[Unaudited Interim Results Announcement Overview](index=1&type=section&id=Unaudited%20Interim%20Results%20Announcement%20Overview) [H1 2025 Performance Summary](index=1&type=section&id=H1%202025%20Performance%20Summary) The Group achieved 1.6% revenue growth in H1 2025, driven by strong online and wholesale business performance - The Group's H1 2025 revenue grew by **1.6%**, primarily driven by the online business (**26.1% growth**) and wholesale operations[3](index=3&type=chunk)[30](index=30&type=chunk) - Gross profit margin decreased by **3.3 percentage points to 55.6%** due to channel mix shifts and strategic inventory clearance[3](index=3&type=chunk)[30](index=30&type=chunk) - Operating expenses as a percentage of revenue decreased by **0.6 percentage points to 48.9%**, reflecting disciplined cost management[3](index=3&type=chunk)[30](index=30&type=chunk) Key Financial Indicators for H1 2025 | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,934 | 1,903 | 1.6% | | Gross Profit Margin | 55.6% | 58.9% | -3.3 p.p. | | Operating Expenses as % of Revenue | 48.9% | 49.5% | -0.6 p.p. | | Net Profit Attributable to Shareholders | 121 | 120 | 0.8% | | Inventory Balance | 513 | 514 | -0.2% | | Inventory Turnover Days | 108 days | 119 days | -11 days | | Cash and Bank Balances, Net of Bank Loans | 722 | 720 | 0.3% | | Basic Earnings Per Share (HK cents) | 7.5 | 7.4 | 1.4% | | Interim Dividend (HK cents per share) | 7.5 | 8.0 | -6.3% | [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Income Statement](index=3&type=section&id=Consolidated%20Income%20Statement) The Group's revenue grew 1.6% to HK$1,934 million, while operating profit declined 11.4% to HK$179 million Summary of Consolidated Income Statement (For the six months ended June 30) | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Revenue | 1,934 | 1,903 | | Cost of sales | (858) | (783) | | Gross profit | 1,076 | 1,120 | | Other income and other gains, net | 49 | 24 | | Distribution costs | (842) | (811) | | Administrative expenses | (104) | (131) | | Operating profit | 179 | 202 | | Finance costs | (23) | (22) | | Share of profit of a joint venture | – | 15 | | Profit before income tax | 156 | 195 | | Income tax | (23) | (53) | | Profit for the period after income tax | 133 | 142 | | Net profit attributable to shareholders of the Company | 121 | 120 | | Non-controlling interests | 12 | 22 | | Basic earnings per share (HK cents) | 7.5 | 7.4 | [Consolidated Statement of Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for the period significantly increased to HK$193 million from HK$88 million year-over-year Summary of Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Profit for the period after income tax | 133 | 142 | | Exchange translation adjustments attributable to non-controlling interests of overseas subsidiaries | (1) | (5) | | Exchange translation adjustments of overseas subsidiaries, a joint venture and branches | 61 | (49) | | Total comprehensive income for the period | 193 | 88 | | Attributable to shareholders of the Company | 182 | 71 | | Non-controlling interests | 11 | 17 | [Consolidated Balance Sheet](index=4&type=section&id=Consolidated%20Balance%20Sheet) Total assets slightly decreased to HK$3,723 million, while net current assets improved to HK$640 million Summary of Consolidated Balance Sheet (As at June 30) | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | **Assets** | | | | Total current assets | 1,662 | 1,692 | | Total non-current assets | 2,061 | 2,074 | | Total assets | 3,723 | 3,766 | | **Liabilities and Equity** | | | | Total current liabilities | 1,022 | 1,134 | | Total non-current liabilities | 491 | 512 | | Total liabilities | 1,513 | 1,646 | | Equity attributable to shareholders of the Company | 2,083 | 1,998 | | Non-controlling interests | 127 | 122 | | Total equity | 2,210 | 2,120 | | Net current assets | 640 | 558 | [Notes to Financial Statements](index=5&type=section&id=Notes%20to%20Financial%20Statements) [Significant Accounting Policies](index=5&type=section&id=Significant%20Accounting%20Policies) The interim results are prepared in accordance with HKAS 34, with accounting policies consistent with the 2024 annual report - These interim results are prepared in accordance with the Listing Rules of the Hong Kong Stock Exchange and HKAS 34, with accounting policies largely consistent with the 2024 annual financial statements[7](index=7&type=chunk) - The adoption of revised standards this period (e.g, amendments to HKAS 21 and HKFRS 1) had no material impact on the Group's accounting policies or financial performance[10](index=10&type=chunk) - HKFRS 18, which will replace HKAS 1, is expected to have a broad impact on financial statement presentation and disclosure, with management currently assessing its detailed effects[11](index=11&type=chunk) [Sales and Operating Segments](index=6&type=section&id=Sales%20and%20Operating%20Segments) The Group's operating segments are managed by geography and brand, with performance measured by adjusted EBITDA - The Group's main operating segments are retail and distribution, and wholesale to overseas franchisees, which management oversees by region and brand[12](index=12&type=chunk) Sales and Segment Results by Geography (For the six months ended June 30) | Region | 2025 Sales (HK$ million) | 2024 Sales (HK$ million) | 2025 Segment Results (HK$ million) | 2024 Segment Results (HK$ million) | | :--- | :--- | :--- | :--- | :--- | | Mainland China | 337 | 300 | (16) | (13) | | Hong Kong & Macau | 177 | 182 | 9 | 18 | | Taiwan | 203 | 206 | 15 | 18 | | Southeast Asia & Australia | 688 | 739 | 85 | 133 | | GCC | 368 | 362 | 73 | 76 | | Wholesale to overseas franchisees | 161 | 114 | 11 | 13 | | Total | 1,934 | 1,903 | 177 | 245 | Retail and Distribution Sales and Operating Profit by Brand (For the six months ended June 30) | Brand | 2025 Sales (HK$ million) | 2025 Operating Profit (HK$ million) | 2024 Sales (HK$ million) | 2024 Operating Profit (HK$ million) | | :--- | :--- | :--- | :--- | :--- | | Giordano and Giordano Junior | 1,525 | 161 | 1,502 | 201 | | Giordano Ladies | 122 | 14 | 122 | 18 | | BSX | 4 | – | 4 | – | | Others | 122 | (9) | 161 | 13 | | Total | 1,773 | 166 | 1,789 | 232 | [Other Income and Gains](index=8&type=section&id=Other%20Income%20and%20Gains) Net other income and gains increased significantly to HK$49 million from HK$24 million, driven by higher exchange gains Other Income and Gains, Net (For the six months ended June 30) | Item | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Royalty and license income | 13 | 14 | | Interest income | 5 | 10 | | Rental and sub-letting income | 4 | 4 | | Net loss on disposal of property, plant and equipment | (1) | (1) | | Net foreign exchange gains (losses) | 11 | (7) | | Others | 17 | 4 | | **Total** | **49** | **24** | [Composition of Operating Profit](index=9&type=section&id=Composition%20of%20Operating%20Profit) Operating profit is stated after charging cost of sales, distribution costs, and administrative expenses Items Deducted from / Credited to Operating Profit (For the six months ended June 30) | Item | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | **Cost of Sales** | | | | Cost of inventories sold | 861 | 783 | | Net reversal of provision for and write-off of obsolete inventories | (3) | – | | **Total Cost of Sales** | **858** | **783** | | **Distribution Costs** | | | | Staff costs | 306 | 303 | | Depreciation (right-of-use assets) | 203 | 202 | | Depreciation (property, plant and equipment) | 29 | 27 | | Lease payments for land and buildings | 115 | 104 | | Advertising, promotion and incentives | 49 | 39 | | **Total Distribution Costs** | **842** | **811** | | **Administrative Expenses** | | | | Staff costs | 70 | 93 | | Depreciation (right-of-use assets) | 9 | 7 | | Depreciation (property, plant and equipment and investment properties) | 3 | 3 | | Legal and professional fees | 8 | 11 | | **Total Administrative Expenses** | **104** | **131** | [Finance Costs](index=10&type=section&id=Finance%20Costs) Finance costs for the period were HK$23 million, a slight increase from HK$22 million in the prior year Finance Costs (For the six months ended June 30) | Item | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Interest on lease liabilities | 22 | 22 | | Interest on bank loans | 1 | – | | **Total** | **23** | **22** | [Income Tax](index=10&type=section&id=Income%20Tax) Income tax expense decreased significantly to HK$23 million from HK$53 million, due to provision reversals and deferred tax adjustments Income Tax (For the six months ended June 30) | Item | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | **Current Income Tax** | | | | Hong Kong | 1 | 1 | | Outside Hong Kong | 26 | 34 | | Over-provision in prior periods | (7) | – | | Withholding tax | 10 | 18 | | **Subtotal** | **30** | **53** | | **Deferred Income Tax** | | | | Origination and reversal of temporary differences | (7) | – | | **Total** | **23** | **53** | [Earnings Per Share](index=10&type=section&id=Earnings%20Per%20Share) Basic earnings per share for the period was 7.5 