Financial Performance - For the year ended December 31, 2023, revenue was approximately HKD 172.5 million, a decrease of 26.1% compared to approximately HKD 233.3 million for the year ended December 31, 2022[3]. - Gross profit for the year ended December 31, 2023, was approximately HKD 25.1 million, down 54.2% from approximately HKD 54.8 million for the previous year[3]. - The company's loss attributable to owners for the year ended December 31, 2023, was approximately HKD 27.9 million, a decrease of 39.2% compared to approximately HKD 45.9 million for the year ended December 31, 2022[3]. - Basic and diluted loss per share for the year ended December 31, 2023, was HKD 3.17, compared to HKD 6.07 for the previous year[5]. - The company reported an operating loss of approximately HKD 26.8 million for the year ended December 31, 2023, compared to an operating loss of approximately HKD 43.9 million for the previous year[4]. - Total revenue decreased by approximately 26.1% to about HKD 172.5 million for the reporting year[41]. - Gross profit was approximately HKD 25.1 million, a decrease of 54.2% compared to the previous year[41]. - Net loss for the year was approximately HKD 27.9 million, a reduction of about HKD 45.2 million from the previous year's loss[41]. Dividend and Equity - The board of directors decided not to declare a final dividend for the year ended December 31, 2023[3]. - The company did not declare or recommend any dividends for the year ended December 31, 2023[27]. - The total equity attributable to owners decreased to HKD 84.8 million as of December 31, 2023, from HKD 112.7 million in the previous year[8]. Assets and Liabilities - Total assets less current liabilities amounted to HKD 98.1 million as of December 31, 2023, down from HKD 120.2 million in the previous year[7]. - The company's cash and bank balances decreased to HKD 10.3 million as of December 31, 2023, from HKD 18.5 million a year earlier[7]. - Trade receivables amounted to HKD 2.28 million, down from HKD 8.72 million in the previous year[31]. - The total amount of receivable loans was HKD 5.8 million, with an annual interest rate of 8%[51]. - The expected credit loss provision for receivable loans was approximately HKD 10.2 million, an increase from HKD 5.5 million in 2022[56]. - The group's cash and cash equivalents totaled approximately HKD 10.3 million, liabilities amounted to approximately HKD 33.0 million, and total equity was approximately HKD 84.8 million, compared to HKD 18.5 million, HKD 27.9 million, and HKD 112.7 million respectively in 2022[72]. Sales and Revenue Breakdown - Sales of handbags contributed HKD 168,285,000, down from HKD 187,740,000 in the previous year, representing a decline of approximately 10%[22]. - Sales of natural fragrances, skincare products, and fashion accessories dropped significantly to HKD 4,240,000 from HKD 45,540,000, a decrease of about 91%[22]. - Handbags accounted for over 97.6% of total revenue, with sales from unused products generating approximately HKD 131.7 million, representing 76.3% of total revenue[59]. Expenses - Sales expenses for the year ended December 31, 2023, were approximately HKD 28.9 million, a decrease of 39.9% from approximately HKD 48.1 million in the previous year[3]. - Administrative and other operating expenses were approximately HKD 17.1 million, a decrease of about HKD 12.6 million year-on-year, accounting for 9.9% of revenue[68]. - Financing costs reached approximately HKD 1.3 million, an increase of HKD 0.3 million compared to the previous year[69]. Market and Economic Conditions - The estimated retail sales value in December 2023 was HKD 36.3 billion, an increase of 7.8% compared to December 2022[40]. - The unemployment rate in December 2023 was 2.9%, indicating an improvement in the local labor market[40]. Governance and Compliance - The group has adopted the corporate governance code and has complied with all applicable provisions during the reporting year, except for a few instances of short notice for board meetings[83]. - The board of directors includes executive directors and independent non-executive directors, ensuring a diverse governance structure[89]. - The company is focused on maintaining compliance with the Hong Kong Stock Exchange regulations[89]. Future Outlook - The company aims to enhance capital utilization and generate additional investment returns from idle funds[44]. - The company has maintained a prudent investment approach due to recent volatility in the Hong Kong financial market[44]. - The report will include detailed financial data and performance metrics for the fiscal year[89].

