to meet existing financial obligations and future capital expenditures[163]. Governance and Risk Management - The independent auditor has issued a "disclaimer of opinion" regarding the consolidated financial statements, indicating a lack of sufficient audit evidence[67]. - The board has adopted a risk management policy aimed at ensuring a consistent approach to measuring, controlling, monitoring, and reporting risks across the group[152]. - The company has established a risk management and internal control system to provide reasonable assurance regarding the management of significant risks and the achievement of business objectives[106]. - The board is responsible for monitoring the performance of management and ensuring the establishment and maintenance of effective risk management and internal control systems[106]. Diversity and Board Composition - The board consists of five independent non-executive directors, accounting for over one-third of the board, ensuring independent oversight of the company's management[107]. - The board consists of ten members, with two being female, maintaining a gender diversity ratio of 20%[139]. - Approximately 22.7% of the company's employees, including senior management, are male, while about 77.3% are female, supporting the company's gender diversity goals[139]. - The company has adopted a board diversity policy aimed at improving performance quality and ensuring orderly succession in board appointments[138]. Future Outlook - The company anticipates a continued slowdown in global growth for 2024, leading to a focus on essential needs, product quality, and sustainability standards[12]. - The company plans to implement significant initiatives across its departments in 2024, as mentioned in the outlook section[28]. - The e-commerce team is launching a new enhanced feature for online shopping pages aimed at improving customer engagement and reducing friction in the purchasing process[12]. - In 2024, the marketing strategy will focus on revitalizing iconic imagery from the 1980s and 1990s, drawing inspiration from current fashion trends on TikTok and Instagram[12].

Financial Performance - The company reported a significant loss attributable to shareholders of HKD 2.339 billion, compared to a loss of HKD 664 million in the previous year[29]. - Total revenue for the fiscal year ended December 31, 2023, was HKD 5.912 billion, a 16% decline from HKD 7.063 billion in the previous year, impacted by macroeconomic challenges in Europe[21]. - The group recorded a total operating loss of HKD 642 million, with retail losses of HKD 390 million and online store losses of HKD 33 million[75]. - The company reported a basic and diluted loss per share of HKD 0.83 for the year ended December 31, 2023, compared to HKD 0.23 for the previous year[56]. - The company faced a net cash outflow of HKD 1.596 billion, with cash, bank balances, and deposits amounting to HKD 435 million as of December 31, 2023[43]. Revenue Breakdown - The revenue mix for the company was 37% from e-commerce, 36% from wholesale, 25% from owned retail stores, and 2% from franchising[22]. - E-commerce revenue decreased by 15% to HKD 2.184 billion, with a double-digit percentage drop in order volume attributed to reduced visitor traffic and lower conversion rates[23]. - Wholesale revenue fell by 20% to HKD 2.102 billion, impacted by a sluggish European market, particularly in Germany, with a 22% decrease when adjusted for fixed exchange rates[24]. - Retail revenue declined by 14% to HKD 1.501 billion, with a 17% decrease when adjusted for fixed exchange rates[26]. - Revenue from the European market was HKD 3,597 million for the year ended December 31, 2023, down from HKD 4,383 million in the previous year, a decrease of about 17.88%[106]. Cost and Expenses - Operating expenses for the year amounted to HKD 5.055 billion, a 44% increase year-on-year, primarily due to significant investments in global workforce and marketing efforts[4]. - Employee costs increased to HKD 1,281 million for the year ended December 31, 2023, compared to HKD 1,150 million for the previous year, representing an increase of approximately 11.39%[85]. - The company recorded a total depreciation expense of HKD 666 million for the year ended December 31, 2023, compared to HKD 671 million in the previous year, showing a minor decrease of approximately 0.75%[94]. Inventory and Receivables - Inventory as of December 31, 2023, was HKD 1.301 billion, a 27% decrease from HKD 1.777 billion the previous year, due to improved inventory management[6]. - Net trade receivables increased by HKD 44 million or 9% to HKD 516 million as of December 31, 2023, influenced by IT system updates affecting collection processes[7]. - As of December 31, 2023, the total