HK cents, a slight increase from 7.4 HK cents year-over-year Earnings Per Share (For the six months ended June 30) | Indicator | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic earnings per share | 7.5 | 7.4 | | Diluted earnings per share | 7.5 | 7.4 | | Weighted average number of ordinary shares in issue (Basic) | 1,616,190,628 | 1,614,555,002 | | Weighted average number of ordinary shares in issue (Diluted) | 1,616,190,628 | 1,614,555,002 | | Weighted average number of shares issued upon exercise of share options | 1,453,313 | 8,911,412 | [Dividends](index=11&type=section&id=Dividends) The Board declared an interim dividend of 7.5 HK cents per share, totaling approximately HK$121 million Dividends (For the six months ended June 30) | Item | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Interim dividend declared (HK cents per share) | 7.5 (121) | 8.0 (129) | | 2024 final dividend paid (HK cents per share) | 6.0 (97) | 13.5 (218) | [Trade and Other Receivables](index=11&type=section&id=Trade%20and%20Other%20Receivables) Net trade receivables increased to HK$225 million, with a rise in balances aged over 90 days Trade and Other Receivables (As at June 30) | Item | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Net trade receivables | 225 | 209 | | Other receivables, including deposits and prepayments | 157 | 133 | | **Total** | **382** | **342** | Aging Analysis of Trade Receivables (As at June 30) | Aging | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | 0 to 30 days | 185 | 142 | | 31 to 60 days | 14 | 48 | | 61 to 90 days | 4 | 13 | | Over 90 days | 22 | 6 | | **Total** | **225** | **209** | [Trade and Other Payables](index=12&type=section&id=Trade%20and%20Other%20Payables) Total trade and other payables decreased to HK$478 million from HK$611 million at year-end 2024 Trade and Other Payables (As at June 30) | Item | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Trade payables | 215 | 292 | | Pension obligations | 40 | 36 | | Other payables and accrued charges | 223 | 283 | | **Total** | **478** | **611** | Aging Analysis of Trade Payables (As at June 30) | Aging | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | 0 to 30 days | 183 | 262 | | 31 to 60 days | 22 | 19 | | 61 to 90 days | 3 | 4 | | Over 90 days | 7 | 7 | | **Total** | **215** | **292** | [Management Discussion and Analysis](index=13&type=section&id=Management%20Discussion%20and%20Analysis) [Operating Results Overview](index=13&type=section&id=Operating%20Results%20Overview) The Group's H1 2025 revenue grew 1.6%, while operating profit declined 11.4%, with significant improvement in inventory turnover Group Operating Results (For the six months ended June 30) | Indicator | 2025 (HK$ million) | % of Revenue | 2024 (HK$ million) | % of Revenue | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Group revenue | 1,934 | 100.0% | 1,903 | 100.0% | 1.6% | | Gross profit | 1,076 | 55.6% | 1,120 | 58.9% | (3.9%) | | Other income and other gains, net | 49 | 2.6% | 24 | 1.2% | 104.2% | | Operating expenses | (946) | (48.9%) | (942) | (49.5%) | 0.4% | | Operating profit | 179 | 9.3% | 202 | 10.6% | (11.4%) | | Profit after tax attributable to shareholders | 121 | 6.3% | 120 | 6.3% | 0.8% | | Group same-store sales | 1,447 | | 1,431 | | 1.1% | | Closing inventory | 513 | | 514 | | (0.2%) | | Inventory turnover days | 108 | | 119 | | (11) | | Number of stores at period end | 1,668 | | 1,774 | | (106) | - Excluding the adverse impact of the non-Giordano brand in Indonesia, the Group's revenue would have grown by **3.8%**, and profit attributable to shareholders would have reached **HK$146 million**[30](index=30&type=chunk)[33](index=33&type=chunk) [Revenue and Gross Profit Analysis](index=15&type=section&id=Revenue%20and%20Gross%20Profit%20Analysis) Revenue grew 1.6% with a 1.1% rise in same-store sales, while gross margin declined due to channel mix and inventory clearance - The Group's revenue grew by **1.6%** with a **1.1%** increase in same-store sales, demonstrating the resilience of its business model[32](index=32&type=chunk) - Revenue in Greater China grew by **9.5%**, primarily driven by online business expansion under the "Digital First" strategy[33](index=33&type=chunk) - Online sales surged by **26.1%**, accelerating to 32.3% in Q2, largely due to the success of the "Digital First" strategy in Mainland China[35](index=35&type=chunk) - Wholesale channel revenue grew by **20.2%**, driven by strong demand in franchise markets, particularly the Philippines[35](index=35&type=chunk) - Gross profit margin decreased by **3.3 percentage points to 55.6%**, mainly due to a higher mix of online and wholesale business, strategic clearance, and rising merchandise costs[38](index=38&type=chunk) Revenue Analysis (For the six months ended June 30) | Category | 2025 (HK$ million) | Contribution (%) | 2024 (HK$ million) | Contribution (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | **By Market** | | | | | | | Greater China | 878 | 45.4% | 802 | 42.1% | 9.5% | | Southeast Asia & Australia | 688 | 35.6% | 739 | 38.9% | (6.9%) | | GCC | 368 | 19.0% | 362 | 19.0% | 1.7% | | **By Channel** | | | | | | | Offline business | 1,416 | 73.2% | 1,483 | 77.9% | (4.5%) | | Online business | 280 | 14.5% | 222 | 11.7% | 26.1% | | Total retail | 1,696 | 87.7% | 1,705 | 89.6% | (0.5%) | | Total wholesale to franchisees | 238 | 12.3% | 198 | 10.4% | 20.2% | [Other Income and Other Gains, Net](index=17&type=section&id=Other%20Income%20and%20Other%20Gains%2C%20Net) Net other income and gains increased significantly, primarily driven by higher foreign exchange gains - The increase in net other income and other gains was mainly due to an increase in foreign exchange gains[40](index=40&type=chunk) [Operating Expenses and Operating Profit](index=17&type=section&id=Operating%20Expenses%20and%20Operating%20Profit) Operating expenses as a percentage of revenue improved, though operating profit declined to HK$179 million - Operating expenses as a percentage of revenue decreased by **0.6 percentage points to 48.9%**, reflecting strict and effective cost management[41](index=41&type=chunk) - Operating profit was **HK$179 million** with an operating margin of **9.3%**, a year-on-year decrease of 11.4%[42](index=42&type=chunk) - Excluding the impact of the non-Giordano brand in Indonesia, the core brand's operating profit would have been **HK$185 million**, with an operating margin of **10.2%**[42](index=42&type=chunk) [Net Impairment Loss](index=18&type=section&id=Net%20Impairment%20Loss) The Group recognized a net impairment provision of HK$2 million for right-of-use assets and equipment - The Group made a net impairment provision of **HK$2 million** for right-of-use assets and property, plant and equipment during the period[43](index=43&type=chunk) [Finance Costs](index=18&type=section&id=Finance%20Costs_MDA) Finance costs of HK$23 million were primarily attributable to imputed interest on lease liabilities - Finance costs were **HK$23 million** (2024: HK$22 million), mainly comprising imputed interest on lease liabilities[44](index=44&type=chunk) [Profit Attributable to Shareholders](index=18&type=section&id=Profit%20Attributable%20to%20Shareholders) Profit attributable to shareholders remained stable at HK$121 million, with a lower effective tax rate - Profit after tax attributable to shareholders was **HK$121 million**, remaining stable compared to the previous year[45](index=45&type=chunk) - Had the profitability of the non-Giordano brand in Indonesia and the South Korea joint venture remained at last year's levels, attributable profit would have reached **HK$146 million**[45](index=45&type=chunk) - The effective tax rate decreased to **14.7%**, mainly due to a favorable shift in the tax regime mix and the reversal of tax provisions[46](index=46&type=chunk) [Market Analysis](index=19&type=section&id=Market%20Analysis) Greater China revenue grew 4.2%, driven by online initiatives, while Southeast Asia declined due to non-core brand performance [Greater China](index=19&type=section&id=Greater%20China) Greater China revenue grew 4.2% year-on-year, with robust same-store sales growth of 6.2% - Revenue in Greater China grew by **4.2%** year-on-year, with strong Q2 growth of **6.9%** and robust same-store sales growth of **6.2%**[59](index=59&type=chunk) [Hong Kong and Macau](index=19&type=section&id=Hong%20Kong%20and%20Macau) The Hong Kong and Macau market saw a significant recovery in the second quarter, driven by a successful "Minions" collaboration - The Hong Kong and Macau market saw a **2.2%** positive revenue growth in Q2, reversing the Q1 decline, primarily driven by the "Minions" collaboration[50](index=50&type=chunk) - H1 revenue saw a slight decline of **2.2%**, outperforming the overall apparel retail sales performance announced by the HKSAR Government[50](index=50&type=chunk) - The Giordano Ladies brand will be transformed into a more modern, relaxed "Refined Elegance" style, with a new store opening in Causeway Bay[52](index=52&type=chunk) [Mainland China](index=20&type=section&id=Mainland%20China) Total