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 100,004,000, a decrease of 15.4% compared to HKD 118,363,000 in the same period of 2022[10] - Gross profit for the same period was HKD 17,072,000, down 46.4% from HKD 31,841,000 year-on-year[10] - The company reported a loss before tax of HKD 12,034,000, improving from a loss of HKD 24,034,000 in the previous year, indicating a 50% reduction in losses[10] - Total comprehensive loss for the period was HKD 12,043,000, compared to HKD 23,993,000 in the prior year, reflecting a 49.8% improvement[14] - The company reported a net loss of HKD 12,034,000 for the six months ended June 30, 2023, compared to a net loss of HKD 24,201,000 for the same period in 2022, indicating a 50% improvement in losses year-over-year[18] - The net loss recorded was approximately HKD 12 million, a reduction of 49.9% compared to the previous year[62] - The company reported a loss attributable to owners of approximately HKD 12.0 million for the six months ended June 30, 2023, a 50.4% reduction from a loss of HKD 24.2 million in the same period of 2022[84] Assets and Liabilities - Non-current assets decreased to HKD 17,351,000 from HKD 23,297,000, a decline of 25.5%[17] - Current assets increased to HKD 114,601,000 from HKD 117,285,000, a slight decrease of 2.3%[17] - The company's cash and cash equivalents dropped to HKD 9,668,000 from HKD 18,479,000, a decrease of 47.6%[17] - The net asset value decreased to HKD 100,675,000 from HKD 112,718,000, a decline of 10.7%[17] - The company’s total equity as of June 30, 2023, was HKD 100,675,000, down from HKD 112,718,000 at the beginning of the year, reflecting a decrease of approximately 10.7%[18] - The company’s accumulated losses increased to HKD (182,414,000) as of June 30, 2023, compared to HKD (170,380,000) at the beginning of the year, indicating a worsening financial position[18] Cash Flow - Cash and cash equivalents decreased by HKD 8,802,000 during the first half of 2023, compared to a decrease of HKD 11,864,000 in the same period of 2022, showing a reduction in cash outflow[22] - The net cash flow used in operating activities was HKD (10,766,000) for the first half of 2023, slightly higher than HKD (10,674,000) in the previous year, indicating stable operational cash flow[22] - The company’s cash and bank balances stood at HKD 9,668,000 at the end of June 2023, compared to HKD 16,732,000 at the end of June 2022, representing a decline of 42.1% year-over-year[22] - The company’s financing activities generated a net cash inflow of HKD 2,027,000 in the first half of 2023, a significant increase from HKD 119,000 in the same period of 2022[22] - The company’s investment activities used a net cash flow of HKD (63,000) in the first half of 2023, a significant improvement from HKD (1,309,000) in the same period of 2022[22] Revenue Breakdown - Sales of handbags accounted for HKD 96,336,000, while sales of natural fragrances, skincare products, and fashion accessories dropped to HKD 3,668,000 from HKD 20,894,000 year-on-year[33] - Revenue from the Hong Kong market reached approximately HKD 100 million, accounting for 100% of total revenue[67] - Sales from handbags, the most important product category, accounted for over 96.3% of total revenue[67] Expenses - Selling expenses for the period were approximately HKD 15.5 million, accounting for 15.5% of revenue, down from HKD 23.4 million or 19.7% of revenue in the previous year[80] - Administrative and other operating expenses were approximately HKD 8.2 million, representing 8.2% of revenue, a decrease of about HKD 9.4 million compared to the previous year[81] - The cost of sales for the same period was approximately HKD 82.9 million, a reduction of 4.1% year-on-year, consistent with the decrease in revenue[72] Governance and Compliance - The company has complied with all applicable provisions of the Corporate Governance Code during the six months ended June 30, 2023, except for certain disclosures regarding board meeting notifications[107] - The Audit Committee has reviewed the financial statements for the six months ended June 30, 2023, and discussed audit, risk management, and internal control matters with management[110] - The company has established a formal whistleblowing policy to encourage employees to raise concerns internally without fear of retaliation[117] - The board has confirmed the effectiveness of the risk management and internal control systems during the review period[117] - The company has adopted the standard code for securities trading by directors, and all directors have confirmed compliance during the reporting period[109] Future Outlook - The group anticipates a rebound in local consumption due to government initiatives such as the electronic consumption voucher program, alongside a decrease in unemployment rates and increased vaccination rates[96] - The management plans to adopt a more prudent business policy to navigate unprecedented challenges while maintaining a leading position in the luxury handbag and accessories trade[96]

Financial Performance - Milan Station Holdings Limited reported a gross profit margin of 23.5% for the year ended December 31, 2022, down from 28.9% in 2021[6]. - The company experienced a net loss margin of (19.4)% in 2022, compared to a profit margin of 9.0% in the previous year[6]. - Return on assets was (32.1)% in 2022, a significant decline from 12.8% in 2021[6]. - The group's total revenue decreased by approximately 4.8% to about HKD 233.3 million, down from approximately HKD 245 million last year[34]. - The gross profit was approximately HKD 54.8 million, a decrease of 22.7% compared to the previous year, with a gross margin of 23.5%[39]. - The net loss for the year was approximately HKD 45.2 million, compared to a profit of approximately HKD 22.2 million last year, primarily due to an increase in fair value losses on financial assets of about HKD 22.1 million[26]. - Revenue from the Hong Kong market accounted for 100% of total revenue, with