accounts receivable net amount is HKD 516 million, an increase of 9.3% from HKD 472 million as of December 31, 2022[114]. Cash Flow and Financing - The company reported a total cash, bank balances, and deposits of HKD 435 million, a decrease of HKD 1.577 billion from HKD 2.012 billion the previous year, primarily due to cash outflows from operating activities[8]. - The company has adopted a restructuring plan to improve liquidity and financial condition, with cash flow forecasts covering the next 12 months[147]. - The company is evaluating various options to meet future funding needs while managing its liquidity through short-term bank deposits[180]. Restructuring and Operational Initiatives - The company is implementing a restructuring plan to control operating and administrative costs, including optimizing human resources and streamlining logistics operations[44]. - The company is focused on developing high-end styles for the North American market while improving product offerings for existing European customers[16]. - The company is implementing important initiatives across departments in 2024 to enhance operational efficiency and customer satisfaction[2]. - The company is actively enhancing customer engagement through captivating media content on social media, resulting in excellent engagement metrics for its online store[190]. Market and Strategic Partnerships - The company established significant partnerships with major retailers such as Nordstrom and Urban Outfitters, resulting in 46 new distribution points[1]. - The company formed new partnerships for marketing initiatives in key European markets, supporting the relaunch of the brand[34]. - The business expansion plan focuses on strategically entering new markets, acquiring new wholesale customers, and actively exploring overseas markets such as the United States[62]. Challenges and Future Outlook - The company has initiated a voluntary bankruptcy process for a wholly-owned subsidiary in Switzerland, with the application submitted in March 2024, reflecting ongoing operational challenges[43]. - Management is confident that the company will be in a favorable position for sustainable profitability after completing the restructuring efforts[193]. - The company is exposed to foreign exchange risks primarily from the Euro and US Dollar due to its global operations[157].

Financial Performance - The company recorded a net loss of HKD 714 million for the first half of 2023, indicating significant operational challenges[13]. - The total revenue for the period was HKD 3.626 billion, a decrease of 17% compared to the corresponding period[15]. - The group recorded a loss attributable to shareholders of HKD 714 million, compared to a profit of HKD 13 million in the corresponding period[15]. - The group reported a total loss of HKD 714 million attributable to shareholders, compared to a profit of HKD 13 million in the same period last year[98]. - The total comprehensive loss for the period, after tax, was HKD 633 million, compared to a loss of HKD 186 million in the prior year[98]. - The group incurred an operating loss of HKD 703 million, with retail losses of HKD 323 million and licensing losses of HKD 352 million[91]. - The group reported a total of HKD 1.095 billion in revenue from online stores[91]. - Total revenue for the group reached HKD 5,241 million, with retail contributing HKD 854 million and wholesale contributing HKD 1,346 million[93]. - The group reported a total revenue of HKD 3.025 billion, a decrease of 16.6% compared to HKD 3.626 billion in the same period last year[52]. - The company reported a net cash outflow of HKD 263 million from operating activities, excluding lease liabilities and tax payments[66]. Operational Strategies - Management anticipates that the measures implemented will yield positive results in the second half of 2023[13]. - The company is focusing on closing unprofitable stores and downsizing store formats to improve profitability[13]. - A series of progressive measures are being implemented to revitalize growth, including strict cost control and operational streamlining[13]. - The company is actively monitoring consumer confidence and spending in Europe, taking necessary actions to mitigate adverse impacts[13]. - The company is committed to maintaining sufficient operational funds to meet financial obligations due in the next twelve months[1]. - The company plans to continue strict cost control measures to free up resources for profit expansion, including restructuring and closing unprofitable stores[72]. - The company is enhancing inventory management and logistics efficiency to significantly reduce working capital needs and logistics-related expenses[13]. - The company is closely monitoring cash flow and optimizing