revenue in Mainland China grew 13.0%, driven by significant online business growth of approximately 30.0% - Total revenue in Mainland China grew by **13.0%**, with Q2 growth near **18.0%**, and the online business achieved significant year-on-year growth of approximately **30.0%**[53](index=53&type=chunk) - Gross profit margin improved significantly, increasing by nearly **12 percentage points** quarter-on-quarter, closely tied to the "Digital First" strategy[54](index=54&type=chunk) - Offline same-store sales were nearly flat in Q2, as the restructuring plan focused on Southern China and closed loss-making stores[55](index=55&type=chunk) [Taiwan](index=22&type=section&id=Taiwan) Taiwan's revenue saw a low single-digit decline, though the online channel grew by 18.2% - The Taiwan market recorded a low single-digit percentage decline in revenue, but the online channel grew by **18.2%** year-on-year[57](index=57&type=chunk) Greater China Revenue and Store Statistics (For the six months ended June 30, at constant exchange rates) | Region | 2025 Revenue (HK$ million) | 2024 Revenue (HK$ million) | Change (%) | 2025 Closing Stores | 2024 Closing Stores | | :--- | :--- | :--- | :--- | :--- | :--- | | Mainland China | 339 | 300 | 13.0% | 359 | 454 | | Taiwan | 200 | 206 | (2.9%) | 163 | 161 | | Hong Kong & Macau | 177 | 181 | (2.2%) | 50 | 41 | | **Total** | **716** | **687** | **4.2%** | **572** | **656** | Greater China Profit Before Tax (For the six months ended June 30, at constant exchange rates) | Indicator | 2025 (HK$ million) | % of Revenue | 2024 (HK$ million) | % of Revenue | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 716 | 100.0% | 687 | 100.0% | 4.2% | | Gross profit | 401 | 56.0% | 404 | 58.8% | (0.7%) | | Operating profit | 7 | 1.0% | 23 | 3.4% | (69.6%) | | Profit before tax | 2 | 0.3% | 19 | 2.8% | (89.5%) | [Southeast Asia and Australia](index=23&type=section&id=Southeast%20Asia%20and%20Australia) Revenue in this region declined by 8.0%, primarily due to the weak performance of non-Giordano brands in Indonesia - The region's revenue decreased by **8.0%**, mainly due to weak performance in the Indonesian business, particularly non-Giordano brands; excluding this impact, the decline was limited to **4.6%**[61](index=61&type=chunk) - The e-commerce channel in Southeast Asia (excluding non-Giordano brands) showed strong performance, achieving nearly **42.0%** year-on-year growth[62](index=62&type=chunk) Southeast Asia and Australia Profit Before Tax (For the six months ended June 30, at constant exchange rates) | Indicator | 2025 (HK$ million) | % of Revenue | 2024 (HK$ million) | % of Revenue | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 680 | 100.0% | 739 | 100.0% | (8.0%) | | Gross profit | 389 | 57.2% | 450 | 60.9% | (13.6%) | | Operating profit | 84 | 12.3% | 133 | 18.0% | (36.8%) | | Profit before tax | 73 | 10.7% | 122 | 16.5% | (40.2%) | Southeast Asia and Australia Revenue and Store Statistics (For the six months ended June 30, at constant exchange rates) | Region | 2025 Revenue (HK$ million) | 2024 Revenue (HK$ million) | Change (%) | 2025 Closing Stores | 2024 Closing Stores | | :--- | :--- | :--- | :--- | :--- | :--- | | Indonesia | 342 | 382 | (10.5%) | 199 | 231 | | Thailand | 116 | 127 | (8.7%) | 154 | 157 | | Singapore | 105 | 100 | 5.0% | 31 | 30 | | Malaysia | 78 | 84 | (7.1%) | 84 | 87 | | Vietnam | 30 | 34 | (11.8%) | 28 | 35 | | Australia | 7 | 10 | (30.0%) | 3 | 5 | | Cambodia | 2 | 2 | Flat | 2 | 2 | | **Total** | **680** | **739** | **(8.0%)** | **501** | **547** | [GCC](index=25&type=section&id=GCC) The GCC business achieved 1.9% revenue growth and maintained stable profitability despite geopolitical tensions - The GCC business achieved **1.9%** year-on-year revenue growth, with online sales surging by **33.3%**[64](index=64&type=chunk)[65](index=65&type=chunk) GCC Profit Before Tax and Store Statistics (For the six months ended June 30, at constant exchange rates) | Indicator | 2025 (HK$ million) | % of Revenue | 2024 (HK$ million) | % of Revenue | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 369 | 100.0% | 362 | 100.0% | 1.9% | | Gross profit | 233 | 63.2% | 233 | 64.3% | Flat | | Operating profit | 73 | 19.8% | 76 | 21.0% | (3.9%) | | Profit before tax | 67 | 18.2% | 69 | 19.1% | (2.9%) | | Closing stores | 186 | | 179 | | 7 | [South Korea Joint Venture](index=26&type=section&id=South%20Korea%20Joint%20Venture) The South Korea joint venture faced challenges, resulting in a share of loss due to a weak economy and intense competition - The South Korea joint venture faced challenges, resulting in a share of loss due to a weak economy and intense competition[66](index=66&type=chunk) - The Group is actively collaborating with stakeholders and leveraging expertise from its Korean operations, successfully launching a Korean collection in Mainland China and Hong Kong[67](index=67&type=chunk) South Korea Share of Net (Loss) Profit and Store Statistics (For the six months ended June 30, in KRW million) | Indicator | 2025 | % of Revenue | 2024 | % of Revenue | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 65,545 | 100.0% | 77,640 | 100.0% | (15.6%) | | Gross profit | 33,884 | 51.7% | 41,936 | 54.0% | (19.2%) | | Net (loss) profit | (139) | (0.2%) | 5,486 | 7.1% | (102.5%) | | Share of net (loss) profit | (67) | | 2,662 | | (102.5%) | | Closing stores | 114 | | 115 | | (1) | [Overseas Franchisees and Licensees](index=27&type=section&id=Overseas%20Franchisees%20and%20Licensees) The overseas franchisee network achieved substantial growth, with wholesale revenue increasing by nearly 34.0% - Wholesale revenue from overseas franchisees and licensees surged by nearly **34.0%** year-on-year, with particularly strong performance in the Philippines[68](index=68&type=chunk) - Store count is expected to increase, especially in high-potential emerging markets like Africa and South Asia[69](index=69&type=chunk) Overseas Franchisee Closing Store Statistics | Region | 2025 Closing Stores | 2024 Closing Stores | | :--- | :--- | :--- | | Southeast Asia | 185 | 183 | | South Korea | 114 | 115 | | South Asia | 103 | 89 | | Africa | 29 | 26 | | Other Markets | 22 | 20 | | **Total** | **453** | **433** | [Financial Position](index=28&type=section&id=Financial%20Position) The Group maintains a solid financial position with increased net cash, a low gearing ratio, and improved inventory management [Liquidity and Financial Resources](index=28&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's net cash and bank balances increased to HK$722 million, indicating continued financial stability - Cash and bank balances, net of bank loans, increased year-on-year to **HK$722 million**, demonstrating continued financial stability[70](index=70&type=chunk) - The gearing ratio was **1.2%** (2024: 1.3%) and the current ratio was **1.6** (2024: 1.5), indicating a solid financial position[70](index=70&type=chunk) [Property, Plant and Equipment](index=28&type=section&id=Property%2C%20Plant%20and%20Equipment) Capital expenditure for the period was HK$33 million, primarily for store upgrades and relocations - Capital expenditure for the period was **HK$33 million** (2024: HK$27 million), mainly for store upgrades and relocations[71](index=71&type=chunk) [Goodwill and Put Option Liabilities Granted](index=28&type=section&id=Goodwill%20and%20Put%20Option%20Liabilities%20Granted) Goodwill from the GCC acquisitions was tested for impairment with no impairment recognized - Goodwill and put option liabilities arose from the 2012 and 2015 acquisitions of the GCC business, and it has been confirmed that no goodwill impairment occurred[72](index=72&type=chunk) [Interest in South Korea Joint Venture](index=28&type=section&id=Interest%20in%20South%20Korea%20Joint%20Venture) The carrying value of the South Korea joint venture decreased by 5.2% to HK$417 million - The carrying value of the South Korea joint venture decreased by **5.2% to HK$417 million**, mainly due to fluctuations in the Korean Won and dividend income[73](index=73&type=chunk) [Inventory Management](index=29&type=section&id=Inventory%20Management) Inventory turnover days improved significantly by 11 days to 108 days, reflecting more effective inventory management - Inventory turnover days improved significantly, decreasing by **11 days to 108 days**, highlighting a commitment to more effective inventory management[74](index=74&type=chunk) - Strategic price promotions successfully cleared aged inventory from previous years, aligning the inventory mix with current consumer preferences[74](index=74&type=chunk) System Inventory (As at June 30) | Item | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Inventory owned by the Group | 513 | 514 | | Inventory held by the 48.5%-owned South Korea joint venture | 293 | 181 | | Inventory held by Mainland China franchisees | 34 | 34 | | Finished goods at suppliers | 6 | 11 | | Total inventory not owned by the Group | 333 | 226 | | **Total system inventory** | **846** | **740** | [Trade and Other Receivables and