no revenue generated from mainland China or Macau during the year[34]. - Sales of handbags, the most important product category, accounted for over 80.5% of total revenue, with sales decreasing to approximately HKD 187.7 million from HKD 200.6 million[36]. - The cost of sales increased by 2.5% to approximately HKD 178.5 million, primarily consisting of inventory costs from suppliers[38]. - The company reported a net loss attributable to owners of approximately HKD 45.9 million for the year ended December 31, 2022, compared to a profit of HKD 20.5 million in 2021, resulting in a loss per share of approximately HKD 0.607[49]. Market and Business Strategy - The company plans to open retail stores in local shopping malls in Hong Kong and negotiate rent reductions to control rental costs[17]. - Milan Station aims to expand its business in the second-hand handbag market and luxury watch trade while cautiously developing the mainland China market[18]. - The retail market in Hong Kong is showing signs of recovery, with government support measures expected to further boost the market[17]. - The unemployment rate in Hong Kong decreased to 3.5% during the last quarter of 2022, indicating an improvement in the local labor market[23]. - The total retail sales value in June 2022 was estimated at HKD 33.6 billion, reflecting a 1.2% increase compared to June 2021[23]. - The company will continue to monitor market trends and optimize its corporate strategy to create long-term value for shareholders[18]. Inventory and Assets - Total inventory as of December 31, 2022, was approximately HKD 44.5 million, down from HKD 49.8 million in 2021, with inventory turnover days increasing to 96 days from 91 days[40]. - For handbag products, inventory aging showed a decrease in the 0 to 90 days category to HKD 9.394 million in 2022 from HKD 16.039 million in 2021, while inventory over 1 year increased to HKD 18.419 million from HKD 13.807 million[41]. - The company holds financial assets with a fair value of HKD 20.1 million, with a recognized fair value loss of approximately HKD 22.1 million[26]. Corporate Governance and Management - The board consists of six members, including three executive directors and three independent non-executive directors, with one female director, achieving gender diversity at the board level[73]. - The company emphasizes a strong corporate culture aligned with its vision and business strategy, focusing on integrity and ethical standards[66]. - The board held four regular meetings during the reporting year, ensuring timely responses to investment opportunities and internal matters[73]. - The company has implemented training programs to enhance necessary standards of ethics and integrity among its employees[67]. - The company has adopted the corporate governance code as its own governance practices, ensuring effective accountability[64]. - The board has authorized executive directors and senior management to handle daily responsibilities, ensuring efficient operational management[73]. - The board of directors has demonstrated adequate commitment to the group's affairs, with all executive directors being suitably qualified and experienced to fulfill their roles effectively[74]. - The company has implemented a board diversity policy, emphasizing the importance of diverse skills, experiences, and perspectives among board members to enhance decision-making[84]. Risk Management and Compliance - The board is responsible for risk management and internal control systems, which aim to reduce operational risks rather than eliminate them[109]. - The company has not been aware of any significant non-compliance with relevant laws and regulations during the year[188]. - The company is committed to compliance with legal and regulatory requirements and has established policies to monitor adherence[110]. - The audit committee has reviewed the financial statements for the year ended December 31, 2022, and discussed audit, internal control, and risk management matters with management[189]. Environmental, Social, and Governance (ESG) - The company emphasizes the importance of environmental, social, and governance (ESG) management and reporting, with the board responsible for overseeing these issues[193]. - The environmental, social, and governance report for the year ended December 31, 2022, reflects the company's sustainable development performance and challenges[194]. - The company actively engages with stakeholders to enhance transparency and facilitate investor relations[200]. - An investor relations policy has been established to ensure timely and fair access to information regarding the company[200]. - The board regularly reviews ESG matters and takes appropriate measures to improve the company's ESG performance[199]. Employee and Director Compensation - The company has implemented a compensation and benefits policy to retain loyal employees, recognizing them as a key asset[176]. - The remuneration committee, consisting mainly of independent non-executive directors, held three meetings during the reporting year to assess director compensation and review senior management performance[88]. - As of December 31, 2022, there were 4 senior management members earning between 0 to 1,000,000 HKD and 1 member earning between 1,000,001 to 3,000,000 HKD[91]. - The compensation committee reviewed and recommended the year-end bonuses and compensation packages for executive directors and senior management, including salary adjustments[89].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何 部分內容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 MILAN STATION HOLDINGS LIMITED 米 蘭 站 控 股 有 限 公司 （於開曼群島註冊成立的有限公司） （股份代號：1150） 截至二零二二年十二月三十一日止年度 全年業績公佈 財務摘要 • 截至二零二二年十二月三十一日止年度的收益為約233.3百萬港元，較截至 二零二一年十二月三十一日止年度的約245.0百萬港元減少4.8%。 • 截至二零二二年十二月三十一日止年度的毛利為約54.8百萬港元，較截至 二零二一年十二月三十一日止年度的約70.9百萬港元減少22.7%。 • 截至二零二二年十二月三十一日止年度的銷售開支為約48.1百萬港元，較截 至二零二一年十二月三十一日止年度的約51.1百萬港元減少5.9%。 • 截至二零二二年十二月三十一日止年度的本公司擁有人應佔虧損為約45.9 百萬港元，較截至二零二一年十二月三十一日止年度的溢利約20.5百萬港元 ...

