Company Overview - 汇成国际控股有限公司 is a rapidly developing company engaged in the design, production, marketing, and sales of clothing, primarily focusing on men's apparel [2] - The company operates multiple internationally recognized brands, targeting middle to high-income consumers with a variety of men's casual wear, including gentleman's leisure, outdoor leisure, and casual clothing [2] - The company has a significant retail network consisting of 134 self-operated retail points in major Chinese cities and 39 third-party retail points in other cities [2] Financial Performance - As of December 31, 2024, 汇成国际控股 reported total revenue of 156 million yuan, a year-on-year decrease of 24.84% [1] - The company recorded a net profit attributable to shareholders of -109 million yuan, an increase of 23.23% year-on-year [1] - The gross profit margin stood at 51.97%, with a debt-to-asset ratio of 16.34% [1] Market Position and Strategy - 汇成国际控股's brand 圣大保罗 is a leading brand in the mid-to-high-end casual men's wear market in China, according to a report by Euromonitor [2] - The company emphasizes a balanced retail model combining self-operated and third-party retail points to penetrate the vast Chinese men's apparel market [2] - The company focuses on well-established licensed brands to attract middle to high-income male customers, leveraging existing market recognition and reputation [2] Industry Valuation - The average price-to-earnings (P/E) ratio for the textile and apparel industry is -9.07 times, with a median of 0.36 times [1] - 汇成国际控股's P/E ratio is -1.69 times, ranking 107th in the industry [1] - Other industry players include FAST RETAIL-DRS at 0.36 times, 浙江永安 at 1.34 times, and others with higher P/E ratios [1]

Company Overview - 汇成国际控股有限公司 is a rapidly developing company engaged in the design, production, marketing, and sales of clothing, focusing primarily on men's apparel [2] - The company operates multiple internationally recognized brands, targeting middle to high-income consumers with a variety of men's casual wear, including gentleman's leisure, outdoor leisure, and casual clothing [2] - The company holds ownership of brands such as London Fog, York, MCS, Henry Cotton, and Marina Yacht in the Greater China region [2] Sales Network - As of December 31, 2023, the company's sales network includes 134 self-operated retail points in major Chinese cities like Beijing, Shanghai, Chengdu, and Shenzhen, along with 39 retail points operated by third-party retailers in other cities [2] - The balanced combination of self-operated and third-party retail points is believed to facilitate rapid growth and penetration into the vast Chinese men's apparel market [2] Market Position and Strategy - According to a report commissioned by Euromonitor, the Saint Laurent brand is a leading brand in the mid-to-high-end casual men's wear segment in China by retail sales [2] - The company aims to differentiate itself from competitors through multiple men's clothing brands, each with a unique style and targeted customer base [2] - The strategy includes selecting established licensed brands to attract middle to high-income male customers, leveraging existing market recognition and goodwill [2] Production and Supply Chain - The company primarily outsources production to minimize costs, allowing it to focus on brand selection, design, and sales management [2] - It owns production facilities in Dezhou, Shandong Province, mainly for producing key products such as pants and jackets [2] Financial Performance - As of December 31, 2024, the company reported total revenue of 156 million yuan, a year-on-year decrease of 24.84%, and a net profit attributable to shareholders of -109 million yuan, a year-on-year increase of 23.23% [1] - The gross profit margin stands at 51.97%, with a debt-to-asset ratio of 16.34% [1] Industry Valuation - The average price-to-earnings (P/E) ratio for the textile and apparel industry (TTM) is -7.04 times, with a median of -0.17 times [1] - 汇成国际控股's P/E ratio is -1.78 times, ranking 107th in the industry [1]

Company Overview - 汇成国际控股有限公司 is a rapidly developing company engaged in the design, production, marketing, and sales of clothing, focusing primarily on men's apparel [3] - The company operates multiple internationally recognized brands, targeting middle to high-income male consumers with a variety of casual men's clothing, including gentleman's leisure, outdoor leisure, and casual wear [3] - The company has a significant retail network consisting of 134 self-operated retail points in major Chinese cities and 39 third-party retail points in other cities [3] Financial Performance - As of December 31, 2024, 汇成国际控股 reported total revenue of 156 million yuan, a year-on-year decrease of 24.84% [1] - The company recorded a net profit attributable to shareholders of -109 million yuan, an increase of 23.23% year-on-year [1] - The gross profit margin stood at 51.97%, and the debt-to-asset ratio was 16.34% [1] Market Position and Valuation - The company has a price-to-earnings (P/E) ratio of -1.72, ranking 107th in the textile and apparel industry, which has an average P/E ratio of -5.37 [2] - The industry median P/E ratio is -0.17, indicating a challenging valuation environment for companies in this sector [2] - Other companies in the industry have varying P/E ratios, with FAST RETAIL-DRS at 0.38, 浙江永安 at 1.34, and 都市丽人 at 3.52 [2] Strategic Focus - The company emphasizes a balanced retail model combining self-operated and third-party retail points to penetrate the vast Chinese men's apparel market [3] - It aims to differentiate itself from competitors through unique brand styles and targeted marketing strategies [3] - The company outsources most of its production to minimize costs while focusing on brand selection, design, and sales management [3]