Payables](index=29&type=section&id=Trade%20and%20Other%20Receivables%20and%20Payables_MDA) Receivable and payable turnover days were 46 and 45 days, respectively - Trade receivable and payable turnover days were **46 days** (2024: 38 days) and **45 days** (2024: 45 days), respectively[77](index=77&type=chunk) - The increase in trade payables was mainly due to the early receipt of Autumn/Winter merchandise scheduled for a July launch, causing a timing difference in payments[77](index=77&type=chunk) [Outlook and Strategy](index=30&type=section&id=Outlook%20and%20Strategy) ["Beyond Boundaries" Five-Year Strategy](index=30&type=section&id=Beyond%20Boundaries%20Five-Year%20Strategy) The Group is embarking on a new chapter guided by its "Beyond Boundaries" five-year strategy to become a growth company again - The "Beyond Boundaries" five-year strategy is the Group's "North Star," aiming to reset, reallocate, and revitalize the business to become a growth company again[78](index=78&type=chunk) - 2025 is a year of reset, laying the foundation for the next phase of sustainable growth with a focus on product excellence, operational agility, and customer centricity[79](index=79&type=chunk) [Revitalizing Brand Portfolio](index=30&type=section&id=Revitalizing%20Brand%20Portfolio) The strategy focuses on Giordano products, optimizing the product lifecycle and launching the new Giordano Concepts (GC) brand - The focus is on Giordano-branded products, optimizing design, development, sourcing, and delivery, and using advanced analytics to enhance supply chain responsiveness[80](index=80&type=chunk) - The new brand, Giordano Concepts (GC), targeting young, tech-savvy female consumers aged 20-35, will be launched online in Mainland China in September[82](index=82&type=chunk) - Giordano Ladies will be transformed into a more modern, relaxed "Refined Elegance" style, leveraging Giordano Korea as a brand ambassador to build its image for female consumers[83](index=83&type=chunk) [Digital First](index=31&type=section&id=Digital%20First) The Group will accelerate its digitalization journey to meet the needs of a younger, digitally native generation - The digitalization journey will be accelerated by developing products for Tmall and Douyin, and launching the Giordano Ladies collection and GC brand to connect with Gen Z and Millennials[84](index=84&type=chunk) - Digital tools and data-driven processes, including AI-powered demand forecasting and personalized marketing, will be embedded into daily operations to create an omnichannel ecosystem[85](index=85&type=chunk) [Win in Greater China](index=32&type=section&id=Win%20in%20Greater%20China) Greater China is identified as a "must-win" strategic market, with a two-pronged approach for Mainland China - Greater China is considered a "must-win" strategic market, with a two-pronged restructuring plan for Mainland China[86](index=86&type=chunk) - The plan will accelerate the e-commerce business, focusing on product development for Tmall and Douyin to achieve positive growth and profitability[89](index=89&type=chunk) - The physical retail business will be restructured by closing loss-making stores and focusing on Southern China with increased brand investment, resulting in nearly flat comparable store sales in Q2[89](index=89&type=chunk) - Hong Kong will serve as a model city to pilot new products and concepts, with positive progress seen in Q2[86](index=86&type=chunk) [One Giordano](index=32&type=section&id=One%20Giordano) "One Giordano" aims to establish a centralized creation and planning model with excellent in-market execution - "One Giordano" aims to establish a headquarters and market operating model where creation and planning are centralized for excellent in-market execution[87](index=87&type=chunk) - The organizational structure will be reshaped from a traditional regional silo model to a more agile matrix model to enhance cross-functional team capabilities[88](index=88&type=chunk) - Back-end operations will be streamlined, supply chain and sourcing functions rebuilt, and investments made in employee training to foster a culture of agility and collaboration[88](index=88&type=chunk) [Reshaping the Organization and Transformation](index=32&type=section&id=Reshaping%20the%20Organization%20and%20Transformation) The transformation focuses on fostering a culture of agility, collaboration, and continuous learning under new management - The organizational structure is shifting from a traditional regional silo model to a more agile matrix model to enhance cross-functional capabilities and accelerate decision-making[88](index=88&type=chunk) - Back-end operations are being streamlined, supply chain and sourcing functions rebuilt, and investments made in employee training to foster a culture of agility and collaboration[88](index=88&type=chunk) - The goal for 2025 is to sow the seeds by investing in systems, capabilities, and culture to set the stage for Giordano to thrive in the years to come[91](index=91&type=chunk) [Shared Vision](index=33&type=section&id=Shared%20Vision) The Group is confident in its future, aiming to inspire customer confidence through excellent products and memorable experiences - The Group's purpose remains constant: to inspire customers' confidence and self-expression through excellent products and memorable experiences[92](index=92&type=chunk) - With a clear vision, a robust strategy, and a passionate team, Giordano is ready for its next phase of growth, turning challenges into opportunities[92](index=92&type=chunk) [Other Information](index=34&type=section&id=Other%20Information) [Human Resources](index=34&type=section&id=Human%20Resources) As of June 30, 2025, the Group employed approximately 6,500 staff and invested heavily in training and development - As of June 30, 2025, the Group had approximately **6,500** employees[94](index=94&type=chunk) - The Group offers competitive remuneration, target-based bonuses, performance-based incentive schemes, and share options to reward and retain its high-caliber leadership team[94](index=94&type=chunk) - Significant investments are made in training for sales and customer service, management, planning, and leadership development[94](index=94&type=chunk) [Interim Dividend Policy and Distribution](index=34&type=section&id=Interim%20Dividend%20Policy%20and%20Distribution) The Board declared an interim dividend of 7.5 HK cents per share, payable on October 3, 2025 - The Board declared an interim dividend of **7.5 HK cents** per share for the six months ended June 30, 2025 (2024: 8.0 HK cents per share)[95](index=95&type=chunk) - The dividend will be paid on October 3, 2025, to shareholders on the register as of September 19, 2025[95](index=95&type=chunk) - The register of members will be closed from September 18, 2025, to September 19, 2025, to determine entitlement to the interim dividend[96](index=96&type=chunk) [Corporate Governance](index=35&type=section&id=Corporate%20Governance) The Company complied with the Corporate Governance Code, with an exception for the rotation of the Chairman and Managing Director - During the review period, the Company complied with all applicable provisions of the Corporate Governance Code, except for code provision B.2.2 (rotation of directors)[97](index=97&type=chunk) - The Board believes that continuity in the roles of the Chairman and Managing Director is beneficial to the Group, thus exempting them from retirement by rotation[97](index=97&type=chunk) - The Company has adopted a code of conduct for securities transactions by directors and confirmed that all directors have complied[98](index=98&type=chunk) [Securities Transactions and Buybacks](index=35&type=section&id=Securities%20Transactions%20and%20Buybacks) No purchase, sale, or redemption of the Company's listed securities was made by the Group during the period - During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[99](index=99&type=chunk) [Review of Interim Results](index=36&type=section&id=Review%20of%20Interim%20Results) The unaudited interim financial information has been reviewed by PricewaterhouseCoopers and the Audit Committee - The Group's interim financial information has been reviewed by PricewaterhouseCoopers in accordance with Hong Kong Standard on Review Engagements 2410[100](index=100&type=chunk) - The Audit Committee has reviewed accounting principles, risk management, internal control systems, and financial reporting matters, and has reviewed the interim results with management[100](index=100&type=chunk)

（股份代號：709） ( ) ( ) 2025 8 29 ( ) ( ) 2025 6 30 ( ) 佐 丹 奴 國 際 有 限 公 司 2025 8 19 Colin Melville Kennedy CURRIE Alison Elizabeth LLOYD ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 新提交 | | --- | | 截至月份: 2025年7月31日 狀態: | 致：香港交易及結算所有限公司 公司名稱: 佐丹奴國際有限公司 呈交日期: 2025年8月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | 是 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00709 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 2,000,000,000 | HKD | | 0.05 | HKD | | 100,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 2,000,000,000 | HKD | | 0.05 | HKD | | 100,000 ...