cost structures to generate sufficient cash from operations[1]. Product Development and Marketing - A new denim product line is set to launch in August 2023, marking a key product introduction[13]. - The company is launching a new line of children's clothing targeting ages 2 to 12, including T-shirts, hoodies, and sports skirts[5]. - The company is reintroducing its ESPRIT denim collection with improved styles and sustainable production techniques[5]. - The company is focused on improving overall e-commerce and omnichannel capabilities to enhance customer shopping experiences[15]. - The company is launching a simplified innovative technology platform to enhance the online shopping experience, with a rollout in South Korea and plans for the US and Europe[44]. - The company is implementing new technology to enhance customer experience in stores, focusing on digital and personalized service solutions[5]. - North America is identified as a key growth market, with expectations of significant contributions to revenue and profit in the near future[13]. - The company is establishing its global marketing and brand headquarters in New York to strengthen brand positioning[13]. Financial Position and Cash Flow - The group maintained a debt-free status with total cash, bank balances, and deposits amounting to HKD 1.314 billion as of June 30, 2023, down from HKD 2.012 billion on December 31, 2022[24]. - Cash and bank balances decreased significantly to HKD 1,314 million from HKD 2,012 million, a drop of around 35%[56]. - The company reported a cash outflow from operating activities of HKD 263 million for the six months ended June 30, 2023, compared to a cash inflow of HKD 179 million for the same period in 2022[84]. - The total cash outflow for leases was HKD 348 million for the six months ended June 30, 2023, compared to HKD 360 million for the same period in 2022[60]. - The company reported trade payables of HKD 319 million as of June 30, 2023, down from HKD 497 million as of December 31, 2022, indicating a reduction of 35.9%[126]. - The company reported a net cash outflow of HKD 263 million from operating activities, excluding lease liabilities and tax payments[66]. Inventory and Receivables Management - Trade receivables increased by 11% to HKD 526 million as of June 30, 2023, compared to HKD 472 million on December 31, 2022[19]. - Inventory levels have decreased as the group continues to work on reducing aged stock[21]. - The inventory balance as of June 30, 2023, was HKD 1.522 billion, a 5% decrease compared to HKD 1.594 billion a year earlier[35]. - The total inventory value was HKD 1,522 million, down from HKD 1,777 million, showing a decrease of about 14.4%[125]. - Trade receivables decreased to HKD 3,734 million, down from HKD 4,691 million, a reduction of about 20%[56]. Employee and Operational Costs - Employee costs increased to HKD 632 million from HKD 603 million, reflecting a rise of about 4.8%[117]. - Operating expenses increased by 24% to HKD 2.055 billion from HKD 1.651 billion in the corresponding period, primarily due to a 20% rise in rental costs[32]. - The group employed approximately 2,250 full-time equivalent employees as of June 30, 2023, compared to about 2,200 a year earlier[40]. Corporate Governance and Shareholder Information - The company has applied the principles of the Corporate Governance Code as per the listing rules and complied with applicable code provisions[198]. - The company did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[136]. - The company’s total equity attributable to shareholders decreased to HKD 1,630 million as of June 30, 2023, from HKD 2,033 million as of December 31, 2022, a decline of 19.8%[142]. - The company expresses gratitude to all employees for their hard work and dedication, as well as to customers, business partners, and shareholders for their continued support[200].

Financial Performance - For the six months ended June 30, 2023, the company reported a revenue of HKD 3,025 million, a decrease of 16.6% compared to HKD 3,626 million for the same period in 2022[6]. - The gross profit for the same period was HKD 1,352 million, down 18.4% from HKD 1,659 million in the previous year[6]. - The company recorded a net loss attributable to shareholders of HKD 714 million, compared to a profit of HKD 13 million in the prior year[6]. - Operating loss for the period was HKD 703 million, a significant decline from an operating profit of HKD 8 million in the previous year[6]. - Total revenue for the period was HKD 3.025 billion, a decrease of 17% compared to HKD 3.626 billion in the corresponding period[24]. - Revenue decline was primarily due to weak consumer sentiment in Germany and other European countries, leading to a 17% decrease in wholesale and