Company Overview - 汇成国际控股有限公司 is a rapidly developing company engaged in the design, production, marketing, and sales of clothing, focusing primarily on men's apparel [3] - The company operates multiple internationally recognized brands, targeting middle to high-income male consumers with a variety of casual wear, including gentleman's leisure, outdoor leisure, and casual clothing [3] - The company has a vast sales network consisting of self-operated and third-party retail points across 244 cities in China, with a significant presence in major cities like Beijing, Shanghai, Chengdu, and Shenzhen [3] Financial Performance - As of December 31, 2024, 汇成国际控股 reported total revenue of 156 million yuan, a year-on-year decrease of 24.84% [1] - The company recorded a net profit attributable to shareholders of -109 million yuan, representing a year-on-year increase of 23.23% [1] - The gross profit margin stood at 51.97%, while the debt-to-asset ratio was 16.34% [1] Market Position and Valuation - Currently, there are no institutional investment ratings for 汇成国际控股 [2] - The company's price-to-earnings (P/E) ratio is -1.52, ranking 109th in the textile and apparel industry, which has an average P/E ratio of -6.37 [2] - Competitors in the industry include FAST RETAIL-DRS with a P/E of 0.36, 浙江永安 at 1.34, and 大人国际 at 3.59, among others [2]

Financial Performance - The company's revenue for the fiscal year 2024 decreased by RMB 51.6 million to RMB 156.1 million, representing a decline of approximately 24.8% compared to RMB 207.7 million in 2023[4]. - The loss attributable to equity holders of the parent company decreased by RMB 33.1 million to RMB 109.4 million, a decline of approximately 23.2% from RMB 142.5 million in 2023[4]. - Total revenue decreased from RMB 207.7 million in 2023 to RMB 156.1 million in 2024, a decline of approximately 24.9%[15]. - Gross profit decreased from RMB 101.3 million in 2023 to RMB 81.1 million in 2024, a decline of approximately 19.9%, while the overall gross margin increased from 48.8% to 52.0%[17]. - The net loss for the year was reported at RMB 111.8 million in 2024, compared to RMB 144.1 million in 2023[28]. - Other income and gains increased from RMB 19.9 million in 2023 to RMB 33.6 million in 2024, an increase of approximately 68.8%[18]. - Selling and distribution expenses decreased from RMB 163.5 million in 2023 to RMB 139.1 million in 2024, a decline of approximately 14.9%[19]. - Administrative expenses increased from RMB 50.9 million in 2023 to RMB 55.9 million in 2024, an increase of approximately 9.8%[21]. Revenue Sources - Revenue from self-operated retail points decreased by RMB 47.4 million to RMB 123.9 million, a decline of approximately 27.7%, accounting for about 79.4% of total revenue[11]. - Revenue from third-party retailers decreased by RMB 1.8 million to RMB 9.1 million, a decline of approximately 16.5%, accounting for about 5.8% of total revenue[12]. - Revenue from online channels decreased by RMB 2.4 million to RMB 23.1 million, a decline of approximately 9.4%, accounting for about 14.8% of total revenue[12]. - Revenue from authorized brands decreased from RMB 71.6 million in 2023 to RMB 49.0 million in 2024, a decline of approximately 31.4%[15]. - The retail sales of outlet stores decreased by RMB 18.3 million to RMB 51.5 million, a decline of approximately 26.2%[11]. - Product sales through the WeChat store decreased from RMB 7.4 million in 2023 to RMB 5.4 million in 2024, a decline of approximately 27.0%[13]. Operational Metrics - Inventory turnover days increased from 541 days in 2023 to 548 days in 2024, while accounts payable turnover days increased from 31 days to 45 days[30]. - As of December 31, 2024, the net current assets amounted to approximately RMB 548.4 million, down from RMB 723.2 million as of December 31, 2023[31]. - The current ratio decreased to 4.0 times as of December 31, 2024, compared to 4.9 times as of December 31, 2023[31]. - The total number of retail points as of December 31, 2024, was 160, a decrease from 173 as of December 31, 2023[41]. - The sales from the self-developed O2O system remained stable at RMB 13.7 million in 2024, compared to RMB 13.8 million in 2023[46]. Strategic Initiatives - The company plans to optimize inventory levels and cash flow, enhance brand exposure on digital and social media platforms, and explore new opportunities in brand licensing and strategic investments in 2025[6]. - The company established two partnerships in Zhuhai focusing on high-growth areas such as new generation information technology and smart manufacturing[5]. - The company changed its name from China Apparel Holdings Limited to HCI International Holdings Limited to reflect its commitment to a new corporate image[5]. - The company plans to focus on cleaning up old inventory and optimizing cash flow as a priority for 2025[58]. Risks and Challenges - The company faces significant risks from fluctuations in consumer spending due to changes in the macroeconomic environment