Financial Performance - Revenue for 2024 reached HK$3,919 million, a 1.2% increase from HK$3,873 million in 2023[6] - Gross profit for 2024 was HK$2,234 million, with a gross margin of 57.0%, down from 58.4% in 2023[6] - Operating profit decreased to HK$377 million in 2024, resulting in an operating margin of 9.6%, compared to 13.0% in 2023[6] - Profit attributable to shareholders for 2024 was HK$216 million, with a net profit margin of 5.5%, down from 8.9% in 2023[6] - Cash and bank balances less bank loans stood at HK$810 million, a decrease from HK$905 million in 2023[6] - Total assets decreased to HK$3,766 million in 2024, down from HK$3,856 million in 2023[6] - Market capitalization decreased to HK$2,715 million in 2024, down from HK$4,259 million in 2023[6] - EBITDA for the year was HK$880 million, with an EBITDA margin of 22.5%, down from 26.2% in 2023[8] - Operating expenses as a percentage of revenue increased to 48.7% (2023: 47.2%), mainly driven by non-recurring expenses in the first half[51] - The net profit attributable to the shareholders of the Company was HK$216 million (2023: HK$345 million), primarily due to non-recurring expenses and underperformance in Greater China[51] Store Operations - The number of direct-operated stores decreased to 973 in 2024, down from 1,055 in 2023[6] - The total number of stores worldwide was 1,732 in 2024, a decline from 1,822 in 2023[6] - Same-store sales increased by 2.3% year-on-year, driven by a positive growth of 6.4% in the second half, compared to a 1.4% decline in the first half[60] - The number of stores at year-end decreased to 1,732 from 1,822 in the previous year, reflecting a reduction of 90 stores[54] - The company plans to implement targeted initiatives to enhance brand investment and improve store performance in Mainland China, aiming for sustainable growth[115] Strategic Initiatives - The company has launched a five-year strategy called "Beyond Boundaries" aimed at transforming Giordano into a growth company by focusing on core strengths such as design, development, sourcing, and sales of quality products[22][33] - The implementation of "One Giordano" aims to create a unified team with shared talent and resources to enhance operational efficiency[42] - The management team remains committed to creating value for customers, shareholders, and stakeholders as part of the ongoing transformation[39] - The company is committed to executing its 'Beyond Boundaries' 5-year strategy, focusing on disciplined expense management and long-term growth[88] - The strategic roadmap includes a goal to achieve a high single to low double-digit compound annual growth rate (CAGR) between 2025 and 2030[164] Market Performance - Giordano's revenue decreased by 3.4% in the first half of 2024, but achieved a 5.9% growth in the second half following the implementation of Quick Win initiatives[30][34] - On a constant exchange rate basis, revenue was up by 3.2% for the full year, fueled by improved performances in Southeast Asia and Australia, as well as the online business in Mainland China[51] - The Group achieved a notable 1.2% increase in revenue for the full year, driven by a robust sales rebound of 5.9% in the second half[51] - The Mainland China wholesale to franchisees recorded a 15.0% decline, with revenue dropping to HK$119 million from HK$140 million[69] - Online sales reported significant growth of 11.3%, with a 22.4% increase in the second half, supported by e-commerce Quick Win initiatives[65] Leadership and Management - Under the leadership of CEO Colin Currie, the management team is committed to creating long-term value for shareholders through disciplined investment and operational excellence[21][26] - The Board of Directors fully supports the strategic direction set by the management team, emphasizing the importance of strong leadership during the transformation[23][24] - Mr. Colin Melville Kennedy CURRIE was appointed as the Chief Executive Officer and Executive Director of the Company on April 5, 2024, bringing over 30 years of international general management experience[200] - Dr. Chan Ka Wai will assume the roles of Chief Financial Officer and Chief Sales Officer starting January 1, 2025, after serving as Chief Operating Officer since April 1, 2015[199] Financial Health - Cash and bank balances decreased to HK$810 million in 2024 from HK$905 million in 2023, primarily due to reduced operating cash inflows[141] - The company's leverage ratio remained stable at 1.2% in 2024, compared to 1.3% in 2023, indicating a solid financial position[141] - The Group's gearing ratio improved slightly to 1.2% in 2024 from 1.3% in 2023, with a current ratio of 1.5 compared to 1.6 in the previous year[147] - The Group's trade receivables turnover days improved to 44 days in 2024 from 52 days in 2023, while trade payables increased to 63 days from 45 days[159] Challenges and Opportunities - The economic conditions in Greater China remain challenging, leading to a continued weaker performance in this key market, with a profit decline of HK$41 million from Mainland China[86] - The offline business faced significant challenges, with a notable decline in sales due to high-aged inventory and diminished brand perception, leading to a reported loss for the year in Mainland China[105][107] - The company recognizes the importance of creating long-term value for shareholders as a top priority, supported by a dedicated team and strategic vision[26] - The company aims to enhance its e-commerce channel as online penetration across all markets is below industry norms[175] Employee Development - The company is committed to investing in staff development through various training programs to enhance skills and knowledge[179] - The company has approximately 6,627 employees as of December 31, 2024, and offers competitive remuneration and training programs to maintain a skilled workforce[196] - The average age of the management team is 49 years, indicating a blend of experience and youthful leadership[196]

格隆汇4月25日丨佐丹奴国际(00709.HK)公布，截至2025年3月31日止季度的未经审核业务最新资料。集 团正在推进其战略重点，强调提升数码能力和卓越营运。随着集团迈进2025年，在面对全球市场挑战 中，集团将继续坚定地实践「超越界限」五年策略计划，努力实现可持续增长。 批发收入显着增长了23.6%，这得益于集团特许经营市场(尤其是菲律宾和缅甸)的强劲销售增长。 正如之前在2024年全年业绩中所述，本集团的目标仍然是实现3%至5%的收入增长。然而，近期全球贸 易不稳定及全球金融市场波动，加上宏观经济及地缘政治紧张局势，均可能对消费需求造成不利影响。 管理层致力于稳健的规划，并利用其「超越界限」五年策略计划下的策略性措施应付及处理这些挑战。 集团的表现反映出集团对促进收入增长、迎接数码转型及实现营运效率的重视和投入。集团已准备就 绪，以实现集团的长期愿望，并维持集团在市场上的竞争优势。 于首个季度，集团销售额按固定汇率计算录得5.2%的显著增长，尽管面对不利的汇兑影响，但仍展现 出强大的韧力，整体增长达3.7%。除东南亚外，主要市场均录得正面表现，其中海湾阿拉伯国家合作 委员会地区录得按年15%的显著增长 ...

Financial Performance - The company's total revenue for the year ended December 31, 2024, was HKD 3,919 million, representing a 1.2% increase compared to HKD 3,873 million in 2023[3]. - Net profit attributable to shareholders was HKD 216 million, down from HKD 345 million in 2023, mainly due to non-recurring expenses and decreased profits from joint ventures[3]. - Adjusted EBITDA for 2024 was HKD 937 million, down from HKD 1,001 million in 2023, a decrease of approximately 6.4%[14][15]. - The company reported a pre-tax profit of HKD 351 million for 2024, compared to HKD 508 million in 2023, a decrease of about 30.9%[14][15]. - Operating profit decreased by 25.0% to HKD 377 million, with an operating margin of 9.6%[43]. - The proposed dividend decreased significantly from HKD 218 million in 2023 to HKD 97 million in 2024, a reduction of approximately 55.5%[8]. Revenue Breakdown - Sales revenue for 2024 reached HKD 3,919 million, up from HKD 3,873 million in 2023, representing an increase of about 1.2%[14][15]. - Revenue from Greater China was HKD 1,714 million, contributing 43.7% to total revenue, a slight decrease of 0.8% from HKD 1,727 million in 2023[39]. - Online business revenue increased by 11.3% to HKD 523 million, contributing 13.3% to total revenue, compared to HKD 470 million in 2023[39]. - Sales in Hong Kong and Macau amounted to HKD 626 million in 2024, compared to HKD 623 million in 2023, while sales in mainland China were HKD 661 million, down from HKD 664 million[16]. Expenses and Margins - The gross profit margin decreased by 1.4 percentage points to 57.0%, attributed to a higher contribution from lower-margin online sales and strategic inventory clearance[3]. - Operating expenses as a percentage of revenue increased to 48.7% from 47.2% in 2023, primarily due to non-recurring expenses in the first half of the year[3]. - The gross profit margin for Greater China decreased to 56.7% in 2024 from 59.4% in 2023, impacted by increased operating expenses and inventory clearance[49]. Inventory and Assets - The inventory balance increased to HKD 508 million from HKD 474 million in 2023, with inventory turnover days at 110 days compared to 108 days in the previous year[3]. - Total assets decreased from HKD 3,856 million in 2023 to HKD 3,766 million in 2024, a decline of approximately 2.3%[8]. - Current assets decreased from HKD 1,735 million in 2023 to HKD 1,692 million in 2024, a decline of about 2.5%[8]. Strategic Initiatives - The strategic investments made under the "Beyond Boundaries" five-year transformation plan are expected to position the company as a growth-oriented entity starting in 2025[3]. - The company aims to strengthen relationships with key franchisees and authorized operators to capture growth opportunities in overseas markets[37]. - The company plans to enhance its digital-first strategy to improve online penetration, which is currently below industry standards[80]. Market Performance - The company implemented effective strategies in Southeast Asia and Australia, contributing to revenue growth and improved performance in the online business in mainland China[3]. - The Taiwan market showed resilience with a mid-single-digit sales growth in the second half of 2024, recovering from a 4.4% decline in the first half[53]. - The Gulf Cooperation Council region reported a revenue of HKD 699 million, a 3.6% increase from 2023, with operating profit rising by 8.5% to HKD 141 million[60][61]. Corporate Governance and Leadership - The company has adhered to all applicable corporate governance codes, with a focus on stability and continuity in leadership roles to support business plan implementation[91]. - The company has appointed Mr. Colin Melville Kennedy Currie as CEO effective April 5, 2024, separating the roles of Chairman and CEO in compliance with corporate governance code C.2.1[92][93]. - The company expresses gratitude to its employees for their dedication, which is deemed crucial for success, and emphasizes the importance of a skilled and motivated workforce[82].