a 20% decrease in e-commerce[21][24]. - Gross margin for the period was 44.7%, down 1.1 percentage points from 45.8% in the corresponding period, mainly due to increased sales discounts[27]. - Operating expenses increased by 24% to HKD 2.055 billion, compared to HKD 1.651 billion in the corresponding period, largely due to the absence of prior period provisions[28]. - The company recorded a net loss for the period, leading to the decision not to declare an interim dividend[52]. - Basic loss per share for the period was HKD (0.252), a significant decline from HKD 0.004 in the previous year[130]. Strategic Initiatives - The company implemented a series of measures to revitalize growth, including operational streamlining and strict cost control[17]. - The company plans to close unprofitable stores and renegotiate rents to improve economic returns per square meter[18]. - The company aims to terminate low-margin product lines and replace them with higher-margin series and capsules[18]. - The company has established its global marketing and brand headquarters in New York to enhance brand image and customer loyalty[18]. - The company aims to enhance its e-commerce and omnichannel capabilities to provide a seamless shopping experience and improve conversion rates[25]. - The company has selected Amsterdam as its global IT and technology innovation headquarters, focusing on enhancing its e-commerce experience[6]. - The company is focused on sustainable and profitable growth, expanding its presence in North America and the Asia-Pacific region[54]. - The company is committed to adopting new technologies and best practices to enhance customer experience, developing a new in-store omnichannel digital experience solution[68]. - ESPRIT is launching a simplified innovative technology platform to enhance the online shopping experience, currently live in South Korea and set to launch in the US in Q3 2023 and Europe by mid-2024[54]. - The ESPRIT denim collection will be relaunched with improved fits, upgraded fabrics, and high-quality washing effects, focusing on sustainability by reducing waste and water usage[69]. Market Outlook - The company is actively monitoring the impact of geopolitical tensions and economic conditions on its operations[17]. - The company anticipates that the measures taken will yield positive results in the second half of 2023[17]. - Management expects that the measures implemented in the past six months will yield positive results in the second half of the fiscal year[24]. - The company is confident that the North American market will significantly contribute to its revenue and profits in the near future[6]. - The group has not reported significant financial contributions from the North American market due to its early development stage[84]. Inventory and Receivables - Inventory balance as of June 30, 2023, was HKD 1.522 billion, a decrease of 5% compared to HKD 1.594 billion a year earlier[30]. - As of June 30, 2023, the net trade receivables amounted to HKD 526 million, an increase of 11% compared to HKD 472 million on December 31, 2022[37]. - The total accounts receivable balance was HKD 76 million, a decrease of 32.1% from HKD 112 million as of June 30, 2022[139]. - The net impairment provision for trade receivables was HKD (15) million for the six months ended June 30, 2023, compared to HKD (38) million for the same period in 2022, indicating an improvement[139]. Cash Flow and Financial Position - The group maintained a cash and bank balance of HKD 1.314 billion as of June 30, 2023, a decrease of HKD 698 million from HKD 2.012 billion on December 31, 2022[42]. - As of June 30, 2023, the company's net current assets amounted to HKD 1.489 billion with no external borrowings[63]. - The board has reviewed cash flow forecasts for the next twelve months, believing the company will have sufficient working capital to meet financial obligations[63]. - The accounts payable decreased by 36% to HKD 319 million as of June 30, 2023, down from HKD 497 million on December 31, 2022, attributed to seasonal business factors and improved cash management[39]. Corporate Governance - The audit committee consists of four independent non-executive directors, overseeing financial reporting and internal control systems[59]. - The company maintained compliance with the Corporate Governance Code during the reporting period[142]. - The company confirmed that all directors complied with the standards set out in the Corporate Governance Code during the reporting period[143]. - The company has not engaged in any share buybacks during the reporting period[141]. - The company did not grant any share options during the six months ended June 30, 2023, as management deemed it not an appropriate time for such grants[150].