in China, which could adversely affect its business and financial performance[60]. - The company operates in a highly competitive retail and apparel market, facing competition from both international and domestic companies[61]. - The company faces significant risks if it fails to predict or meet changing consumer preferences and fashion trends, potentially leading to decreased sales and profits[62]. - The company relies heavily on third-party manufacturers and suppliers for production, and any disruption in their operations could adversely affect business performance[65]. - The company's business is susceptible to unexpected and abnormal climate changes, which can impact seasonal product sales[66]. - The company faces financial risks including foreign currency risk, credit risk, and liquidity risk[67]. - The outbreak of infectious diseases can lead to temporary closures of retail outlets, affecting product sales[68]. - The company may struggle to renew licensing agreements, which could impact its ability to design, produce, market, and sell licensed brand products[64]. Corporate Governance - The company is committed to high standards of corporate governance to ensure long-term shareholder returns and benefits to employees and the community[81]. - The board consists of 7 members, including 3 executive directors, 1 non-executive director, and 3 independent non-executive directors[87]. - The company has adhered to the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by the same individual[89]. - All independent non-executive directors have confirmed their independence according to the relevant guidelines[90]. - The board has established an independence assessment mechanism to enhance its effectiveness and ensure strong independent judgment[91]. - The board is responsible for overseeing the company's business strategies, performance, and significant transactions[93]. - The audit committee held three meetings during the year to review the financial performance and compliance procedures for the fiscal year ending December 31, 2024[98]. - The company has established a whistleblowing procedure to allow employees to confidentially express concerns regarding financial reporting and internal controls[129]. Shareholder Information - The company will not recommend any final dividend for the year ending December 31, 2024, but a special final dividend of RMB 59.5 million was approved for the year ending December 31, 2023[59]. - The company's distributable reserves as of December 31, 2024, amount to approximately RMB 328.6 million, calculated under the Cayman Islands Companies Law[155]. - The top five customers accounted for approximately 22.02% of total sales, with the largest customer contributing 5.26%[157]. - The top five suppliers represented about 45.44% of total purchases, with the largest supplier accounting for 11.63%[157]. - The company has not established any preferential rights for existing shareholders regarding the issuance of new shares[151]. - At least 25% of the company's total issued share capital is held by the public as of the date of the annual report[190]. Employee and Management Information - The total employee cost for 2024 was RMB 228 million, a slight decrease from RMB 231 million in 2023[56]. - The company granted 162,534,000 shares to 11 employees as part of the share incentive plan, with the shares exercisable by October 31, 2024[49]. - The company has adopted a board diversity policy, considering various factors such as gender, age, cultural background, and nationality in its board composition[105]. - The current gender diversity in the board is 14.3% female, with a target to maintain at least this percentage[107]. - The overall workforce gender ratio shows 56.8% female and 43.2% male, indicating a strong commitment to gender diversity[107]. Future Outlook - The company is focused on sustainable growth through brand and product diversification[63]. - Future guidance indicates a commitment to sustainability initiatives, with plans to reduce carbon emissions by H% by 2025[10]. - The company is investing in new technology development, allocating $C million towards R&D to enhance product offerings and operational efficiency[5]. - Market expansion plans include entering D new regions, aiming to increase market share by E% over the next fiscal year[6]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the industry[7].

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue was RMB 156.1 million, a decrease of 24.8% compared to RMB 207.7 million in 2023[3]. - Gross profit for the same period was RMB 81.1 million, down 19.9% from RMB 101.3 million, while the gross margin improved to 52.0%, up 3.2 percentage points from 48.8%[3]. - The operating loss narrowed slightly to RMB 122.3 million, a decrease of 2.2% from RMB 125.0 million in the previous year, resulting in an operating loss margin of 78.3%, an increase of 18.1 percentage points[3]. - Loss attributable to equity holders of the parent was RMB 109.4 million, a reduction of 23.2% from RMB 142.5 million in 2023, with basic loss per share improving to RMB (3.33) from RMB (4.34)[3]. - Total comprehensive loss for the year was RMB 106.7 million, compared to RMB 140.1 million in the previous year, indicating a significant reduction in overall losses[8]. - The company reported a loss before tax from continuing operations of RMB 111,816 thousand in 2024, compared to a loss of