Financial Performance - Revenue for the six months ended June 30, 2024, was HK$1,903 million, a decrease of 3.4% compared to HK$1,970 million in 2023[3]. - Operating profit dropped by 26.3% to HK$202 million from HK$274 million in the previous year[3]. - Profit attributable to shareholders decreased by 36.8% to HK$120 million, down from HK$190 million in 2023[3]. - Basic earnings per share were 7.4 HK cents, down from 12.0 HK cents in 2023, representing a decline of 38.3%[3]. - Total comprehensive income for the period was HK$88 million, significantly lower than HK$207 million in the same period of 2023, reflecting a decline of approximately 57.6%[72]. - The Group's operating profit was HK$202 million, down from HK$319 million in the previous year, marking a decrease of about 36.7%[70]. - Profit after income taxes for the period was HK$120 million, compared to HK$190 million for the same period last year, reflecting a decrease of approximately 36.8%[81]. Revenue Breakdown - Revenue growth in the Gulf Cooperation Council was 0.6%, while Southeast Asia and Australia saw a 6.7% increase; Greater China experienced a decline of 5.1%[5]. - Same-store sales amounted to HK$1,444 million, reflecting a decline due to underperformance in Greater China[14]. - Retail revenue in Greater China dropped by 8.3%, with Mainland China, Hong Kong, and Taiwan experiencing declines of 9.9%, 6.3%, and 8.8% respectively[14]. - Sales in Mainland China reached HK$300 million for the six months ended June 30, 2024[104]. - Sales in Hong Kong and Macau amounted to HK$182 million during the same period[104]. - Southeast Asia and Australia generated sales of HK$739 million for the six months ended June 30, 2024[104]. - The Gulf Cooperation Council (GCC) wholesale to overseas franchisees recorded sales of HK$362 million[104]. Expenses and Margins - Gross margin improved slightly to 58.9%, up 0.2 percentage points, despite a 3.1% decline in gross profit due to adverse currency impacts[5]. - Operating expenses as a percentage of revenue increased by 2.9 percentage points to 49.5% from 46.6%[5]. - The operating expense-to-revenue ratio increased by 2.9 percentage points to 49.5%, primarily due to non-recurring expenses related to the former CEO's severance package[20][21]. - The finance expense increased to HK$22 million from HK$17 million in the previous year, primarily due to higher imputed interest on lease liabilities[23][24]. Dividends and Shareholder Returns - The Board declared an interim dividend of 8.0 HK cents per share, a reduction of 52.9% from 17.0 HK cents in 2023[7]. - The interim dividend declared for 2024 is 8.0 HK cents per share, a decrease from 17.0 HK cents per share in 2023, totaling HK$129 million compared to HK$272 million in the previous year[128][131]. - The company intends to return surplus cash to shareholders through dividends and share repurchase, aligning with its dividend policy[189]. Inventory and Cash Flow - Group inventory remained stable at HK$514 million, with inventory turnover days increasing by eight days to 119 days[7]. - Net cash flow from operating activities was HK$265 million, with a net cash balance of HK$720 million as of June 30, 2024[7]. - The increase in aged inventory, particularly in Mainland China, has negatively impacted sales performance due to a lack of fresh products[50]. - As of June 30, 2024, cash and bank balance, net of bank loans, was HK$720 million, a significant decrease from HK$1,014 million in 2023, primarily due to reduced operating cash inflow and increased cash outflow from dividend payouts[48]. Strategic Initiatives and Future Outlook - IT upgrades are expected to be completed in the second half of 2024, aiming to drive higher sales in 2025 and beyond[14]. - The company aims to achieve positive growth in the second half of 2024 and work towards a flat full-year revenue growth compared to 2023[55]. - The new strategy 'Giordano – Beyond Boundaries' focuses on four pillars: reset, revitalize, recalibrate, and reconnect to transform the company into a growth business[54]. - The company plans to enhance its digital footprint significantly, particularly in Mainland China, to adapt to the shift towards online consumption[56]. - Giordano aims to achieve a high single to low double-digit compound annual growth rate (CAGR) in revenue between 2025 and 2030[59]. Market Conditions and Challenges - The Hong Kong and Macau markets saw a modest revenue decline due to consumer spending shifting to Mainland China and higher rental costs[29]. - Sales in overseas franchised markets declined by 9.3% due to political tensions affecting traditional franchise markets like Myanmar[46]. - The GCC region showed growth with sales and profits advancing in the first half of 2024, despite geopolitical tensions impacting the macroeconomic environment[41]. Shareholder Information - The total number of ordinary shares held by Director Chan Ka Wai was 7,456,000, representing approximately 0.46% of shareholding[194]. - Cheng Yu Tung Family (Holdings) Limited holds 388,180,000 shares, representing approximately 24.02% of the total shareholding[199]. - The company has a share option scheme for directors, with details provided in the report[197].

Revenue Performance - The group's revenue remained flat year-on-year at fixed exchange rates, with a decline of 3.4% due to currency effects. The GCC region saw a revenue increase of 0.6%, while Southeast Asia and Australia rose by 6.7%. However, Greater China experienced a further decline of 5.1% year-on-year[2]. - The group reported a total revenue of HKD 1,903 million for the six months ended June 30, 2024, compared to HKD 1,970 million for the same period in 2023, reflecting a decrease of approximately 3.4%[11]. - Revenue in Greater China for the six months ended June 30, 2024, was HKD 709 million, a decrease of 5.1% compared to HKD 747 million in 2023[41]. - Revenue in Southeast Asia and Australia for the first half of 2024 reached HKD 783 million, a 6.7% increase from HKD 734 million in the same period of 2023[42]. - The retail and distribution segment in mainland China generated sales of HKD 300 million, while the sales in Hong Kong and Macau were HKD 182 million, showing a year-on-year decrease of 5.5% and 8.5% respectively[11]. Profitability - Gross profit margin recorded at 58.9%, an increase of 0.2 percentage points, primarily due to changes in channel mix. However, gross profit decreased by 3.1% year-on-year due to adverse currency effects[2]. - Net profit attributable to shareholders was HKD 120 million, down from HKD 190 million in 2023, attributed to one-off non-recurring expenses in 2024 and a significant decrease in profits from the Greater China region[2]. - Basic earnings per share decreased to HKD 0.074 from HKD 0.120 in 2023[3]. - Operating profit for the six months ended June 30, 2024, was HKD 811 million, slightly down from HKD 815 million in 2023, reflecting a decrease of 0.49%[16]. - The group's operating profit for the retail and distribution segment was HKD 232 million for the six months ended June 30, 2024, compared to HKD 284 million in the same period of 2023, representing a decline of approximately 18.3%[13]. Expenses and Costs - Operating expenses as a percentage of revenue increased by 2.9 percentage points, rising from 46.6% to 49.5%, mainly due to one-off non-recurring expenses related to a special general meeting[2]. - The group's financing costs amounted to HKD 22 million for the reporting period, reflecting a stable cost structure compared to previous periods[11]. - Interest expenses on lease liabilities increased to HKD 22 million from HKD 17 million, marking a rise of 29.41%[17]. - Total tax expense for the six months ended June 30, 2024, was HKD 53 million, an increase of 6% from HKD 50 million in 2023[19]. Cash Flow and Financial Position - Cash inflow from operating activities was HKD 265 million, with a net cash balance of HKD 720 million as of June 30, 2024, despite negative impacts from foreign exchange differences[3]. - Total assets decreased to HKD 3,668 million from HKD 3,856 million as of December 31, 2023[6]. - Total liabilities decreased slightly to HKD 1,514 million from HKD 1,544 million as of December 31, 2023[6]. - Cash and bank balances, after deducting bank loans, decreased to HKD 720 million from HKD 1,014 million in 2023, indicating a significant cash flow reduction[48]. Inventory Management - Inventory remained stable at HKD 514 million, with inventory turnover days increasing by eight days to 119 days[3]. - The group's inventory as of June 30, 2024, is HKD 514 million, an increase from HKD 474 million on December 31, 2023, and a decrease from HKD 501 million on June 30, 2023[52]. - The accounts receivable net value decreased to HKD 171 million from HKD 197 million, a decline of 13.19%[22]. - Total accounts payable decreased to HKD 496 million from HKD 552 million, a reduction of 10.16%[24]. Strategic Initiatives - The company aims for revenue growth to stabilize at 2023 levels in 2024, with a target of achieving positive growth in the second half of 2024[55]. - The core of the "Beyond Boundaries" strategy is to revitalize the Giordano brand and expand its digital footprint, particularly in mainland China[57]. - The company recognizes the need to enhance organizational capabilities and will develop a comprehensive IT roadmap and restructure team functions[56]. - Giordano's five-year strategy "Beyond Limits" aims to regain leadership in the Greater China fashion apparel market and accelerate growth in the Gulf Cooperation Council and Southeast Asia, targeting a high single-digit to low double-digit CAGR from 2025 to 2030[61]. Shareholder Returns - The board declared an interim dividend of HKD 0.08 per share, down from HKD 0.17 per share in 2023[3]. - The interim dividend for the six months ending June 30, 2024, is set at HKD 0.08 per share, down from HKD 0.17 per share in 2023, reflecting careful consideration of economic outlook and financial status[63]. - Basic and diluted earnings per share for the period were HKD 0.74, down from HKD 1.19 in 2023, representing a decline of 37.02%[20]. Employee and Governance - As of June 30, 2024, the group has approximately 6,800 employees, with a focus on competitive compensation and performance-based bonuses to retain a high-quality leadership team[62]. - The board includes four executive directors and seven non-executive directors, ensuring a diverse governance structure[74].