米蘭站 Milan Station 米 蘭 站 控 股 有 限 公 司 MILAN STATION HOLDINGS LIMITED (Incorporated in Cayman Islands with limited liability) STOCK CODE : 1150 INTERIM 2022 中期報告 目錄 米蘭站控股有限公司 中期報告 2022 頁次 公司資料 2 | --- | |------------------------------| | | | 簡明綜合損益表 | | 簡明綜合損益及其他全面收益表 | | 簡明綜合財務狀況表 | | 簡明綜合權益變動表 | | 簡明綜合現金流量表 | | 簡明綜合中期財務報表附註 | | 管理層討論與分析 | | 其他資料 | 4 5 6 7 8 9 18 25 1 公司資料 米蘭站控股有限公司 中期報告 2022 | --- | --- | |----------------------------------------|----------------------------------| | 董事會 | 核數師 | | 執行董事 | 長青（ ...

Financial Performance - Gross profit margin increased to 28.9% in 2021 from 24.1% in 2020[13] - Net profit margin improved to 9.0% in 2021, recovering from a loss of (1.8)% in 2020[13] - Return on assets rose to 12.8% in 2021, compared to (1.9)% in 2020[13] - Return on equity increased to 16.4% in 2021, up from (2.8)% in 2020[13] - Total revenue increased by approximately 39.2% to about HKD 245 million, compared to approximately HKD 176 million in the previous year[25] - The gross profit rose to approximately HKD 70.9 million, reflecting a 66.8% increase year-on-year[25] - The net loss turned into a net profit of approximately HKD 22.2 million, primarily due to an increase in revenue and fair value gains[25] - For the year ended December 31, 2021, total revenue was approximately HKD 245.0 million, representing a 39.2% increase from HKD 176.0 million in 2020[37] - The sales cost for the year was approximately HKD 174.1 million, an increase of 30.4% year-on-year, consistent with revenue growth[39] - Gross profit increased by HKD 28.4 million to approximately HKD 70.9 million, with a gross margin rising from 24.1% to 28.9%[40] Liquidity and Financial Position - Current ratio improved to 4.5 in 2021 from 3.2 in 2020, indicating better liquidity[13] - The group’s debt-to-equity ratio, current ratio, and quick ratio as of December 31, 2021, were approximately 13.7%, 4.5, and 2.9 respectively, compared to 19%, 3.2, and 2.3 as of December 31, 2020[51] - As of December 31, 2021, the total cash and cash equivalents, total liabilities, and total equity of the group were approximately HKD 28.6 million, HKD 38.2 million, and HKD 133.8 million respectively, compared to HKD 67.6 million, HKD 53.4 million, and HKD 133.3 million as of December 31, 2020[51] - The company held financial assets with a fair value of HKD 36.1 million as of December 31, 2021, with fair value gains and profits from sales amounting to approximately HKD 14.2 million and HKD 3.2 million, respectively[27] Market and Growth Strategies - The company aims to strengthen its market position in Hong Kong and expand into the second-hand handbag and luxury watch markets[19] - Future growth strategies include opening retail stores in local shopping malls and negotiating rent reductions to control costs[19] - The company plans to continue monitoring market trends and invest in brand and business development for sustainable growth[18] - The outlook for 2022 remains cautious due to ongoing pandemic challenges, but recovery is anticipated if vaccination efforts succeed[18] Sales and Revenue Insights - Sales in Hong Kong increased by 40.8% to approximately HKD 242.9 million, driven by five "Milan Station" retail stores and eight "THANN" retail stores[27] - The Macau market revenue decreased by 40.0% to approximately HKD 2.1 million, impacted by the recovery of the gaming and tourism sectors[29] - The handbag category accounted for over 81.9% of total revenue, with sales from unsold products increasing to approximately HKD 192.4 million, representing 78.5% of total revenue[35] - The retail sales value in December 2021 was estimated at HKD 33.3 billion, a 6.1% increase compared to December 2020, indicating a recovery in the retail sector[23] Inventory Management - Inventory turnover days decreased to 91 days in 2021 from 107 days in 2020, reflecting improved inventory management[13] - Total inventory as of December 31, 2021, was HKD 49.8 million, up from HKD 37.8 million in 2020, with inventory turnover days decreasing from 107 days to 91 days[41] - The group’s inventory includes handbags, skincare products, and other related items, with future salability dependent on changing consumer preferences and fashion trends[196] Corporate Governance and Management - The company has adhered to all applicable provisions of the corporate governance code during the reporting year[65] - The board consists of six members, including three executive directors and three independent non-executive directors, with at least one independent