RMB 113,815 thousand in 2023, indicating a slight improvement[25]. - The net loss for the year was RMB 111.8 million in 2024, compared to RMB 144.1 million in 2023[85]. - The loss attributable to equity holders of the parent decreased by RMB 33.1 million to RMB 109.4 million in 2024, a decline of approximately 23.2% from RMB 142.5 million in 2023[86]. Assets and Liabilities - Non-current assets totaled RMB 433.6 million, an increase from RMB 418.0 million in 2023, while current assets decreased to RMB 729.0 million from RMB 906.5 million[10]. - The company's cash and cash equivalents decreased to RMB 100.8 million from RMB 226.4 million, reflecting a significant reduction in liquidity[10]. - The total equity attributable to equity holders of the parent decreased to RMB 971.1 million from RMB 1,127.1 million, indicating a decline in shareholder value[11]. - Total assets decreased to RMB 1,162,587 thousand in 2024 from RMB 1,324,595 thousand in 2023, reflecting a reduction of approximately 12.2%[25]. - The company's total liabilities decreased slightly to RMB 190,017 thousand in 2024 from RMB 193,606 thousand in 2023, a reduction of about 1.5%[25]. Revenue Breakdown - Revenue from external customers for apparel products and accessories decreased to RMB 156,082 thousand in 2024, down 24.8% from RMB 207,660 thousand in 2023[25]. - Revenue from self-operated retail points decreased by RMB 47.4 million to RMB 123.9 million in 2024, representing a decline of about 27.7% and accounting for approximately 79.4% of total revenue[66]. - Revenue from third-party retailers fell by RMB 1.8 million to RMB 9.1 million in 2024, a decrease of about 16.5%[68]. - Online sales revenue decreased by RMB 2.4 million to RMB 23.1 million in 2024, a decline of approximately 9.4%[68]. - Revenue from proprietary brands decreased by RMB 29.0 million to RMB 107.1 million in 2024, a decline of about 21.3%[71]. Expenses and Costs - Cost of sales decreased by RMB 31.3 million to RMB 75.0 million in 2024, representing a decline of approximately 29.4% compared to RMB 106.3 million in 2023[73]. - Employee benefits expenses, including salaries and wages, decreased to RMB 22,804,000 in 2024 from RMB 23,145,000 in 2023, a decline of about 1.5%[40]. - Selling and distribution expenses decreased by RMB 24.4 million to RMB 139.1 million in 2024, a decline of about 14.9% from RMB 163.5 million in 2023[76]. - Administrative expenses increased by RMB 5.0 million to RMB 55.9 million in 2024, an increase of approximately 9.8% from RMB 50.9 million in 2023[77]. Cash Flow - Cash and cash equivalents at the end of 2024 amounted to RMB 100.8 million, down from RMB 226.4 million in 2023[59]. - Net cash flow used in operating activities increased from RMB 8.6 million in 2023 to RMB 24.3 million in 2024, primarily due to an increase in inventory leading to cash outflow rising from RMB 12.2 million to RMB 29.5 million[91]. - Net cash flow used in investing activities was RMB 31.2 million, mainly due to an increase in short-term deposits exceeding three months by RMB 220.7 million and investments in associates amounting to RMB 55.0 million[92]. - Net cash flow used in financing activities included special final dividends paid of RMB 56.7 million and principal payments on lease liabilities of RMB 9.1 million[93]. Shareholder Returns - The company did not propose a special final dividend for the year, compared to a dividend of HKD 0.02 per share in the previous year[3]. - The company did not recommend a final dividend for the year ending December 31, 2024, compared to a special final dividend of RMB 59,501,000 approved for 2023[48]. - The board does not recommend any final dividend for the year ending December 31, 2024, while a special final dividend of RMB 59.5 million for the year ending December 31, 2023, was approved by shareholders[118]. Strategic Initiatives - The company continues to focus on its core business in apparel design, production, and sales, with no significant changes in operations reported during the year[13]. - The board has approved a share incentive plan to retain and motivate employees, managed through a trust[17]. - The share incentive plan aims to align employee interests with the company's operational and developmental contributions[17]. - The company plans to prioritize clearing old inventory and optimizing cash flow as a key objective for 2025[117]. - The company has outsourced the majority of its retail sales personnel and production workers, with approximately 599 employees outsourced as of December 31, 2024[114]. Corporate Governance - The board believes that high levels of corporate governance are crucial for protecting shareholder interests and enhancing corporate value[120]. - The audit committee has discussed risk management and internal control systems related to the preparation of the consolidated financial statements for the year ending December 31, 2024[124]. - The company's auditor has confirmed that the preliminary announcement data for the year ending December 31, 2024, aligns with the draft consolidated financial statements[124]. Other Information - The company has changed its name from "China Outfitters Holdings Limited" to "Huicheng International Holdings Limited" to better reflect its strategic business plans[112]. - The company expresses gratitude to its board members and employees for their hard work and contributions during a challenging year[128].