Financial Performance - Revenue for 2023 increased to HK$3,873 million, up 2% from HK$3,799 million in 2022[3] - Gross profit rose to HK$2,263 million in 2023, with a gross margin of 58.4%, up from 56.5% in 2022[3] - Operating profit improved to HK$503 million in 2023, with an operating margin of 13.0%, compared to HK$425 million and 11.2% in 2022[3] - EBITDA increased to HK$1,015 million in 2023, with an EBITDA margin of 26.2%, up from HK$913 million and 24.0% in 2022[3] - Net profit attributable to shareholders grew to HK$345 million in 2023, with a net profit margin of 8.9%, compared to HK$268 million and 7.1% in 2022[3] - Revenue for 2023 reached HK$3,873 million, showing a slight increase from HK$3,799 million in 2022[5] - Gross profit for 2023 was HK$2,263 million, with a gross margin of 58.4%, up from 56.5% in 2022[5] - Operating profit for 2023 stood at HK$503 million, a significant improvement from HK$425 million in 2022, with an operating margin of 13.0%[5] - EBITDA for 2023 was HK$1,015 million, with an EBITDA margin of 26.2%, compared to HK$913 million and 24.0% in 2022[5] - Net profit attributable to shareholders for 2023 was HK$345 million, with a net profit margin of 8.9%, up from HK$268 million and 7.1% in 2022[5] - Net profit increased by 28.7% to HK$345 million compared to the previous year[8] - Group revenue increased by 1.9% to HK$3,873 million (2022: HK$3,799 million), or 3.8% growth at constant exchange rates[11][16] - Group gross margin improved by 1.9 percentage points, with retail gross margin reaching 60.6% (2022: 59.5%)[11] - Net profit attributable to shareholders increased by 28.7% to HK$345 million (2022: HK$268 million)[11] - Group same-store sales increased by 6.9% to HK$2,819 million (2022: HK$2,638 million)[13] - Global brand sales grew by 2.7% to HK$4,746 million (2022: HK$4,620 million)[13] - Online sales grew by 7.1%, driven by continued growth in mainland China[16] - Group revenue grew by 1.9% to HK$3,873 million, with comparable retail store sales increasing by 6.9%[17] - Online sales improved by 7.1%, driven by growth in Mainland China, while offline sales increased by 4.7% despite a 2.6% reduction in store count[17] - Gross margin improved by 1.9 percentage points to 58.4%, with retail gross margin reaching 60.6%[20] - Operating profit increased by 18.4% to HK$503 million, with an operating expense-to-revenue ratio of 47.2%[24] - Profit after income taxes attributable to shareholders rose to HK$345 million, with a net margin of 8.9%[28] - 2023 PATS increased to HK$351 million at constant exchange rates, up from HK$268 million in 2022, representing a 31.0% growth[29] - Revenue increased by 6.5% to HK$676 million in 2023, with gross profit rising by 7.8% to HK$429 million[43] - Operating profit grew by 16.1% to HK$130 million, driven by strong performance in the GCC region[43] - Revenue increased to HK$3,873 million in 2023, up from HK$3,799 million in 2022, representing a growth of 1.9%[156] - Gross profit rose to HK$2,263 million in 2023, compared to HK$2,146 million in 2022, reflecting a 5.5% increase[156] - Operating profit improved to HK$503 million in 2023, up from HK$425 million in 2022, showing an 18.4% growth[156] - Profit after income taxes for the year increased to HK$389 million in 2023, compared to HK$329 million in 2022, a rise of 18.2%[156][158] - Earnings per share (basic) increased to 21.6 HK cents in 2023, up from 17.0 HK cents in 2022, a 27.1% growth[156] - Total comprehensive income for the year was HK$377 million in 2023, compared to HK$250 million in 2022, a 50.8% increase[158] - Operating profit before income taxes increased to HK$508 million in 2023 from HK$436 million in 2022, reflecting a 16.5% year-over-year growth[164] - Net cash inflow from operating activities rose to HK$942 million in 2023, up from HK$810 million in 2022, indicating a 16.3% increase[164] - Cash generated from operations reached HK$1,093 million in 2023, compared to HK$911 million in 2022, marking a 20% growth[164] - Profit after income taxes for the year 2023 was HK$345 million, contributing to the total comprehensive income of HK$333 million[168] Store Operations and Inventory - Total number of stores worldwide decreased to 1,822 in 2023 from 1,874 in 2022, with direct-operated stores at 1,055 and franchised stores at 767[3] - Inventory turnover days improved to 108 days in 2023 from 135 days in 2022[3] - The number of stores worldwide at the end of 2023 was 4,259, a significant increase from 2,733 in 2022[5] - Inventory levels were significantly reduced and variable cost ratio increased[8] - The company added 27 overseas franchised stores in 2023, primarily in emerging markets[49] - Inventory turnover days decreased by 27 days to 108 days due to stringent purchase control[57] - System inventories decreased to HK$709 million in 2023, down from HK$893 million in 2022[58] - Total store count in Greater China decreased to 695 in 2023 from 776 in 2022, primarily due to the closure of loss-making direct-operated stores in Mainland China[36] - Southeast Asia and Australia store count remained stable at 565, with Indonesia adding 5 new stores to reach 238 by year-end 2023[40] Cash Flow and Financial Position - Cash and bank balances less bank loans stood at HK$905 million in 2023, down from HK$948 million in 2022[3] - The company's total assets for 2023 were HK$3,856 million, a decrease from HK$4,008 million in 2022[5] - Total liabilities for 2023 were HK$1,544 million, down from HK$1,486 million in 2022[5] - Cash and bank balances, net of bank loans, stood at HK$905 million on December 31, 2023 (2022: HK$948 million)[11] - Capital expenditure during the year was HK$87 million (2022: HK$66 million)[11] - Cash and bank balances decreased to HK$935 million in 2023 from HK$960 million in 2022, a 2.6% decline[159] - Total current assets decreased to HK$1,735 million in 2023 from HK$1,977 million in 2022, a 12.2% reduction[159] - Total liabilities increased to HK$1,544 million in 2023 from HK$1,486 million in 2022, a 3.9% rise[161] - Equity attributable to shareholders of the Company decreased to HK$2,189 million in 2023 from HK$2,317 million in 2022, a 5.5% decline[161] - Net cash outflow from investing activities was HK$155 million in 2023, higher than the HK$76 million outflow in 2022[166] - Dividends received from a joint venture amounted to HK$28 million in 2023, down from HK$32 million in 2022[166] - Net cash outflow from financing activities was HK$926 million in 2023, slightly higher than the HK$853 million outflow in 2022[166] - Cash and cash equivalents at the end of 2023 stood at HK$720 million, a decrease from HK$860 million at the end of 2022[166] - Purchase of property, plant, and equipment totaled HK$87 million in 2023, up from HK$66 million in 2022[166] - Interest income decreased to HK$23 million in 2023 from HK$12 million in 2022[166] - Dividends paid to non-controlling interests were HK$3 million in 2023, compared to HK$2 million in 2022[166] - Total equity decreased from HK$2,522 million at the beginning of 2023 to HK$2,312 million at the end of 2023, reflecting a reduction of HK$210 million[168] - The company paid a final dividend of HK$240 million for 2022 and an interim dividend of HK$274 million for 2023[168] - Non-controlling interests decreased from HK$205 million at the beginning of 2023 to HK$123 million at the end of 2023, a reduction of HK$82 million[168] - Retained profits decreased from HK$819 million at the beginning of 2023 to HK$611 million at the end of 2023, a reduction of HK$208 million[168] - The company issued shares worth HK$47 million upon the exercise of share options[168] - The acquisition of additional interest in a subsidiary resulted in a decrease of HK$53 million in non-controlling interests[168] - The disposal of partial interest in a subsidiary resulted in an increase of HK$2 million in non-controlling interests[168] - The fair value change on financial assets at fair value through other comprehensive income resulted in a loss of HK$8 million[168] - Exchange adjustments on translation of overseas subsidiaries, a joint venture, and branches resulted in a loss of HK$10 million[168] Dividends and Shareholder Returns - Dividend per share increased to HK$0.305 in 2023 from HK$0.235 in 2022, with a dividend payout ratio of 141.3%[3] - Total dividend for the year rose by 29.8% to 30.5 HK cents per share[8] - The Company's Board recommended a final dividend of 13.5 HK cents per share, with total dividends for the year increasing by 29.8% to 30.5 HK cents per share[11] - Full-year dividend increased by 29.8% to 30.5 HK cents per share (2022: 23.5 HK cents per share)[62] - The Board recommended a final dividend of 13.5 HK cents per share for the year ended December 31, 2023, payable on June 14, 2024[122] - The company's dividend policy, adopted on November 8, 2018, aims to allow shareholders to participate in profits while retaining reserves for future growth[117] - The company may consider declaring special dividends in addition to semi-annual dividends, depending on financial conditions and commitments[117] - The company's ability to pay dividends depends on factors such as distributable profits, operating results, and capital expenditure plans of its subsidiaries[117] - The Board has discretion on dividend payments, subject to shareholder approval, with decisions based on operations, earnings, capital needs, and financial conditions[118] Market Capitalization and Shareholding - Market capitalization rose to HK$4,259 million in 2023 from HK$2,733 million in 2022[3] - Market capitalization for 2023 was HK$1,613,417 million, slightly up from HK$1,579,817 million in 2022[5] - Director Lau Kwok Kuen, Peter holds 27,518,000 shares, representing approximately 1.71% of the total shareholding[131] - Director Chan Ka Wai holds 8,456,000 shares, including 7,700,000 share options, representing approximately 0.52% of the total shareholding[131] - Director Mark Alan Loynd holds 9,064,000 shares through share options, representing approximately 0.56% of the total shareholding[131] - Cheng Yu Tung Family (Holdings) Limited and related entities hold 388,180,000 shares, representing 24.05% of the total issued shares of 1,613,416,518 as of December 31, 2023[135][136] - Sino Wealth International Limited, a wholly-owned subsidiary of Chow Tai Fook Nominee Limited, holds 388,180,000 shares, with Chow Tai Fook Capital Limited holding an 81.03% interest in Chow Tai Fook (Holding) Limited[135] - The company