director possessing professional and accounting qualifications as required by listing rules[68] - The company aims to enhance shareholder value through effective governance and decision-making processes[78] - The company encourages continuous professional development for directors, requiring them to submit signed training records quarterly, although no specific training courses were reported for the year[76] - The company has adopted a diversity policy, emphasizing the importance of diverse perspectives and skills in meeting the company's business needs[79] Risk Management and Compliance - The company is committed to compliance with relevant laws and regulations, with no known significant non-compliance issues reported during the year[185] - The company faces strategic, operational, and financial risks due to unpredictable external market conditions[176] - The board confirmed the effectiveness of the risk management and internal control systems as of December 31, 2021[108][116] Employee and Compensation Policies - The number of employees increased to 69 from 61 in the previous year, reflecting the company's growth strategy[50] - Selling expenses amounted to approximately HKD 51.1 million, representing 20.9% of total revenue, up from 18.5% in 2020[46] - The company regularly reviews compensation and benefits policies to retain loyal employees, considering individual performance and industry standards[173] Environmental and Social Responsibility - The company has adopted an environmental and social responsibility policy, implementing various energy-saving and waste-reduction measures in daily operations[172] - The company actively engages with stakeholders to share its environmental and social responsibility initiatives[172] Auditor and Financial Reporting - The company has appointed a new auditor, Changqing (Hong Kong) CPA Limited, effective January 18, 2022, following the resignation of the previous auditor[187] - The Audit Committee held two meetings during the reporting year and reviewed the financial reporting procedures and internal control systems[95][97] - The auditor's fees for the year amounted to HKD 620,000 for audit services[98]

Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 112.83 million, an increase of 36.7% compared to HKD 82.53 million in the same period of 2020[14] - Gross profit for the same period was HKD 29.56 million, representing a gross margin of 26.2%, up from HKD 22.68 million in 2020[14] - The net profit for the period was HKD 10.10 million, compared to a net loss of HKD 2.14 million in the previous year, marking a significant turnaround[14] - Basic earnings per share for the period was HKD 1.35, compared to a loss per share of HKD 0.73 in 2020[14] - Total comprehensive income for the six months ended June 30, 2021, was HKD 10,099,000, reflecting a significant recovery from a total comprehensive loss of HKD 2,137,000 in the previous year[22] - The net profit turned from a loss of approximately HKD 2.1 million to a profit of approximately HKD 10.1 million, attributed to sales of handbags and wellness products[67] - The profit attributable to the company's owners was approximately HKD 9.6 million, a 694.3% increase from a loss of approximately HKD 1.6 million in the same period last year[88] Assets and Liabilities - Total assets as of June 30, 2021, were HKD 135.99 million, slightly down from HKD 137.47 million at the end of 2020[20] - Current liabilities decreased to HKD 33.48 million from HKD 43.00 million at the end of 2020, indicating improved liquidity[20] - The company reported a total equity of HKD 122.65 million, an increase from HKD 112.55 million at the end of 2020[20] - The company had a cash balance of HKD 46,777,000 at the end of June 30, 2021, down from HKD 67,576,000 at the beginning of the period[27] - As of June 30, 2021, the total cash and cash equivalents, total liabilities, and shareholders' equity were approximately HKD 46.8 million, HKD 42.8 million, and HKD 122.7 million respectively, compared to HKD 67.6 million, HKD 53.4 million, and HKD 112.6 million as of December 31, 2020[23] Market and Sales - Revenue from external customers for the six months ended June 30, 2021, was HKD 112,827,000, compared to HKD 82,530,000 for the same period in 2020, indicating a growth of approximately 36.7%[38] - Revenue from the Hong Kong market rose by 39% to approximately HKD 110.8 million, driven by six "Milan Station" retail stores and nine "THANN" retail stores[68] - Handbags accounted for over 77% of total revenue, with sales