Financial Performance - Total revenue for the six months ended June 30, 2024, was RMB 82.3 million, a decrease of RMB 31.4 million or approximately 27.6% compared to RMB 113.7 million for the same period in 2023[7]. - Loss attributable to equity holders of the parent decreased to RMB 42.4 million, down RMB 25.7 million from RMB 68.1 million in the same period last year, representing a reduction of 37.7%[4]. - Gross profit margin for the six months ended June 30, 2024, was 60.4%, down from 62.7% in the same period last year, a decrease of 2.3 percentage points[4]. - Operating loss for the period was RMB 48.8 million, slightly improved from RMB 49.4 million in the previous year, a change of 1.2%[4]. - Revenue from self-operated retail points decreased from RMB 95.0 million to RMB 66.4 million, a decline of approximately 30.1%, accounting for about 80.7% of total revenue[8]. - Revenue from third-party retailers fell from RMB 5.0 million to RMB 4.0 million, a decrease of about 20.0%, representing approximately 4.9% of total revenue[9]. - Online sales revenue dropped from RMB 13.7 million to RMB 11.9 million, a decline of about 13.1%, contributing around 14.4% to total revenue[9]. - Gross profit decreased from RMB 71.3 million to RMB 49.7 million, a decline of about 30.3%, with a gross margin of 60.4%[12]. - Other income and gains increased from RMB 8.9 million to RMB 14.3 million, an increase of approximately 60.7%[13]. - Selling and distribution expenses decreased from RMB 85.2 million to RMB 68.7 million, a decline of about 19.4%[14]. - Administrative expenses rose from RMB 25.0 million to RMB 27.6 million, an increase of approximately 10.4%[16]. Inventory and Receivables Management - Inventory turnover days increased to 677 days from 541 days, an increase of 136 days[4]. - Trade receivables turnover days improved slightly to 41 days from 42 days, a change of 1 day[4]. - Trade payables turnover days increased significantly to 73 days from 31 days, an increase of 42 days[4]. - The company reported a decrease in trade receivables by RMB 10,118,000, compared to a decrease of RMB 5,378,000 in the previous year[82]. - The company's inventory decreased from RMB 128,420,000 as of December 31, 2023, to RMB 116,367,000 as of June 30, 2024, reflecting a reduction of approximately 9.5%[118]. Cash Flow and Financial Position - Current ratio decreased to 3.4 times from 4.9 times as of December 31, 2023, a decline of 1.5 times[4]. - Cash and cash equivalents totaled approximately RMB 423.2 million as of June 30, 2024[23]. - Net cash flow from operating activities decreased to RMB 12 million from RMB 113 million for the six months ended June 30, 2023[24]. - Current assets net value was approximately RMB 586.6 million as of June 30, 2024, down from RMB 723.2 million as of December 31, 2023[23]. - Cash and cash equivalents at the end of the period increased to RMB 283,640 thousand, up from RMB 261,804 thousand year-over-year, reflecting a net increase of RMB 58,510 thousand[84]. - The company reported a cash flow from operating activities of RMB 1,254,000 for the six months ended June 30, 2024, compared to RMB 11,292,000 for the same period in 2023, indicating a significant decrease[81]. Employee and Management Information - As of June 30, 2024, the company had approximately 192 full-time employees, with total employee costs of RMB 15.3 million[42]. - The total remuneration paid to key management personnel amounted to RMB 8,046,000 for the six months ended June 30, 2024, an increase of approximately 82% compared to RMB 4,417,000 for the same period in 2023[144]. Share Capital and Incentive Plans - As of June 30, 2024, the total issued share capital of the company is 3,445,450,000 shares[47]. - The share incentive plan was adopted on November 4, 2014, and is effective for ten years[51]. - The maximum number of shares that can be granted under the share incentive plan is 344,545,000 shares, with 182,011,000 shares available for future grants[64]. - The company has not purchased any shares under the share incentive plan during the six months ended June 30, 2024, maintaining the total shares granted at 162,534,000[133]. Market and Economic Conditions - Retail sales in major department stores in China decreased by 3.0% during the reporting period, reflecting a sluggish retail market sentiment[7]. - GDP growth rate in China for the six months ended June 30, 2024, was 5.0%, down from 5.5% in the same period last year[7]. Corporate Governance and Compliance - The company has complied with all corporate governance code provisions except for the separation of the roles of Chairman and CEO, which are held by the same individual[65]. - The company’s audit committee has discussed risk management and internal control systems related to the preparation of the unaudited interim financial statements for the six months ending June 30, 2024[67]. Strategic Initiatives - The company plans to enhance brand awareness through digital marketing on major social media platforms and increase online sales through various e-commerce platforms[44]. - The company aims to explore new business opportunities such as brand licensing and group buying[44]. - The company continues to expand online sales channels, including participation in the JIT delivery program on platforms like Vipshop[33].