maintained sufficient public float as required by the Listing Rules, with no purchase, sale, or redemption of listed securities during the year ended December 31, 2023[140] - The total number of shares issued by the company as of December 31, 2023, is 1,613,416,518[129] Corporate Governance and Board Composition - The company emphasizes corporate governance and social responsibility, treating staff and suppliers as equal partners[9] - The Board adopted new Terms of Reference for the Remuneration Committee on January 1, 2023, and revised the shareholders' communication policy on March 9, 2023, and December 31, 2023[72] - The Board reviewed the Board Diversity Policy and the Nomination Policy on November 2, 2023[72] - The Company fully complied with the Corporate Governance Code provisions except for deviations from Code Provisions B.2.2 and C.2.1[72] - The Board is responsible for setting the Group's overall objectives, strategies, and monitoring financial performance[73] - The Board ensures independent views and input are available, with a strong independence element in its current composition[75] - The Board reviewed the implementation and effectiveness of the board independence mechanism for the year ended December 31, 2023, and considered it effective[75] - The Board is responsible for developing, reviewing, and updating corporate governance policies and practices[76] - The Board determines the nature and extent of significant risks, including ESG risks, in achieving strategic objectives[76] - The Board reviews and monitors the Group's disclosure process, including the accuracy and materiality of inside information[76] - The Board consists of three Independent Non-executive Directors, two Non-executive Directors, and three Executive Directors as of December 31, 2023[77] - The Independent Non-executive Directors and Non-executive Directors provide diverse expertise, skills, and experience, offering effective guidance and an outside perspective on major decisions[77] - The Board emphasizes diversity, including gender diversity, across all levels of the Group, with details on gender ratio available in the ESG Report[77] - The Board has established three committees: Audit Committee, Nomination Committee, and Remuneration Committee, along with a Management Committee and Risk Management Committee[77] - Dr. LAU Kwok Kuen, Peter serves as the Chairman and Chief Executive, and is a member of the Nomination Committee and Remuneration Committee[79] - Dr. Barry John BUTTIFANT is the Chairman of the Audit Committee and a member of the Nomination and Remuneration Committees[79] - Professor WONG Yuk is the Chairman of the Remuneration Committee and a member of the Audit and Nomination Committees[79] - Mr. TSANG On Yip, Patrick, a Non-executive Director, is the CEO and a director of Chow Tai Fook Enterprises Limited, a substantial shareholder[80] - Mr. LEE Chi Hin, Jacob, a Non-executive Director, serves as a senior vice president of Chow Tai Fook Enterprises Limited[80] - The Board believes that the relationships of the Non-executive Directors do not affect their independent judgment and integrity in executing their roles[81] - The appointment of a new Director is made by the Board upon recommendation by the Nomination Committee, considering diversity in accordance with the Company's Board Diversity Policy[82] - Any new Director (other than the Chairman or the Managing Director) appointed by the Board must retire and be re-elected by Shareholders at the next AGM following their appointment[82] - At each AGM, one-third (or the number nearest to, but not less than one-third) of the Directors (other than the Chairman or the Managing Director) will retire from office by rotation[82] - Non-executive Directors have an initial term of three years and can continue in office subject to termination by not less than one month's prior notice in writing[82] - The Board believes that stability and continuation are key factors to the successful implementation of business plans of the Group, and the Chairman should be exempt from retirement by rotation[82] - Dr. Barry John BUTTIFANT, an Independent Non-executive Director, has served since March 3, 1995, and continues to provide invaluable expertise and experience to the Board[83] - All Independent Non-executive Directors provided confirmation of independence in accordance with rule 3.13 of the Listing Rules, and the Board considers them independent[83] - Dr. BUTTIFANT voluntarily retired and was re-elected as Director at the AGM held on May 20, 2022, and will retire by rotation at the forthcoming AGM[83] - The Board held four regular meetings and passed six sets of written resolutions during the year ended December 31, 2023, focusing on quarterly operational updates, future strategies, policies, and budgets[84] - All Executive Directors attended 4 out of 4 Board meetings, while Independent Non-executive Directors had varying attendance rates, with some attending 3 out of 4 meetings[87] - The Company provides comprehensive induction packages to newly appointed Directors to ensure they are aware of their responsibilities as directors of a Hong Kong-listed company[90] - The Company has arranged appropriate directors' and officers' liability insurance in line with the Corporate Governance Code[91] - The Company Secretary regularly updates Directors on changes in Listing Rules, corporate governance practices, and other regulatory regimes, providing

Financial Performance - The company's revenue increased by 3.8% at constant exchange rates, reaching HKD 3.873 billion, up from HKD 3.799 billion in 2022, with a 1.9% increase when converted to HKD [2]. - Net profit attributable to shareholders rose by 28.7% to HKD 345 million, up from HKD 268 million in 2022 [2]. - Total revenue grew by 1.9% to HKD 3.873 billion in 2023, up from HKD 3.799 billion in 2022, with a fixed exchange rate growth of 3.8% [33]. - The company reported a profit before tax of HKD 508 million, indicating a stable operational performance despite market challenges [13]. - Operating profit for 2023 was HKD 1,630 million, compared to HKD 1,594 million in 2022, reflecting an increase of 2.26% [21]. - The company recorded a net profit of HKD 345 million in 2023, up from HKD 268 million in 2022, reflecting resilience despite ongoing geopolitical conflicts and high inflation [58]. Profitability Metrics - Gross profit margin improved by 1.9 percentage points, with retail gross margin at 60.6% compared to 59.5% in 2022 [2]. - The company’s equity decreased to HKD 2,312 million from HKD 2,522 million, reflecting a decline of approximately 8.3% [9]. - The total income tax expense for the year was HKD 119 million, up from HKD 107 million in 2022, indicating an increase of approximately 11.21% [24]. - The company reported a net current asset position of HKD 639 million, down from HKD 890 million in the previous year, indicating a decline of approximately 28.2% [9]. Dividends and Shareholder Returns - The proposed final dividend is HKD 0.135 per share, with a total annual dividend of HKD 0.305 per share, representing a 29.8% increase from HKD 0.235 per share in 2022 [2]. - The proposed final dividend for 2023 is HKD 0.135 per share, down from HKD 0.150 per share in 2022, resulting in a total annual dividend of HKD 0.305 per share, an increase of 29.8% [57]. Inventory and Asset Management - Inventory turnover days decreased by 27 days to 108 days, with year-end inventory at HKD 474 million, down from HKD 612 million in 2022 [2]. - The company’s inventory decreased to HKD 474 million in 2023 from HKD 612 million in 2022, with inventory turnover days reduced to 108 days [54]. - Total assets decreased to HKD 3,856 million in 2023 from HKD 4,008 million in 2022, a decline of approximately 3.8% [9]. - Current assets totaled HKD 1,735 million, down from HKD 1,977 million, representing a decrease of about 12.2% [9]. Operational Efficiency - Operating expenses as a percentage of revenue remained stable at 47.2%, reflecting ongoing cost control measures [2]. - The company maintained a stable operating expense ratio at 47.2% of revenue, reflecting ongoing cost control measures [31]. - Cash and bank balances (after deducting bank loans) stood at HKD 905 million as of December 31, 2023, compared to HKD 948 million in 2022 [2]. - Cash and bank balances (net of bank loans) at the end of 2023 were HKD 905 million, a decrease of 4.5% from HKD 948 million in 2022 [32]. Market and Sales Performance - Revenue from the mainland China segment reached HKD 664 million, contributing to a total revenue of HKD 3,873 million for the year [14]. - Retail and distribution segment sales for 2023 amounted to HKD 3,630 million, up from HKD 3,499 million in 2022, indicating a growth of approximately 3.75% [16]. - The sales in Hong Kong and Macau reached HKD 623 million, compared to HKD 586 million in 2022, showing an increase of about 6.31% [16]. - Revenue from Greater China was HKD 1,727 million, contributing 44.6% to total revenue, with a slight increase of 0.4% from 2022 [34]. - Revenue from Southeast Asia and Australia was HKD 1,471 million, maintaining a contribution of 38.0% to total revenue, with a 1.9% increase [34]. - Online sales in mainland China and South Korea accounted for nearly 55% and 40% of total sales, respectively, with satisfactory profit performance reported [58]. Strategic Initiatives - The company continues to focus on pricing power rather than volume, indicating a strategic shift in its operational approach [2]. - The company plans to expand its retail and distribution operations in Southeast Asia and the Gulf Cooperation Council regions [12]. - The company plans to continue its strategy of pricing, product innovation, store upgrades, and marketing investments to enhance brand reputation [58]. - The company expanded its sales points in India to 50 in 2023, indicating a positive momentum in its strategy to penetrate developing markets [58]. Staffing and Employment - As of December 31, 2023, the company employed approximately 6,500 staff, an increase from 6,200 in 2022, reflecting its commitment to competitive compensation and talent retention [59]. Other Financial Metrics - Interest income increased to HKD 23 million in 2023 from HKD 12 million in 2022, representing a growth of 91.67% [20]. - Financing costs rose to HKD 40 million in 2023 from HKD 25 million in 2022, an increase of 60% [22]. - The company experienced a 6.3% increase in other income and gains, totaling HKD 19 million in 2023 [46].