from unused products rising to approximately HKD 87.3 million, up from approximately HKD 62.6 million[73] - Revenue from the Hong Kong market reached approximately HKD 110.8 million, representing about 98.2% of total revenue, while Macau revenue decreased by 28.6% to approximately HKD 2 million[73] Expenses and Costs - Total operating expenses, excluding directors' remuneration, increased to HKD 11,500,000 for the six months ended June 30, 2021, from HKD 8,453,000 in 2020, representing a 36.2% increase[43] - Cost of sales was approximately HKD 83.3 million, a 39.1% increase compared to the previous year, aligning with the revenue increase[77] - Selling expenses amounted to approximately HKD 17.3 million, accounting for 15.3% of revenue, an increase from 17.3% in the previous year[84] - Administrative and other operating expenses were approximately HKD 13 million, representing 11.5% of revenue, an increase of about HKD 1 million from the previous year[85] Cash Flow and Investments - The company’s operating cash flow for the six months ended June 30, 2021, was a net outflow of HKD 15,292,000, compared to an inflow of HKD 10,699,000 in the same period of 2020[27] - The group recognized government subsidies related to Covid-19 amounting to HKD 100,000 for the six months ended June 30, 2021, down from HKD 1,399,000 in the same period of 2020[41] - The group held significant investments with a fair value of HKD 18.57 million as of June 30, 2021, which accounted for approximately 11.3% of total assets[99] - The group reported a fair value gain of HKD 4.09 million on investments during the first half of 2021[99] Future Outlook and Strategy - The company plans to continue expanding its market presence and developing new products to drive future growth[14] - The management expressed optimism about future performance, citing a strong recovery in consumer demand post-pandemic[14] - The management anticipates a rebound in local consumption due to declining unemployment rates and increased vaccination rates, despite uncertainties from geopolitical tensions and the Delta variant[100] - The group continues to focus on cost control and has opened new stores at lower rents in better locations[71] Governance and Compliance - The company has complied with all applicable provisions of the Corporate Governance Code during the reporting period[113] - The Audit Committee reviewed the financial statements for the six months ended June 30, 2021, discussing audit, risk management, and internal control matters[116] - The company has established a formal whistleblowing policy to encourage employees to report concerns without fear of retaliation[120] - The Board confirmed the effectiveness of the risk management and internal control systems as of June 30, 2021[120]

Financial Performance - Gross profit margin increased to 24.1% in 2020 from 20.6% in 2019[16] - Net loss margin improved to (1.8)% in 2020 compared to (10.3)% in 2019[16] - The group's total revenue decreased by approximately 24.0% to about HKD 176.0 million for the year[26] - The group's gross profit was approximately HKD 42.5 million, a decrease of 11.1% compared to the previous year[26] - The net loss for the year decreased by 86.6% to HKD 3.2 million, attributed to reduced depreciation of right-of-use assets and effective cost control measures[26] - Total revenue decreased to approximately HKD 176.0 million, a 24.0% decline from HKD 231.6 million last year[35] - Handbags accounted for over 83.6% of total revenue, with sales of HKD 147.1 million, down 27.0% from HKD 201.4 million[37] - Revenue from the Hong Kong market fell by 20.5% to approximately HKD 172.5 million, primarily from five "Milan Station" retail stores and eight "THANN" retail stores[28] Liquidity and Financial Stability - Current ratio rose to 3.2 in 2020 from 2.1 in 2019, indicating better liquidity[16] - The asset-liability ratio decreased to 19% in 2020 from 29.2% in 2019, reflecting improved financial stability[16] - The company's debt-to-equity ratio, current ratio, and quick ratio as of December 31, 2020, were approximately 19%, 3.2, and 2.3, respectively, compared to 29.2%, 2.1, and 1.0 as of December 31, 2019[51] - As of December 31, 2020, the total cash and cash equivalents, total liabilities, and total equity were approximately HKD 67.6 million, HKD 53.4 million, and HKD 113.3 million, respectively, compared to approximately HKD 8.4 million, HKD 41.2 million, and HKD 61.4 million as of December 31, 2019[51] Market Conditions - The retail market in Hong