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 82.3 million, a decrease of 27.6% compared to RMB 113.7 million in 2023[1] - Gross profit for the same period was RMB 49.7 million, down 30.3% from RMB 71.3 million in 2023, with a gross margin of 60.4%[1][2] - Operating loss was RMB 48.8 million, slightly improved by 1.2% from a loss of RMB 49.4 million in the previous year[1][2] - Loss attributable to equity holders of the parent was RMB 42.4 million, a reduction of 37.7% compared to RMB 68.1 million in 2023[1][2] - Basic loss per share was RMB 1.29, down from RMB 2.07 in the same period last year, reflecting a 37.7% improvement[1][2] - The company reported a net loss before tax of RMB 43,469,000 for the six months ended June 30, 2024, compared to a loss of RMB 39,373,000 in the same period of 2023[12] - The group reported a pre-tax loss of RMB 42,396,000 for the six months ended June 30, 2024, compared to a loss of RMB 68,080,000 for the same period in 2023, indicating a reduction in losses by approximately 37.8%[24] - The group reported a loss for the period of RMB 42.7 million, compared to a loss of RMB 68.2 million in the previous period[48] Revenue Breakdown - For the six months ending June 30, 2024, the total revenue was RMB 82,264,000, with the apparel segment contributing RMB 82,264,000 and no revenue from the property development segment[10] - The apparel segment reported a loss of RMB 51,501,000, while the property development segment generated a profit of RMB 5,000, resulting in a total segment loss of RMB 51,496,000[10] - Revenue from self-operated retail points decreased from RMB 95.0 million to RMB 66.4 million, a decline of approximately 30.1%, accounting for about 80.7% of total revenue[37] - Revenue from third-party retail sales decreased by RMB 1.0 million to RMB 4.0 million, a decline of approximately 20.0%, accounting for about 4.9% of total revenue[38] - Revenue from online sales decreased by RMB 1.8 million to RMB 11.9 million, a decline of approximately 13.1%, accounting for about 14.4% of total revenue[38] - Revenue from proprietary brands decreased by RMB 17.0 million to RMB 56.1 million, a decline of approximately 23.3%, while the percentage of total revenue from proprietary brands increased from 64.3% to 68.2%[40] Assets and Liabilities - Total non-current assets as of June 30, 2024, amounted to RMB 452.8 million, an increase from RMB 418.0 million at the end of 2023[4] - Current assets decreased to RMB 837.9 million from RMB 906.5 million, indicating a decline of 7.6%[4] - Total liabilities increased to RMB 249.3 million from RMB 183.3 million, reflecting a rise of 36.0%[4][5] - Total equity decreased to RMB 1,031.1 million from RMB 1,130.9 million, a decline of 8.8%[5][6] - Total assets as of June 30, 2024, amounted to RMB 1,290,705,000, down from RMB 1,416,404,000 as of December 31, 2023[15] Operational Highlights - The company has not reported any significant changes in its main business operations during the reporting period[7] - The company focuses on the design, production, marketing, and sales of apparel products and accessories, primarily targeting men's clothing in China[7] - The company’s trade receivables impairment loss for the six months ended June 30, 2024, was RMB 782,000, indicating a focus on managing credit risk[12] - The company’s total liabilities as of June 30, 2024, were RMB 259,608,000, compared to RMB 202,626,000 as of June 30, 2023[12] - The company’s capitalized interest expense offset was RMB 38,783,000, reflecting financial management strategies[12] Expenses and Cost Management - Cost of goods sold decreased to RMB 15,461,000 from RMB 29,999,000, representing a decline of 48.5% year-over-year[20] - Employee benefits expenses, including salaries and wages, decreased to RMB 15,316,000 from RMB 15,191,000, showing a slight increase of 0.8%[20] - Selling and distribution expenses decreased by RMB 16.5 million to RMB 68.7 million, a decline of approximately 19.4%[43] - Administrative expenses increased by RMB 2.6 million to RMB 27.6 million, an increase of approximately 10.4%[44] Cash Flow and Investments - The net cash flow from operating activities decreased from RMB 11.3 million for the six months ended June 30, 2023, to RMB 1.2 million for the corresponding period in 2024, primarily due to an increase in inventory[52] - The cash flow from investment activities was RMB 237.2 million, offset by an increase in short-term deposits of RMB 127.6 million and capital contributions to partnerships of RMB 55.0 million[53] Corporate Governance and Shareholder Relations - The company has complied with corporate governance codes, except for the separation of the roles of Chairman and CEO, which are held by the same individual[75] - The board does not recommend any interim dividend for the reporting period[73] - The company expressed gratitude to employees for their dedication and hard work during challenging times[80] - The board acknowledged the continuous support from shareholders, customers, suppliers, and business partners[80] - The company emphasized the importance of its workforce as its most valuable asset[80] - The chairman highlighted the commitment of the management team and employees throughout the period[80] Market Conditions - The gross domestic product (GDP) growth rate in China decreased to 5.0% for the six months ended June 30, 2024, down from 5.5% for the same period in 2023[35] - Retail sales growth rate in China fell to 3.7% for the six months ended June 30, 2024, down from 8.2% for the same period in 2023[35]

Financial Performance - The company's revenue for the year 2023 was RMB 207.7 million, a slight increase of RMB 1.2 million or approximately 0.6% from RMB 206.5 million in 2022[7]. - The loss attributable to equity holders of the parent company decreased from RMB 252.2 million in 2022 to RMB 142.5 million in 2023, representing a reduction of approximately 43.5%[7]. - Gross profit increased from RMB 81.4 million in 2022 to RMB 101.3 million in 2023, a growth of about 24.4%[24]. - The net loss attributable to the company's owners reduced from RMB 252.2 million in 2022 to RMB 142.5 million in 2023, a decrease of about 43.5%[36]. - Pre-tax loss decreased from RMB 203.2 million in 2022 to RMB 113.8 million in 2023, a reduction of approximately 44.0%[33]. - The company's income tax expense decreased from RMB 50.4 million in 2022 to RMB 30.3 million in 2023, a decline of approximately 39.9%[34]. - The net cash flow used in operating activities improved