Financial Performance - The company recorded total revenue of HKD 7.063 billion for the year, a decrease of 15% compared to HKD 8.316 billion in the previous year[22]. - Gross profit decreased to HKD 2.878 billion, down from HKD 4.042 billion in the corresponding period, reflecting a decline in gross margin to 40.7%[26]. - The company’s performance was significantly impacted by rising energy prices and inflation, which affected consumer spending behavior[22]. - The company’s board attributes the significant loss primarily to the decline in revenue and gross margin[26]. - Wholesale revenue decreased by 8% to HKD 2.639 billion, impacted by a sluggish European market and weakened consumer sentiment[1]. - Operating expenses for the year were HKD 3.520 billion, a reduction of 3%, primarily due to an 8% decrease in logistics costs[1]. - The total revenue for the fiscal year ending December 31, 2022, was HKD 7.063 billion, a decrease of 15% compared to the previous year[1]. Cash and Debt Management - The company maintained a debt-free status at the end of the year, with total cash, bank balances, and deposits amounting to HKD 2.012 billion[22]. - The company had no external interest-bearing borrowings as of December 31, 2022, resulting in a debt-to-asset ratio of 0%[91]. - The company reported a net trade receivables of HKD 472 million as of December 31, 2022, a decrease of HKD 126 million or 21% compared to HKD 598 million in the previous year[59]. - The impairment provision for trade receivables was HKD 80 million as of December 31, 2022, down from HKD 194 million a year earlier, with a reversal of HKD 25 million during the year[59]. Store Expansion and Brand Development - The company plans to open more pop-up stores in 2023, building on the success of openings in New York, Los Angeles, Hong Kong, and Seoul[23]. - The first flagship store in the U.S. is set to open in the third quarter of 2023 on Robertson Boulevard in Los Angeles[23]. - The flagship store in Düsseldorf, Germany, is undergoing its first renovation in over a decade, expected to be completed by mid-2023[23]. - The company plans to open new omni-channel stores in major global markets and fashion capitals, supported by a lease agreement for 38,000 square feet of office space in New York City[69]. - The company has opened pop-up stores in major cities globally, including Hong Kong and Seoul, to enhance brand visibility and re-enter the North American market[54]. - The company plans to open pop-up stores for ESPRIT in major cities to enhance global brand awareness, with more openings planned in North America and Asia in 2023[96]. Strategic Initiatives - The company aims to enhance its procurement capabilities by collaborating with two world-renowned procurement agencies[1]. - The company has invested significantly in upgrading its IT infrastructure and technological capabilities as part of its modernization strategy[1]. - The company plans to reduce obsolete inventory to improve cash flow and support brand development, which is expected to positively impact profitability and sales growth[1]. - The company aims to reposition the ESPRIT brand by focusing on design, style, and quality, with new product designs reflecting a playful, modern, and cool brand identity[51]. - The company has committed substantial resources to rebuild its brand image, focusing on three core themes: playful, modern, and cool[55]. - The company will consolidate existing ESPRIT labels into a single ESPRIT label to improve customer experience and reduce operational costs[97]. Corporate Governance - The board of directors has adopted a corporate governance code to improve transparency and risk management[102]. - The board meets at least four times a year and holds additional meetings as necessary to discuss significant matters[103]. - The company has established five committees under the board to oversee specific areas, including audit, nomination, remuneration, risk management, and executive functions[113]. - Independent non-executive directors currently make up more than one-third of the board, ensuring independent viewpoints[104]. - The company has implemented policies to ensure all directors can seek independent professional advice at the company's expense[104]. - The board's responsibilities include monitoring management performance and ensuring effective risk management systems are in place[104]. Risk Management - The group has established a three lines of defense model for risk management and internal control systems[153]. - The risk management committee held three meetings during the year to review risk management reports and assess the effectiveness of the risk management system[152]. - The board adopted a risk management policy to ensure a consistent approach to measuring, controlling, and reporting risks across the group[152]. - The risk management and internal control systems were deemed satisfactory and effectively operational for the year, according to the board's assessment based on reports from the risk management committee[190]. Diversity and Inclusion - The board of directors consists of 78% male and 22% female members, with 67% of the board being of Asian descent[126]. - The company has implemented measures to promote diversity at all levels of the workforce and will regularly review gender diversity in line with business development[144]. - As of December 31, 2022, approximately 17.61% of the group's employees were male and about 82.39% were female, reflecting the company's commitment to gender diversity in the workforce[144]. - The board has reviewed and monitored compliance with legal and regulatory requirements as part of its corporate governance responsibilities[153]. Financial Reporting and Compliance - The company’s management has selected appropriate accounting policies and applied them consistently in accordance with international financial reporting standards[131]. - The audit committee reviewed the internal control system and financial information of the company, with the audit fees for the fiscal year ending December 31, 2022, being HKD 16 million for audit services and HKD 5 million for non-audit services[137]. - The external auditor provided non-audit services including government subsidy-related services and tax consulting[116]. - The board reviews its governance practices annually and makes necessary adjustments to maintain compliance with applicable regulations[102].