Kong is expected to remain challenging in 2021 due to ongoing travel restrictions[20] - Future recovery of the local economy is contingent on the pandemic's development and vaccination outcomes[20] - The retail market in Hong Kong experienced a significant decline, with total retail sales value estimated at HKD 326.5 billion for the year, down 24.3% year-on-year[24] - The unemployment rate in Hong Kong surged to 6.6% in the fourth quarter, the highest in 16 years, with an annual average of 5.9%[25] - The Macau market revenue decreased by 76.0% to approximately HKD 3.5 million, reflecting the impact of the pandemic on tourism[30] Inventory Management - Inventory turnover days increased to 107 days in 2020 from 81 days in 2019, indicating slower inventory movement[16] - Total inventory as of December 31, 2020, was HKD 37.8 million, down from HKD 41.0 million in 2019, with inventory turnover days increasing to 107 days from 81 days[41] Corporate Governance - The board of directors has adopted the corporate governance code as part of its governance practices[64] - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a balance of skills and experience[68] - The company aims to comply with corporate governance codes, including timely notifications for board meetings[69] - The board's meeting records are properly documented and made available for review by all directors[72] - The company has established a formal whistleblowing policy to encourage employees to report concerns without fear of retaliation, with no complaints regarding financial misconduct reported during the review period[105] Risk Management - Major risks faced by the company include strategic, operational, and financial risks[192] - The company regularly reviews its operations to mitigate risks related to fraud, errors, omissions, and compliance issues[194] - The board confirmed the effectiveness of the risk management and internal control systems as of December 31, 2020, ensuring that significant risks are managed to an acceptable level[105] Future Plans - The company plans to open new retail stores in favorable locations with lower rents[20] - The company will continue to monitor market trends and adjust its retail store portfolio accordingly[19] - The company aims to enhance capital utilization of idle funds to generate additional investment returns[20] - The company plans to continue exploring opportunities for acquisitions to enhance its brand portfolio and attract more potential customers[22] Employee and Management Information - The total number of employees as of December 31, 2020, was 61, down from 68 in 2019[50] - The remuneration committee consists of three members, primarily independent non-executive directors, and held two meetings during the reporting year[83] - As of December 31, 2020, three senior management members received annual compensation of up to HKD 1,000,000, while one member received between HKD 1,000,001 and HKD 3,000,000[85] Shareholder Information - The company has a shareholder communication policy in place to facilitate engagement with shareholders and potential investors[107] - The company has maintained at least 25% of its issued share capital held by the public as of the report date[183] - The company has not declared a final dividend for the year ended December 31, 2020, consistent with the previous year[134] - The company has adopted a dividend policy, allowing for the declaration and distribution of dividends at the discretion of the board of directors, subject to shareholder approval[196] Audit and Compliance - The audit committee, established in April 2011, reviewed the financial reporting processes and internal controls, holding two meetings in the reporting year[92] - The company paid HKD 738,000 for audit services and HKD 162,000 for non-audit services to its auditor during the reporting year[97] - The company reported a total of HKD 900,000 in fees for audit and non-audit services, with HKD 738,000 for annual audit services and HKD 162,000 for tax services[98]

米 商 站 控 股 公 有 kifi 司 MILAN STATION HOLDINGS LIMITED (Incorporated in Cayman Islands with limited liability) -中期報告 INTERIM REPORT EXIT Stock Code: 1150 目錄 米蘭站控股有限公司 中期報告 2020 頁次 公司資料 2 | --- | |------------------------------| | | | 簡明綜合損益表 | | 簡明綜合損益及其他全面收益表 | | 簡明綜合財務狀況表 | | 簡明綜合權益變動表 | | 簡明綜合現金流量表 | | 簡明綜合中期財務報表附註 | | 管理層討論與分析 | | 其他資料 | 4 5 6 7 8 9 18 25 1 公司資料 米蘭站控股有限公司 中期報告 2020 | --- | --- | --- | |-------------------------------|--------------------------------|----------| | | | 公司資料 | | 董事會 | 核數師 | | ...