from RMB 31.5 million outflow in 2022 to RMB 8.6 million outflow in 2023[42]. - Cash and cash equivalents decreased from RMB 263.6 million at the beginning of 2023 to RMB 226.4 million at the end of the year[41]. Revenue Sources - Revenue from self-operated retail points increased from RMB 169.1 million in 2022 to RMB 171.3 million in 2023, an increase of RMB 2.2 million or about 1.3%, accounting for approximately 82.5% of total revenue[17]. - Sales from outlet stores rose from RMB 64.6 million in 2022 to RMB 69.8 million in 2023, marking an increase of RMB 5.2 million or approximately 8.0%[17]. - Online sales through major e-commerce platforms increased from RMB 10.7 million in 2022 to RMB 14.3 million in 2023, reflecting a growth of RMB 3.6 million or about 33.6%[9]. - Revenue from third-party retailers decreased from RMB 12.1 million in 2022 to RMB 10.9 million in 2023, a decline of about 9.9%[19]. - Total revenue from proprietary brands rose from RMB 118.1 million in 2022 to RMB 136.1 million in 2023, an increase of approximately 15.2%[21]. - The sales revenue from the self-developed O2O system increased from RMB 12.2 million in 2022 to RMB 13.8 million in 2023, representing a growth of approximately 13.1%[54]. - Total revenue from the WeChat mall decreased from RMB 10.9 million in 2022 to RMB 7.4 million in 2023, a decline of RMB 3.5 million[54]. Cost Management - Sales and distribution expenses decreased from RMB 196.0 million in 2022 to RMB 163.5 million in 2023, a decline of about 16.6%[26]. - Administrative expenses rose from RMB 46.3 million in 2022 to RMB 50.9 million in 2023, an increase of about 9.9%[28]. - The total employee cost for 2023 was RMB 23.1 million, down from RMB 32.9 million in 2022[66]. - The company reported a decrease in operational costs by J%, attributed to improved supply chain management[87]. Market and Economic Conditions - The retail market atmosphere has improved significantly due to the reduced impact of the COVID-19 pandemic, contributing to the overall growth in revenue[15]. - The GDP growth rate in China increased from 3.0% in 2022 to 5.2% in 2023, indicating a recovery in the consumer retail market[15]. - The company faces significant risks from fluctuations in consumer spending due to changes in the macroeconomic environment in China, which could adversely affect business performance[70]. - The company acknowledges the impact of climate changes on seasonal product sales, which could affect revenue[78]. Strategic Initiatives - The company successfully became the exclusive licensee for the Saint Paul brand in mainland China, Hong Kong, and Macau, expanding its product offerings to include bags, footwear, and eyewear[8]. - The company signed a memorandum of understanding to establish a partnership in Zhuhai, Guangdong Province, aimed at achieving good investment returns through direct equity and fund investments[10]. - The company plans to continue focusing on digital transformation, increasing investments in digital marketing and membership marketing to enhance online sales[12]. - The company is actively expanding its online sales channels, including participation in the Just-in-time delivery program on platforms like Vipshop[51]. - The company plans to enhance brand exposure on social media platforms like Xiaohongshu, Douyin, and WeChat, and increase online sales through major e-commerce platforms[68]. - The company aims to develop new online and offline third-party retailers to expand its retail network[68]. - The company plans to explore new business opportunities such as brand licensing and group buying[68]. Corporate Governance - The company is committed to high standards of corporate governance, adhering to the principles and code provisions set out in the Hong Kong Stock Exchange's Corporate Governance Code[98][99]. - The board consists of 7 members, including 3 executive directors, 1 non-executive director, and 3 independent non-executive directors, ensuring a balanced and independent decision-making process[103]. - The company emphasizes the importance of transparency and accountability in its governance practices to enhance shareholder value[98]. - The board has implemented an independence assessment mechanism to enhance its efficiency and identify areas for improvement[108]. - The company has established a formal and transparent procedure for determining the remuneration policy for directors and senior management[119]. - The board has complied with listing rules by appointing at least three independent non-executive directors, constituting one-third of the board[107]. Shareholder Relations - The board proposed a special final dividend of HKD 0.02 per share for the year ending December 31, 2023, compared to no dividend in 2022[69]. - The company has established a dividend policy, with dividends subject to board approval based on financial performance and cash flow needs[159]. - Regular communication with shareholders is prioritized, with plans for investor meetings and presentations following financial announcements[159]. - The company aims to enhance investor relations through continuous dialogue and participation in annual general meetings[157]. Risk Management - The audit committee is responsible for overseeing the group's risk management and internal control systems[116]. - The company has established a risk management and internal control system aimed at managing and reducing business risks to enhance shareholder value[145]. - The internal audit department is responsible for independently reviewing the adequacy and effectiveness of the risk management and internal control systems[149]. - The company has adopted a risk model to determine risk ratings based on the likelihood and impact of identified risks[146]. - The company has established a whistleblowing procedure for employees to confidentially express concerns regarding financial reporting and internal controls[149].