Financial Performance - Gross profit margin increased to 20.6% in 2019 from 19.5% in 2018[22] - Net loss margin improved to (10.3)% in 2019 compared to (15.1)% in 2018[22] - Return on assets was (23.5)% in 2019, an improvement from (34.8)% in 2018[22] - Return on equity improved to (39.4)% in 2019 from (49.8)% in 2018[22] - In 2019, the total revenue of Milan Station Holdings Limited decreased by approximately 12.4% to about HKD 231.6 million[33] - The gross profit for the year was approximately HKD 47.8 million, a decrease of 7.4% compared to the previous year[33] - The net loss for the year reduced by 40.1% to HKD 23.9 million, primarily due to the closure of unprofitable stores[33] - Total revenue decreased to approximately HKD 231.6 million, a decline of 12.4% compared to HKD 264.3 million last year[42] - Handbags accounted for over 87% of total revenue, with sales of HKD 201.4 million, down 16.5% from HKD 241.1 million[45] - Revenue from the Hong Kong market was approximately HKD 217 million, representing 93.7% of total revenue, down 13.3% from HKD 250.2 million[45] - The cost of sales for the year was approximately HKD 183.8 million, a decrease of 13.6% year-on-year[47] - Gross profit decreased by HKD 3.8 million to approximately HKD 47.8 million, with a slight increase in gross margin from 19.5% to 20.6%[48] Liquidity and Financial Ratios - Current ratio decreased to 2.1 in 2019 from 3.3 in 2018[22] - Quick ratio decreased to 1.0 in 2019 from 1.9 in 2018[22] - Debt to equity ratio increased to 29.2% in 2019 from 7.8% in 2018[22] - The group's asset-liability ratio, current ratio, and quick ratio as of December 31, 2019, were approximately 29.2%, 2.1, and 1.0, respectively[60] Market Conditions and Business Strategy - The company plans to enhance core business and seek profitable opportunities amid market uncertainties[26] - The ongoing U.S.-China trade tensions and local social events are expected to impact the economic outlook for 2020[26] - The company plans to continue expanding its retail presence in Hong Kong and explore opportunities for acquisitions to enhance its brand portfolio[31] - The company will maintain a cautious investment approach in light of recent market volatility and aim to improve capital utilization[35] - The management aims to enhance core business and seek better growth prospects while controlling costs and reviewing retail strategies[41] - The mid-term outlook for Hong Kong's economy remains optimistic, supported by national policies such as the Belt and Road Initiative and the Greater Bay Area development[40] Retail Performance - Sales in Hong Kong decreased by 13.3% to approximately HKD 217 million, driven by six "Milan Station" retail stores and seven "THANN" retail stores[35] - The total retail sales value in December 2019 was estimated at HKD 36.2 billion, down 19.4% compared to December 2018[31] - The total retail sales value for the entire year of 2019 was estimated at HKD 431.2 billion, a decline of 11.1% year-on-year[31] - The number of mainland Chinese tourists visiting Hong Kong decreased by 14.2% in 2019, with same-day visitors down 11.5% and overnight visitors down 18.5%[32] - The Macau market revenue increased by 3.5% to approximately HKD 14.6 million during the year[37] Corporate Governance - The board of directors consists of five members, including two executive directors and three independent non-executive directors, with at least one independent director possessing professional and accounting qualifications as required by the listing rules[77] - The company has complied with all applicable provisions of the corporate governance code during the reporting year, except as disclosed[74] - The board is responsible for leading and controlling the group, overseeing business strategies and performance[77] - The company has adopted a board diversity policy to ensure a balance of skills, experience, and perspectives among board members[88] - The company emphasizes the importance of maintaining high ethical standards and professional experience among board members[87] Audit and Risk Management - The audit committee reviewed the financial reporting procedures and internal control systems, holding two meetings during the reporting year[105] - The audit committee recommended the re-establishment of the internal audit department to the board[105] - The board confirmed the effectiveness of the risk management and internal control systems as of December 31, 2019[116] - The audit committee has reviewed the financial statements for the year ended December 31, 2019, and discussed audit, internal control, financial reporting, and risk management with management[198] Employee and Director Information - The group employed a total of 68 employees as of December 31, 2019, compared to 67 employees in 2018[59] - The company encourages directors to participate in continuous professional development, with training records maintained to assist in tracking participation[85] - As of December 31, 2019, there were 2 senior management members with annual compensation below HKD 1,000,000, and 1 member with compensation between HKD 1,000,001 and HKD 3,000,000[93] Shareholder and Financial Policies - The company has adopted a dividend policy, with any proposed dividends subject to the board's discretion and shareholder approval[192] - The company’s main business remains investment holding, with no significant changes during the year[125] - The company has a shareholder communication policy to ensure effective engagement with investors[118] - The company confirms compliance with the Listing Rules regarding continuing connected transactions, ensuring they are conducted in the ordinary course of business[174] Environmental and Social Responsibility - The company has implemented various energy-saving and waste-reduction measures to address environmental and social responsibilities[183]