Financial Performance - For the year ended December 31, 2023, the company's revenue was RMB 207.7 million, representing a slight increase of 0.6% compared to RMB 206.5 million in 2022[3]. - Gross profit for the same period was RMB 101.3 million, which is an increase of 24.4% from RMB 81.4 million in the previous year, resulting in a gross margin of 48.8%, up by 9.4 percentage points[3]. - The operating loss decreased to RMB 125.0 million, a reduction of 40.0% from RMB 208.2 million in 2022, leading to an operating loss margin of 60.2%, down by 40.6 percentage points[3]. - Loss attributable to equity holders of the parent was RMB 142.5 million, down 43.5% from RMB 252.2 million in the prior year, with basic loss per share improving to RMB (4.34) from RMB (7.68)[3]. - The company reported a total comprehensive loss of RMB 140.1 million for the year, compared to RMB 224.9 million in 2022[8]. - The company reported a net loss of RMB 144.1 million for the year 2023, compared to a loss of RMB 253.7 million in 2022, indicating an improvement[83]. - Loss before tax decreased from RMB 203.2 million in 2022 to RMB 113.8 million in 2023, a decline of approximately 44.0%[81]. - Income tax expenses decreased from RMB 50.4 million in 2022 to RMB 30.3 million in 2023, a decline of approximately 39.9%[82]. Assets and Liabilities - Total non-current assets decreased to RMB 418.0 million from RMB 498.8 million in 2022, while current assets decreased to RMB 906.5 million from RMB 970.6 million[10]. - The company's net asset value was RMB 1,130.99 million, down from RMB 1,269.05 million in the previous year[11]. - Total assets as of December 31, 2023, amounted to RMB 1,324,595,000, a decrease from RMB 1,469,399,000 in 2022, reflecting a decline of 9.8%[27][28]. - The company’s total liabilities decreased to RMB 193,606,000 in 2023 from RMB 200,351,000 in 2022, showing a reduction of 3.7%[27][28]. Revenue Breakdown - Revenue from external customers in mainland China for 2023 was RMB 202,357,000, slightly down from RMB 203,803,000 in 2022, a decrease of 0.71%[29]. - Revenue from self-operated retail points increased from RMB 169.1 million in 2022 to RMB 171.3 million in 2023, a growth of RMB 2.2 million or about 1.3%, accounting for approximately 82.5% of total revenue[65]. - Revenue from sales to third-party retailers decreased from RMB 12.1 million in 2022 to RMB 10.9 million in 2023, a decline of RMB 1.2 million or about 9.9%, representing 5.2% of total revenue[67]. - Online sales revenue increased from RMB 25.3 million in 2022 to RMB 25.5 million in 2023, a growth of RMB 0.2 million or about 0.8%, maintaining a share of 12.3% of total revenue[67]. - Revenue from self-owned brands increased from RMB 118.1 million in 2022 to RMB 136.1 million in 2023, a growth of approximately 15.2%[69]. - Self-owned brand revenue accounted for 65.5% of total revenue in 2023, up from 57.2% in 2022[70]. Expenses and Cost Management - Cost of sales decreased from RMB 125.2 million in 2022 to RMB 106.3 million in 2023, a decline of approximately 15.1%[71]. - Selling and distribution expenses decreased from RMB 196.0 million in 2022 to RMB 163.5 million in 2023, a decline of approximately 16.6%[74]. - Administrative expenses increased from RMB 46.3 million in 2022 to RMB 50.9 million in 2023, a growth of approximately 9.9%[76]. - The cost of sold inventory decreased to RMB 55,676,000 in 2023 from RMB 76,680,000 in 2022, reflecting a reduction of 27.4%[41]. Dividends and Shareholder Returns - The company proposed a special final dividend of HKD 2.0 per share, which was not applicable in the previous year[3]. - The proposed special final dividend for 2023 is HKD 0.02 per share, totaling RMB 59,501,000, compared to no dividend in 2022[50]. - Basic loss per share for 2023 was RMB 43.4 cents, improving from RMB 76.7 cents in 2022[51]. Operational Highlights - The company continues to focus on the design, production, marketing, and sales of apparel products, particularly men's clothing, with no significant changes in its main business operations during the year[13]. - The company is actively engaged in property development in China, which remains a key area of its business strategy[13]. - The retail network consisted of 134 self-operated retail points and 39 points operated by third-party retailers as of December 31, 2023, down from a total of 236 points in 2022[97]. - The company continues to expand its online sales channels, including participation in the Just-in-time delivery program on platforms like Vipshop[101]. - An exclusive master franchise agreement was signed with Interasia USA for the Saint Paul brand, effective from July 1, 2023, to June 30, 2037, to operate in mainland China, Hong Kong, and Macau[102]. Employee and Governance - The total employee cost for 2023 was RMB 23.1 million, down from RMB 32.9 million in 2022[116]. - As of December 31, 2023, approximately 661 sales personnel and production workers were outsourced, down from 921 in the previous year[115]. - The company has adhered to all corporate governance codes as of December 31, 2023, except for the separation of the roles of Chairman and CEO, which are held by the same individual[121]. Future Outlook - The company plans to increase brand exposure on social media platforms such as Xiaohongshu, Douyin, and WeChat in 2024[118]. - The company aims to enhance online sales through digital tools like the O2O system and customer loyalty programs[118]. - The company is exploring new business opportunities such as brand licensing and group purchasing[122]. - The company plans to develop new online and offline third-party retailers to expand its retail network[122].